Balrampur Chini Mills (BALRAMCHIN) Q2 24/25 earnings summary

Executive summary

• Net sugar production for the upcoming season is expected at 28.3 million tons, down from 32 million tons last year, with UP's output stable but Maharashtra and Karnataka likely to see declines.

• Q2 & H1 FY25 saw subdued profitability despite higher sugar volumes and realizations, mainly due to lower crushing volumes and government restrictions on ethanol feedstock, impacting distillery performance.

• The PLA bioplastics project is progressing on schedule, supported by a new state policy offering significant incentives, with commissioning targeted for October 2026.

• An interim dividend of INR 3 per share (300%) was declared, totaling Rs. 60.52 crores, payable from 5th December 2024.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30th September 2024 were approved and reviewed by the Board and Audit Committee.

Financial highlights

• Q2 FY25 consolidated revenue fell 15.7% year-over-year to Rs. 1,298 crore; PBT margin dropped to -5.5% from 11.0%.

• Standalone revenue from operations for Q2 FY25 was ₹129,794.72 lakhs, down from ₹153,947.27 lakhs in Q2 FY24.

• Standalone net loss for Q2 FY25 was ₹350.42 lakhs, compared to a profit of ₹10,624.53 lakhs in Q2 FY24.

• H1 FY25 consolidated revenue declined 7.2% year-over-year to Rs. 2,719.6 crore; PBT margin at 5.9% vs. 11.3% last year.

• Basic EPS for Q2 FY25 was 3.33 vs. 14.5 in Q2 FY24; H1 FY25 EPS at 6.81 vs. 11.88 in H1 FY24.

Outlook and guidance

• Cane development initiatives and a shift to disease-resistant varieties are expected to improve future performance and recovery rates.

• Relief expected from government’s ethanol policy changes, potential ethanol price increases, and revised sugar MSP.

• Key events to watch include ethanol price revision, sugar MSP, export policy, and SAP announcement in Uttar Pradesh.

• Sugarcane area is similar to last year, with yields dependent on winter rains and further acclimatization of new varieties.

• Ethanol production for the year is estimated at 25 crore liters, with additional capacity from B-heavy molasses and maize.