Balrampur Chini Mills (BALRAMCHIN) Q4 96/97 earnings summary

Executive summary

• FY97 sales and other income reached Rs 246.17 crore; net profit rose to Rs 23.60 crore from Rs 19.53 crore YoY.

• Capacity expansion lifted cane crushing to 22.04 lakh tonnes and sugar production to 2.10 lakh tonnes, both reported as records.

• Higher operating profit absorbed sharply higher interest and depreciation; planned investment and debt restructuring support the next growth phase.

Financial highlights

• Sales were Rs 243.29 crore and other income Rs 2.88 crore; total income including stock adjustments was Rs 282.35 crore.

• Operating profit before interest, depreciation and tax rose to Rs 56.79 crore from Rs 35.82 crore; interest expense increased to Rs 21.19 crore from Rs 10.64 crore.

• PBT was Rs 27.10 crore and PAT Rs 23.60 crore, up from Rs 19.53 crore; FY97 tax provision was Rs 3.50 crore.

• Recommended dividend was 35%; Rs 17 crore was transferred to general reserve and Rs 2.26 crore carried forward.

Outlook and guidance

• FY98 national sugar production was expected to decline; cane supply to both factories was expected to remain stable due to timely farmer payments.

• Working capital was being restructured across debt products as interest rates softened, with the aim of reducing interest outgo.

• Plans included further balancing equipment at both sugar units and the alcohol division to improve utilisation and returns on assets.

• Longer-term growth plans called for another East UP factory, greenfield or acquired, funded through accruals and debt without equity dilution.