The Hindu Business Line : Balrampur net dips; to pay 85 per cent

SUGAR major Balrampur Chini Mills Ltd has reported a net profit of Rs 47.34 crore for the year ended March 31, 2002 against Rs 47.82 crore in the previous year.

The company has increased its dividend to 85 per cent from last year's 70 per cent.

It has recorded reduced sales of Rs 548.95 crore for the year (Rs 613.88 crore).

However, the company was able to maintain its profitability despite its total sales falling by almost 10 per cent.

Mr Kishore Shah, Chief Financial Officer, said sales suffered because the company could not export its product.

"In the last financial year, we exported a lot of sugar. Hence, our sales were high; but this year, exports were nil,'' Mr Shah told Business Line.

However, the operational efficiency had improved, Mr Shah said. "The results prove that our per unit profitability has substantially increased,'' he said.

Other income of the company had fallen by 28.7 per cent to Rs 2.11 crore (Rs 2.96 crore).

However, gross profit after interest but before depreciation and tax had increased by 4.5 per cent to Rs 76.43 crore (Rs 73.16 crore).

The company reduced its total expenses by 11 per cent to Rs 457.72 crore (Rs 514.05 crore).

Among other heads, the most significant fall is in interest cost. It has been reduced by 43 per cent to Rs 16.91 crore (Rs 29.63 crore).

"We bettered our cash flow position and it has been rightly used in the operations of the company. Moreover, we paid off the high-cost debts. This has lead to the fall in the annual interest burden,'' Mr Shah explained.

The holding of the promoters, as on March 31, 2002, has also gone up to a little over 47 per cent from a 46.87 per cent. Market analysts said that this was due to the buyback scheme.

The earning per share has also registered a minor increase to Rs 24.81 (Rs 24.19). The company's reserves, excluding revaluation reserves, stood at Rs 199.51 crore.

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