Balrampur Chini Sept quarter net climbs 193%

Kolkata-based Balrampur Chini Mills profit after tax for fourth quarter ending September 30, 2009 improved 193 per cent at Rs 42.7 crore from Rs 14.58 crore in the fourth-quarter last year. Net sales dropped to Rs 379.96 versus Rs 416.73 crore in the corresponding quarter in the preceding year. Earnings per share gained 192.7 per cent at Rs 1.67 as against 57 paise in the year ago quarter.

The standalone profit increased 193.1 per cent to Rs 42.73 crore for the quarter ending September 30, 2009. The sugar producer had reported net profit of Rs 14.58 crore in the corresponding quarter last year.

The revenues, on the other hand, dipped by 8.82 per cent to Rs 379.96 crore the quarter ending September. Revenues in the corresponding quarter last year were Rs 416.73 crore.

In the fourth quarter, revenue from sugar segment declined 5 per cent to Rs 355.85 crore from Rs 373.62 crore in the fourth-quarter of last year, while revenue from distillery segment dropped 40 per cent to Rs 24.99 crore from Rs 41.31 crore in the same period.

Commenting on the performance for fourth quarter and FY09, Vivek Saraogi, managing director, Balrampur Chini said, "The sugar division was the key contributor to growth in revenues, while power and distillery segments lend support to profitability. The company continues to benefit from firm realizations in the sugar segment, while volumes were subdued due to lower production in the previous season. Lower cane crushing also had an adverse impact on our allied businesses. The country is set to witness yet another sugar deficit season, with high demand supply mismatch and lower inventories. Therefore, we are entering the next season with a firm outlook on sugar prices. Our initial estimates suggest that we should be able to achieve higher growth for the Company in the next sugar season."

The company expects marginally higher sugar production in the 2009-10 sugar season. Preliminary outlook suggests better recoveries combined with higher crushing should enable Balrampur Chini improve production.

For the year ended September 30, 2009, its net profit rose to Rs 226.5 crore, as compared to Rs 97 crore logged in the previous corresponding period, said the company in a statement to Bombay Stock Exchange.

Balrampur Chini's total income similarly increased to Rs 1,706.27 crore from Rs 1,477.67 crore posted in the year ended September 30, 2008.

The company has announced a dividend of Rs 3 per equity share for the current fiscal (2009-2010).

In FY09, Balrampur Chini contracted 85,000 tonnes of raw sugar. Imported sugar to be processed in the 2009-10 sugar season.

The country is likely to import 5.6 millions tonnes of sugar to bridge the current gap between demand and supply. Currently, 4.5 million tonnes of raw sugar has been contracted, of which 2.6 million tonnes have already landed. Government extends duty-free import of raw sugar till December 2010 in a bid to facilitate further imports.