BHL net profit jumps 36%
BHL’s sugar sales volumes increased by 57% during the year to touch 720,798 tonnes. Industrial alcohol volumes grew by 160% to 67,480 kilolitres.
By TNN |
MUMBAI: Mumbai based sugar and ethanol maker Bajaj Hindusthan (BHL) has achieved a 36% growth in net profit during the financial year ended September 30, ’06. Net profit for the year was Rs 190.8 crore, against Rs 140.4 crore during the ’04-05. Total revenue increased 74% to Rs 1,486.8 crore from Rs 854.8 crore in the previous year. Profit before interest, depreciation and tax (EBIDTA) recorded a 60% rise to Rs 350.4 crore from Rs. 218.8 crore in the
previous year.
BHL’s sugar sales volumes increased by 57% during the year to touch 720,798 tonnes. Industrial alcohol volumes grew by 160% to 67,480 kilolitres. The Board of Directors of the Company, which met in Mumbai on December 28, recommended a dividend of 60%.
“In our Platinum year, we have posted the highest-ever profits. The results could have been better but for higher cane prices and lower recoveries, due to an earlier start of the crushing season and the government ban on exports,” said Shishir Bajaj, chairman and managing director, Bajaj Hindusthan. “Our expansions have enabled us achieve benefits of scale and has had a positive impact on our costs. Without this benefit the performance would have been affected even more.”
Mr Bajaj, said expansion plans of BHL subsidiary, Bajaj Hindusthan Sugar & Industries. (BHSIL), is as scheduled and crushing at 40,000 TCD is expected to start in the next crushing season. The distillery of 160,000 litres per day will become operational by March ’07.
In the current season (FY ’06-07), BHL will crush 89,000 tcd and BHSIL 6,000 tcd. BHL’s two new distilleries each of 160,000 litres per day are expected to be operational by March‘’07. “With the introduction of 5% ethanol blending by the oil companies, the ethanol revenues will be more stable and mitigate to the cyclicality of the sugar business. Besides being a cheaper fuel, ethanol also provides an environmentally cleaner renewable fuel,” Mr Bajaj added.
previous year.
BHL’s sugar sales volumes increased by 57% during the year to touch 720,798 tonnes. Industrial alcohol volumes grew by 160% to 67,480 kilolitres. The Board of Directors of the Company, which met in Mumbai on December 28, recommended a dividend of 60%.
“In our Platinum year, we have posted the highest-ever profits. The results could have been better but for higher cane prices and lower recoveries, due to an earlier start of the crushing season and the government ban on exports,” said Shishir Bajaj, chairman and managing director, Bajaj Hindusthan. “Our expansions have enabled us achieve benefits of scale and has had a positive impact on our costs. Without this benefit the performance would have been affected even more.”
Mr Bajaj, said expansion plans of BHL subsidiary, Bajaj Hindusthan Sugar & Industries. (BHSIL), is as scheduled and crushing at 40,000 TCD is expected to start in the next crushing season. The distillery of 160,000 litres per day will become operational by March ’07.
In the current season (FY ’06-07), BHL will crush 89,000 tcd and BHSIL 6,000 tcd. BHL’s two new distilleries each of 160,000 litres per day are expected to be operational by March‘’07. “With the introduction of 5% ethanol blending by the oil companies, the ethanol revenues will be more stable and mitigate to the cyclicality of the sugar business. Besides being a cheaper fuel, ethanol also provides an environmentally cleaner renewable fuel,” Mr Bajaj added.
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The MDF and particle board foray under through BHL’s 100% subsidiary, Bajaj Eco-tec Products, is expected to commence operations by November ’07. BHL also plans to start supplying power to the grid in the current year. Power revenues along with carbon credits will form another non-cyclical revenue stream for the company.Start a SIP with as low as ₹500 with ET Money App!
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