Sugar producer Balrampur Chini Mills posts profit of Rs110.70 cr
Kolkata: Balrampur Chini Mills Ltd on Friday reported a net profit of Rs.110.70 crore for the quarter ended June, compared with a net loss of Rs.70.36 crore a year ago, as it earned more on every kilo of sugar sold.
The profit was notched up on a 24.5% increase in revenue to Rs.826.83 crore from Rs.664.19 crore in the year-ago period, the company said.
Sugar price realization in the quarter improved to Rs.34.56 per kg from Rs.25.39 per kg in the year-ago quarter.
Sugar sales during the quarter fell to 1.895 million quintals from 1.909 million quintals. As of 30 June, Balrampur Chini Mills had a sugar inventory of 39.22 lakh quintals. One quintal is equal to 100kg.
The company’s working capital loans stood at Rs.733.21 crore, expected to come down due to liquidation of inventory, the company said in a notification to BSE on Friday.
The company hailed the government’s decision to ban future trading in sugar. Managing director Vivek Saraogi said on the sidelines of the company’s annual general meeting that as a sugar producer, he does not want speculation to enter the sector. “Demand and supply should determine prices,” he said.
“I appreciate the government’s move and I think it is in the right direction,” Saraogi added.
The Securities and Exchange Board of India was asked by the government to ban sugar futures trading so that speculators and a few traders do not influence or set sugar prices in a year when the industry is expecting a shortfall in production.
According to preliminary estimates of sugar industry body, Indian Sugar Mills Association (ISMA), the country’s sugar production in the current fiscal year is likely to decline 7.3% to 23.26 million tonnes from 25.1 million tonnes in 2015-16.
Most of the decline in sugar output is on account of lower cane plantation in Maharashtra and Karnataka, according to the preliminary estimates. ISMA, however, expects production in Uttar Pradesh and Tamil Nadu to increase.
Saraogi said he expected Balrampur Chini’s output to be a little higher than last year when it was 78.35 lakh quintals.
Balrampur Chini’s shares rose 1.2% to Rs.114.05 at the close of trading on the BSE on a day the benchmark Sensex gained 1.05% to 28,152.40 points.