Largest Integrated Sugar Producer announces Q4 Results: FY25 EBITDA Drops 10 Per Cent As Sugar Recovery Falls 0.4 Per Cent and Ethanol Price Freeze Hits Margins; Announces Rs 2,850 Crore PLA Project
On a year to date basis the stock is up by 6.65 per cent while in last 12 months the stock has jumped by 48.85 per cent.
Balrampur Chini Mills Limited (BCML), one of India’s largest integrated sugar manufacturers, announced its financial results for Q4 and FY25, highlighting steady quarterly performance driven by robust distillery volumes and improved realisations in both the sugar and ethanol segments. On a year to date basis the stock is up by 6.65 per cent while in last 12 months the stock has jumped by 48.85 per cent.
For the quarter ended March 31, 2025, BCML reported consolidated revenue from operations at Rs 1503.68 crore, marking a 4.84 per cent increase compared to Rs 1434.26 crore in Q4 FY24. EBITDA for the quarter stood at Rs 365.24 crore, reflecting a 5.95 per cent rise year-on-year. Total comprehensive income rose 8.01 per cent to Rs 225.43 crore from Rs 208.71 crore in the same quarter last year.
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On an annual basis, however, the company witnessed a decline in performance. For FY25, revenue from operations dropped 3.19 per cent to Rs 5415.38 crore from Rs 5593.74 crore in FY24. EBITDA declined by 10.42 per cent to Rs 704.24 crore, and total comprehensive income fell by 19.12 per cent to Rs 438.84 crore.
The standalone results followed a similar trend. In Q4 FY25, standalone revenue grew 4.84 per cent to Rs 1503.68 crore, EBITDA increased by 5.95 per cent to Rs 365.24 crore, and comprehensive income rose 6.73 per cent to Rs 216.35 crore. However, on a full-year standalone basis, total income fell sharply by 21.63 per cent to Rs 345.87 crore.
Commenting on the results, Chairman and Managing Director Vivek Saraogi mentioned that while sugar segment margins improved, distillery operations were adversely affected due to the government’s decision not to revise ethanol prices for juice and B-heavy ethanol. He also noted a 1.4 per cent decline in sugarcane crushing and a 40 basis points reduction in gross sugar recovery, primarily due to unfavourable weather. Despite this, BCML reported one of the lowest declines in sugar recovery among mills in Eastern Uttar Pradesh.
The company acknowledged that the government's export quota of 1 million tonnes helped stabilize domestic sugar prices at Rs 41 per kg, aligning with the average cost of production. However, the lack of an ethanol price hike poses a risk to the economic viability of ethanol production, potentially impacting India’s E30 ethanol blending target by 2030.
BCML also provided an update on its sustainability-driven Poly Lactic Acid (PLA) project. With a planned capacity of 80,000 tonnes per annum and a total capital outlay of Rs 2850 crore (Rs 1750 crore net of capital subsidy under the Uttar Pradesh bioplastics policy), the company aims to create long-term value while enhancing environmental sustainability.
BCML currently operates 10 sugar factories across Uttar Pradesh, with a combined sugarcane crushing capacity of 80,000 tonnes crushed per day (TCD). The company also has a distillery and cogeneration capacities of 1050 kilolitres per day (KLPD) and 175.7 megawatts (MW), respectively.
Disclaimer: The article is for informational purposes only and not investment advice.