Balrampur Chini Mills (BALRAMCHIN) Q4 99/00 earnings summary

Executive summary

• FY1999-2000 turnover rose 32.38% to Rs. 393.48 cr, while PAT fell 46.56% to Rs. 23.07 cr amid floods, weak sugar and by-product prices, and heavy imports.

• Record cane crushing and higher recovery across all three plants lowered production costs; most seasonal output remained in closing inventory, with sales expected to support stronger FY2000-01 results.

Financial highlights

• Sales increased to Rs. 393.48 cr from Rs. 297.23 cr; total income including stock adjustments reached Rs. 444.91 cr, versus Rs. 321.72 cr.

• PAT was Rs. 23.07 cr versus Rs. 43.17 cr; PBDIT declined to Rs. 69.14 cr from Rs. 84.66 cr, down 18.33%.

• Closing sugar inventory rose to 2,113,426 quintals from 1,382,383 quintals; increased production was largely carried as stock at 31 March 2000.

Outlook and guidance

• Management expected FY2000-01 earnings to improve as higher production and recovery lowered costs and closing inventory was sold; the outlook was conditional on the recovery in sugar prices continuing.

• Crushing capacity was planned to rise to 24,000 TCD from 20,500 TCD, including Babhnan expansion to 8,000 TCD and Tulsipur to 6,000 TCD.

• A further 3,500 TCD of capacity was planned for Rs. 19 cr, compared with a stated greenfield cost of Rs. 55 cr for similar capacity.

• FY2000-01 Q1 turnover reached Rs. 102.92 cr versus Rs. 71.94 cr; PAT rose 248.46% to Rs. 10.21 cr.