Balrampur Chini Mills Ltd · NSE:BALRAMCHIN
Balrampur Chini Mills — Q1 FY2024 Earnings Presentation
57 slides from Balrampur Chini Mills's earnings presentation, Aug 5, 2023
Slide 1: Results Presentation filing letter to stock exchanges
5th August, 2023 National Stock Exchange of India Limited BSE Limited Listing Department, Exchange Plaza, The Corporate Relationship Department 5th Floor, Plot No. C/1, G Block, 1st Floor, New Trading Wing, Bandra Kurla Complex, Bandra (E) Rotunda Building, Phiroze Jeejeebhoy Tower, Mumbai- 400051 D
Slide 2: Q1FY24 Results Presentation
Balrampur Chini Mills Limited Q1FY24 Results Presentation 5th August 2023 “STRETCH” Building a larger, more sustainable and more governance-driven Company
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 Monday, August 7, 2023 Conference dial-in Primary number: +91 22 6280 1141 / 7115 8042 Toll free Number Singapore: 800 101 2045 Hong Kong: 800 964 448 USA: 1 866 746 2133 UK: 0 808 101 1573 3
Slide 5: Table of Contents
Table of Contents Message from the Chairman and Managing Director 5 Brief perspective about our company 6-8 This presentation comprises of 9 parts Q1FY24 performance in numbers 9-13 The performance of our principal businesses 14-31 Treasury management 32-35 Global and Indian sugar sector overview 36
Slide 6: A message from the Chairman and Managing Director
“The Company has commenced the fiscal on a strong note. Higher volume and A message from realizations have resulted in healthy contributions from both sugar and distillery the Chairman segments. and Managing Our team has put in immense hard work on the ground, collaborating closely with the Director
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 Principle close proximity integrated business sugar sugar + distillery companies 80000
Slide 8: 5 Year Historical Financial Performance
5 Year Historical Financial Performance Segmental Revenues (Rs. Cr.) * Segmental PBIT (Rs. Cr.) Others Distillery Sugar Others Distillery Sugar 13 24 FY23 1164 FY23 261 4,339 238 10 20 FY22 1001 FY22 382 4,263 296 22 11 FY21 842 FY21 344 4,352 329 12 5 FY20 566 FY20 264 4,423 389 8 3 FY19 496 FY19 3
Slide 9: 5 Year Historical Ratios
5 Year Historical Ratios Gearing (x) Interest Cover (x) DSCR (x) Current Ratio 0.18 0.19 0.14 0.09 0.21 16.83 10.63 18.17 22.67 10.53 7.00 4.57 4.28 4.52 1.93 1.37 1.46 1.63 1.60 1.31 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Capital Employed
Slide 10: Q1 performance in numbers
➢ PART ONE Q1 performance in numbers 9
Slide 11: This is what we achieved in Q1 FY24 (standalone numbers)
This is what we achieved in Q1 FY24 (standalone numbers) 68.56 163.18 3.44 Rs. cr. of total Rs. cr. of EBITDA Rs. earnings comprehensive per share income (TCI) Rs. 10.81 cr. in the Rs. 44.42 cr. in the Rs. 0.57 in the corresponding quarter, corresponding quarter, corresponding quarter, Q1 FY23 Q1 FY
Slide 12: Financial Performance (standalone numbers)
Financial Performance (standalone numbers) EBITDA (Rs. cr) PBT (Rs. cr) TCI (Rs. cr) Revenue (Rs. Cr.) EBITDA Margin (%) PBT Margin (%) TCI Margin (%) 13.9% 13.5% 16.1% 11.7% 12.4% 13.2% 14.4% 14.8% 14.4% 10.6% 9.8% 10.6% 5.8% 11.0% 8.5% 4,286 4,741 4,812 4,846 4,666 689 682 714 700 512 595 555 596
Slide 13: Q1 performance (standalone numbers) explained
Q1 performance (standalone numbers) explained Q1FY23 Q1FY24 Variance Key Reasons (Rs. Crs.) (Rs. Crs.) (%) Higher volume in sugar & distillery segments coupled with Revenue from operations 1080.08 1389.62 28.7% higher realizations Other income 14.51 12.19 -15.9% - Cost of materials consumed 203.04 6
Slide 14: Consolidated Financial Performance
Consolidated Financial Performance PBT (Rs. cr) TCI (Rs. cr) Revenue (Rs. Cr.) EPS (Rs.) PBT Margin (%) TCI Margin (%) 14.0% 12.0% 12.7% 12.4% 13.3% 10.8% 10.0% 6.0% 8.7% 9.5% 4,286 4,741 4,812 4,846 4,666 602 568 609 599 408 571 513 479 461 278 25.21 23.44 22.48 22.44 13.94 FY19 FY20 FY21 FY22 FY23
Slide 15: The performance of our principal businesses
➢ PART TWO The performance of our principal businesses 14
Slide 16: Business Overview - Sugar
“Attractively Business placed”- Management’s Overview Sugar overarching 5 messages for Q4FY22 70.32% 1116.08 914.37 % of Company’s Rs. cr. revenues Rs. cr. revenues revenues, in Q1 FY24 in Q1 FY23 Q1 FY24 22.06% increase in revenues 15
Slide 17: 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%). ▪ SAP: State Advised Price (SAP) of sugarcane for the sugar s
Slide 18: Economics of Sugarcane vs Other Crops
This is whatofour Economics Sugarcane sugar business vs Other achieved Crops Source: CACP Report In addition to being the remunerative crop sugarcane has the advantage of being a sturdy crop, has an assured buyer, gets the assured price and does not have any middleman between farmers and mills The c
Slide 19: Business Overview - Sugar
Business Overview - Sugar Segment PBIT (Rs. cr) Average realization of sugar Revenue (Rs. Cr.) Sugar Sales * (lac quintals) Segment PBIT Margin (%) (Rs./kg) ** 8.9% 8.8% 7.6% 6.9% 5.5% 3,822 4,423 4,352 4,263 4,339 115.30 120.53 113.26 102.63 90.38 29.55 30.34 32.01 34.71 35.97 338.4 389.0 329.5 296
Slide 20: Business Overview – Sugar – Operational numbers
Business Overview – Sugar – Operational numbers Sugarcane crushed (lac quintals) Sugar Recovery (%) * Sugar Recovery Pre-sacrifice (%) Sugar Production (lac quintals) 1,103.6 $ 11.58 11.44 11.58 11.93 11.77 11.55 11.55 1,020.3 1,032.6 10.63 10.27 127.81 936.6 9.43 116.73 109.79 885.4 90.96 88.33 FY1
Slide 21: Business Overview – Sugar – Operational numbers (contd.)
Business Overview – Sugar – Operational numbers (contd.) Sugarcane diverted Sugarcane diverted Sugar sacrifice under B- Sugar sacrifice under Syrup towards B-heavy route (lac towards Syrup route (lac heavy route (lac quintals) route (lac quintals) quintals) quintals) 85.79 11.73 11.27 675.56 613.41
Slide 22: Movement in Sugar Costs, Inventory & Valuation
Movement in Sugar Costs, Inventory & Valuation FY22 Q1FY23 (Rs./quintal) (Rs./quintal) 3,576 5,118 3,436 3,422 3,918 3,412 Sugar Inventory Cane Cost Cost of Sugar Inventory (including WIP) Cane Cost Cost of Sugar Inventory Production Valuation Production Valuation (lac quintals) Cane Crushed (lac qt
Slide 23: Outlook of our sugar business
This is the whatoutlook our sugar of sugar business business achieved ➢ Expectation of better cane availability in next season for the Company ➢ Improvement in varietal balance which may lead to enhanced sugar recoveries ➢ With moderation of inventory, domestic sugar realization to improve ➢ Company
Slide 24: Business Overview - Distillery
Business Business Overview overview: -Distillery Sugar Distillery revenues 465.98 Rs. cr. Q1FY 24 298.10 Rs. cr. Q1FY 23 56.32% higher revenues 29.36 Distillery PBIT % of revenues, Q1 FY24 84.59 Rs. cr. Q1FY 24 98.43 Rs. cr. Q1FY 23 14.06% lower PBIT 23
Slide 25: 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 % 12.0% 10.02% 600 434 290 8.0% 189 5.0% 151 4.2% 173 5.1% 1.53% 3.5% 38 67 2.33% 111 67 2.1% 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 **
Slide 26: Why sugarcane juice is the most efficient way to produce Ethanol
Why sugarcane juice is the most efficient way to produce Ethanol as compared to other feed-stocks Feed-stock Yield/Hect (MT) Quantity of Ethanol Total quantity of Total Ethanol (Ltr.) (Ltr.) per MT of Feed- Ethanol (Ltr.) per Hect. production stock Of Feed-stock in 1 year Sugarcane 80 70 5600 5600 (
Slide 27: Greenhouse emissions from ethanol produced from various feed-stock
Greenhouse emissions from ethanol produced from various feed-stock CO2 emissions (Kg Co2 eq/GJ fuel) Cereal 79.00 58.00 Beet 92.00 25.00 Wheat 72 23 Corn 95 75 Sugarcane 10.5 8.5 0 10 20 30 40 50 60 70 80 90 100 Maximum Minimum The Greenhouse gas emissions from Ethanol produced from various feed-sto
Slide 28: Business Overview - Distillery
Business Overview - Distillery Segment PBIT (Rs. cr) Average blended realization Revenue (Rs. Cr.) Total Sales * (Cr BL) Segment PBIT Margin (%) (including ENA & Others) ** (Rs./BL) 65.1% 46.7% 40.9% 38.2% 22.5% 496 566 842 1,001 1,164 11.10 11.94 16.52 17.65 19.79 41.29 44.69 48.35 53.38 55.30 322.
Slide 29: Business Overview – Distillery – Operational numbers
Business Overview – Distillery – Operational numbers Total Production * (Cr BL) Ethanol Production from B-heavy Ethanol Production from Syrup Ethanol Production from Rice molasses route (Cr BL) route (Cr BL) route (Cr BL) 21.49 0.37 13.30 6.71 10.18 11.21 17.06 3.58 16.31 - - - - - - - - - 12.76 FY1
Slide 30: 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) 2.76 3.17 10.29 2.04 7.99 1.78 4.84 1.19 0.54 1.23 0.44 0.37 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 30th Ju
Slide 31: Outlook of our distillery business
This is the whatoutlook our sugar of distillery business business achieved ➢ Profitable foundation for sustainable growth Ethanol supply contract for ESY 2022-23 ➢ Ethanol business to have higher contribution to top-line (Total – 26.74 cr BL) Cr BL 12.46 ➢ Ethanol prices under the EBP Programme for
Slide 32: Business Overview – Co-generation
Business Overview – Co-generation Co-generated Power Co-generated Power Sales Average Realization (Rs./Unit) Production (Cr Units) (Cr Units) 104.97 90.24 80.65 72.72 71.87 66.38 52.61 42.63 34.93 31.69 4.94 3.06 3.17 3.30 3.42 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY
Slide 33: Treasury management
➢ PART THREE Treasury management 32
Slide 34: Cash Flow Analysis – (standalone)
Cash Flow Analysis – (standalone) Rs. Cr Sl. no. Particulars FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 1 Profit before tax 595.03 554.93 596.11 655.61 396.97 Cash generated from / (used) in operating 2 activities (523.01) 849.61 649.21 694.65 452.91 3 Net cash (used) in investing activities (159.
Slide 35: How we managed our cash flow
How we managed our cash flow Strong cash flow funds multiple drivers of value for shareholders Capital Expenditure INR 1746.00 cr Strong ROBUST Cash Flow Dividend + SHAREHOLDER VALUE # INR 289.51 cr Taxes CREATION (INR 2838.91 cr FY19-FY23) Buy-back + Taxes INR 834.49 cr # PBT + Depreciation – Curre
Slide 36: Treasury management update
Treasury management update Long Term Debt (including current maturities) • Long-term credit rating re-affirmed at AA+ with Stable outlook (Rs. Cr.) and the short-term rating at A1+ by CRISIL 617.4 580.4 445.9 443.7 375.8 362.5 257.0 As of 30th June 2023, long term borrowings of the Company stands at
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 Global Sugar Scenario
TheSugar Global Global Scenario Production Outlook ( metric million tonnes) Total Global production at 176.0 MMT Total Global production estimated at 178.0 MMT Global production is forecasted at 178 MMT with higher production in Brazil and lower production from Thailand, Russia and India. 37
Slide 39: Factors influencing global sugar industry trends
Factors influencing global sugar industry trends 1 Global oil prices Million tonnes, 2 Government policies catalyzing the shift between sugar to ethanol 176.0 global sugar production, 2022- Weather / Acreage • Favorable weather and increased 23 area are expected to result in additional sugarcane ava
Slide 40: Domestic Sugar Balance Sheet
Domestic Sugar Balance Sheet ( metric million tonnes) Sugar Season 2022-23 Sugar Season 2023-24 (Estimated) 32.80 32.50 27.50 28.00 7.00 6.35 5.95 5.95 ** 5.95 4.50 Opening Stock Production Domestic Consumption Exports Closing Stock Opening Stock Production Domestic Consumption Exports Closing Stock
Slide 41: India: Has emerged as one of world's Largest Sugar Producing Country
India: Has emerged as one of world’s Largest Sugar Producing Country State-Wise Sugar India's Sugar Export India's Sugar Production (MMT) (Net of sugar sacrifice) Production (MMT) 11.10 Others 33.16 35.80 32.80 18% 7.20 27.41 31.20 6.35 Maharashtra 5.80 32% 3.80 Karnataka SS 18% 2022-23 SS18-19 SS19
Slide 42: 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% 27.40 27.50 26.50 25.39 25.50 25.30 Per capita consumption in India is at ~20 kg per year lower than SS17-18 SS18-19 SS19-20 SS20-21 SS21-22 SS22-23 the global
Slide 43: The strategic direction of our company
➢ PART FIVE The strategic direction of our company 42
Slide 44: Moving towards next orbit
Moving towards next orbit Creating value Expansion for all into Robust and stakeholders Strong integrated Ethanol Sustainable business model Financial performance ➢ Successfully completed six consecutive ➢ Emerging as a key growth Buy-Backs along with dividends leading driver for the Company to net
Slide 45: ESG and enhanced stakeholder value
➢ PART SIX ESG and enhanced stakeholder value 44
Slide 46: ESG represents the soul of what we are and what we seek to be
Our ESG vision ESG represents the soul of what 4 Big messages: we are and what we seek to be The relevance of same to Company’s business The Company intends to achieve sustainable green cover growth The nature of our energy We are engaged in a social A sustainable business can products: business, ma
Slide 47: Our ESG Framework
Our ESG Framework Environmental Social Governance Our environment approach has been Our Company takes a holistic approach Our Governance policies are framed woven around the elements of Plan- to sustainable value creation for all its on the basis of transparency, Mitigate-Adapt-Resilience. stakehold
Slide 48: Our ESG Achievements
Our ESG Achievements Total effluents Improvement Steam consumption No. of trees planted (Ltrs/MT)) Improvement (per MT of cane) Improvement (units) 0.44 196.16 186.98 1,84,354 177.45 0.43 151.32 1,50,137 0.42 0.41 45,700 50,298 SS 20 SS 21 SS 22 SS 23 FY 20 FY 21 FY 22 FY 23 FY 20 FY 21 FY 22 FY 23
Slide 49: Socially Conscious Corporate Citizen
Socially Conscious Corporate Citizen 372 Communities reached CSR spend (Rs. Cr) 35+ Ponds cleaned, renovated and recharged 10.93 10.68 11.20 11.95 750+ Installed solar street 2.93 lights COMMUNITY FY19 FY20 FY21 FY22 FY23 12 lakhs, individuals DEVELOPMENT benefitted HEALTH EMPOWERMENT ENVIRONMENT ED
Slide 50: 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; Bonsucro Production Standard and Bonsucro Mass Balance Chain of Cu
Slide 51: Board of Directors
Board of Directors Vivek Saraogi - Chairman and Managing Director Dr. Indu Bhushan (Retd. IAS) – Independent Director ➢ An eminent industrialist, is a veteran in the sugar industry and has been one of the youngest president of the Indian Sugar Mills ➢ Served as the Chief Executive Officer (CEO) of N
Slide 52: Shareholding Pattern
Shareholding Pattern Promoter Group Holding Foreign Holding Domestic Mutual Funds 42.42% 42.42% 42.42% 42.43% 42.90% 42.90% 17.55% 17.00% 16.22% 16.40% 15.84% 15.33% 14.72% 14.44% 15.28% 14.50% 14.14% 14.27% Mar,22 June,22 Sept,22 Dec,22 Mar,23 June,23 Mar,22 June,22 Sept,22 Dec.,22 Mar,23 June,23 M
Slide 53: Top 10 Non-Promoter Shareholding as on 30th June 2023
Top 10 Non-Promoter Shareholding as on 30th June 2023 Shareholder % Shareholding NIPPON LIFE INDIA TRUSTEE LTD-A/C (Nippon India Small Cap Fund) 4.67% KOTAK SMALL CAP FUND 2.87% GOLDMAN SACHS FUNDS - GOLDMAN SACHS INDIA EQUITY 1.68% ABU DHABI INVESTMENT AUTHORITY – MONSOON 1.51% AXIS MUTUAL FUND TRU
Slide 54: Key events/ factors to watch out
Key events/ factors to watch out * State Advised Price (SAP) (for the State of U.P.) of sugarcane for the sugar season 2023-24 * Ethanol prices for ESY 2023-24 (sugar / molasses route) * Ethanol prices for ESY 2023-24 (damaged grains / FCI rice route) * Export Policy * Occurrence of El Nino 53
Slide 55: Update on Auxilo Finserve – An Associate of the Company
Update on Auxilo Finserve – An Associate of the Company Equity Shareholding Pattern Compulsory Convertible Preference • Investment by 3 PE investors and (%) Shares - Series A CCPS existing shareholder ICICI Bank 43.93 43.93 Shareholding – Rs. Crs. • Money to be received in 3 tranches 9.65 175.00 2.4
Slide 56: 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 For further information contact: Company comprise distillery operations and cogeneration of power. Th
Slide 57: Thank You
Thank You 56
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