Bilt Q3 net profit up 36%

BS 200 SCORECARD

Ballarpur Industries Ltd (Bilt), the country's largest paper company, today reported a profit after of Rs 44.21 crore for the third quarter ending March 31, 2005, up 36.11 per cent from Rs 32.48 crore during the same period last year.

The company's turnover rose 0.84 per cent to Rs 565.35 crore (Rs 560.63 crore). The substantial increase in the net profit was mainly due to the improved realisation in terms of price coupled with improved volume in sales.

Total revenue for the first nine months of the year was Rs 1669.83 crore, up by 0.65 per cent against Rs 1659.30 crore during the same period last year. Profit after tax was up 32.15 per cent to Rs 127.62 crore (Rs 96.57 crore).

Senior officials at Bilt said the Indian paper industry is fast integrating with the world markets and with the price in the international markets firming up, the overall realisation has improved in the domestic market too.

While the company had already increased price of uncoated paper in March and April 2005, a price increase for coated paper is also due. A price hike of 2-2.5 per cent is in the offing. The last price increase of coated paper was around four per cent (or Rs 2000 a tonne) in September 2004.

The company's board that met today gave its go-ahead for early retirement of the $45 million FCCB issue to be converted into FCCBs at more attractive terms. The fresh terms the company is in a position to negotiate will allow it to raise additional funds of $25 million through the swap.