Magadh Sugar & Energy Ltd. · NSE:MAGADSUGAR
Magadh Sugar & Energy — Q4 FY2019 Earnings Presentation
30 slides from Magadh Sugar & Energy's earnings presentation, May 20, 2019
Slide 1: Exchange filing cover letter
W\MA6ADH SUGAR & ENERGY LTD MSEL//SE/2018-19/13 20th May, 2019 The Manager The Manager The Secretary Listing Department Listing Department The Calcutta Stock National Stock Exchange of India BSE Ltd. Exchange Ltd. Limited 1st Floor, New Trading Ring, 7, Lyons Range 'Exchange Plaza', C - 1, Rotunda B
Slide 2: Magadh Sugar and Energy Limited Investor Presentation May 2019
Magadh Sugar and Energy Limited Investor Presentation May | 2019 1
Slide 3: Agenda
Agenda Q4FY19 Quarter Highlights Operational Highlights – FY19 Industry Scenario Growth Strategy
Slide 4: Q4FY19 Quarter Highlights
Q4FY19 Quarter Highlights
Slide 5: Business Updates FY19
Business Updates FY19 Sugar Stock as on 31st March 2019, 20.30 lakh quintals Average realization in FY19 Rs. 3,090 per quintal; FY18 Rs. 3,640 per quintal Crushing during current FY 24.23 Lac Quintal compared to 19.87 in FY18; up by 22% Average recovery during the Sugar Season 2018-19 (till
Slide 6: Q4 & FY19 Result Highlights
Q4 & FY19 Result Highlights Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) 726 739 107 33 34 25 67 66 16 210 181 11 Q4FY18 Q4FY19 FY18 FY19 Q4FY18 Q4FY19 FY18 FY19 Q4Y18 Q4FY19 FY18 FY19 5
Slide 7: Profitability Highlights
Profitability Highlights Rs. Crore Q4FY19 Q4FY18 YoY FY19 FY18 YoY Total Income 208.8 182.4 14.5% 745.2 728.8 2.3% Total Expenditure 142.2 170.9 637.9 662.7 EBITDA 66.7 11.5 481.9% 107.3 66.0 62.4% EBIDTA margin (%) 31.9% 6.3% 256 bps 14.4% 9.1% 530 bps Depreciation 4.3 4.5 18.0 18.7 PBDT 62.4 7.0 7
Slide 8: Operational Highlights – FY19
Operational Highlights – FY19
Slide 9: Sugar Segment Performance
Sugar Segment Performance Segmental Revenues % contribution to PBIT (Rs. Lakh) % contribution to PBIT (Rs. Lakh) Revenues Q4FY19 19,427 74 2,642 41 Q4FY18 17,722 73 (2,013) - FY19 66,934 80 1,669 18 FY18 69,789 85 1,437 25 Sugarcane Crushed Sugar Sold Average Realization Sugar Recovery (%) (lakh qui
Slide 10: Sugar Segment Performance
Sugar Segment Performance Cane Crushed (Lakh Quintals) Sugar Recovery (%) 11.22 242 199 10.88 139 152 10.35 10.2 FY18 FY19 Q4FY18 Q4FY19 FY18 FY19 Q4FY18 Q4FY19 Sales (lakh Quintals) Average Realization (Per Kg) 19.67 36.4 17.17 32.7 31.59 30.9 4.34 5.26 FY18 FY19 Q4FY18 Q4FY19 FY18 FY19 Q4FY18 Q4FY
Slide 11: Distillery Segment Performance
Distillery Segment Performance Segmental Revenues % contribution to PBIT (Rs. Lakh) % contribution to PBIT (Rs. Lakh) Revenues Q4FY19 2,257 9 1,182 18 Q4FY18 1,673 7 594 - FY19 8,335 10 3,728 41 FY18 5,503 7 1,507 26 Average Realization of Total Alcohol Production Total Alcohol Sales Ethanol (Lakh l
Slide 12: Distillery Segment Performance
Distillery Segment Performance Production (crore litres) Sales (crore litres) 1.82 1.95 1.25 1.3 0.49 0.58 0.4 0.51 FY18 FY19 Q4FY18 Q4FY19 FY18 FY19 Q4FY18 Q4FY19 Average Realization Distillery (Rs. Per litre) 43.46 41.78 40.85 39.62 FY18 FY19 Q4FY18 Q4FY19 11
Slide 13: Co-Generation Segment Performance
Co-Generation Segment Performance Segmental Revenues % contribution to PBIT (Rs. Lakh) % contribution to PBIT (Rs. Lakh) Revenues Q4FY19 4,657 17 2,570 41 Q4FY18 4,732 20 2,320 - FY19 1,418 10 3,759 41 FY18 6,818 8 2,907 49 Power Generation Power Sales Average Realization (lakh units) (Lakh units) (
Slide 14: Co-Generation Segment Performance
Co-Generation Segment Performance Power Sales to Grid (crore units) Average Realization Co-generation (Supply to Grid) (Per unit) 804 5.11 525 4.98 FY18 FY19 FY18 FY19 13
Slide 15: Company Overview
Company Overview
Slide 16: Background of Magadh Sugar & Energy Limited
Background of Magadh Sugar & Energy Limited Upper Ganges Oudh Sugar Sugar Sugar, Ethyl Sugar, Ethyl Alcohol including Alcohol including Ethanol, co- Tea Business Other Business Ethanol, co- Food Processing Other Business generation of generation of Power and By Power and By Products Products Uttar P
Slide 17: Company Overview
Company Overview • Incorporated in 1932 (Group in Sugar Business over 7 decades), consequent upon various schemes of merger and demerger this company formed in 2015 Plant Region Capacity • Company’s core business includes (Bihar) New Swadeshi Sugar Mills 7,500 TCD – Sugar and sugar products, Spirits
Slide 18: Ready to reap the benefits going ahead
Ready to reap the benefits going ahead New Swadeshi Sugar Mills - 7,500 TCD New Swadeshi Distillery - 60 KLPD New Swadeshi Co-generation -10 MW Bharat Sugar Mills – 5,000 TCD Bharat Co-generation -18 MW Hasanpur Sugar Mills – 5,000 TCD Hasanpur Co-generation -10 MW 17
Slide 19: Integrated Business Model
Integrated Business Model Industrial Spirit & Cane Ethanol Molasses Distillery Development (60 KLPD) & Marketing Farmers Clarification Sugarcane Sugar Evaporation Juice (17,500 TCD) Crystallization Sugarcane Magadh Sugar & Crushing Energy Limited (3 Facilities) Power Co-Generation Bagasse Generation
Slide 20: Continuous innovation in business model
Continuous innovation in business model Integrated operations •Maximize value from every ton of cane crushed •Liquor ban in Bihar enhanced ethanol Intra-plant synergies business •Economic sized operations driving cost efficiencies •Close proximity maximizes by-product utilization “Supported by stron
Slide 21: Industry Scenario
Industry Scenario
Slide 22: Key Industry Updates
Key Industry Updates As per ISMA total sugar Bihar Govt committed to In June 2018, the Centre had production in India hit 32.12 provide subsidy of Rs. 12.50 per announced a Rs 7,000 crore Million Tones as on 30th April, quintal of sugarcane crushed package to ease liquidity in the 2019 compared to 3
Slide 23: Ethanol a Game Changer
Ethanol a Game Changer Alcohol demand of 6.3bn litres expected to grow at 12% Alcohol Demand 2018-19 (Bn Litres) Alcohol Demand (Bn Litres) Potable Industrial Fuel Ethanol Potable , Fuel 2.2, 36% 15.4 Ethanol, 3.3, 53% 8.5 3.3 4.2 1.0 Industrial, 0.8 0.9 0.7 3.7 4.8 0.7, 11% 2.3 2.8 2018-19 2021-22
Slide 24: Sugar industry – production and consumption
Sugar industry – production and consumption Domestic Sugar Balance 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 #Est Opening Stock 7.6 8.2 6.5 8.8 7.7 3.96 10.72 Production 25.1 24.3 28.3 25.1 20.3 32.47 33.0 Increase in Production -4.56% -3.19% 16.46% -11.31% -19.21% 59.95%
Slide 25: Strategy Going Forward
Strategy Going Forward
Slide 26: Continuous efforts to increase sugar productivity
Continuous efforts to increase sugar productivity Varietal Increase in Improvement of Reap the benefits of yield per Acre Cane manufacturing ethanol Educating farmers on Distillery expansion best farming practices 25
Slide 27: Government's focus to drive ethanol segment
Government’s focus to drive ethanol segment Finance Ministry has raised the rate of Realization of Ethanol to ~Rs.43 per Ethanol is higher in litre for the SS18-19 comparison to Leading to rise in Industrial spirit the production of Ethanol Intends to blend more Ethanol in petroleum product Governme
Slide 28: Focus on creating value for all stakeholders
Focus on creating value for all stakeholders Strengthen the Balance-Sheet • Helps to reduce interest outgo/blended cost by liquidating old high cost debts • No major capex plans • Improving current ratio by reducing debt going forward 27
Slide 29: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Magadh Sugar & Energy Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 30: Let's Connect
Let’s Connect Mr. Dilip Patodia /Mr. Sunil Choraria Mr. Vikash Verma / Mr. Abhishek Bhatt dilip.patodia@birla-sugar.com sunil@birla-sugar.com vikash.verma@stellar-ir.com abhishek@stellar-ir.com 9/1,R.N. Mukherjee Road, Kolkata B-707, Kanakia Wallstreet, Andheri (East), Mumbai For more information vi
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