E.i.d.-parry (india) Limited · NSE:EIDPARRY
E.i.d.-parry (india) — H1 FY2023 Earnings Presentation
49 slides from E.i.d.-parry (india)'s earnings presentation, Nov 14, 2022
Slide 1: Regulation 30 intimation cover letter to stock exchanges
...,-& E.I.D. - Parry (India) Limited Regd.Office : Dare House, 234,N.S.C. Bose Road, Parrys Corner, Chennai 600001, India. 6P~YS Tel: 91.44.25306789 Fax: 91.44.25341609/25340858 (IN: L2421 lTN1975PL(006989 Website: www.eidparry.com November 14, 2022 BSE Limited National Stock Exchange of India Limi
Slide 2: E.I.D. Parry (India) Ltd. Investor Presentation
E.I.D. Parry (India) Ltd. Investor Presentation 1 Nov 2022
Slide 3: Safe Harbour
E.I.D. Parry (India) Ltd.- Safe Harbour Certain statements made in this document may constitute forward-looking statements. These forward- looking statements are based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opin
Slide 4: Murugappa Group
Murugappa Group 122 Years of Existence $ 7 Bn. Turn over in FY 2022 59000+ Happy employees $ 27 Bn. market cap as 20million + farmers of 30th Sep 2022 100+ Mfg. Locations 29 Businesses 40 Countries 10 Listed entities
Slide 5: E.I.D. Parry (India) Ltd.- About us
E.I.D. Parry (India) Ltd.- About us 2200+ 235 years in the Business Happy employees Founded in 1788 ₹ 11000 Cr 6 Market cap as of 30th Sugar factories in South Sep 2022 India ₹ 4500 Cr* 5 Distilleries including Revenue by FY’22 one standalone distillery * Consolidated revenue excluding Coromandel In
Slide 6: E.I.D. Parry (India) Ltd.- Capacities
E.I.D. Parry (India) Ltd.- Capacities Expansion Location Sugar Power Distillery Planned Nellikuppam- TN 7500 TCD 25 MW 75 klpd Pugalur- TN 4800 TCD 22 MW Sivaganga- TN 65 klpd Sankili- AP 5000 TCD 16 MW 48 klpd 120 klpd* Haliyal- KA 12000 TCD 49 MW 50 klpd 120 klpd** Bagalkot- KA 6000 TCD 16 MW 60 k
Slide 7: Industry Analysis
Pa Industry Analysis
Slide 8: Global Scenario
Global Scenario Global Surplus Higher crop in Brazil & India Prices is expected to result in Surplus and Global macros Global surplus for SY 22-23 (strong USD) is keeping sugar prices range bound Policies Change in Brazilian fuel tax policy in medium term can Market Expectation increase the floor pr
Slide 9: Global Sugar Balance & Prices
Global Sugar Balance & Prices Raw Sugar: c/lb mtrv- Metric Tonnes Raw Value Raw sugar price is moving up in near term
Slide 10: Key Policies- GoI
Key Policies- GoI SY SY SY Key Policies 2020-21 2021-22 2022-23 31 31 MSP- (INR/kg) 31 2850 for 2900 for 3050 for 10.25% 10.00% 10.00% FRP- (INR/MT) recovery recovery recovery Yes Yes Release quota for Domestic Sales Yes 6 MMT 11 MMT 6MMT up to May Sugar Exports (MAEQ) (OGL) 2023 (Quota) B Hy, Syrup
Slide 11: Indian Sugar Balance
Indian Sugar Balance Opening Season Domestic Exports Closing Stock Sugar Year Stock(1st Production Consumption (LMT) (LMT) Oct)- LMT (LMT) (LMT) 2017-18 39 327 254 5 107 2018-19 107 332 255 38 146 2019-20 146 274 253 60 108 2020-21 108 312 266 72 82 2021-22 82 360 272 110 60 2022-23 (E) 60 365 275 9
Slide 12: Sugar Strategies
Sugar Strategies
Slide 13: Sugar Strategies
Sugar Strategies Increase Cane Volume Maximize Sugar Realisation Introduce value-added products in Grow the cane volumes and Retail & Institutions, to realise better improve the varietal mix in Premium command areas Grow the packaged retail business through distribution & brand building Rationalize
Slide 14: Sugar Strategy- 1. Increase Cane Volume
Sugar Strategy- 1. Increase Cane Volume Cane Crushed [LMT] & Recovery % Cane Crushed (LMT) & Recovery (%) for H1 FY 23 50.2 (LMT) H1 FY 22 H1 FY 23 39.7 (LMT) 10.6% 12.00 11.1 (LMT) 9.00% 36.7 (LMT) 37.2 (LMT) 36.7 (LMT) 8.1(LMT) 10.3% 10.00 10.1% 8.98% 8.95% 10.0% 8.00 10.0% 6.00 8.90% 4.00 8.87% 8
Slide 15: Sugar Strategy- 2. Maximize realisation from sugar
Sugar Strategy- 2. Maximize realisation from sugar Sugar Domestic Sales Mix (%) Sugar Exports Volume [LMT] & Realisation 100% 5% 10% (INR/kg) 90% 18% 21% 22% 25% 1.7 (LMT) 80% 37% 48% 1.2 (LMT) 70% 34.0 33.5 60% 42% 59% 50% 0.8 (LMT) 50% 51% 0.6 (LMT) 40% 31.4 30% 58% - 29.5 20% 42% 28% 23% 37% 10%
Slide 16: Sugar Strategy- 2. Maximize realisation from sugar
Sugar Strategy- 2. Maximize realisation from sugar EID RETAIL PRODUCT SUITE Superior Health Benefit Parrys Jaggery Natural Brown Low GI @ Sugar Rs.120 Premium Imagery Jaggery @ Superfine Amrit @Rs Rs 110 Premium Imagery Step up to PPRS Superfine 100 branded white Convert sugar PPRS @ Rs @ Rs 75 cons
Slide 17: Sugar Strategy- 2. Maximize realisation from sugar
Sugar Strategy- 2. Maximize realisation from sugar Portfolio Buildup ➢ Build portfolio of Next gen sweetener products to ➢ Straddle across price points ➢ Meet Consumers’ sweetener basket fully. Distribution Growth ➢ Focus in South India ➢ Consolidate in Metro, Class1 and Class 2 towns ➢ Focus on Mod
Slide 18: Retail packs placement in Modern Trade outlets
Retail packs placement in Modern Trade outlets
Slide 19: Sugar Strategy- 2. Maximize realisation from sugar
Sugar Strategy- 2. Maximize realisation from sugar Retail Sales [MT] Retail VS Trade Price (INR/kg) 80000 39.94 72077 40 70000 38 36.84 37.17 59643 60000 36.04 35.94 53688 36 35.24 50000 33.45 34 32.71 33.08 32.59 40000 34.00 35332 32 30000 30 20000 18000 28 29.47 10000 FY 18 FY 19 FY 20 FY 21 FY 22
Slide 20: Sugar Strategy- 3. Maximize EBP Opportunity
Sugar Strategy- 3. Maximize EBP Opportunity Distillery Sales Mix H1 609 LL 662 LL 627 LL 594 LL 847 LL 444 LL 23% 26% 31% 32% 56% ✓ Ethanol volumes being maximized to 64% capitalize on the EBP opportunity ✓ Capacity expansion underway at 74% Sankili- 120klpd (dual feed)- will be 69% 77% 68% commissi
Slide 21: Sugar Strategy- 4. Rationalize Fixed cost
Sugar Strategy- 4. Rationalize Fixed cost (INR/MT of Cane crush) 769 732 695 629 537 FY'18 FY'19 FY'20 FY'21 FY'22 Better efficiencies and volumes help rationalize the Fixed cost per MT of cane crush 20
Slide 22: Company Performance
COMPANY PERFORMANCE 21
Slide 23: Sugar Segment sales- Sugar & Power
Sugar Segment sales- Sugar & Power Sugar Sales (LMT) & Avg Realization (INR/Kg) Current Year performance 4.9 3.8 4.0 4.0 Sugar Avg. 3.7 36.82 FY Sales realisation 34.50 34.10 (LMT) (INR/kg) 33.19 31.03 H1 FY 22 1.80 34.22 H1 FY 23 2.61 35.56 FY'18 FY'19 FY'20 FY'21 FY'22 Total Sales Avg Realisation
Slide 24: Sugar Segment sales- Distillery
Sugar Segment sales- Distillery Distillery Sales [LL] & Avg Realization [INR/Ltr] Current Year performance 847 Avg. Distillery FY Realisation sales (LL) 662 (INR/L) 609 627 594 H1 FY 22 304 55.99 57.10 55.65 59.70 H1 FY 23 444 58.11 49.06 46.12 FY'18 FY'19 FY'20 FY'21 FY'22 Sales Avg Realisation 23
Slide 25: 5 Year Standalone performance
5 Year Standalone performance EID Financial Performance FY’19 FY’20 FY’21 FY’22 H1 FY’22 H1 FY’23 Revenue from Operations 1,845 1,875 2,024 2,496 888 1,368 INR in Cr EBIDTA 205 235 1,271 478 111 181 Note: PBIT 92 116 1,151* 358 53 113 * FY’21 includes PBT (22) (20) 1,058 312 29 95 • one-time profit
Slide 26: Standalone Cashflow
Standalone Cashflow Particulars (INR Cr) FY 22 H1 FY 22 H1 FY23 Opening Cash Balance 13 13 30 From Operating 438 365 89 activities Working capital 200 369 71 Operating profit 238 (4) 18 From Investing activities 269 (9) (44) Dividend received 199 99 105 ICD received 208 100 Capex (151) (95) (106) In
Slide 27: Standalone Debt Position
Standalone Debt Position Standalone debt position (INR Cr) 1200 Finance Cost * (INR Cr) 1018 1035 150 136 1000 113 113 832 800 432 492 93 100 375 600 555 46 400 355 50 586 543 148 200 457 105 4 200 4 101 144 0 0 FY'18 FY'19 FY'20 FY'21 FY'22 FY'18 FY'19 FY'20 FY'21 FY'22 H1'23 Long Term Short Term L
Slide 28: EBITDA/MT of Cane Crush (INR/MT)
EBITDA/MT of Cane Crush (INR/MT) 550 500 482 488 450 400 347 350 300 250 200 2019-20 2020-21 2021-22 27
Slide 29: Consolidated Nutra Performance
Consolidated Nutra Performance
Slide 30: Nutraceuticals- Product Mix
Nutraceuticals- Product Mix Nutraceuticals Product Mix Value [INR Cr] 300.0 44 69 200.0 30 27 30 96 80 111 117 83 100.0 97 115 128 75 67 - FY'18 FY'19 FY'20 FY'21 FY'22 Prostate Health Joint Health Greens Current Year performance Prostate Joint Greens Total (INR FY Health Health (INR Cr) Cr) (INR Cr
Slide 31: Nutraceuticals- Initiatives
Nutraceuticals- Initiatives Saw Palmetto Significant Market Flomentum – B2C • Built science equity for the growth share gain - efficacy of saw palmetto on 8% growth in FY’22 in the core saw palmetto B2B vertical (Sales Spirulina • Prostate Health. Initiated field force deployment $16.3 Mn) • US. Gro
Slide 32: Consolidated Nutra- 5 Years' Financial performance
Consolidated Nutra- 5 Years’ Financial performance Revenue from Operations [INR in Cr] 300 254 277 216 210 210 200 Current Year performance 100 0 Revenue PBIT (INR FY FY'18 FY'19 FY'20 FY'21 FY'22 (INR Crore) Crore) PBIT [INR in Cr] H1 FY 22 136 (8) FY'18 FY'19 FY'20 FY'21 FY'22 H1 FY 23 137 (7) 20
Slide 33: Consolidated Nutra- 5 Years' Financial performance
Consolidated Nutra- 5 Years’ Financial performance Capital Employed [INR in Cr] 400 293 271 272 300 245 197 200 100 0 FY'18 FY'19 FY'20 FY'21 FY'22 ROCE % FY'18 FY'19 FY'20 FY'21 FY'22 8.00% 5.88% 6.00% 4.06% 4.00% 2.86% 2.00% 0.00% -2.00% -4.00% -3.32% -2.73% 32
Slide 34: Sweeter up the value chain
Sugar Refinery Sweeter up the value chain Adding value & volume to manage restricted spread environments, increase profitability and create premium customer segments 33
Slide 35: Refinery- Business Profile
Refinery- Business Profile • Capacity – 9 LMT FY 22 • Sales volume – 6.23 LMT 01 Overview • Sales value – ₹ 2005 Crores • Global Trade Houses 02 • Regional Traders Customers • Institutions 03 • Raw Sugar Ex Brazil/India Suppliers • Coal Ex Indonesia 04 Certifications 34
Slide 36: Refined sugar constitutes 40% of the global traded sugar volumes
Refined sugar constitutes 40% of the global traded sugar volumes.. PSRIPL operates in this 40% business space 60% Global Trade White 23.6 Raw 35.4 33 57 Target % Market Target 175 Market Consumption 118 In production country 2016 2026 Production Consumption Source: FAO, Copersucar analysis MMT Sourc
Slide 37: White premium trends
White premium trends European Exports & The White Sugar Premium White Premium Trends and Projections (USD/MT) 127 112 105 110 100 108 98 95 86 85 85 90 85 85 85 81 86 83 85 85 75 ❖ Due to re-entry of EU, lower White Premiums in 2018- 2021 rationalized refining capacities ❖ White premiums are expecte
Slide 38: Refinery- Journey so far..
Refinery- Journey so far.. Refinery- Spread ($/MT) 80 66 66 62 60 52 Profitable & 42 44 42 Sustainable Business 40 32 20 Factory Sales 0 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 ❖ Costs to be controlled ❖ Premiums to be earned within the Spread over and above spreads ❖ Independent profitable
Slide 39: Refinery- Strategy 1- Move up the value chain
Refinery- Strategy 1- Move up the value chain Premium in 2019 2025 %Value Added Sales USD/MT 33 0% 10% 30 In containers 2% 12% 25 16 0% 4% 13 20-25 7 1% 6% 18 FY20 FY21 21% 18% 16 FY22 FY25E 76% 50% 8 0 38
Slide 40: Refinery- Strategy 2- Improve efficiencies and reduce the Cost of Conversion
Refinery- Strategy 2- Improve efficiencies and reduce the Cost of Conversion Cost of Conversion ($/MT) 80 75 Key Initiatives underway 70 ➢ Increase melting rate and reduce energy consumption Impact of 60 53 52 Coal price 51 50 ➢ Process optimization to reduce 50 process loss 40 41 40 37 Efforts on t
Slide 41: Refinery- Performance
Refinery- Performance Operational Performance FY’18 FY’19 FY’20 FY’21 FY’22 Production (LMT) 6.61 6.99 6.37 7.90 6.11 Sales (LMT) 6.71 5.36 7.59 8.21 6.23 Revenue from Operations 375 205 283 303 269 ($M) EBITDA ($M) (0.6) 0.3 10 (8.9) 9.2 EBIT ($M) (4.9) (4.2) 5.3 (13.5) 4.7 PBT ($M) (11.8) (12.7) (
Slide 42: Refinery- Performance- Current year
Refinery- Performance- Current year Parameter H1 FY’22 H1 FY’23 H1 performance was impacted on Production (LMT) 2.30 3.22 account of plant stoppage due to unexpected accidents Sales (LMT) 1.97 3.50 Revenue from 76 171 PBT USD-M. operation ($M) H1 21-22 (5) Demurrage - One off (9) EBITDA ($M) 0.7 (13
Slide 43: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE Consolidated Financial Performance 42
Slide 44: Consolidated Financials (excluding Coromandel International Ltd.)
Consolidated Financials (excluding Coromandel International Ltd.) EID Financial Performance FY’20 FY’21 FY’22 H1 FY’22 H1 FY’23 INR in Cr Revenue from Operations 3,996 4,383 4,419 1,523 2,632 EBIDTA 307 1,259 517 95 46 PBIT 145 1,016 356 17 (43) PBT (51) 885 277 (23) (86) PAT (30) 691 243 (8) (81) E
Slide 45: Consolidated external Borrowings (excluding Coromandel International)
Consolidated external Borrowings (excluding Coromandel International) INR Cr Segment FY’18 FY’19 FY’20 FY’21 FY’22 H1 FY’23 Sugar 128 157 287 486 104 148 Refinery 717 1,311 1,187 203 647 327 Nutra 23 46 68 68 70 96 Others 873 655 731 39 - - Total 1,741 2,169 2,273 796 821 571 Note: ➢ Sugar - Long te
Slide 46: Consolidated ROCE (excluding Coromandel International)
Consolidated ROCE (excluding Coromandel International) FY 19-20 FY 20-21 FY 21-22 Capital Capital Capital Employed ROCE (%) Employed ROCE (%) Employed ROCE (%) (INR Cr) (INR Cr) (INR Cr) Sugar 1456 1% 1593 5% 1425 8% Refinery 1133 4% 332 (30%) 511 7% Nutra 271 (3%) 272 6% 293 (3%) Others 322 31% 388
Slide 47: Summary
Summary Asset relocation to Building a platform improve efficiencies. for Consumer Product Group (CPG) Lo Distillery Capacity- Cost Efficient refinery Significant investment Operations to capitalize on EBP Better cash flow Higher mix of retail management- Help sales with laid-out rationalize debt gr
Slide 48: Glossary
Glossary ACRONYMS AP Andhra Pradesh LU Lakh Unit CoP Cost of Production MMT Million Metric Tonne Cr Crore Mn Million EBIT Earnings Before Interest & Tax MSP Minimum Selling Price Earnings Before Interest, Tax & EBITDA MT Metric Tonne Depreciation EBP Ethanol Blending Program MW Mega Watt EY Ethanol
Slide 49: Thank You
Thank You Corporate Office: For Investor relations Contact: 234 NSC Bose Road, biswamohanrath@parry.murugappa.com Chennai-01 48
E.I.D. Parry (India) — H1 FY2023 Earnings Presentation on 6ix