Balrampur Chini Q4 PAT declines 16% to Rs 241 cr

Balrampur Chini Mills reported a 16.2% decline in consolidated net profit to Rs 241.44 crore on 31% rise in net sales to Rs 1740 crore in Q4 March 2020 over Q4 March 2019.

Consolidated profit before tax stood at Rs 226.52 crore in Q4 March 2020, falling 2.4% from Rs 232 crore in the same period last year. Current tax expense fell 22.90% to Rs 38.21 crore during the quarter.

On a standalone basis, the company's net profit declined 17.8% to Rs 234.84 crore on 31% rise in net sales to Rs 1740 crore in Q4 March 2020 over Q4 March 2019. Revenue from operations for the quarter ended 31st March 2020 includes Rs 367.98 crore on export made under Maximum Admissible Export Quantity (MAEQ) allotted to the company. Financial assistance receivable from the Central against such exports amounting to Rs 177.46 crore has been accounted for under 'Other operating revenue' during the quarter ended 31 March 2020.

Standalone EBITDA stood at Rs 241.33 crore in Q4 March 2020, declining 6.6% from Rs 258.41 crore in Q4 March 2019. EBITDA margin deteriorated to 13.9% in Q4 March 2020 from 19.5% in Q4 March 2019. Lower EBIDTA during the quarter is on account of lower realization in Cogen segment as a result of reduction in power tariff by UPERC.

Commenting on the performance for Q4 & FY2020, Vivek Saraogi, managing director, Balrampur Chini Mills (BCML) said, "BCML has delivered excellent performance during the quarter and year ended 31 March 2020 despite the challenging environment prevailing in the sector. The sugar segment delivered a healthy performance on the back of higher volumes and steady realizations. The distillery segment delivered robust performance on account of higher volumes and better realizations. Our 160 KLPD distillery facility at Gularia commenced operations from 12 January 2020 which is expected to drive the segment's performance in the coming sugar season. Going forward continuance of all existing policies is required, which have yielded desired results for all stakeholders. All the manufacturing facilities of the company continued to remain fully operational even during the lock-down period. With prudent capital allocation, strong cash flows, improving macros, we are confident of creating sustainable value for all stakeholders going forward."

Separately, the sugar manufacturer announced that its board approved buyback of maximum one crore shares at Rs 180 each and fixed 3 July as record date for the same.

Shares of Balrampur Chini were up 0.71% at Rs 135.65 on BSE. Balrampur Chini Mills is an integrated sugar manufacturing company. The firm is engaged in the manufacturing of sugar, ethanol and power. The company's segments include sugar, distillery, co-generation and others.

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