The top-line of the company remains robust by 27% YoY to Rs 1019cr as against Rs 805.71cr.

The net profit improved by 3% YoY to Rs 50.31cr as against Rs 48.87cr, while EBITDA margins contracted by 300bps to 21% against 24%, largely on account of higher raw material cost and as the Malaysian plant has shut down.

Company Profile

Ballarpur Industries Limited (BILT), is the flagship company of US$ 3 bn Avantha Group, is the undisputed leader of the Indian paper industry. It is India's largest manufacturer and exporter of paper, with a strong presence in all segments of the usage spectrum, including writing and printing (W&P) paper, industrial paper and speciality paper. Complementing this is a diversified production infrastructure with six manufacturing units spread across the country. BILT is the only Indian paper company to rank amongst the top 100 paper companies in the world.

Business Segment:

Writing &Printing Paper:
Coated, uncoated and specialty Paper
Industrial paper and, News print

Value Unlocking:

The group company Avantha Power has filled DRHP for an Initial public offer for Rs 1250cr, BILT owned 5% in the company, going forward we expect the company to get more value among the peers.
The company is also planning to list its 79.53% holding company, Ballapur International Graphic Paper holdings on London Stock Exchange

During the quarter ended 30th Sept, 2010, the net sales of the company reported an increment of 26.52% on y-o-y basis to Rs 1019.42cr as against Rs 805.71cr during the corresponding quarter last year. On sequential basis the company’s performance was modest, and the net sales saw a contraction of 5.32% from Rs 1076.71cr.

On operating front, the EBIDTA registered a growth of 11.10% to Rs 208.95cr from Rs 188.07cr as against the corresponding period last year, while on sequential basis EBIDTA registered a decline of 12.33% from Rs 238.55cr. The operating margins fell by 300bps to 20.5% against 23.4% on account of higher raw material cost, the total raw material consumption rose to Rs 393cr against Rs 249cr during the corresponding period last year, coupled with it the Malaysian plant has been shut resulting in revenue loss.

The net profit of the company remains flat on YoY to Rs 50.31cr as against Rs 48.87cr during the corresponding quarter, while on Q-o-Q basis the net profit fell by 39.40% from Rs 83.02cr. The depreciation cost rose by 10.24% while the interest cost of the company shoot up by over 46% to Rs 70.95cr against Rs 48.28cr during the corresponding period last year.