Balrampur Chini Mills Limited — PPTs, 15-05-2025: Investor Presentation

1. Financial Highlights:

Balrampur Chini Mills posted consolidated revenue of ₹1,503.68 Cr in Q4 FY25, rising 4.8% YoY, while FY25 revenue was ₹5,415.38 Cr, slightly down from the previous year. Consolidated profit before tax declined to ₹562.25 Cr from ₹742.21 Cr. Standalone EBITDA increased 5.8% in Q4 to ₹365.24 Cr with a 24.3% margin. Sugar volumes fell 11.3% but realizations improved 5.9%, lifting segment PBIT 16.3% to ₹270.96 Cr. Distillery revenue grew 28.4% to ₹530.05 Cr in Q4, though margins dipped to 16.4%. Higher finance costs and a 1.4% drop in cane crushing weighed on profits. Power generation declined 9% YoY due to seasonality but with better realizations.

2. Strategic Initiatives & Growth Drivers:

The 80,000-tonne/year Poly Lactic Acid (PLA) bioplastics facility is progressing as planned, with ₹2,850 Cr capex (net ₹1,750 Cr post-subsidy) and targeted commissioning by Q3 FY27. At full capacity, it aims for ~35% EBITDA margin and ₹2,000 Cr revenue. Key technology partnerships are in place and major construction has started. The project benefits from favorable state bioplastic policies, aligning with Balrampur’s focus on sustainability and value-added diversification.

3. Business Developments:

Balrampur’s 30.47% stake in associate Auxilo Finserve generated gains from investment disposal. Auxilo reported a FY25 net profit of ₹111.96 Cr and raised capital at ₹58/share via CCPS, indicating strong growth prospects. The company continues maximizing cane value via sugar, ethanol, co-generation, and expanding into bioplastics.

4. Market Position & Competitive Advantage:

Balrampur remains one of India’s most efficient integrated sugar producers, with 80,000 TCD crushing capacity and best-in-class sugar recovery among Eastern UP mills. Stable operations supported by integrated distillery and power generation offer scale and cost benefits. The PLA project positions the company well amid sustainability trends and revenue diversification beyond sugar’s cyclicality.

5. Investor Implications:

Growth potential is underscored by the upcoming high-margin PLA business and stable sugar segment aided by improving realizations despite volume dips. Execution risks around the PLA project and ethanol policy changes need monitoring. Gains from Auxilo enhance financial flexibility. Overall, Balrampur is evolving toward a diversified, sustainability-focused profile with promising medium-term growth balanced against commodity cycle risks.