homeearnings NewsBalrampur Chini Mills' Q3 net profit surges 97% amidst rising sugarcane prices and ethanol challenges

Balrampur Chini Mills' Q3 net profit surges 97% amidst rising sugarcane prices and ethanol challenges

The company reported a 97% jump in net profit to ₹91.32 crore against ₹46.28 crore in the year-ago period. The company said that improved margins aided the growth. Revenue from operations stood at ₹1230.39 crore, a 25% increase from ₹981.16 crore in the corresponding quarter of the previous year.

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By Asmita Pant  Feb 8, 2024 7:03:18 PM IST (Published)

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Balrampur Chini Mills' Q3 net profit surges 97% amidst rising sugarcane prices and ethanol challenges
Balrampur Chini Mills Ltd reported its financial results for the third quarter ended December 2023 on Thursday, February 8. The company reported a 97% jump in net profit to 91.32 crore against 46.28 crore in the year-ago period. The company said that improved margins aided the growth. Revenue from operations stood at 1230.39 crore, a 25% increase from 981.16 crore in the corresponding quarter of the previous year.

During the quarter, EBITDA rose 42% to 113.39 crore, as compared to 79.67 crore in the same quarter last year. BCML's Chairman and Managing Director, Vivek Saraogi, expressed satisfaction with the performance, highlighting improved sugarcane supply for their operations. He said that the company is aiming for a 10% increase in crushing this season, with expectations of higher sugar recovery compared to the previous season.
However, Saraogi also acknowledged challenges posed by the increase in the State Advised Price (SAP) of sugarcane by the UP government, raising it from 350 to 370 per quintal. According to Saraogi, this adjustment may add pressure to the industry, particularly given the surplus sugar scenario. Additionally, temporary changes in ethanol procurement targets by the Centre for the ESY 2023-24 prompted the company to shift mid-season to produce more sugar than initially planned, leading to lower ethanol production.

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