Balrampur Chini Mills Achieves ₹1,421.60 Crore Revenue in Q1 FY24

Balrampur Chini Mills Limited (BCML), one of India’s largest integrated sugar manufacturing companies, announced its financial results for the first quarter ending June 30, 2024.

Revenue from operations for this quarter stood at ₹1,421.60 crore, up from ₹1,389.62 crore in the same quarter last year, reflecting a growth of 2.3%. The EBITDA (excluding Other Income) for the quarter was ₹166.13 crore, compared to ₹163.18 crore in the corresponding period last year, marking an increase of 1.8%.

Speaking of the performance for the quarter, the Chairman and Managing Director of Balrampur Chini Mills, Mr Vivek Saraogi, stated that the company commenced the fiscal year on a steady note. Despite challenges in distillery operations due to regulatory issues, the sugar segment performed well during a seasonally soft quarter, benefiting from higher volumes and realisations.

In the quarter ended June 2024, sugarcane crushing was reduced by approximately 54%, leading to a decline in sugar production by around 48%. This decrease was due to lower sugarcane availability during the season, which also impacted the distillery segment. Additionally, fixed overheads could not be fully absorbed in this quarter due to the reduced crushing and season days.

The company is focusing on cane development activities and varietal rebalancing. As of June 30, 2024, the company carried forward a higher inventory of 51.2 lakh quintals, valued at ₹34.88 per kg, compared to last year’s 41.1 lakh quintals, valued at ₹33.79 per kg. The cost of production increased, primarily due to a ₹20 per quintal rise in cane prices.

He further added, “For the ensuing season, IMD is forecasting a normal monsoon, which will aid in better yields. Lower diversion of cane towards Gur-Khandsari and better yield should translate to higher cane availability in U.P. In contrast, lower cane is expected in Maharashtra and Karnataka due to lower acreage. Expected sugar inventory at ~8.55 MMT as on 30th September 2024, in the country, along with expected production of 32 MMT (pre-diversion) for the SS 24-25 and domestic consumption of around 29 MT, provides enough headroom for the Government to carry on the blending programme under Juice & Bheavy route unhindered and possibly leave room for exports too. In the past, we have seen that closing stock of 5.5 MMT has been considered sufficient.”

He said that the company will continue to make healthy progress on its cane-based Polylactic Acid (PLA) project. As one of the pioneers of the integrated sugar model in India, it sees this initiative as a natural extension of its vision. As of June 30, 2024, ~₹299.8 crores had been spent from internal accruals.

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