Balrampur Chini Q1 net profit seen up at Rs 62 cr

ALSO READ News and Notices about Balrampur Chini See interviews with Balrampur Chini Management See what other Experts & Brokerages are saying about Balrampur Chini See previous Results of Balrampur Chini

Balrampur Chini is set to announce its first quarter results of FY10. According to CNBC-TV18 estimates, its net profit is expected to go up at Rs 62 crore versus Rs 51.3 crore, YoY.

Sales are seen going up marginally by 2.6% to Rs 440 crore from Rs 428.7 crore and operating profit margin is seen improving to 30.1% versus 26.8%.
 
Expectations
* Carry forward inventory for Balrampur (not too high) at 9.6 lakh bags @ Rs 20.43/kg
* In addition the co had 85,000 tons of raws @ $382/ton at factory gates by end Q4
* Q1 last year saw 0.2 MT of sugar sales, likely to be lower than 0.15 MT in the current quarter
* But higher realizations likely to support the topline
* Sales based on production in Q1 will be the key variable
* Better margins on sugar sales is a given

Balrampur Raw Sugar

* Balrampur had bought 2 consignments by Q4 end
* 1st consignment of 85000 tons at @ 382/ton and the 2nd of 35000 tons @ $ 510/ton  
* Management felt raw sugar prices are likely to come down and sold off the 2nd consignment at $ 540/ton
* Since then prices have only strengthened
* Trade data shows the co has acquired 38,000 tons between Oct-Dec ((Would be interesting to know the price))
* The $30 gain on the second consignment (about Rs 4 cr) will be booked in Q1 

(The company has a 500 TPD refinery and has acquired a 700 TPD unit from Dhampur, So 1200 TPD) (May need more raw)