Balrampur Chini profit tanks 83%

The country’s second largest sugar producer Balrampur Chini Mills today reported 83 per cent decline in its net profit at Rs 11.13 crore for the June quarter against Rs 66.29 crore in the year-ago quarter.

During the quarter under consideration, its total income marginally rose to Rs 540.32 crore as against Rs 538.07 crore q-o-q, Balrampur Chini Mills said in a filing to the Bombay Stock Exchange.

Balrampur said the Board of Industrial and Financial Reconstruction has sanctioned the scheme of arrangement for merger of the sugar unit of Indo Gulf Industries with it and has fixed August 24, 2010 as the record date for it.

According to the scheme, Balrampur will allot one share of Re 1 each for every 100 share of Indo Gulf.

Balrampur Chini has majority stake in Indo Gulf, which has a mill at Gonda in Uttar Pradesh with a cane-crushing capacity of 3,000 tonnes a day.

Balrampur has nine mills in eastern UP, with an aggregate crushing capacity of 73,500 tonnes a day.