Balrampur Chini Q3 Profit Surges 73% YoY

9 Feb 2025 , 10:03 PM

Balrampur Chini Mills Ltd (BCML) had earlier stated that it saw a YoY leap of 73% in net profit during Q3 FY25, and the earnings came in at ₹44.6 crore, while the company reported ₹17.35 crore for Q3 FY24.

Revenue from operations came in at ₹1,192 crore, lower by 3% and lower than ₹1,230 crore that it had reported in the Q3 FY24. EBITDA had increased 9% YoY to ₹123.6 crore, against ₹113.4 crore that had been reported during Q3 FY24. EBITDA margin has now improved to 10.4% against 9.2% a year ago. This shows that cost management has improved.

The company board sanctioned the capacity enhancement of PLA project. The capacity will be enhanced to 80,000 TPA from the already sanctioned capacity of 75,000 TPA. Capital expenditures of this project have been raised to ₹2,850 crore from the earlier estimate of ₹2,000 crore.

Net investment for this project works out to around ₹1,750 crore if one absorbs provision for an estimate of ₹1,100 crores in form of subsidies by the Uttar Pradesh government under this scheme. All re-investments serviced through a mix of ₹ 1,650 crores of debt raised and ₹ 1,200 in internal accruals.

Demand remained on a positive trend fairly consistently throughout these Q3 FY25 sugar sales volumes having improved by 2.2% YoY or 2.8% for 9M FY25. Sugar realizations were 2.0% lower in Q3 FY25 but rose 2.1% in 9MFY25-another pricing swing factor.

The Company had increased long-term borrowings during 9M FY25 for meeting the capital expense of the PLA Segment that shall attract seven years’ interest subvention under Uttar Pradesh Bioplastic Industrial Policy 2024 at ₹325crore. The Company had made advance repayment of ₹252.55 Crore towards Debenture obligations and ₹ 140 crores towards NCDs.