Kolkata-based sugar producer Balrampur Chini Mills (BCML) is expecting lower ethanol production after the government temporarily changed the ethanol procurement target for 2023-24.
Pramod Patwari, CFO of Balrampur Chini Mills, told CNBC-TV18, said the sugar production will remain on track, and the company expects overall revenue growth of 10-11% for the financial year 2024 (FY24).
In the third quarter (Q3FY24), 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 was at ₹1,230.39 crore, a 25% increase from ₹981.16 crore last year. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 42% to ₹113.39 crore, as compared to ₹79.67 crore in the same quarter last year.
Patwari also discussed about the impact of the recent increase in state-advised price (SAP) for sugarcane by ₹20 per quintal for the 2023-24 (October 2023-September 2024) season. All of Balrampur's 10 manufacturing units are in the state of UP.
The (UP) government on January 18 said the early variety will now fetch ₹370 per quintal and the common variety price will be ₹360 per quintal, The UP government was earlier paying ₹335 per quintal for the early variety of sugarcane and ₹340 per quintal for the common variety. The top variety of sugarcane fetched ₹350 per quintal.
In addition to the Centre deciding the fair and remunerative price (FRP) on the crop, the SAP is determined by the governments of sugar-producing states, factoring in the cost of production in specific regions.
Patwari said volume growth and better recovery are expected to offset the impact of the more than anticipated ₹20 increase in the SAP.
Shares of Balrampur Chini Mills has gained more than 6% in the past year.
The market capitalisation of Balrampur Chini Mills is ₹ 8,094 crore and it competes with industry rivals such as Shree Renuka Sugars, and Dalmia Bharat.
First Published: Feb 12, 2024 11:46 AM IST
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