How Balrampur enhanced value in the last four years
Definition
Sales growth without deducting excise duties.
Why we measure
This measure reflects the result of our ability to understand market
trends and service customers with corresponding products, superior technologies and
competent supply chain management.
Performance
Our revenues increased 26.68% to C3641 crore in FY17 over FY16.
Value impact
Creates a robust growth engine on which to build profits.
Definition
Earning before the deduction of fixed expenses (interest, depreciation,
extraordinary items and tax).
Why we measure
It is an index that showcases the Company's ability to optimise
business operating costs despite inflationary pressures, which can be easily compared with
the retrospective average and sectoral peers.
Performance
The Company has delivered healthy EBITDA over the years compared to
peers. The Company reported a 95.54% increase in its EBITDA in FY17 – an outcome
improved sugar realisations and painstaking efforts of its team in improving operational
efficiency.
Definition
Profit earned during the year after deducting all expenses and
provisions.
Why we measure
It highlights the strength in the business model in generating value
for its shareholders.
Performance
The Company reported a 490.74% increase in its net profit in FY17
– a result of improved sugar realisations and various operational strategies
comprising superior cane management, crushing and by product utilisation.
Value impact
Adequate cash pool available for reinvestment, accelerating the growth
engine.
Definition
EBITDA margin is a profitability ratio used to measure a company's
operating efficiency. Higher the operating margin, better for the Company.
Why we measure
The EBITDA margin gives an idea of how much a company earns (before
accounting for interest and taxes) on each rupee of sales.
Performance
The Company reported a EBITDA margin of 24.57% in FY17 as compared to
15.92% in FY16. This was the result of higher improved operating efficiency.
Value impact
Demonstrates adequate buffer in the business, which when multiplied by
scale, enhances surpluses.
Definition
It is a financial ratio that measures a company's profitability
and the efficiency with which its capital is employed in the business.
Why we measure
ROCE is a useful metric for comparing profitability across companies
based on the amount of capital they use - especially in capital-intensive sectors.
Performance
The Company reported a ROCE of 29.23% in FY17 as compared 16.54% in
FY16 – a showcase of prudently investing every rupee in profitable spaces that
generate higher returns for shareholders.
Value impact
Enhanced ROCE can potentially drive valuations and perception.
Definition
This is derived through the ratio of debt to net worth (less
revaluation reserves).
Why we measure
This is one of the defining measures of a company's financial
health, indicating the ability of the Company to remunerate shareholders over debt
providers (the lower the gearing the better). In turn, it indicates the ability of the
Company to sustain growth in profits, margins and shareholder value.
Performance
The Company's gearing moderated to 0.13 in FY17. We recommend that
this ratio be read in conjunction with long-term debt/operating profit (declining,
indicating a growing ability to service debt).
Value impact
Enhanced shareholder value by keeping the equity side constant;
enhanced flexibility in moderating debt cost.
Definition
This is derived through the division of EBITDA by interest outflow.
Why we measure
Interest cover indicates the Company's comfort in servicing
interest, the higher the better.
Performance
The Company strengthened its interest cover from 6.87 in 2015-16 to
16.14 in 2016-17.
Value impact
Enhanced cash flows.