The Hindu Business Line : Ballarpur Ind posts 7.32% rise in net profit

New Delhi, Jan 23 Driven by a firm paper demand, Ballarpur Industries Ltd (BILT) has posted a 7.32 per cent rise in its net profit at Rs 66.7 crore for the second quarter ended December 31, 2007 as against Rs 62.1 crore the corresponding period last year.

The total revenues stood at Rs 617.13 crore as against Rs 602.47 crore in the same quarter of the previous fiscal, up 2.43 per cent. The company, which follows the July-June financial calendar, is upbeat that the growth in the sector will continue at eight per cent annually.

For the half-year ended December 2007, profit after tax stood at Rs 135.72 crore (Rs 120.41 crore), up 12.71 per cent.

Total revenue for the half-year period was at Rs 1,228.52 crore (Rs 1,179.99 crore).

The above consolidated results for the current quarter include the results of Sabah Forest Industries Sdn, Bhd, Malaysia (SFI), which was acquired by the company on March 16, 2007.

Briefing newspersons, Mr R.R. Vederah, Managing Director, said, “The paper industry has been growing in tandem with the GDP. The prices in the paper industry are likely to remain firm. However, the prices of coated paper may show a rise”.

The company is revamping its office supply and stationery business to keep up with the buoyant market demand. A slew of expansions are also underway and it has lined up a capex of over Rs 1,300 crore for the year.

“Our paper mill at Bhigwan is likely to be commissioned by November and the uncoated paper plant at Ballarsha, Maharashtra will be operational by June. The expanded capacity will add about 60,000 tonnes of paper and one lakh tonnes of uncoated paper”.

BILT had recently attracted private equity investments from Singapore’s GIC Special Investments Pte Ltd and JP Morgan’s Principal Investment Management Group, which has picked up 21 per cent stake in a unit of Ballarpur Industries.

The two private equity firms will invest $175 million in Ballarpur Paper Holdings B.V., the unit which acquired Sabah Forest Industries Sdn Bhd. BPH will utilise the funds to be received from the private equity investment firms to part finance consideration payable to BILT for sale of its investments in BILT Graphic Paper Products Ltd.

The BILT scrip on Wednesday opened at Rs 140 and closed at Rs 140.75.

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BILT standalone net rises on paper demand
BILT: Growing aggressively

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