BILT Q4 adjusted net rises 37 per cent

Ballarpur Industries, one of the largest integrated paper companies in Asia, has reported better than expected results for the fourth quarter and full year ended June 2006. The company managed to improve its operating margins through better cost control.

For the fourth quarter ended 30 June, 2006, Ballarpur has reported a 67.73 per cent rise in standalone net profits to Rs 67.88 crore from Rs 40.47 crore for the same quarter of previous year. Standalone net revenues have increased 11.15 per cent to Rs 524.98 crore from Rs 472.34 crore.

The company has accounted an income of Rs 12.4 crore from the sale of its power and real estate divisions during the quarter. Adjusted for this one-time income, the bottom line has increased 37.09 per cent over the same period of last year.

Operating profits (EBITDA), excluding other income, has increased 14.93 per cent for the quarter. Operating margins as a percentage of net sales improved 80 basis points to 24.28 per cent from 23.48 per cent during the previous year quarter.

The improvement in operating margins was achieved through a marginal reduction in staff and other operating costs and lower growth in input costs. Material and other input costs for the quarter increased 8.62 per cent over the previous year. Power, water and fuel expenses went up 30.66 per cent.

Staff costs declined marginally by 3.61 per cent while other operating expenses were lower by 2.49 per cent.