Sugar major Balrampur Chini Mills recorded impressive financial results in Q1, with their profit soaring by a staggering 493% to reach ₹73.5 crore in the quarter ending June 2023. In the same period last fiscal year, the company had reported a consolidated net profit of ₹12.38 crore. Additionally, the company’s revenue witnessed a 28% rise, increasing from ₹1,094.59 crore in Q1FY23 to ₹1,401.81 crore in Q2 of June 2023.
This robust growth was primarily driven by the sugar segment’s turnaround, which had incurred a loss of ₹(55.71) crore in Q1FY23. However, during the current April-June quarter, the segment bounced back and achieved a net profit of ₹71.37 crore (figures are pre-tax and finance costs).
The Earnings Per Share (EPS) of the company also experienced substantial growth, surging from ₹0.61 in Q1FY23 to ₹3.64 in the reviewed quarter. On a standalone basis, the Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) witnessed an impressive 267% increase, reaching ₹163.18 crore in the quarter ending June 2023, compared to ₹44.4 crore reported during the same quarter last fiscal.
As per its management, the company aims to achieve a further ~10% increase in sugarcane crushing in the upcoming season, assuming favorable weather conditions.
Overall, Balrampur Chini Mills has shown impressive growth and is optimistic about its future performance, backed by a thriving sugar segment and proactive efforts to enhance productivity and collaborations with farmers.
The shares of the company closed 0.70% higher at Rs.412.70 on NSE.