Balrampur Chini Mills Ltd · NSE:BALRAMCHIN

Balrampur Chini Mills — Investor Presentation (December 2013)

26 slides from Balrampur Chini Mills's investor presentation, December 2013

  1. Slide 1: Balrampur Chini Mills Ltd

    BALRAMPUR CHINI MILLS LTD December 2013 1

  2. Slide 2: Indian Sugar Industry

    —— i) ieee INDIAN SUGAR INDUSTRY

  3. Slide 3: An overview

    An overview Over 600 sugar factories in India widely dispersed over UP, Maharashtra and other States Ownership of sugar sector – 55% private sector and 45% in co-operative & Govt. Sector Average crushing capacity about 3800 TCD Uttar Pradesh [in North] and Maharashtra [in West] produce 60% of sugar

  4. Slide 4: Size of Indian Sugar Industry

    Size of Indian Sugar Industry AREA UNDER SUGAR CANE : 5 MILLION HECTARES CULTIVATION SUGAR CANE PRODUCTION : 340 MILLION TONS NUMBER OF SUGAR MILLS : 664 AVERAGE CAPACITY OF MILLS : 3800 TONS CANE PER DAY PRODUCTION OF SUGAR : FOR SEASON 2012-13 : 25.1 MILLION TONS AVERAGE PER CAPITA : 21 KGS. OF SU

  5. Slide 5: Domestic Sugar Balance

    Domestic Sugar Balance Domestic Sugar Balance (Million Tones) F2007 F2008 F2009 F2010 F2011 F2012 F2013E F2014P Opening Stock 4.3 11.1 10.6 4.4 5.9 6.9 7.4 8.0 Production 28.4 26.4 14.5 18.9 24.4 26.3 25.1 24.3 Increase in Production 47.2% -7.0% -45.1% 30.3% 29.1% 7.8% -4.6% -3.2% Internal Consumpti

  6. Slide 6: Indian Sugar Industry: Key Policies and Regulations

    INDIAN SUGAR INDUSTRY: KEY POLICIES AND REGULATIONS 6

  7. Slide 7: Recent Announcements

    Recent Announcements On 4th April 2013 GOI announced partial decontrol of the industry wherein: • Abolition of long standing levy quota • Removal of sugar release mechanism Further the Government has also agreed to market-linked prices of Ethanol through tender process CCEA clears Rs. 6,600 crs loan

  8. Slide 8: Advantages of Partial Decontrol of Industry

    Advantages of Partial Decontrol of Industry Advantages to millers: • No longer required to bear loss owing to supply of levy sugar • Freedom to sell sugar without any quantitative and time restrictions • Can plan storage capacity • Sell sugar on a forward basis Advantages to farmers: • Better cash f

  9. Slide 9: Clarity on Ethanol buying programme by OMC's

    Clarity on Ethanol buying programme by OMC’s • OMC’s had invited 1st bid for 1.1 billion liter and 2nd bid for 1.33 billion litre of Ethanol. • Out of the 1st bid OMC’s have ordered to supply 0.40 billion litre against which 40% has already been delivered. • Tenders for the 2nd bid are under examina

  10. Slide 10: Ethanol – Blending Programme

    Ethanol – Blending Programme  Save substantial forex  Eco-friendly product : answer of the times  Will lower emission of green house gases. Will take to Euro IV faster  To increase demand for alcohol and thereby molasses  Value of fuel ethanol Rs. 1600 Cr. – likely to go up to Rs. 3000 Cr. [150

  11. Slide 11: Co-generation incentives attractive

    Co-generation incentives attractive  Sugar industry can generate 4000 MW surplus power by using bagasse a by product  10% power in the country to come from renewable energy source  Power generation from bagasse comes under clean power and eligible to get carbon emission trading benefits  Govt. t

  12. Slide 12: BCML Business Model

    —— i) ieee BCML Business Model ©

  13. Slide 13: BCML – Capacities at a glance

    BCML – Capacities at a glance UNITS CAPACITY DISTILLERY [MW] INSTALLED [MW] SALEABLE MANURE [TCD] [KLPD] CAPACITY CAPACITY [TONS] BALRAMPUR 12000 160 40.00 22.25 30000 BABHNAN 10000 60 15.00 3.00 18000 TULSIPUR 7000 - 6.00 - - HAIDERGARH 5000 - 23.25 20.25 - AKBARPUR 7500 - 18.00 11.00 - MANKAPUR 80

  14. Slide 14: BCML Share Holding Pattern (%)

    BCML Share Holding Pattern (%) As on 30.09.2013 Promoters 40.93 Financial Instituions 14.23 Foreign Institutional Investors 16.94 Private Corporate 5.75 Non-resident Indians 0.52 Public 21.63 Total 100.00 14

  15. Slide 15: Board of Directors

    Board of Directors Chairman Emeritus : SRI . KAMAL NAYAN SARAOGI, Chairman Emeritus, Board of Directors : SRI. NARESH CHANDRA [ Retd. IAS], Chairman SRI . VIVEK SARAOGI, Managing Director, SMT. MEENAKSHI SARAOGI, Joint Managing Director Shri R.K.CHOUHDURY, Director SRI. R. N. Das (Retd. IAS) , Direc

  16. Slide 16: BCML Financials

    —— i) ieee BCML FINANCIALS ©

  17. Slide 17: Segment-wise contribution in net turnover

    Segment-wise contribution in net turnover Mar-13 Mar-12 Mar-11 * Sep-09 ` in ` in ` in ` in Products Millions % Millions % Millions % Millions % Sugar 28,692.1 87.0 19,503.2 84.1 25,226.4 84.6 14,456.4 84.7 Alcohol 2,061.0 6.2 1,477.0 6.4 1,599.7 5.4 1,311.7 7.7 Power 2,188.0 6.6 2,188.6 9.4 2,964.8

  18. Slide 18: Segment-wise contribution to PBIT

    Segment-wise contribution to PBIT Mar-13 Mar-12 Mar-11 * Sep-09 ` in ` in ` in ` in Products Millions % Millions % Millions % Millions % Sugar 1,266.07 33.36 (221.20) (12.75) 1,749.20 43.38 2,494.90 65.83 Alcohol 968.30 25.52 538.30 31.03 447.10 11.09 499.20 13.17 Power 1,548.41 40.80 1,421.30 81.92

  19. Slide 19: Financials

    Financials ` in millions Parameters 2007-08 2008-09 2009-11* 2011-12 2012-13 Gross Sales 15,525.00 17,710.20 30,632.18 23,903.12 33,840.30 Total income 15,645.20 17,755.60 30,673.99 2,393.12 33,840.30 Raw materials 10,141.60 7,633.80 30,852.59 22,626.32 24,109.10 PBDIT 3,295.00 4,544.00 5,422.56 2,6

  20. Slide 20: Financial Performance Ratios

    Financial Performance Ratios Sept-08 Sept-09 Mar-11 * Mar-12 Mar-13 PBIDT / TOTAL INCOME [%] 21.06 25.59 17.68 11.13 13.67 INTEREST / TOTAL INCOME [%] 5.73 5.45 4.85 6.17 4.25 INTEREST COVER [Times] 3.69 4.70 3.65 1.80 3.22 PBDT / TOTAL INCOME [%] 15.33 20.14 12.83 4.96 9.42 NET PROFIT / TOTAL INCOM

  21. Slide 21: Balance Sheet Ratios

    Balance Sheet Ratios 2007-08 2008-09 2009-11 2011-12 2012-13 Debt-equity ratio 1.01 0.83 0.56 0.63 0.38 Inventory cycle (days) 131 71 266 305 203 Current ratio 1.51 2.74 1.06 1.10 0.99 Quick ratio 0.55 1.40 0.28 0.22 0.22 Asset turnover (total revenue / total assets) 0.56 0.64 0.95 0.60 0.80 Fixed A

  22. Slide 22: Per Share Data

    Per Share Data 2007-08 2008-09 2009-11 2011-12 2012-13 EPS (Rs.) 3.83 8.86 6.35 0.27 6.63 CEPS (Rs.) 8.45 13.08 12.85 4.78 11.06 Dividend (Rs.) 0.50 3.00 0.75 - 2.00 Book value (Rs.) 39.65 45.75 50.30 49.85 54.15 Price / Earnings (times) 21.18 13.82 11.02 212.45 6.57 Net indebtedness (Rs.) 39.95 37.

  23. Slide 23: Latest Quarterly Performance

    Latest Quarterly Performance Statement of Profit & Loss As on 30th September, % Y-o- % Y-o- 2013 Y Y Q2 Growt Growt  Lower sugar realization (` million) FY14 Q2 FY13 h FY13 FY12 h resulting in negative Net Operating earnings. 5,683.0 8,882.2 (36.02%) 32748.4 23095.5 41.8% Revenue EBITDA (630.8) 1,2

  24. Slide 24: Industry Strengths & Opportunities

    Industry Strengths & Opportunities 24

  25. Slide 25: Strengths & Opportunities

    Strengths & Opportunities Strengths • India is the world’s second largest producer of sugar producer after Brazil • The sugar industry paid over ` 690 billion to sugarcane growers in the financial year 2012-13 • Annual tax contribution to the exchequer is around ` 2500 crores by way of excise duty •

  26. Slide 26: Thank You

    Thank You No part of this presentation is to be circulated, quoted, or reproduced for any distribution without prior written approval from BALRAMPUR CHINI MILLS Limited, FMC Fortuna, 2nd floor, 234/3A, A.J.C. Bose Road, Kolkata – 700 020, India. Certain part of this presentation describing estimates

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