Balrampur Chini: Net Profit Ascends By 168% In Q4, But Tumbles On Yearly Basis

Balrampur Chini achieved this figure despite a decline in the top line as net revenue has marginally declined from Rs 744.7 crore in Q4FY13 to Rs 699.9 crore during Q4FY14. Company’s EBITDA also appreciate by 93% to Rs 1237 crore during the quarter. Despite the good show, company’s performance during FY14 remained quite bleak as its net revenue declined to Rs 2665 crore as against Rs 3275 crore earned during FY13. Net profit also got a beating and it nosedived to just Rs 3.64 crore in comparison to Rs 162 crore earned during FY13, a decline of 97.75%. 

Company’s performance was significant from the fact that the sugar industry is going through a rough patch, where on one hand production cost is rising and on the other sugar prices are quite subdued. This has lead to increase in the arrears of farmers on the producer to the tune of Rs 10000 crore. Though company’s performance in the sugar segment remained muted, its PBIT from sugar segment has increased by mammoth 904% to Rs 111 crore in Q4 as against meagre Rs 11 crore earned during same period last year. This growth came due to fluctuation in inventories of finished goods and work in progress, though company sales were down at17.83 lakh quintals as against 18.50 lakh tonne sold last year. 

In the distillery segment also company’s blended realization has improved to Rs 34.77 per BL as against Rs 28.89 per BL that maintained the margins in this segment despite lower sales in Ethanol, RS and ENA. Along with this cogeneration segment’s sales remained stagnant at Rs 157.3 crore in comparison to Rs 134.4 crore earned during Q4FY13. Highlight of the performance was the robust debt equity ratio of company that stands at 0.55 showing sound balance sheet. 

“During the year, the performance in the sugar segment was adversely affected owing to lower sugar sales realisations. The allied segments on the other hand delivered positive contribution to overall performance. Our integrated model continues to provide us valuable comfort from the uncertainties of the sector,” quoted Vivek Saraogi, MD, Balrampur Chini.