SAKUMA - Sakuma Exports

📊 NSE: SAKUMA 🏢 Trading 📅 Last Updated: 12/14/2025 12:39

💰 Financial Performance

Revenue Growth by Segment

Consolidated operating income grew 7.76% YoY from INR 2,124.7 Cr in FY2024 to INR 2,289.6 Cr in FY2025. Sugar trading remains the primary revenue contributor, though institutional sales to domestic companies like Britannia and ITC are growing rapidly following the October 2023 sugar export ban.

Geographic Revenue Split

The company operates globally with a presence in India, the Middle East, South and South East Asia, Far East, Australia, Europe, and Africa. A significant portion of revenue is generated from sugar exports from India and other agro-commodities through overseas subsidiaries in Dubai, Singapore, Ghana, and Tanzania.

Profitability Margins

Profitability declined significantly in FY2025; PAT fell 63% from INR 40.0 Cr in FY2024 to INR 14.8 Cr in FY2025. Net profit margin (PAT/OI) dropped from 1.9% to 0.6% due to the shift from high-margin exports to lower-margin institutional domestic sales.

EBITDA Margin

Operating margin (OPBDIT/OI) moderated from 1.7% in FY2024 to 0.6% in FY2025. This thin margin is characteristic of the trading business model and was further squeezed by government restrictions on sugar exports.

Capital Expenditure

The company invested in a warehouse purchase in the Middle East during FY2022, which impacted short-term liquidity. Net worth stood at INR 707 Cr as of March 31, 2024, following equity infusions to support working capital.

Credit Rating & Borrowing

ICRA reaffirmed ratings of [ICRA]BBB (Stable) and [ICRA]A3+ on June 18, 2025. Borrowing costs are minimized through significant reliance on customer advances and creditors, maintaining a low gearing ratio of 0.15x in FY2024.

⚙️ Operational Drivers

Raw Materials

Traded commodities include Sugar (majority of revenue), Maize, Edible Oil, Pulses, Cotton, and Rice.

Import Sources

Maize is sourced directly from farmers in Eastern India. Sugar is primarily sourced from Indian mills, while other commodities are handled through subsidiaries in Dubai, Singapore, Ghana, and Tanzania.

Key Suppliers

Maize is procured directly from farmers in Eastern India during peak months (May and June). Sugar is sourced from various Indian sugar mills for both export and institutional supply.

Capacity Expansion

The company operates as a trading house rather than a manufacturer; expansion is focused on product diversification (Maize) and infrastructure (Middle East warehouse) rather than industrial capacity.

Raw Material Costs

As a trading entity, procurement costs represent the bulk of expenses. Operating margins are thin (0.6%) because the company operates on a back-to-back purchase and sale model to minimize inventory risk.

Manufacturing Efficiency

Not applicable as the company follows a trading business model. Efficiency is measured by working capital turnover and risk mitigation efficacy.

Logistics & Distribution

Distribution is global, utilizing insured storage and transportation to mitigate physical cargo risks across its niche markets in Asia, Australia, Europe, and Africa.

📈 Strategic Growth

Expected Growth Rate

7.80%

Growth Strategy

Growth is targeted through product diversification, specifically entering the maize trade to supply ethanol manufacturers. The company is also expanding its domestic institutional segment (supplying Britannia and ITC) to offset the impact of sugar export restrictions.

Products & Services

Trading services for agro-commodities including Sugar, Maize, Edible Oil, Pulses, Cotton, and Rice.

Brand Portfolio

Sakuma Exports Limited.

New Products/Services

Maize trading was introduced to complement the sugar business, sourcing in peak months (May/June) to supply ethanol manufacturers year-round.

Market Expansion

Expansion into the Middle East market was supported by a warehouse acquisition to facilitate regional trading and logistics.

Market Share & Ranking

Sakuma is recognized as one of the leading exporters of sugar from India.

🌍 External Factors

Industry Trends

The industry is shifting toward ethanol production in India, which Sakuma is capitalizing on by supplying maize to ethanol manufacturers. The industry faces high regulatory oversight regarding export quotas.

Competitive Landscape

Competes with large global agro-trading houses and domestic exporters in a highly fragmented and price-sensitive commodity market.

Competitive Moat

The moat is built on established relationships with reputed global clients and over two decades of promoter experience in agro-commodity trading. This is sustainable through robust risk mitigation policies.

Macro Economic Sensitivity

Highly sensitive to global trade disputes, sanctions, and international commodity price volatility which require dynamic sourcing and pricing strategies.

Consumer Behavior

Increasing demand from domestic institutional buyers for stable commodity supply chains, particularly in the food and energy (ethanol) sectors.

Geopolitical Risks

Geopolitical conflicts and trade barriers influence the international pricing landscape and can lead to supply chain disruptions for physical cargo.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Foreign Trade Policy 2021-2026, FEMA (Export of Goods & Services) Regulations 2015, and specific government mandates like the sugar export ban of October 2023.

Legal Contingencies

The Secretarial Audit report for FY2025 indicates no specific legal events or actions having a major bearing on the company's affairs during the audit period.

⚠️ Risk Analysis

Key Uncertainties

Regulatory risk is the primary uncertainty, as changes in Indian government policies regarding sugar export quotas directly impact the company's highest-margin business segment.