Ballarpur Industries Stands On Sufficient Gains

Ballarpur Industries (BILT) a flagship company of Avantha Group and India's largest manufacturer of writing and printing paper has came out with its third quarter result for the quarter ended March 2014. The company which  follows July to June cycle as fiscal year posted a consolidated net profit of Rs 15.42 crore during Q3FY14, reporting a jump of 22.7% on yearly basis. The result was announced after the market hours yesterday (May 12, 2014) and on BSE the scrip of the company yesterday closed at Rs 14.66 up by 0.62% from its previous close. 

On consolidated basis, the company has posted a topline growth of more than 10% YoY basis to Rs 1374.5 crore during Q3FY14. The paper segment which contributes around 75% of the total revenue rose by 16.6% on yearly basis to Rs 1108.79 crore during the March quarter FY14. The operating profit of the company stood at Rs 253.42 crore during Q3FY14, reporting a jump of 15% on yearly basis. The reduction in other expenses helped the operating profit to surge during this quarter. The other expenses during this quarter plunged by 60.6% YoY basis to Rs 131 crore for Q3FY14. This has helped the EBITDA margin to increase by 73 basis points during Q3FY14 as compared to corresponding quarter of previous year. The company has posted a consolidated net profit of Rs 15.42 crore during Q3FY14, reporting a jump of 22.7% on yearly basis. 

On valuation front, the scrip of the company is trading at a price to earnings (P/E) of 14.8x. Today the scrip of the company on BSE opened at Rs 15.10 up by 3% from its previous close.