Davangere Sugar Company Limited · NSE:DAVANGERE
Davangere Sugar — Q4 FY23 Earnings Presentation
30 slides from Davangere Sugar's earnings presentation, July 2023
Slide 1: Investor Presentation Q4/FY23
J U LY 2 0 2 3 Investor Presentation Q4/FY23— DAVA N G E R E S U GA R COMPANY LIMITED 1
Slide 2: Agenda
ANNUAL BUSINESS REVIEW D E T I M I L Y N AP M O C R AG U S E R E G N AVAD Agenda — 01 Company Overview 02 Industry Outlook 03 Financial Performance 04 Management Team 2
Slide 3: Company Overview
D E T I M I L Y N AP M O C R AG U S E R E G N AVAD 3 01 Company Overview— ANNUAL BUSINESS REVIEW
Slide 4: Davangere Sugar Company Snapshot
Davangere Sugar Company Snapshot — D E T I M I L Y N AP M O C R AG U S E R E G N AVAD Incorporated in 1970, Davangere Sugar Company Limited (DSCL) is involved in the business of production of Sugar, Ethanol and Co- generation. DSCL commenced commercial production of sugar with a capacity of 1250 TCD
Slide 5: Key Details of Business Operations
Key Details of Business Operations Sugar Business Ethanol Business Co-Generation Business Sugar 3,06,192 Installed 65 KLPD Installed 24.45 MWs Production Qtls Capacity Capacity per day Sugar 6.34% Ethanol 1,99,39,345 Power 6,22,17,400 Recovery Produced KL Generated KWH Sugarcane 4,82,453 Crushed MTs
Slide 6: Journey since Inception
Journey since Inception 1970 1974 1995 2004-2012 2022 2023 Incorporated as a DSCL commenced Shamanur Group Company completed Company installed Company installed Joint Sector commercial acquired the shares commissioning of Co- molasses/sugar syrup grain-based plant for Company production of Sugar and
Slide 7: Product Portfolio
Product Portfolio Sugar White crystal sugar manufactured from sugarcane Molasses By Product in the Process of manufacturing sugar Electricity Co-generation Power Plant Ethanol Sugar syrup, molasses, and grain as raw material to produce ethanol Press Mud Bi-product which is sold as fertilizer Potash
Slide 8: Ethanol Manufacturing Process
Ethanol Process Flow Chart: Manufacturing Process Alcohol will be manufactured by continuous fermentation of molasses. The main steps in this operation are as follow, • Feed preparation and weighing • Dilution: Preparation of syrup or molasses for fermentation by appropriate dilution • Fermentation:
Slide 9: SWOT Analysis
SWOT Analysis Strengths Opportunities • Fully integrated sugar and ethanol manufacturing • Demand & Supply gap of Ethanol blending plant ratio. Govt target 20% by 2025, currently at • Ample availability of sugarcane, Grains, Labour, 14% Water and Power • Superior and efficient technology to further
Slide 10: Investment Rationale
Investment Rationale DSCL has shifted its business focus from being commodity producers to green energy producers in the last financial year Sustainable Business Model: Modern Effluent Treatment Plant with Zero Liquid Effluent Discharge Expansion of Ethanol production and additional revenue sources:
Slide 11: Investment Rationale
Investment Rationale DSCL focuses on producing Green Fuel and Green Power which plays a small but crucial role in country's aim to: • Help reduce its Import Bill ($4 billion under E20) and thereby increasing Self-Reliance, • Lower CO2 emissions (1 Cr litres of ethanol blended petrol can save around
Slide 12: Corporate Social Responsibility
Corporate Social Responsibility Company also contributes in uplifting the social community by way of its CSR activities: • Providing employment opportunities to the locals, • Running schools for the benefit of children of poor farmers residing in villages surrounding the factory area, • Promoting sp
Slide 13: Industry Outlook
D E T I M I L Y N AP M O C R AG U S E R E G N AVAD 13 02 Industry Outlook — ANNUAL BUSINESS REVIEW
Slide 14: Ethanol Industry Outlook
ANNUAL BUSINESS REVIEW Ethanol Industry D E T I M I L Y N AP M O C R AG U S E R E G N AVAD Outlook — • Indian Ethanol Market was valued at USD 2.81 billion in 2021 and is predicted to increase with a CAGR of 12.68% during the forecast period to reach a market value of USD 5.64 Bn by 2027 Production
Slide 15: Ethanol Blended Petrol Program
ANNUAL BUSINESS REVIEW • The Ethanol Blended Petrol Programme was launched in 2003 with an aim to Ethanol promote the use of renewable and environmentally friendly fuels and reduce D E T I M I L Y N AP M O C R AG U S E R E G N AVAD India’s import dependence for energy security. Blended Petrol • The
Slide 16: Ethanol Blended Petrol Program
ANNUAL BUSINESS REVIEW Demand Projection of Fuel Ethanol Ethanol D E T I M I L Y N AP M O C R AG U S E R E G N AVAD To achieve the target of 20% ethanol blending with petrol by 2025, about Blended Petrol 1,016 crore litres of ethanol would be required and about 334 crore litres would Program — be re
Slide 17: India Expands Curbs of Rice Exports
ANNUAL BUSINESS REVIEW India Implements 20% Duty on Rice Exports India Expands D E T I M I L Y N AP M O C R AG U S E R E G N AVAD The Indian government has introduced a 20% duty on rice exports in an effort Curbs of Rice to stabilize domestic rice prices. This measure aims to ensure that even during
Slide 18: Financial Performance
D E T I M I L Y N AP M O C R AG U S E R E G N AVAD 18 03 Performance — Financial ANNUAL BUSINESS REVIEW
Slide 19: Q4/FY23 Financial Highlights
Q4/FY23 Financial Highlights Q4-FY23-Financial Performance FY23-Financial Performance INR 86.81 Cr INR 17.14 Cr INR 280.58 Cr INR 56.37 Cr Revenue EBITDA Revenue EBITDA 19% INR 10.84 Cr 20% INR 24.78 Cr EBITDA Margin Cash Profit* EBITDA Margin Cash Profit* Cash flow from Operations (CFO) stood at IN
Slide 20: Historical Financial Highlights
Historical Financial Highlights Revenue From Operations EBITDA PAT Cash Profit Net Worth 40000 14453 FY 21 2861 FY 21 1138 31202 250 30000 25125 24531 12423 FY 22 3463 FY 22 1456 20000 568 27994 10000 FY 23 5637 FY 23 2478 1322 0 0 10000 20000 30000 0 625 1250 1875 2500 FY 21 FY 22 FY 23 (INR in Lak
Slide 21: Historical Financial Highlights
Historical Financial Highlights Return on Equity (%) Return on Capital Employed (%) Debt/Equity (x) 5 12 4.2 10.3 FY 21 0.8 3.75 9 2.3 5.9 2.5 6 5.3 FY 22 1.2 1.25 1 3 FY 23 0.8 0 0 FY 21 FY 22 FY 23 FY 21 FY 22 FY 23 0 0.38 0.75 1.13 1.5 (INR in Lakhs) (INR in Lakhs) (INR in Lakhs) Return On Equity
Slide 22: Quarterly Financial Performance
Quarterly Financial Performance (INR in Lakhs) PARTICULARS Q4-FY23 Q4-FY22 Y-o-Y Q3-FY23 Q-o-Q Total Income 8,680.60 4,753.93 82.60% 9,495.50 (8.58%) Total Expenses 7,533.42 4,360.25 72.77% 9,197.36 (18.09%) EBITDA 1,713.82 1,325.72 40.76% 1,716.80 (7.52%) EBITDA Margin (%) 19.45% 27.97% (852 bps) 1
Slide 23: Annual Financial Performance
Annual Financial Performance (INR in Lakhs) PARTICULARS FY23 FY22 Y-o-Y Total Income 28,058.43 12,446.79 125.43% Total Expenses 26,290.43 11,780.17 123.75% EBITDA 5,637.03 3,463.15 62.01% EBITDA Margin (%) 20.14% 27.88% (774 bps) Depreciation and Ammortisation 1,156.49 887.61 30.28% Finance Cost 2,7
Slide 24: Historical Income Statement
Historical Income Statement (INR in Lakhs) PARTICULARS FY23 FY22 FY21 Q4-FY23 Total Income 28,058.43 12,446.79 14,781.17 8,680.60 Total Expenses 26,290.43 11,780.17 14,459.47 7,533.42 EBITDA 5,637.03 3,463.15 2,789.21 1,713.82 EBITDA Margin (%) 20.14% 27.88% 19.30% 19.45% Depreciation and Ammortisat
Slide 25: Balance Sheet Statement
Balance Sheet Statement (INR in Lakhs) PARTICULARS FY21 FY22 FY23 PARTICULARS FY21 FY22 FY23 Equity and Liabilities Assets Equity Non-Current Assets a) Share Capital 5,568.0 5,568.45 9,408.45 a) Property, Plant & Equipments 27,108.0 34,591.14 34,957.93 b) Other Equity 18,963.0 19,556.80 21,794.35 Li
Slide 26: Segment-wise Performance
Segment-wise Performance Annual Revenue Quarterly Revenue Aviation & Others Aviation & Others 345.88 213.17 Sugar Distillery Sugar 3149.98 12383.85 13019.78 Distillery 4006.15 Co-generation Co-Generation 2306.31 1324.54 26 DAVA N G E R E S U GA R C O M PA N Y L I M I T E D
Slide 27: Capital Market Highlights
Capital Market Highlights D E T I M I L Y N AP M O C R AG U S E R E G N AVAD 1-year Stock Performance (as on 1st April, 2023) 100 80 60 40 20 0 25-May-22 25-Jul-22 11-Aug-22 30-Aug-22 16-Sep-22 04-Oct-22 21-Oct-22 10-Nov-22 28-Nov-22 14-Dec-22 30-Dec-22 17-Jan-23 03-Feb-23 21-Feb-23 10-Mar-23 28-Mar
Slide 28: Management Team
D E T I M I L Y N AP M O C R AG U S E R E G N AVAD 28 04 Management Team ANNUAL BUSINESS REVIEW —
Slide 29: Management Profile
Management Profile D E T I M I L Y N AP M O C R AG U S E R E G N AVAD Ganesh Abhijith Ganesh Rekha S. Ganesh Ganesh Rao Shivashankarappa Shamanur Virupakshappa Shamanur CHAIRMAN AND MANAGING EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR CHIEF FINANCIAL OFFICER DIRECTOR One of the leading industrialist a
Slide 30: Contact me
Contact me Registered Office Address 73/1, POST BOX NO.312, SHAMANUR ROAD, DAVANGERE. KA:- 577004. Corporate Office Address NO.18, SHIVASHANKAR PLAZA, RICHMOND CIRCLE, BANGALORE. Phone PH: 08192-201789, 201623 TO 201629 FAX: 08192-201627 Email davangeresugars@gmail.com 30
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