The shares of the second-largest sugar manufacturing company gained up to 5 percent after the company entered into a new business line to manufacture Polylactic Acid (PLA) for that board has approved an estimated investment of Rs 2,000 crore.
With a market capitalization of Rs 7,869.82 crore, the shares of Balrampur Chini Mills Ltd were trading at Rs 385.70 per share, increasing around 3.72 percent as compared to the previous closing price of Rs 371.85 apiece.
According to the exchange filing, Balrampur Chini Mills Ltd has entered into a new business line to manufacture Polylactic Acid (PLA), for which the Board of Directors has approved an estimated investment of Rs. 2,000 crores (Rs. 800 crores from internal accruals and Rs. 1,200 crores from debt) over a period of approximately 2.5 years.
Furthermore, the company’s involvement with Polylactic Acid (PLA) and bioplastics based on sugar serves as evidence of this strategy change. PLA provides dual benefits as a bio-based and biodegradable material, making it a viable replacement for traditional plastics in a variety of applications.
Looking into the company’s finances, Balrampur Chini Mills Ltd.’s revenue increased by 25 percent from Rs 981 Crore in Q3FY23 to 1,230 Crore in Q3FY24. During the same period, net profits increased by 98 percent from Rs 46 crore to Rs 91 crore.
The firm has ten manufacturing plants in Uttar Pradesh, 80,000 aggregate cane crushing capacity in TCD, 1,050 aggregate distillery capacity in KLPD, and 175.7 MW of aggregate saleable cogeneration capacity.
In FY2023, the company borrowed Rs. 326 crores for expenditure in the distillery industry, with a 50% interest subvention. In addition, Rs. 140 crores were raised via Non-convertible debentures (NCD) to support the capex in the sugar sector.
Balrampur Chini Mills Limited (BCML) is a leading integrated sugar company in India. The company’s linked enterprises include distillery operations and electricity cogeneration.
Written by:- Abhishek Singh
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