Balrampur Chini Mills (BALRAMCHIN) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw steady performance, with strong sugar segment results offsetting regulatory and operational challenges in the distillery segment, including a temporary government ban and lower cane availability.

• Early end to sugarcane crushing and cane price hikes led to lower production and higher costs, impacting both sugar and distillery segments.

• Continued focus on cane development, variety rebalancing, and farmer engagement to address lower cane availability.

• PLA project progressing well, with INR 300 crore invested from internal accruals as of June 30, 2024, and expected commissioning in October–November 2026.

• Board approved unaudited standalone and consolidated financial results for Q1 FY25, with no material misstatements identified by statutory auditors.

Financial highlights

• Standalone revenue from operations for Q1 FY25 was ₹142,159.95 lakhs, up from ₹138,962.21 lakhs year-over-year; consolidated Q1FY25 revenue was Rs. 1,421.6 cr, up 2.3% year-over-year.

• Standalone net profit for Q1 FY25 was ₹6,463.22 lakhs; consolidated net profit after tax was ₹7,015.31 lakhs.

• Standalone EBITDA margin at 11.7%; operating margin was 11.69%; net profit margin was 4.93% (consolidated).

• Sugar segment revenue and PBIT increased, with a 3.1% rise in sales volume and 5.5% higher realizations year-over-year.

• Distillery segment revenue at Rs. 466 cr, with lower volumes due to regulatory constraints.

Outlook and guidance

• IMD forecasts normal monsoon, expected to improve yields and cane availability in Uttar Pradesh.

• India's sugar production for 2024-25 is projected at 32 million tons pre-diversion, with ISMA estimating 33.3 million; national sugar inventory projected at 8.55 MMT by September 2024, supporting ethanol blending and potential exports.

• PLA project commissioning targeted for October–November 2026, with gradual CapEx over the next 2–2.5 years.

• Management refrains from providing cane crushing guidance until more data is available in the next quarter.

• Key events to watch: ethanol policy, price revisions, export policy, and monsoon developments.