Country's second largest sugar producer Balrampur Chini will declare its second quarter numbers of current financial year today. Analysts on an average expect the company to report a net profit of Rs 37 crore for the quarter as against net loss of Rs 39.4 crore in a year ago period.
Sales are seen going up by 42 percent year-on-year to Rs 715 crore in the quarter.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise significantly higher to Rs 105 crore for the second quarter of FY13 from Rs 14.9 crore in the corresponding quarter of last fiscal.
Operating profit margin is expected to increase 1170 basis points YoY to 14.7 percent in the quarter.
In the three months period ended September 2012, domestic sugar prices saw a high of over Rs 37 per kg.
By early August, prices had moved nearly 20 percent MoM on monsoon concerns. However, prices consolidated after the impact of monsoon was not as grave.
Balrampur’s Q2 realizations are expected to be rise around 20 percent to above Rs 34 per kg while sugar production cost is seen at around Rs 32 per kg; so gross margin will be about Rs 2 per kg, say analysts.
Balrampur Chini has been the key beneficiary of the tightness in the sugar market. The monsoon deficit didn’t impact any of the key areas where Balrampur operates.
So sugar volumes are also expected to be robust, which are seen rising atleast 30 percent to 2 lakh tones.
Analysts feel the net profit growth may be restricted depending on capital charges.