Balrampur Chini Mills Ltd · NSE:BALRAMCHIN
Balrampur Chini Mills — Q1 FY2025 Earnings Presentation
59 slides from Balrampur Chini Mills's earnings presentation, Aug 12, 2024
Slide 1: Investor Presentation filing letter to stock exchanges
12th August, 2024 National Stock Exchange of India Limited BSE Limited Listing Department, The Corporate Relationship Department ‘Exchange Plaza’, C/1, G Block, Bandra 1st Floor, New Trading Wing, Rotunda Kurla Complex, Bandra (E), Building, Phiroze Jeejeebhoy Towers, Mumbai 400051. Dalal Street, Fo
Slide 2: Q1FY25 Results Presentation
Balrampur Chini Mills Limited Q1FY25 Results Presentation 12th August 2024 “STRETCH” Deepening our competence. Widening our horizon.
Slide 3: Safe Harbour
Certain statements made in this document may constitute forward- looking statements. These forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, agricultural policies, climatic conditions, technological risks, and
Slide 4: Conference Call Details
Conference Call Details Timing 12:00 noon IST on Tuesday, August 13, 2024 Conference dial-in Primary number: +91 22 6280 1141 / 7115 8042 3
Slide 5: Table of Contents
Table of Contents 1 Message from the Chairman and Managing Director 5 2 Brief perspective about our company 6-8 This presentation comprises of eight parts 1 Q1 performance in numbers 9-12 2 The performance of our principal businesses 13-29 3 Treasury management 30-35 4 Global and Indian sugar sector
Slide 6: A message from the Chairman and Managing Director
“The Company has commenced the fiscal on a steady note. Despite facing challenges in distillery operations due to regulatory issues, sugar segment has continued to perform well in a seasonally soft quarter, benefiting from higher volumes A message from and realisations. the Chairman During the quart
Slide 7: A Brief perspective about our company
A Brief perspective about our company BCML – A multi-product integrated Company with manufacturing capability of Sugar, Ethanol and Co-Generation 10 manufacturing units, Among the all in Uttar Pradesh, in largest Principal close proximity integrated business sugar sugar + distillery companies 80000
Slide 8: 5 Year Standalone Financial Performance
5 Year Standalone Financial Performance Segmental Revenues (Rs. Cr.) * Segmental PBIT (Rs. Cr.) Sugar Distillery Others Sugar Distillery Others 13 24 11 10 5 24 22 20 1689 12 326 842 1001 1164 264 13 566 344 382 261 4,423 4,697 4,352 4,263 4,339 389 329 296 238 420 FY20 FY21 FY22 FY23 FY24 FY20 FY21
Slide 9: 5 Year Standalone Financial Performance (contd.)
5 Year Standalone Financial Performance (contd.) EBITDA (Rs. cr) EBITDA Margin (%) TCI (Rs. cr) TCI Margin (%) 502 511 786 469 441 682 714 700 10.6% 10.6% 9.8% 14.4% 14.8% 14.4% 512 14.1% 269 7.9% 11.0% 5.8% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Sustainable profitability on the back of s
Slide 10: Q1FY25 performance in numbers
➢ PART ONE Q1FY25 performance in numbers 9
Slide 11: Consolidated Financial Performance
Consolidated Financial Performance Basic EPS (Rs.) Revenue (Rs. Cr.) PBT (Rs. cr) TCI (Rs. cr) PBT Margin (%) 14.6% 10.08 TCI Margin (%) 1,539.5 1,434.3 1,421.6 8.24 1,389.6 11.0% 1,230.4 7.50% 14.5% 20.2% 7.7% 4.9% 3.64 4.53 222.9 10.00% 289.4 5.2% 168.9 92.2 3.48 106.7 7.2% 72.7 70.0 123.2 102.4 2
Slide 12: Standalone Financial Performance
Standalone Financial Performance Revenue (Rs. Cr.) EBITDA (Rs. cr) PBT (Rs. cr) TCI (Rs. cr) EBITDA Margin (%) PBT Margin (%) TCI Margin (%) 1,539.5 1,434.3 1,421.6 19.6% 14.1% 1,389.6 24.0% 1,230.4 344.7 144.6 281.5 202.7 108.9 163.2 164.9 166.1 61.2 113.4 101.3 9.4% 82.8 95.2 68.6 7.1% 64.5 11.7%
Slide 13: Q1FY25 performance (standalone numbers) explained
Q1FY25 performance (standalone numbers) explained Q1FY24 Q1FY25 Variance Key Reasons (Rs. Crs.) (Rs. Crs.) (%) Higher volume & realizations in sugar which Revenue from operations 1389.62 1421.60 2.3% was partly offset by lower volume in distillery Mainly on account of lower sale of scrap due to Othe
Slide 14: The performance of our principal businesses
➢ PART TWO The performance of our principal businesses 13
Slide 15: Business Overview Sugar
“Attractively Business placed”- Management’s Overview Sugar overarching 5 messages for Q4FY22 14
Slide 16: Policy intervention from Government
Policy intervention from Government ▪ FRP: Fair & Remunerative Price (FRP) of sugarcane for the sugar season 2023-24 has been revised to ₹315 per quintal from ₹305 per quintal in the previous season (linked to a basic recovery of 10.25%). FRP for the sugar season 2024-25 has been revised to ₹340 per
Slide 17: Comparative Analysis of water requirement of sugarcane and competing crops
Comparative Analysis of total water requirement and productivity of sugarcane and competing crops and its correlation with Ethanol production Total Crop Productivity of crop Ethanol Quantity of Productivity of water Yeild per unit of water Produced Ethanol per MT Ethanol per unit Source: used consum
Slide 18: Business Overview - Sugar
Business Overview - Sugar Sugar Revenue (Rs. Cr.) Average blended realization Segment PBIT (Rs. cr) Total Sugar Sales (lac 1,310.9 quintals) of sugar (Rs./kg) 1,116.1 1,109.4 1,161.0 1,131.6 39.38 17.8% 25.61 37.66 38.22 38.88 23.80 24.55 36.85 22.82 22.49 6.4% 3.5% 6.6% 6.6% 71.4 39.1 76.1 233.1 74
Slide 19: Business Overview – Sugar – Operational numbers
Business Overview – Sugar – Operational numbers Sugarcane crushed (lac quintals) Sugar Recovery (%) * Sugar Recovery Pre-sacrifice Sugar Production (lac (%) quintals) 10.98 11.15 621.1 9.84 9.35 12.08 12.18 11.82 68.16 11.03 323.8 30.27 139.6 13.74 64.2 7.16 - - - - Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1
Slide 20: Business Overview – Sugar – Operational numbers (contd.)
Business Overview – Sugar – Operational numbers (contd.) Sugarcane diverted towards B- Sugarcane diverted towards Sugar sacrifice under B-heavy Sugar sacrifice under Syrup heavy route (lac quintals) Syrup route (lac quintals) route (lac quintals) route (lac quintals) 308.65 20.82 4.87 16.08 193.12 3
Slide 21: Movement in Sugar Costs, Inventory & Valuation
Movement in Sugar Costs, Inventory & Valuation FY23 FY24 (Rs./quintal) (Rs./quintal) 3,552 3,343 3,371 3,560 3,411 3,422 Sugar Inventory Cane Cost Cost of Sugar Inventory Cane Cost Cost of Sugar Inventory (including WIP) Production Valuation Production Valuation (lac quintals) Cane Crushed * (lac qt
Slide 22: Business Overview: Distillery
Business Business Overview overview: -Distillery Sugar 21
Slide 23: Trend in Ethanol Supply fulfilling the domestic demand
Trend in Ethanol Supply fulfilling the domestic demand Ethanol Procurement by OMC’s (in crore litres) Blending in Petrol achieved % 12.01% 10.02% 8.0% 2.33% 4.2% 5.0% 5.1% 1.53% 3.5% 2.1% 290 506 38 111 67 151 189 173 434 67 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 202
Slide 24: Greenhouse emissions from Ethanol produced from various feed-stocks
Greenhouse emissions from Ethanol produced from various feed-stocks • The Greenhouse gas emitted from Ethanol produced from various feed-stocks shows that Ethanol produced from sugarcane produces far less greenhouse gas as compared to other feed-stocks Source: Harro (von Blottnitz) and Mary Ann Curr
Slide 25: Business Overview - Distillery
Business Overview - Distillery Distillery Revenue (Rs. Cr.) Total Sales * (Cr BL) Average blended realization 559.7 Segment PBIT (Rs. cr) (including ENA & Other 466.0 Segment PBIT Margin (%) 8.83 Products) ** (Rs./BL) 412.9 424.1 7.39 6.66 6.85 23.6% 19.1% 250.5 19.5% 18.2% 14.0% 4.19 58.33 57.19 56
Slide 26: Business Overview – Distillery – Operational numbers
Business Overview – Distillery – Operational numbers Ethanol Production from B-heavy Ethanol Production from Syrup Ethanol Production from Grain Total Production * (Cr BL) route (Cr BL) route (Cr BL) molasses route (Cr BL) 1.50 1.47 1.82 1.53 1.51 8.30 8.70 4.28 5.03 1.13 0.88 7.34 1.45 5.12 3.66 -
Slide 27: Business Overview – Distillery – Operational numbers (contd.)
Business Overview – Distillery – Operational numbers (contd.) Ethanol Production from C-heavy ENA & Other Products Production Stock of Alcohol molasses route (Cr BL) (Cr BL) (Cr BL) 0.10 0.15 0.05 1.23 0.96 0.63 0.33 0.86 3.17 3.46 0.37 0.78 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4
Slide 28: Update on distillery business
This is what Update on distillery our sugarbusiness business achieved Ethanol prices under the EBP Programme for ESY 2023-24 are as under: Sl. Period Price of Ethanol under various feed-stock (Rs./BL) No. Ethanol Year C-route B-route Syrup DFG SFG Maize ESY 2021-22: 1 46.66 59.08 63.45 52.92 56.87 5
Slide 29: Business Overview – Co-generation
Business Overview – Co-generation Co-generated Power Production Co-generated Power Sales Average Realization (Rs./Unit) (Cr Units) (Cr Units) 5.53 Stock of Bagasse (lac MT) 44.1 20.6 4.55 3.79 3.86 4.02 2.81 22.0 10.5 16.8 6.9 1.11 15.3 7.0 6.9 2.7 30th June 2023 30th June 2024 Q1FY24 Q2FY24 Q3FY24
Slide 30: Business Overview – Poly Lactic Acid
Business Overview – Poly Lactic Acid • Setting up of India’s 1st Poly Lactic Acid (PLA) of 75000 tonnes capacity is in progress. • ~86.67 acres of land has been acquired till date. • Contracts for foreign technology partners viz. Sulzer & Alpine has been executed. • EPMC contract executed with Jacob
Slide 31: Treasury management
➢ PART THREE Treasury management 30
Slide 32: Factors influencing our treasury management
Factors influencing our treasury management • Our product mix (to manufacture sugar or produce ethanol) • To sell sugar within India or export • The government’s allocation of sugar sale quota • The terms of trade related to sales • The cost of debt on the company’s books / external credit rating 31
Slide 33: Major Working Capital Components / Long Term Debt
Major Working Capital Components / Long Term Debt Cane price payable Long Term Debt Short Term Debt [excluding current (Rs. Cr.) (including current maturities) maturities of long term debt] (Rs. Cr.) (Rs. Cr.) 1,547 606 617 1,376 580 1,264 496 461 1,175 446 416 1,059 363 891 960 257 216 228 * 188 *
Slide 34: Cash Flow Analysis – (standalone)
Cash Flow Analysis – (standalone) Rs. Cr Sl. no. Particulars FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 1 Profit before tax 554.93 596.11 655.61 396.97 610.19 2 Cash generated from operating activities 849.61 649.21 694.65 452.91 177.83 3 Net cash (used in) investing activities (304.71) (81.13) (3
Slide 35: Dividend & Share buy-back track record
Dividend & Share buy-back track record Sl. no. Particulars FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 1 Dividend (%) 250% 250% 250% 250% 300% 2 Dividend (Rs./share) 2.50 2.50 2.50 2.50 3.00 3 Dividend Payout (including DDT) (Rs. Crs.) 66.31 52.50 51.01 50.84 60.52 4 Buy-back Payout (including tax)
Slide 36: Treasury management update
Treasury management update • Long-term credit rating re-affirmed at AA+ with Stable outlook and the short-term rating at A1+ by CRISIL As of 30th June 2024, long term borrowings of the Company stands at ` 415.78 crores Yearly repayment schedule as per terms of sanction (` in crores) # 274.80 89.00 8
Slide 37: Global & Indian Sugar Sector Overview
➢ PART FOUR Global & Indian Sugar Sector Overview The company’s sugar prospects are influenced by trends in the global and domestic sugar markets 36
Slide 38: The Sugar Global Scenario
TheSugar Global Global Scenario Production Outlook ( metric million tonnes) Net of sugar sacrifice of ~2 Assuming MMT sugar sacrifice of ~4 MMT Total Global production at 179.5 MMT Total Global production estimated at 183.8 MMT Global production is forecasted at 183.8 MMT with higher production in T
Slide 39: Factors influencing global sugar industry trends
Factors influencing global sugar industry trends 1 Global oil prices Million tonnes, Weather / Acreage (23-24) 2 Government policies catalyzing the shift between sugar to ethanol 179.5 global sugar production, 2023- • Favorable weather and increased 24 area have resulted in additional sugarcane avai
Slide 40: Domestic Sugar Balance Sheet
Domestic Sugar Balance Sheet ( metric million tonnes) 22-23 23-24 (Estimated) 24-25 (Projected) 32.80 Net of sugar Assuming sacrifice of 32.00 Net of sugar sugar sacrifice ~3.8 MMT sacrifice of ~2 of ~4 MMT 27.85 28.50 28.00 29.00 MMT 8.55 8.55 7.55 7.00 6.40 5.55 5.55 ? 0.50 Op. Prod. Cons. Exp. Cl
Slide 41: India: World's Largest Sugar Consumer
India: World’s Largest Sugar Consumer India's Sugar Consumption India's Sugar Consumption (MMT) Direct Bulk B2B Households 35% Consumers 65% 28.50 29.00 27.40 27.85 26.50 25.30 SS19-20 SS20-21 SS21-22 SS22-23 SS23-24 SS24-25 Per capita consumption in India as compared to global average (Est.) (Pro.)
Slide 42: ESG and enhanced stakeholder value
➢ PART SIX ESG and enhanced stakeholder value 41
Slide 43: Our ESG vision
Our ESG vision To retain our position as one of the “greenest” companies in India’s sugar sector The relevance of same to Company’s business The nature of our energy We are engaged in a social A sustainable business can products: business, marked by be only built through a engagements with around st
Slide 44: Our ESG Framework
Our ESG Framework Environmental Social Governance Our environment approach has been Our Company takes a holistic Our Governance policies are framed woven around the elements of Plan- approach to sustainable value on the basis of transparency, Mitigate-Adapt-Resilience. creation for all its stakehold
Slide 45: Our ESG Achievements
Our ESG Achievements Total effluents Steam consumption No. of trees planted (Ltrs/MT)) (as a % of cane) (units) 43.82 196.16 186.98 177.45 $ 1,84,354 156.59 42.58 1,66,773 151.32 42.16 1,50,137 42.00 40.92 45,700 50,298 SS 20 SS 21 SS 22 SS 23 SS24 SS 20 SS 21 SS 22 SS 23 SS 24 FY 20 FY 21 FY 22 FY
Slide 46: Socially Conscious Corporate Citizen
Socially Conscious Corporate Citizen 70,902 individuals benefitted CSR spend (Rs. Cr) 134 Hand pump installed 16 RO water unit installed 11.95 12.91 10.93 10.68 11.20 17 CCTV Systems installed 18 High Mast & Street Lights 2.93 installed 5 Waiting Hall Constructed FY19 FY20 FY21 FY22 FY23 FY24 6 Toil
Slide 47: How we moderated our carbon footprint
How we moderated our carbon footprint Further, as a part of value chain initiatives, the purchased sugarcane by BCML sequestered approximately 4.27 million tonnes of carbon dioxide BCML’s total GHG emissions (excluding biogenic emissions) for FY 2023-24 was 0.97 million tCO2e and the GHG emissions r
Slide 48: Deep dive into Scope 3 emissions
Deep dive into Scope 3 emissions In FY 23-24, we undertook an exercise to calculate emissions across our value chain - upstream and downstream. Under upstream emissions, we accounted for the purchase of goods and services, procurement of capital goods, emissions from fuel and energy related activity
Slide 49: Life Cycle Assessment (LCA) of Sugar and Ethanol
Life Cycle Assessment (LCA) of Sugar and Ethanol Given below is the extract of the environment impact on climate change for producing 1 kg of sugar, which has negative emission of -1.546 (cradle to gate) and 1 kg of ethanol having a negative emission of - 1.396 (cradle to gate) 1 KG OF SUGAR Impact
Slide 50: Our Governance Framework
Our Governance Framework Focus on de- risking coupled with controlled growth Investment in digitalisation, processes and systems Strategic guidance from experienced and diversified Board of Directors 49
Slide 51: Our Awards and Recognitions
Our Awards and Recognitions Bonsucro Certification: Balrampur Chini Mills demonstrated the operation of a management system that is compliant with the requirements of: Bonsucro Smallholder Production Standard for Smallholder Farmers V1.0; Bonsucro Production Standard V 4.2 and Bonsucro Mass Balance
Slide 52: Board of Directors
Board of Directors Dr. Indu Bhushan (Retd. IAS) – Lead Independent Director Vivek Saraogi - Chairman and Managing Director ➢ Served as the Chief Executive Officer (CEO) of National Health Authority ➢ An eminent Industrialist, is a veteran in the sugar industry and has been one of (NHA) and Ayushman
Slide 53: Shareholding Pattern
Shareholding Pattern Promoter Group Holding Foreign Holding Domestic Mutual Funds 42.90% 42.90% 42.90% 42.90% 42.90% 20.64% 14.27% 14.76% 12.64% 19.36% 10.93% 11.72% 18.93% 18.81% 17.55% June,23 Sept,23 Dec,23 Mar,24 June, 24 June,23 Sept,23 Dec.,23 Mar,24 June,24 June,23 Sept,23 Dec,23 Mar,24 June,
Slide 54: Top 10 Non-Promoter Shareholding as on 30th June 2024
Top 10 Non-Promoter Shareholding (PAN wise) as on 30th June 2024 Shareholder % Shareholding NIPPON LIFE INDIA TRUSTEE LTD 5.39% QUANT MUTUAL FUND 2.36% KOTAK MUTUAL FUND 2.31% HSBC MUTUAL FUND 1.78% HDFC MUTUAL FUND 1.60% ABU DHABI INVESTMENT AUTHORITY - MONSOON 1.22% SBI LIFE INSURANCE CO. LTD 1.14
Slide 55: Update on Auxilo Finserve Private Limited – An Associate of the Company
Update on Auxilo Finserve Private Limited – An Associate of the Company Equity Shareholding Pattern Extract of Statement of Assets & Liabilities/ Rs. Crs. as on 30th June-24 (%) * Profitability of Associates Except EPS Particulars March 2024 March 2023 33.72 33.72 Liabilities Financial Liabilities 2
Slide 56: Update on Auxilo Finserve – Q1FY25
Update on Auxilo Finserve Private Limited – An Associate of the Company – Q1FY25 Balance Sheet Profit and Loss Total assets – Cash and bank – Advances – Rs. 3457 crs Rs. 296 crs Interest Finance costs – Profit after tax Rs. 3137 crs income – Rs. 61 crs – Rs. 21 crs Rs. 103 crs Total income – Total e
Slide 57: Key Events to Watch Out
This Events Key is what to our Watch sugarOut business achieved ➢ Ethanol policy for ESY 2024-25 ➢ Revision in price of Ethanol from different feed-stock for ESY 2024-25 (usually follows FRP) ➢ Revision in Minimum Selling Price (MSP) of sugar ➢ Export Policy for SS 2024-25 ➢ IMD is predicting normal
Slide 58: Contact Us
About Balrampur Chini Mills Limited Contact Us CIN: L15421WB1975PLC030118 Balrampur Chini Mills Limited (BCML) is one of the largest integrated sugar companies in India. The allied businesses of the Company comprise distillery operations and cogeneration of For further information contact: power. Th
Slide 59: Thank You
Thank You 58
Balrampur Chini Mills — Q1 FY2025 Earnings Presentation on 6ix