MD Speaks

Commenting on the performance for Q2 & H1 FY2014, Mr. Vivek Saraogi, Managing Director, Balrampur Chini Mills Limited (BCML), said:

“The current sugar scenario remains challenging. The key concern currently is the lower sugar realization and uncertain cane prices resulting in negative earnings. There have been certain positives for the sector in the recent past including partial de-control of the sugar sector, and purchase of ethanol by oil marketing companies at market driven prices, which have been overshadowed by skewed cane prices.

As the new sugar season commences, we are hopeful of the rationalization of the SAP price mechanism being considered actively especially taking cognizance of inverse movement of sugarcane cost viz-a-viz sugar price realization.

Talking about the segmental performance, revenues have remained muted considering this is the non-production quarter for the Company. The sugar segment registered lower volumes at lower realization owing to the dampened sugar prices in the domestic markets.”