BCL Industries announces audited results for quarter ended 30th September2020

BCL Industries Ltd. posted a Total Income of INR 326.6Cr (INR 213.6Cr, Q2-FY20), while its Profit after Tax stood at INR 11.78Cr (INR 7.5 Cr, Q2-FY20). The Company had a remarkable Q2-FY21, for the quarter ended 30th September 2020.

Distillery (Ethanol / ENA) segment: BCL Industries Ltd continued it's momentum from Ql 2020-21 to run it's plant at full capacity throughout Q2. There has been a great demand for both Ethanol and ENA in the market.

- The demand for Ethanol from the OMC's reached pre lockdown levels and BCL Industries continued to supply it's tendered quantity without any hindrance.

- With the lifting of the lockdown the company experienced an increase in the demand for ENA from various bottlers resulting in greater margins for the quarter.

- With the price of Ethanol revised upwards to INR 51.55 for sugar year 2020 - 21 the company forecasts greater quantity of Ethanol being tendered by all distillers resulting in greater margins for ENA moving forward.

Company is experiencing higher realizations from its balance capacity of ENA production of 3.7 Cr litres from its Ethanol supply which are visible in the quarterly results in terms of sales revenue, registering a hike of about 13.5% in Sales and 68% in EBIDTA from Q2-FY20.

The civil works for its new state of art Distillery 200 KLPD Plant at Kharagpur, WB under its subsidiary Svaksha Distillery Limited is ongoing, but due to COVID 19 crisis, the project is experiencing delay.

Edible Oil: BCL Industries Ltd has experienced a significant increase in the demand for it's brands Murli and Homecook. Due to the steady supply during the lockdown the company was able to cater to a wider customer base resulting in greater volumes.The revenue from the edible oil segment for the quarter was INR 207.4 Crs (INR 93.1 Cr, Q2-FY20) BCL continues to promote its own brands and this resulted in a steady EBITDA margins of 1.81 % for Q2-FY21.

During the quarter:

- The company has experienced an exponential increase in it's revenue from the edible oil unit due to an increase in demand for the company's own brands and the global edible oil market's increase in prices.

- The company received positive feedback from its distributors for its homogeneous brands and expects to build on this positive momentum in the coming quarters.

Real Estate: The real estate segment went through a temporary slowdown for the period of lockdown but the company has experienced a revival in sales and expects the segment to improve. The company recorded revenue of INR 6.6 Cr for Q2-FY21 (INR 9.7 Cr, Q2-FY20) with a steady EBITDA margin of 22% in the current quarter.

- In its attempt to reduce the financial burden of the company, BCL has continued to utilize revenues from its real estate sales to liquidate the debts which is visible in the YOY results.

Shares of BCL Industries Ltd was last trading in BSE at Rs.63.55 as compared to the previous close of Rs. 59.5. The total number of shares traded during the day was 136537 in over 757 trades.

The stock hit an intraday high of Rs. 67 and intraday low of 58. The net turnover during the day was Rs. 8737081.

Source : Equity Bulls

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