BCL Industries shares rebound 10% as company returns to black in Q2

Shares of BCL Industries rebounded about 10 per cent during the trading session on Monday after the company reported a strong performance in the September 2023 quarter as it returned to black in the second quarter, driven by a rise in the total income. It announced its earnings on Friday.

BCL Industries returned to black as it posted a consolidated net profit of Rs 19.67 crore for September quarter 2023-24. However, the company had clocked a loss of Rs 81 lakh in the year-ago period, the company said in a regulatory filing.

The total income for the company in the second quarter of the ongoing fiscal year grew 6 per cent on a year-on-year comparison to Rs 482.72 crore from Rs 455.24 crore in the same quarter a year ago, the filing said. its expenses fell to Rs 452.40 crore from Rs 456.52 crore in the year-ago period.

EBITDA came in at Rs 46.8 crore, up 690 per cent YoY, in the three months ended on September 30, 2023, while Ebitda margins came in at 9.7 per cent, compared to 9.2 per cent on a sequential basis.

Shares of BCL Industries rebounded about 10 per cent from day's low at 50.10 to Rs 54.90 on Monday. However, the scrip had settled at Rs 51.67 on Sunday's Muhurat session and gained about 6 per cent from those levels. The total market capitalization of the company stood close to Rs 1,350 crore.

BCL Industries is the only company in India and the South Asian region to have a forward and backward integrated ethanol plant. Earlier in October, shares of BCL industries traded ex-split in a 1:10 ratio, which was announced earlier this year. The face value of each equity share of the company was split from Rs 10 to Re 1.

InCred Equities said that the company delivered results in line with its estimates. The company is on a healthy run, and needs to track the ongoing expansion, said the brokerage, which currently has an 'add' rating on the stock.

July saw the commissioning of 200 KLPD ethanol plant and rice straw boiler in Punjab, the utilization of the same needs tracking, said InCred. "The company has re-entered the IMIL market in Punjab, we have not accounted for any contribution from the IMIL segment in our numbers. Ethanol prices for ESY 23-24 are not yet announced."

Also read: Stock recommendations for November 13 2023: NDMC, Bharat Electronics & Lemon Tree

Also read: Suzlon Energy stock: MFs booked profits at high, sold Rs 410 crore shares in October