Brokerage ICICI Securities believes this would not have any impact on sugar companies' fundamentals.
With a favourable mix of ethanol towards B-heavy/juice (feedstock) coupled with higher sugar realisations; operating margins of sugar companies are expected to improve.
According to CRISIL, sugar mills are expected to see both revenue and profitability improve in the 2022 season (SS 2022; October 2021 to September 2022).
ICICI Securities believe domestic as well as global sugar prices would remain firm at least for next one year