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.

• Profitability declined in Q2 & H1 FY25 due to lower crushing, government restrictions on ethanol feedstock, and subdued distillery performance, despite higher sugar volumes and realizations.

• The Board declared an interim dividend of INR 3 per share, totaling Rs. 60.52 crores, payable from 5th December 2024.

• PLA bioplastics project (75,000-tonne plant) is progressing on schedule, supported by significant state incentives and a new bioplastic policy.

• Unaudited standalone and consolidated financial results for Q2 & H1 FY25 were approved and reviewed by the Board and Audit Committee.

Financial highlights

• Q2 FY25 consolidated revenue declined 15.7% year-over-year to Rs. 1,298.0 cr; PBT margin dropped to -5.5% from 11.0%.

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

• Consolidated net profit for Q2 FY25 was ₹6,717.55 lakhs, down from ₹16,625.15 lakhs in Q2 FY24.

• Basic EPS for Q2 FY25 was Rs. 0.4, down from Rs. 7.1 in Q2 FY24.

• Standalone EBITDA for H1 FY25 was ₹23,831.68 lakhs.

Outlook and guidance

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

• 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.

• Potential increases in ethanol prices, revised sugar MSP, and export policies could positively impact future results.

• PLA bioplastics project commissioning is targeted for October 2026.