ICICI Direct: Excellent Q1 Performance By Balrampur Chini; Strong Balance Sheet   
White sugar is displayed in a sack as it is sold in a grocery store in Mumbai, India. (Photographer: Shirish Shete/Bloomberg News)  

ICICI Direct: Excellent Q1 Performance By Balrampur Chini; Strong Balance Sheet   


BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

Balrampur Chini Mills Ltd. reported a strong set of numbers with revenue growth of 50.8% driven by 60% growth in sugar and distillery sales. The growth in sugar sales was led by 62% jump in volumes due to higher domestic sales quota and exports.

The robust growth in distillery sales was driven by 39.1% growth in volumes aided by new capacity and 15.9% increase in realisation (due to higher proportion of B-heavy ethanol).

Power revenues were down 13.5% with significant decline in volumes as company preferred to sell bagasse given significant reduction in power tariff last year.

Gross margins fell 547 basis points due to higher proportion of early variety sugarcane (priced higher than general variety), sugar sacrifice for B-heavy ethanol and 3% decline in sugar realisation mainly due to lower sugar prices in April and May 2020 as sugar demand dipped from bulk buyer during lockdown.

Notably early variety sugarcane improves recovery and diversion towards B-heavy increases ethanol production, so benefit to these measures would fructify in next two quarters.

Operating profit increased 23.9% to Rs 217.9 crore on the back of higher sales. Net profit increased 32.1% to Rs 139.5 crore.

Click on the attachment to read the full report:

ICICI Direct Balrampur Q1FY21 Result Update.pdf


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