Slide 1: Submission of Earnings Presentation cover letter
Regd. Office: Hazi Rattan Link Road, Post Box No. 71, Bathinda-151001 Ph.: 0164-2240163, 2240443, 2211628, Fax: 0164-5003638 Website: www.bcl.ind.in Email: bcl@mittalgroup.co.in CIN: L24231PB1976PLC003624 THE BSE Limited The National Stock Exchange of India Corporate Relationship Dept. Limited 1st F
Slide 2: Investor Presentation November 2023
INVESTOR PRESENTATION November 2023
Slide 3: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 4: 4 Decades of Legacy
4 Decades of Legacy o One of the largest agro-processing manufacturing companies in India with strong grain procurement expertise o Prominent presence in ENA and IMIL segment o Leading grain-based Ethanol producers 26%* 30%* 7% 4 Years 4 Years EBITDA o Fungible Resources and Technology Revenue EBITD
Slide 5: Business Model built on Multiple USPs
Business Model built on Multiple USPs o Strategically transitioning o ENA: Difficult License; o Paddy Straw Fuel: Cost from conversion business huge barrier to entry saving of INR 3-5/litre o Moving beyond FCI rice-to- o Ethanol: Strong Regulatory o Leading by example in Ethanol Support Innovation 4
Slide 6: Business Model: De-Risked and Diversified
Business Model: De-Risked and Diversified Flexible Raw Material Multi Location Flexible Product Mix Svaksha Sangat You can edit this Distillery Distillery text (West (Punjab) Bengal) ENA Damaged Grain Fully Integrated Distillery Plant with State-of-the-Art Technology Ethanol Maize IMIL Coal Husk Pad
Slide 7: ENA: A High Entry Barrier Business
ENA: A High Entry Barrier Business Price increase in ENA (Rs/Litre) IMIL Market (Million Cases) 20% 330 340 325 350 300 290 55 66 FY2022 FY2023 FY2010 FY2015 FY2020 FY2021 FY2022 FY2025 o State-controlled liquor policies create significant barriers for new entrants, favouring established industry pl
Slide 8: Growing at a Healthy Pace
Growing at a Healthy Pace Global ENA Market Size USD Billion Indian ENA Market Size Rs Billion CAGR 6.65% CAGR 4.42% 14 125 7 98 2022 2032 2022 2028 o ENA, with a minimum alcohol content of 96%, is a key raw material for IMIL and IMFL ;also used in cosmetics, pharmaceuticals, and personal care produ
Slide 9: BCL: Country Liquor Portfolio and Marquee Clients
BCL: Country Liquor Portfolio and Marquee Clients o We supply ENA to large bottlers like Pernod Ricard ,Amrut, ABD, Mohan Meakin o BCL sold 3,35,000 Boxes of IMIL in Q2FY24 o Our Country liquor brand Green Apple Vodka Ranjha Saunfi Asli Santra Punjab Special Whisky 8
Slide 10: Ethanol: Strong Regulatory Tailwind
Ethanol: Strong Regulatory Tailwind Ethanol Requirement for Blending (Cr. Litres) Ethanol Requirement for other purposes (Cr. Litres) Target 1,016 Cr Ltr 20% 20% 15% 550 550 12% 10% 110 134 8.50% 110 110 490 100 110 110 5% 425 330 157 290 16 107 123 208 438 466 150 150 160 170 180 190 200 42 ESY 19-
Slide 11: Ethanol: Multi-Billion Dollar Opportunity and India needs to catch up
Ethanol: Multi-Billion Dollar Opportunity and India needs to catch up Global Ethanol Market Size USD Billion India Ethanol Market Size USD Billion CAGR 5% CAGR 14.% 162 18 99 7 2022 2032 2023 2030 o India, Brazil, and Indonesia to collectively drive nearly two-thirds of the global growth in biofuel
Slide 12: BCL: Distillery Plants
BCL: Distillery Plants Sangat Distillery Capacity: 400 KLPD Location : Bhatinda (Punjab) Svaksha Distillery Capacity: 200 KLPD Location : Kharagpur (West Bengal) 11
Slide 13: Grain Based Ethanol: Compelling Rationale
Grain Based Ethanol: Compelling Rationale 12
Slide 14: India's Grain Productivity will Surpass Population Growth
1. India’s Grain Productivity will Surpass Population Growth 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 F -2.00% -4.00% -6.00% Population Growth Grain Production Growth 13 Source : PIB,The Economics Time,Macrotrends
Slide 15: India's Sugarcane Yield Decreasing
2. India’s Sugarcane Yield Decreasing Contribution to Capacity from Various Feedstocks 63% 63% 64% 62% 62% 51% 51% 49% 49% 38% 38% 37% 37% 36% 2019-20 2020-21 2021-22 2022-23 2023-24 E 2024-25 E 2025-26 E Grain Molasses o Headroom for growth in grain-based distillation is much bigger o Molasses-base
Slide 16: Grains create less Strain on Infrastructure
3. Grains create less Strain on Infrastructure Grain vis-à-vis molasses Land Requirement 45% Lower Feedstock and Land requirement for achieving E20 by 2025-26 Ethanol Yield per tonne Water Requirement 2.3x Lower Feedstock Supply Target Feedstock Required Land Requirement feedstock Sugarcane 550 Cr L
Slide 17: Farmers Incentivised to Produce Maize
4. Famers Incentivised to Produce Maize Maize MSP Price Trend (Rs/Quintal) 2,090 1,850 1,870 1,962 1,700 1,760 1,425 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 o India plans to use about 156 lakh tonnes of grains, mainly maize, to meet its 2025-26 ethanol production target o Globally, m
Slide 18: BCL's Distillery Business Positioning
BCL’s Distillery Business Positioning 17
Slide 19: BCL: Strategically Placed; Large Multi Location Capacities
BCL: Strategically Placed; Large Multi Location Capacities BCL’s Capacity Augmentation (KLPD) Top 5 Players by FY26E Current : Top 7 Distillery* Players by Capacity (KLPD) 3.5x in 4 years 1,250 1,050 850 845 765 300 660 600 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 BCL Industries FY2026E: : Top 5 Di
Slide 20: Running Operations Efficiently
Running Operations Efficiently Asset Optimisation and Low Cost of Production Resulting in Industry Leading Profitability High-Capacity Utilisation BCL vs Industry PBIT Margin 96% 100% 73% 88% 15% 67,914 24,332 40,346 41,697 39,077 29,003 30,229 36,876 * FY 20 FY 21 FY 22 FY 23 9.9% ENA (KL) ETHANOL
Slide 21: Strong Balance Sheet to Support Growth
Strong Balance Sheet to Support Growth Gross Block (Rs Cr) ROCE & ROE 474 23% 249 264 236 17% 15% 12% 13% 11% 11% 10% FY 20 FY 21 FY 22 FY 23 FY20 FY21 FY22 FY23 ROCE ROE Net Debt/Equity & Interest Coverage Working Capital Days 117 8.1 6.5 6.1 73 73 4.2 51 40 40 21 21 25 19 19 19 0.75 0.59 0.64 0.88
Slide 22: Restructuring Legacy Business-Edible Oil
Restructuring Legacy Business-Edible Oil Streamline the business operation to focus on efficiency. Co-location and Sharing of Overheads. Will maintain a strong Edible Oil Brand and Distribution Channel. Focus on Maize Oil extraction and Refining. Promote the cultivation of locally sourced oilseeds.
Slide 23: Financial Impact
Financial Impact Reducing production by 20% and compensating with enhanced EBITDA margins Total Revenue * (Rs Cr) & Revenue Contribution % Total EBITDA * (Rs Cr) & EBITDA Contribution % 926 1,436 2,001 1,827 63 97 146 130 3% 2% 0% 1% 26% 8% 2% 3% 32% 40% 14% 44% 56% 51% 59% 74% 74% 66% 59% 53% 36% 4
Slide 24: BCL: Edible Oil and Vanaspati Segment
BCL: Edible Oil and Vanaspati Segment Edible Oil Business Total Capacity MT/Day Edible Oil Business Production (In MT) 42,037 200 200 200 200 33,810 14,246 27,980 11,565 300 300 300 300 2,660 45,078 71,717 15,736 40,015 220 220 220 220 4,465 26,749 100 100 100 100 54,366 65,606 51,263 23,716 200 200
Slide 25: BCL: Edible Oil Brand
BCL: Edible Oil Brand o The government is in the process of prioritizing oilseeds like mustard, sunflower, cottonseed, and groundnut to benefit farmers instead of promoting water-intensive crops like oil palm. o BCL is dedicated to the promotion of indigenous oilseeds. Vanaspati Ghee Soya Bean Refin
Slide 26: BCL: Compelling Investment Thesis
BCL : Compelling Investment Thesis 4 Decades of Grain Procurement Business Sustainable Energy Solution, regulatory tailwinds De-risked business model-Flexible raw material, flexible product mix, multi location Flexibility to produce ENA and Ethanol Cost Leadership through technological Innovation Re
Slide 27: Q2FY24 Earnings
Q2FY24 Earnings November 2023
Slide 28: Q2FY24 Strategic Highlights
Q2FY24 Strategic Highlights EDIBLE OIL •Increased global edible oil price volatility impacted sales and profitability for the quarter. •Effective inventory management shielded the company from losses, while many industry peers suffered setbacks. DISTILLERY •Commissioned a 200 KLPD ethanol dedicated
Slide 29: Comfortable Debt Repayment Schedule
Comfortable Debt Repayment Schedule Term Debt Repayment Schedule (Rs Cr) Consolidated Debt Break Up as on 30th Sept 2023 (Rs Cr) 40 38 38 38 35 30 26 265 278 18 FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31 FY 32 Consolidated Term Loans Outstanding Consolidated Working Capital o The Average Cash Flow Fr
Slide 30: Q2 & H1FY24 – Financial Highlights
Q2 & H1FY24 – Financial Highlights Total Revenue (Rs Cr) EBITDA (Rs Cr) & EBITDA Margin % PAT (Rs Cr) & PAT Margin % 10.1% 4.1% 483 1.9% 49 20 455 9 -0.8 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 9.8% 4.3% 913 4.8% 90 2.0% 39 833 40 17 H1FY23 H1FY23 H1FY23 H1FY24 H1FY23 H1FY24 Nos are consolidated b
Slide 31: Consolidated Quarterly Income Statement
Consolidated Quarterly Income Statement In Rs Cr Particulars Q2FY24 Q2FY23 Y-o-Y Q1FY24 Q-o-Q Revenue from Operations 480.7 452.6 6.2% 428.7 12.1% Other Income 2.0 2.7 -25.2% 1.8 12.2% Total Revenue 482.7 455.2 6.0% 430.5 12.1% Total Expenses 433.9 446.6 -2.9% 389.2 11.5% EBITDA 48.9 8.6 468.1% 41.3
Slide 32: Consolidated Half Yearly Income Statement
Consolidated Half Yearly Income Statement In Rs Cr Particulars H1FY24 H1FY23 Y-o-Y Revenue from Operations 909.4 829.1 9.7% Other Income 3.8 4.3 -10.9% Total Revenue 913.21 833.4 9.6% Total Expenses 823.1 793.1 3.8% EBITDA 90.1 40.3 123.6% EBITDA Margin % 9.8% 4.8% 500bps Depreciation 16.35 10.7 52.
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet In Rs Cr Particulars H1FY24 H1FY23 H1FY24 H1FY23 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant & Equipment 533.0 311.0 Share Capital 25.4 24.2 Capital Work in progress 50.7 110.9 Other Equity 526.6 359.5 Right to Use 1.1 - Non Controlling Interest
Slide 34: Distillery Operational Highlights
Distillery Operational Highlights Volume 52,424 29,395 23,029 19,992 20,148 20,259 10,615 10,870 10,480 9,533 9,779 14,913 7,337 7,576 7,667 6,809 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 H1FY23 H1FY24 ENA (In KL) Ethanol (In KL) ENA (In KL) Ethanol (In KL) 33
Slide 35: Distillery Financial Performance
Distillery Financial Performance Revenue (Rs Cr) EBITDA (Rs Cr) & EBITDA Margin % 15.12% 13.01% 186 45 61 67 18 46 Q2FY23 Q2FY24 Q2FY23 Q2FY24 ENA Ethanol 15.18% 13.82% 321 82 113 129 35 89 H1FY23 H1FY24 H1FY23 H1FY24 ENA Ethanol 34
Slide 36: Edible Oil Segment and Real Estate
Edible Oil Segment and Real Estate Edible Oil Revenue (Rs Cr) Edible Oil EBITDA (Rs Cr) & EBITDA Margin % Real Estate Revenue (Rs Cr) 2.33% 4 1.86 287 184 -7.5 1.3 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 2.39% 1.23% 547 370 9 7 2.7 3.4 H1FY23 H1FY24 H1FY23 H2FY23 H1FY23 H1FY24 35
Slide 37: Annexure
Annexure November 2023
Slide 38: Strong Legacy
Strong Legacy 1988: Installed and commissioned an oil 2007: Expanded into the distillery business. crushing unit. 2010: Installed a new grain-based distillery-ethanol 1990: Commenced the production of unit with a daily capacity of 100,000 litres (KLPD) Vanaspati by setting up a 100 MT Vanaspati Capa
Slide 39: Board of Directors
Board of Directors Mr. R.C. Nayyar - Chairman & Independent Mr. Rajinder Mittal - Managing Director Mr. Kushal Mittal - Joint Managing Director Director Started in family business at 21, mentored Northeastern Univ. Business Admin- 1982 IAS graduate with a PhD in Science from by father Late Sh. Dwark
Slide 40: Consolidated Financial Highlights
Consolidated Financial Highlights Total Revenue (Rs Cr) EBITDA (Rs Cr) & EBITDA Margin % 9.8% 2,001 6.6% 1,827 7.2% 7.1% 1,459 6.8% 926 913 146 130 97 90 63 FY 20 FY 21 FY 22 FY 23 H1FY24 FY 20 FY 21 FY 22 FY 23 H1FY24 Profit After Tax (Rs Cr) & PAT Margin % Shareholder’s Equity (Rs Cr) 571 4.2% 4.3
Slide 41: Consolidated Historical Income Statement
Consolidated Historical Income Statement In Rs Cr Particulars FY21 FY22 FY23 H1FY24 Revenue from Operations 1,431.3 1,993.1 1,819.9 909.4 Other Income 27.9 8.1 6.7 3.8 Total Revenue 1,459.2 2,001.2 1,826.6 913.21 Total Expenses 1,362.6 1,855.5 1,696.3 823.1 EBITDA 96.6 145.7 130.3 90.1 EBITDA Margin
Slide 42: Consolidated Historical Balance Sheet
Consolidated Historical Balance Sheet In Rs Cr Particulars FY22 FY23 H1FY24 FY22 FY23 H1FY24 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant & Equipment 129.6 316 533.0 Share Capital 24.2 24.2 25.4 Capital Work in progress 166.3 212.3 50.7 Other Equity 342.5 456.3 526.6 Right
Slide 43: Company Contact and Investor Relations Contact
Company Contact: Investor Relations Contact: Ajeet Kumar Thakur (Company Secretary) Priya Sen Sheetal Khanduja cs_bcl@mittalgroup.co.in Go India Advisors Go India Advisors Hazi Rattan Link Road, Bathinda-151005, priya@GoIndiaAdvisors.com sheetal@GoIndiaAdvisors.com Punjab, India M:+91 8334841047 M:+