Balrampur Chini Mills (BALRAMCHIN) Q3 24/25 earnings summary

Executive summary

• Sector-wide sugar production declined 15% year-over-year due to lower recoveries in major states, but overall sugar availability remains sufficient and robust domestic prices are expected to continue.

• Q3 FY25 saw strong sugar segment performance with improved margins, while the distillery segment underperformed due to lower alcohol recovery and unfavorable government pricing policies for ethanol.

• PLA bioplastics project remains on schedule, with increased CAPEX and capacity to 80,000 TPA, and is expected to enhance long-term value creation; government incentives support its viability.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended 31st December 2024.

• New Restricted Stock Unit Scheme 2025 approved, subject to shareholder approval.

Financial highlights

• Cane crushing rose 10.4% year-over-year, but sugar recovery dropped by 48 basis points due to adverse weather, though the decline was the lowest among eastern UP mills.

• Q3 FY25 consolidated revenue was ₹1,230.4 crore, up from ₹1,192.2 crore in Q3 FY24; Q3 FY25 PBT was ₹92.3 crore (PBT margin 7.5%), and EPS was ₹4.53.

• Standalone Q3 FY25 revenue was ₹1,230.4 crore, EBITDA ₹82.8 crore (margin 6.7%), and PBT ₹113.4 crore (margin 9.2%).

• Sugar inventory carried forward is 31.6 lakh quintals valued at INR 3,826 per quintal, while current selling prices are above INR 4,125.

• Interim dividend of ₹3 per share paid during the quarter.

Outlook and guidance

• Sugar production for the season is estimated at 9.4–9.5 lakh tons, with sales dependent on government releases.

• PLA project commissioning is scheduled for October 2026 (Q3 FY27), with revenue potential of ₹2,000 crore at full capacity and targeted EBITDA margin of 35%.

• Ethanol production for FY25 is guided at 21.5–22.5 crore liters, with 4 crore liters from juice route.

• Domestic sugar prices are expected to remain robust in the medium term, supported by export quotas and steady demand.