Balrampur Chini Mills (BALRAMCHIN) Q4 04/05 earnings summary

Executive summary

• FY05 delivered record profit as stronger sugar realisations combined with higher seasonal crushing, improved recovery, cost control and downstream integration.

• PAT was Rs 125.06 Cr after a Rs 22.33 Cr exceptional differential cane-price charge; PBT before exceptional items was Rs 186.24 Cr.

Financial highlights

• FY05 turnover was Rs 930.26 Cr; PBDIT Rs 242.43 Cr, up 70.11% YoY; PBT before exceptional items Rs 186.24 Cr, up from Rs 79.36 Cr.

• PAT was Rs 125.06 Cr, up 106.76% YoY; EPS was Rs 6.16 on Re 1 shares after the share subdivision.

• Proposed dividend was Rs 1.60 per Re 1 share, equivalent to 160%; FY05 market capitalisation reached Rs 1,608.71 Cr and TSR was 131.58%.

Outlook and guidance

• FY06 sugar realisations were expected to remain firm as production rebounded to 175 lac tonnes from 126 lac tonnes while consumption continued to grow.

• 7,000 TCD Akbarpur plant targeted commissioning by November 2005; management expected at least 60 lac quintals of crushing in its first season.

• Installed capacity was targeted to rise from ~29,000 TCD to 38,000 TCD by the start of the FY06 season; record cane crushing was expected.

• Ethanol blending policy and renewable-power mandates were viewed as longer-term supports for distillery and cogeneration returns.