Balrampur Chini Mills to enhance distillery capacity by investing Rs 320 crore

Balrampur Chini Mills announced on Wednesday that its board of directors has approved the setting up of a new distillery unit by adding a capacity of 320-kilo litres per day (KLPD) at the Maizapur unit.

With this capacity addition, its total capacity would surge to 840 KLPD. The total Capex for the same is estimated to Rs 320 crore for which, Rs 220 crore would be borrowed from banks and the remaining Rs 100 will be arranged via internal sources.

Meanwhile, the company has declared its results for the quarter ended September 30, 2020. Its consolidated revenue for the quarter Q2FY21 came in at Rs 1,289.8 crore as against Rs 856.98 crore in the corresponding quarter last year, registering a 50.5 per cent YoY increase. On the segmental front, revenue from sugar, co-generation, and distillery increased by 41.7 per cent, 23.1 per cent, and 96.3 per cent, respectively on a YoY basis.

EBITDA for the quarter fell by 17.4 per cent YoY to Rs 127.75 crore as against Rs 154.57 crore in the corresponding quarter last year, with a corresponding margin contraction of 813 bps. EBITDA margin for the quarter stood at 9.9 per cent. This reduction in the operating profit was affected by a rise in the cost of material consumed as a percentage of sales to 4 per cent in Q2FY21 vs 2 per cent in Q2FY20. Also, a jump in employee benefit expenses by 12 per cent YoY and a jump in other expenses by 17 per cent YoY affected the operating performance.

PAT for the quarter came in at Rs 78.3 crore as against Rs 99.8 crore in the corresponding quarter last year, with a YoY decline of 21.5 per cent.