Balrampur Chini Mills (BALRAMCHIN) Q4 02/03 earnings summary

Executive summary

• FY2002-03 profit after tax fell 38% as sugar realizations dropped sharply; ethanol, power generation, cost controls and lower-cost borrowing helped limit the impact.

• Cane crushed rose to 385.71 lakh quintals from 306.26 lakh, while sugar output increased to 40.02 lakh quintals from 30.18 lakh.

Financial highlights

• Gross turnover was Rs 667.58 crore versus Rs 548.95 crore; total income including stock adjustment was Rs 678.92 crore versus Rs 568.34 crore.

• PAT was Rs 29.51 crore versus Rs 47.34 crore; PBDIT was Rs 72.72 crore versus Rs 93.34 crore.

• EPS was Rs 15.55 versus Rs 24.81; proposed equity dividend was Rs 5.50 per share, or 55%.

Outlook and guidance

• Current-season cane crushing was expected to reach 450 lakh quintals, a company record.

• Haidergarh’s integrated 4,000 TCD sugar mill and 20 MW power plant, and Babhnan’s 60 KLPD distillery, were scheduled for commissioning by November 2003.

• Management expected stronger sugar prices and expanded in-house use of by-products to support sustainable earnings over the coming years.

• Ethanol blending was expected to begin from July 2003, with the blend level potentially rising from 5% to 10%.