Balrampur Chini Q2 net profit at Rs 49 cr

Balrampur Chini Mills today reported a standalone net profit of Rs 48.88 crore during the quarter ended September 30 on higher sales from sugar business.

The company had clocked a net loss of Rs 39.44 crore in the same period last year, it said in a filing to the BSE.

Net profit rose as its sales from sugar business rose to Rs 824.32 crore during the second quarter of the current fiscal from Rs 470.10 crore in the year-ago period.

While revenue from co-generation units rose marginally to Rs 20.37 crore from Rs 17.65 crore, the business from distillery declined to Rs 59.08 crore from Rs 112.45 crore in the review period, it said.

Total income jumped to Rs 888.22 crore during the second quarted of 2012-13 fiscal from Rs 502.75 crore in the same period last year.

In the board meeting held today, the company said the Board of Directors has approved the scheme of merger of a sick company Khalilabad Sugar Mills Ltd (KSMPL) with itself subject to approval of the Board for Industrial and Financial Reconstruction (BIFR) and shareholders.

KSMPL will submit the draft scheme of merger along with a proposal for modification of the scheme for revival of KSMPL to BIFR and the monitory agency IDBI Bank, it said.

"The terms of the draft scheme will be finalised as and when the monitoring agency formulates a draft modified scheme and forwards the same to the BIFR for consideration," it said.

KSMPL has a sugar factory at Khalilabad in Uttar Pradesh with a crushing capacity of 2,500 tonnes per day. The sugar factory is situated near Babhnan sugar unit, which is core area of operation of the Balrampur Chini Mills.

"Therefore, it would be strategically advantageous for the company in its integrated module of operation," the company said.

The Kolkata-based company has sugar factories in Uttar Pradesh with an aggregate cane crushing capacity of 76,500 tonnes per day.

Shares of the company rose by 2.91% to settle at Rs 67.10 on the BSE today.