Balrampur Chini Mills performed poorly as its ethanol business disappointed. Pramod Patwari, CFO of Balrampur Chini Mills, told CNBC-TV18 that nothing has changed in the ethanol business as such, volumes vary in the quarter-on-quarter (QoQ) basis and in this particular quarter, there was some delay from the oil marketing companies (OMCs) for the regularisation of the new contract.

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"However, whatever guidance we have given for the full year, we are on the track," he said.

“We have already committed around 8.5 crore litre of ethanol in the first round and in the second round we are also committed, the outcome is yet to be announced.”

In terms of revenues, Patwari said: “As far as the revenue is concerned, I don’t think there is any pressure on quarterly basis. Sugar segment has delivered very good numbers. On account of export dispatches, we have dispatched around 9 lakh quintals of sugar. So on a QoQ basis, there has been an improvement in revenue.”

He added that finance cost is marginally higher because the company was carrying higher-level of inventory.

Balrampur Chini Mills is carrying an inventory of about 44 lakh quintal and – I don’t have the industry figures as of January 31, 2020.

But as of September 30, going forward, the industry would be carrying around 10 billion tonnes of inventory after considering an export of around 4-4.5 million tonne, according to him.

On recovery rate, he said recovery in Balrampur Chini Mills has been very good.

"If we adjust the impact of B Heavy diversion, we should be ending the year or the season with an improvement by 15-20 basis points (bps) in terms of recovery.”