Balrampur Chini Q4 PAT declines 2% to Rs 236 cr

On a consolidated basis, Balrampur Chini Mills' net profit slipped 2.46% to Rs 235.50 crore on 41.41% decline in revenue from operations to Rs 1,019.35 crore in Q4 March 2021 over Q4 March 2020.

Profit before tax jumped 35.19% to Rs 306.24 crore in Q4 FY21 as against Rs 226.52 crore in Q4 FY20.

The company's revenue from sugar manufacturing tumbled 41.8% to Rs 1,031.30 in Q4 FY21 as against Rs 1,772.45 crore in Q4 FY20. Revenue from distillery business grew 18.1% to Rs 204.62 crore in Q4 March 2021 compared to Rs 173.25 crore in Q4 March 2020. The revenues from the distillery segment was substantially higher owing to higher volumes of B-heavy ethanol which was result of higher diversion of sugarcane for producing B-heavy molasses.

During the process, company sacrificed higher sugar which aided in reducing the sugar inventory and also reduced the dependence on financially assisted exports, reducing working capital requirements.

The revenues from co-generation slipped 3% to Rs 199.51 crore in Q4 FY21 as against Rs 205.76 crore in Q4 FY20.

During the financial year, Balrampur Chini Mills' consolidated net profit slipped 7.61% to Rs 479.79 crore on 1.48% rise in revenue from operations to Rs 4,811.65 crore in FY 2021 over FY 2020.

Commenting on the company's performance, Vivek Saraogi, the managing director (MD) of Balrampur Chini Mills (BCML), said: "we have delivered a healthy performance during the year ended 31st March 2021 despite the prevalent challenging environment due to pandemic in general and in the sugar sector in particular. While the government imposed certain restrictions and partial lockdowns in response to the second wave of COVID-19 cases, our industry witnessed limited impact as the standard operating procedures were already in place.

In a key development, the Board of Directors recently approved an investment of Rs 425 crore for the new 320 KLPD distillery facility that is scheduled to commence operations from December 2022. The investment would result in higher efficiency leading to better recovery of ethanol from juice which will add to the bottom line with a decent payback period.

We will continue to strengthen the Ethanol business of the company going forward as we believe Government's policy on ethanol is a game changer for the sector to become self sustainable. This will also enable us to produce only that much sugar which we can sale in the domestic market and the excess will get converted into ethanol. Over the last few years, on the back of structural changes in the industry we have delivered a very robust profitability which is sustainable. With the track record of prudent capital allocation, we believe, we can create value for all stakeholders going forward."

Balrampur Chini Mills is one of the largest integrated sugar companies in India. The allied businesses of the company comprise distillery operations and cogeneration of power. The company presently has ten sugar factories located in Uttar Pradesh (India) having an aggregate sugarcane crushing capacity of 76,500 TCD, distillery and co-generation operations of 520 KLPD and 168.7 MW (saleable) respectively.

The scrip closed almost flat at Rs 304.05 on the BSE. It traded in the range of 294.35 and 311.95 during the day.

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