>Balrampur chinni (ICICI Direct)

Balrampur Chini’s results were below our estimates. The company reported
its Q4SY08 (sugar year 2008) results with a topline growth of 40.0% to Rs
416.7 crore from Rs 297.8 crore in Q4SY07, supported by volume growth
and improvement in price realisations. The quarter has also witnessed a 15.2% increase in raw material costs to Rs 287.3 crore from Rs 249.5 crore in Q4SY07. The company is currently holding a large sugar inventory, in anticipation of higher sugar prices, going forward. The rise in sugar prices resulted in a significant improvement in EBITDA margins this quarter to 17.3% from 0.8% in Q4SY07. Interest costs rose drastically by 115.3% to Rs 28.3 crore in Q4SY08 on account of higher interest rates. The company reported a net profit of Rs 14.6 crore in Q4SY08 as against
a net loss of Rs 33.7 crore in the corresponding quarter of last year.

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