Balrampur Chini Mills (BALRAMCHIN) Q4 00/01 earnings summary

Executive summary

• FY 2000-01 PAT rose 107.31% to Rs 47.82 cr; the reported result included a closing-stock valuation change that reduced profit by Rs 16.13 cr versus the prior-year method.

• Integrated sugar operations expanded through higher crushing capacity, a planned distillery increase, bio-compost production and an 18 MW cogeneration project.

Financial highlights

• Sales reached Rs 613.88 cr versus Rs 393.48 cr; PBDIT was Rs 102.79 cr, pre-tax profit Rs 53.32 cr and PAT Rs 47.82 cr.

• Net profit per share was Rs 24.19 versus Rs 11.82; cash earnings per share were Rs 35.18 versus Rs 21.28.

• Sugar production rose to 3.70 lac tonnes from 2.92 lac tonnes; cane crushing increased to 36.01 lac tonnes from 29.49 lac tonnes.

• Net cash from operating activities was Rs 106.26 cr versus Rs 5.56 cr in FY 1999-2000.

Outlook and guidance

• Distillery capacity was planned to increase from 60 to 100 KLPD by December 2001; the 18 MW bagasse-based power plant was targeted for commissioning in 2002-03.

• Management expected deregulation and WTO-related subsidy and tariff changes to improve industry economics and create export opportunities over time.

• Enhanced interest savings from repayment of high-cost debt were expected to benefit FY 2001-02; lower borrowing costs were also targeted using the P1+ rating.