Dwarikesh Sugar Industries Ltd. · NSE:DWARKESH
Dwarikesh Sugar Industries — Investor Presentation (2008)
28 slides from Dwarikesh Sugar Industries's investor presentation, 2008
Slide 1: We can because we think we can
We can because we think we can 1
Slide 2: Addresses
ADDRESSES Registered Office Dwarikesh Sugar Industries Limited Dwarikesh Nagar – 246 762 District – Bijnor, Uttar Pradesh Corporate Office Dwarikesh Sugar Industries Limited 511, Maker Chamber V, Nariman Point, Mumbai – 400 021
Slide 3: Abbreviation
ABBREVIATION ABBREVIATION Factory units: DN – Dwarikesh Nagar , Tehsil – Nagina, District- Bijnor, Uttar Pradesh, India DP - Dwarikesh Puram, Tehsil – Dhampur, District- Bijnor , Uttar Pradesh, India DD - Dwarikesh Dham, Tehsil- Faridpur, District – Bareilly, Uttar Pradesh, India.
Slide 4: Metrics of Plant Capacity
METRICS OF PLANT CAPACITY Division DN DP DD Total (Plant capacity) Sugar 6,500 7,500 7,500 21,500 (TCD) (under implementation) Co gen 17 33 36 86 (Mw) (24 mw under (under implementation) implementation) Supply to State Grid 8 24 24 56 (Mw) Distillery 30 - - 30 (KLPD)
Slide 5: Important info
Important info Date of incorporation 1st November 1993 Web site address www.dwarikesh.com Status Public Limited Company Listed on NSE, BSE, Luxembourg Stock Exchange
Slide 6: Associates
ASSOCIATES 1. Morarka Finance Limited - P ursuing investment activities. 2. Dwarikesh Trading Company Limited - engaged in the business of trading & investments in shares and stocks 3. Dwarikesh Samvad Limited - engaged in the business of media and software development. It is successfully running a
Slide 7: Statutory Auditors, Bankers & Solicitors
STATUTORY AUDITORS, BANKERS & SOLICITORS Statutory Auditors S S Kothari Mehta & Company Chartered Accountants, 146-149, Tribhuvan Complex, Ishwar Nagar , Mathura Road, N Delhi – 65 Bankers Punjab National Bank Industrial Development Bank of India Solicitors Mulla & Mulla & Craigie Blunt & Caroe Kang
Slide 8: Board Room
BOARD ROOM • Mr. G R Morarka (CMD)- Key Promoter • Mr. Suresh Neotia Chairman- Gujarat Ambuja Cements Ltd • Mr. S S Vaidya Partner, Kanga & Company, solicitors • Mr. M G Diwan Ex chairman – LIC of India • Mr. K P Medhekar Ex DGP , Maharasthra • Mr. Milind J Vichare IDBI Nominee • Mr. L.N.Heda Manage
Slide 9: Men at the Helm
MEN AT THE HELM • Mr. B J Maheshwari Vice President (Taxation) & C S • Mr. Vijay S Banka Chief Financial Officer • Mr. M.N.Agrawal Chief General Manager (works)- DN • Mr. R.K.Goel Chief General Manager (works) –DP • Mr. N S Shekhawat Chief General Manager (Cane) • Mr. K P Gadia Chief General Manager
Slide 10: Increase in Plant Capacity (A Chronology)
INCREASE IN PLANT CAPACITY (A CHRONOLOGY) Year Sugar (TCD) Export power (Mw) Distillery (KLPD) 1995-96 to 1996-97 2,500 1997-98 3,500 1998-99 to 1999-00 4,000 2000-01 to 2001-02 5,000 2002-03 to 2003-04 6,500 2 2004-05 6,500 8 30 2005-06 to 06-07 14,000 8 30 2007-08 21,500 56 30
Slide 11: Infrastructure – Sugar Plant
INFRASTRUCTURE – SUGAR PLANT Particulars DN DP DD Total Land 86 58 72 Availability (Acres) Command Area of 24,304 23,374 25,054 Cane (Hect.) Total Sugar 7.5 5 6 Storage Capacity (Lacs Quintal) Total Molasses 1.60 1.00 2.00 storage Capacity (Lacs Quintal)
Slide 12: Infrastructure – Distillery Plant
INFRASTRUCTURE – DISTILLERY PLANT Total Molasses Storage 58,143 Quintals Capacity Total Rectified Spirit 11,15,150 Bulk Storage Capacity Liters Total Ethanol Storage 11,15,150 Bulk Capacity Liters
Slide 13: Financial Results (Year Ended 30th September)
FINANCIAL RESULTS (YEAR ENDED 30TH SEPTEMBER) Year Gross PAT (Rs. Operating Book EPS Net Ended on Income In Profit Value (Rs.) Worth (Rs in Million) (PBDIT) (Rs. per (Rs in Million) In Million) share Million) (Rs.) 1996 468 4.47 96.90 25.50 0.50 227.50 1997 663 22.54 158.20 26.93 2.52 240.23 1998 87
Slide 14: Track Record of Equity Dividend Payment
TRACK RECORD OF EQUITY DIVIDEND PAYMENT Year Dividend % 1996-97 10% 1997-98 15% 1998-99 15% 1999-00 15% 2000-01 15% 2001-02 5% 2002-03 5% 2003-04 20% 2004-05 60% 2005-06 60% 2006-07 --
Slide 15: Growth Trajectory - Cane Crushed
Growth Trajectory - Cane Crushed 200 180 172.72 160 Lacs quintls 140 120 105.99 100 86.48 80.15 74.98 75.19 80 64.75 66.35 65.75 57.33 60 46.99 38.48 40 20 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 Year
Slide 16: Growth Trajectory - Sugar Production
Growth Trajectory - Sugar Production 19 17.81 17 15 13 10.73 LacsQuintls 11 8.81 7.81 8.4 9 7.65 6.22 6.56 6.78 7 5.89 4.82 5 3.82 3 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 Year
Slide 17: Recovery
Recovery 10.75 10.48 10.50 10.32 10.39 10.26 10.28 10.31 10.21 10.20 10.25 10.12 9.95 9.90 recovery% 10.00 9.75 9.61 9.50 9.25 9.00 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 Year
Slide 18: Share Capital – Structure
SHARE CAPITAL – STRUCTURE Till April 2001 89.20 Lacs Equity share of Rs 10 each. Total share capital Rs 8.92 crores. April 2001 Issued bonus share in the ratio of 13:100. Share capital of the company increased to Rs 10.08 Crores August 2001 Buy back of 25.20 Lacs shares @ Rs 40/- per share. To
Slide 19: Share Holding Pattern
SHARE HOLDING PATTERN (as on 31st December, 2007) Category Total no. of % shares hold Promoters and Promoters 69,92,099 44.92% Group Public Shareholding 85,72,577 55.08%
Slide 20: SWOT Analysis – Strengths
SWOT ANALYSIS • Strengths Most Modern Plants with adequate provision for expansion Well planned infrastructure Abundant and assured supply of sugarcane Power supply to state grid Sugar Business virtually de-risked with forays in power and ethanol Lowest process losses. Highly skilled a
Slide 21: SWOT Analysis Contd… Weakness
SWOT ANALYSIS CONTD… • Weakness Industry cyclic in nature and highly regulated by Governmental Controls Virtually no control over raw material price Lackadaisical attitude of Government in providing infrastructure such as roads etc.
Slide 22: SWOT Analysis Contd… Opportunity and Threats
SWOT ANALYSIS CONTD… • Opportunity Possibility of increasing capacity Opportunity to get into value added business Opportunity to set up a bagasse based paper plant • Threats Import of Sugar Frequent changes in Government Policies All the threats are surmountable
Slide 23: Raw Material Price – A Major Cost Driver
RAW MATERIAL PRICE – A MAJOR COST DRIVER Season SMP (Rs per qtl) SAP (Rs per Qtl) 1998-99 52.70 80.00 1999-00 56.10 85.00 2000-01 59.50 90.00 2001-02 62.05 95.00 2002-03 69.50 95.00 2003-04 73.00 95.00 2004-05 74.50 107.00 2005-06 79.50 115.00 2006-07 80.25 125.00 (under review by court) 2007-08 81.
Slide 24: Operating Ratios
OPERATING RATIOS Particulars 2000-01 2001- 2002-03 2003- 2004-05 2005-06 02 04 Manufacturing & 67.93% 71.13% 73.23% 62.28% 58.49% 67.02% Operating expenses / Total Income Excise duty / Total 6.68% 8.12% 6.29% 7.70% 5.58% 5.64% Income Staff Expenses / Total 5.14% 4.89% 4.89% 4.82% 4.79% 5.02% Income
Slide 25: Sugar Industry - Outlook
SUGAR INDUSTRY - OUTLOOK Indian sugar industry is subject to cyclic forces Typical cycle – Two goods years followed by tow bad years and then an average year Cycle repeated once in every five years The year 2006-07, for sugar industry was defining year for all the wrong reasons. The Sugarc
Slide 26: Sugar Industry – Outlook Contd..
SUGAR INDUSTRY – OUTLOOK CONTD.. The year 2007-2008 is expected to be slightly better than the previous year. The gap between supply and demand is expected to become more pronounced with supply far exceeding the demand. The correction is expected in the year 2008-09. Oil prices, world over s
Slide 27: Outlook - Dwarikesh
OUTLOOK - DWARIKESH Dwarikesh has transformed from a single unit company to a conglomerate with composite manufacturing facilities. It should therefore break even in the year 2007-08. In the year 2008-09 Dwarikesh should witness runaway growth in bottom line. Having incurred the capital expendit
Slide 28: Outlook – Dwarikesh Contd..
OUTLOOK – DWARIKESH CONTD.. In the year 2007-08 sugar business may not contribute to the bottom line. Enhanced production of power to be the money spinner. Capacity to generate and supply power to the state grid increased from 8 Mw to 56 Mw, Power generation to partially mitigate risks assoc
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