Profitability of integrated sugar mills is likely to go up by 75-100 basis points (bps) this financial year due to high exports for the second consecutive season and increased supplies of ethanol for blending with petrol, according to a report.
High exports for the second sugar season (October -September) in a row, coupled with increased supplies of ethanol for blending with petrol will improve the operating profitability of integrated sugar mills by 75-100 bps to 13-14 per cent this fiscal, according to a Crisil Ratings report.
Also, the recent announcement by the government to advance the ethanol-petrol blending target of 20 per cent by two years to 2023, could help sustain this momentum over the medium term, it added.
