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Balrampur Chini Mills registered 13 per cent drop in standalone net profit at ₹251 crore for the quarter ended March 31, against ₹289 crore in the same period last year.
Revenue from operations on a standalone basis increased 17 per cent to ₹1,492 crore (₹1,279 crore).
Total expenses increased by nearly 17 per cent to ₹1,149 crore (₹985 crore).
Sequentially, net profit was up by nearly 470 per cent compared with ₹44 crore during the quarter ended December 31, 2022.
For the year ended March 31, 2023, the company’s net profit dropped 46 per cent to ₹276 crore (₹515 crore).
According to Vivek Saraogi, Chairman and Managing Director, Balrampur Chini, the company was able to deliver satisfactory results in Q4FY23 as compared to subdued performance in the nine month ended December 31, 2022.
“Legacy effect of last year’s lower crushing volume and delayed start of current season coupled with untimely rains impacted our 9MFY23 results. However, we achieved better capacity utilsation across segments which helped us report satisfactory results in Q4FY23. Cane crushing during the quarter was higher owing to higher cane area and better yield at farm level. During the quarter, the company diverted nearly 11 per cent cane towards syrup route and about 65 per cent towards B-heavy route which resulted in higher sugar sacrifice and thereby net lower sugar recovery,” Saraogi said in the investor presentation.
After two consecutive years of subdued crushing, the company registered increased crushing during the season. Crushing at all its mills have been completed and the company has ended the season with more than 15 per cent higher crushing.
“We are hopeful of further increase in cane crushing by 10 per cent in the next season, if not more, subject to weather conditions. Further company has embarked on enhancing cane crushing capacity at its Kumbhi unit from 8000 TCD to 10000 TCD which will be entirely funded through internal accruals. During FY2023 company has invested more than ₹1,100 crore in capex (₹466 crore through debt and balance through internal accruals) which is expected to result in better performance going ahead,” he said.
The company’s board has confirmed the interim dividend approved by it in February at a rate of ₹2.50 per equity share (250 per cent) of the face value of Re 1 each, as the final dividend for the financial year ended March 31, 2023.
The company’s scrip closed at ₹410.90, up 1.28 per cent on the BSE on Thursday.
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