Balrampur Chini Mills Navigates Falling Profits and Rising Expenses
Balrampur Chini Mills reported a 30% decline in net profit due to increased expenses, even as total income rose by 7%. Despite stable sugar performance, reduced margins from higher sugarcane prices impacted profits. The company is investing in future projects including a PLA plant and a lactogypsum processing facility.
In a recent financial disclosure, Balrampur Chini Mills Ltd revealed a significant downturn, with its consolidated net profit plunging 30% to Rs 159.56 crore, affected by spiking expenses. This net figure markedly contrasts with Rs 229.12 crore from the previous year.
Amid challenging conditions, the company's total income edged up by 7% to Rs 1,616.23 crore this past quarter. Despite a stable performance in the sugar sector, a year-over-year rise in sugarcane prices impacted profit margins. Simultaneously, other factors, including stagnant ethanol procurement prices, dampened the distillery segment's outcomes.
Balrampur Chini Mills is pursuing strategic investments, including a new PLA plant with an 80,000 metric tons annual capacity and a lactogypsum processing plant in Uttar Pradesh, expected to bolster future growth. Concurrently, plans to raise Rs 450 crore via preferential equity shares were approved to support these ventures.
(With inputs from agencies.)
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