Bcl Industries Ltd · NSE:BCLIND
Bcl Industries — Q4 FY2024 Earnings Presentation
47 slides from Bcl Industries's earnings presentation, May 22, 2024
Slide 1: Exchange submission letter for investor presentation
DATED: 22/05/2024 The BSE Limited The National Stock Exchange of India Corporate Relationship Dept. Limited 1st Floor, New Trading Ring Exchange Plaza, 5th Floor Plot No. C/1, G Rotunda Building Phiroze Jeejeebhoy Towers Dalal Block Bandra Kurla Complex Bandra Street, Fort, Mumbai-400001 (East) Mumb
Slide 2: Investor Presentation May 2024
INVESTOR PRESENTATION MAY 2024
Slide 3: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 4: 4 Decades of Legacy
4 Decades of Legacy o One of the largest agro-processing manufacturing companies in India with strong grain procurement expertise o Prominent presence in ENA and IMIL segment o Leading grain-based Ethanol producers 24%* 36%* 9% Revenue EBITDA EBITDA o Fungible Resources and Technology CAGR CAGR Marg
Slide 5: Business Model built on Multiple USPs
Business Model built on Multiple USPs o Strategically transitioning o ENA: Difficult License; o Paddy Straw Fuel: Cost from conversion business huge barrier to entry saving of INR 3-5/litre o Moving beyond FCI rice-to- o Ethanol: Strong Regulatory o Leading by example in Ethanol Support Innovation 4
Slide 6: Business Model: De-Risked and Diversified
Business Model: De-Risked and Diversified Flexible Raw Material Multi Location Flexible Product Mix Svaksha Sangat You can edit this Distillery Distillery text (West (Punjab) Bengal) ENA Damaged Grain Fully Integrated Distillery Plant with State-of-the-Art Technology Ethanol Maize IMIL Husk Paddy St
Slide 7: ENA: A High Entry Barrier Business
ENA: A High Entry Barrier Business Price increase in ENA (Rs/Litre) IMIL Market (Million Cases) 25% 330 340 325 350 300 290 69 55 FY2022 FY2023 FY2010 FY2015 FY2020 FY2021 FY2022 FY2025 o State-controlled liquor policies create significant barriers for new entrants, favouring established industry pl
Slide 8: Growing at a Healthy Pace
Growing at a Healthy Pace Global ENA Market Size USD Billion Indian ENA Market Size Rs Billion CAGR 7.0% CAGR 4.2% 14 125 7 98 2022 2032 2022 2028 o ENA, with a minimum alcohol content of 96%, is a key raw material for IMIL and IMFL ;also used in cosmetics, pharmaceuticals, and personal care product
Slide 9: BCL: Country Liquor Portfolio and Marquee Clients
BCL: Country Liquor Portfolio and Marquee Clients o We supply ENA to large bottlers like Pernod Ricard, Amrut, ABD, Mohan Meakin o BCL sold 2,78,291 Boxes of IMIL in Q4FY24 and 12,33,228 Boxes of IMIL in FY24 o Our Country liquor brands Green Apple Vodka Ranjha Saunfi Asli Santra Punjab Special Whis
Slide 10: Ethanol: Strong Regulatory Tailwind
Ethanol: Strong Regulatory Tailwind Ethanol Requirement for Blending (Cr. Litres) Ethanol Requirement for other purposes (Cr. Litres) Target 1,016 Cr Ltr 20% 20% 15% 550 550 12% 10% 110 134 8.50% 110 110 490 100 110 110 5% 425 330 157 290 16 107 123 208 438 466 150 150 160 170 180 190 200 42 ESY 19-
Slide 11: Ethanol: Multi-Billion Dollar Opportunity and India needs to catch up
Ethanol: Multi-Billion Dollar Opportunity and India needs to catch up Global Ethanol Market Size USD Billion India Ethanol Market Size USD Billion CAGR 5% CAGR 14% 162 18 99 7 2022 2032 2023 2030 o India, Brazil, and Indonesia to collectively drive nearly two-thirds of the global growth in biofuel d
Slide 12: BCL: Distillery Plants
BCL: Distillery Plants Sangat Distillery Capacity: 400 KLPD Location : Bhatinda (Punjab) Svaksha Distillery Capacity: 300 KLPD Location : Kharagpur (West Bengal) 11
Slide 13: Grain Based Ethanol: Compelling Rationale
Grain Based Ethanol: Compelling Rationale
Slide 14: India's Grain Productivity will Surpass Population Growth
1. India’s Grain Productivity will Surpass Population Growth 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 -2.00% -4.00% -6.00% Population Growth Grain Production growth 13 Source : PIB,The Economics Time,Macrotrends
Slide 15: India's Sugarcane Yield Decreasing
2. India’s Sugarcane Yield Decreasing Contribution to Capacity from Various Feedstocks 63% 63% 64% 62% 62% 51% 51% 49% 49% 38% 38% 37% 37% 36% 2019-20 2020-21 2021-22 2022-23 2023-24 E 2024-25 E 2025-26 E Grain Molasses o Headroom for growth in grain-based distillation is much bigger o Molasses-base
Slide 16: Grains create less Strain on Infrastructure
3. Grains create less Strain on Infrastructure Grain vis-à-vis molasses Land Requirement 45% Lower Feedstock and Land requirement for achieving E20 by 2025-26 Ethanol Yield per tonne Water Requirement 2.3x Lower Feedstock Supply Target Feedstock Required Land Requirement feedstock Sugarcane 550 Cr L
Slide 17: Farmers Incentivised to Produce Maize
4. Famers Incentivised to Produce Maize Maize MSP Price Trend (Rs/Quintal) 2,090 1,850 1,870 1,962 1,700 1,760 1,425 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 o India plans to use about 156 lakh tonnes of grains, mainly maize, to meet its 2025-26 ethanol production target o As Price of
Slide 18: BCL's Distillery Business Positioning
BCL’s Distillery Business Positioning
Slide 19: Industry Updates
Industry Updates Ethanol Price Rs/Ltr for ESY 2023-24 Ethanol from Maize FCI Ban on Surplus Rice increased by Rs for Ethanol Production 5.79/Litre to Rs 71.86/Litre 71.86 65.61 64 58.5 60.73 Ethanol from C-Heavy 56.28 Prohibition on diversion of sugar cane juice for Molasse increased by Rs ethanol p
Slide 20: Sustainable Margin at c.13%-14%
Maize-Based Ethanol Pricing: Impact on BCL's Margin Market Price of Maize for Crop Year 2023-24 Expertise in Grain Rs 16% 2,197/Quintal Procurement 13% 13% 11% Rs 2,090/Quintal Innovative Fuel First Mover 8% Solution advantage MSP Average Market Price FY20 FY21 FY22 FY23 FY24 Sustainable Margin at c
Slide 21: BCL: Strategically Placed; Large Multi Location Capacities
BCL: Strategically Placed; Large Multi Location Capacities BCL’s Capacity Augmentation (KLPD) Top 6 Players by FY26E 3.5x in 4 years FY24: Top 7 Distillery* Players by Capacity (KLPD) 300 1,250 1,050 845 765 710 660 700 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 BCL 200 FY26E: Top 6 Distillery* Playe
Slide 22: Running Operations Efficiently
Running Operations Efficiently Asset Optimisation and Low Cost of Production Resulting in Industry Leading Profitability High-Capacity Utilisation BCL vs Industry PBIT Margin 96% 100% 73% 100% 88% 15% 1,31,876 67,914 24,332 40,346 41,697 39,077 29,003 30,229 36,876 40,787 10% FY20 FY21 FY22 FY23* FY
Slide 23: Strong Balance Sheet to Support Growth
Strong Balance Sheet to Support Growth Gross Block (Rs Cr) ROCE & ROE 832 23% 474 19% 17% 17% 15% 264 12% 13% 11% 11% 236 249 10% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 ROCE ROE Net Debt/Equity & Interest Coverage Working Capital Days 117 8.2 6.0 6.6 73 73 4.3 58 3.7 51 40 40 21 21 25 25
Slide 24: Restructuring Legacy Business-Edible Oil
Restructuring Legacy Business-Edible Oil Streamline the business operation to focus on efficiency. Co-location and Sharing of Overheads. Will maintain a strong Edible Oil Brand and Distribution Channel. Focus on Maize Oil extraction and Refining. Promote the cultivation of locally sourced oilseeds.
Slide 25: Financial Impact
Financial Impact Reducing production by 20% and compensating with enhanced EBITDA margins Total Revenue * (Rs Cr) & Revenue Contribution % Total EBITDA * (Rs Cr) & EBITDA Contribution % 926 1,459 2,001 1,827 2,209 63 97 146 130 199 3% 2% 0% 1% 0.3% 26% 8% 2% 3% 32% 40% 38% 14% 44% 56% 51% 59% 74% 89
Slide 26: BCL: Edible Oil and Vanaspati Segment
BCL: Edible Oil and Vanaspati Segment Edible Oil Business Total Capacity MT/Day Edible Oil Business Production (In MT) 14,246 11,565 200 200 200 200 200 4,200 2,660 71,717 45,078 300 300 300 300 300 40,015 77,720 4,465 33,810 27,980 42,037 220 220 220 220 220 26,749 9,227 10,320 6,882 20,242 15,736
Slide 27: BCL: Edible Oil Brand
BCL: Edible Oil Brand o The government is in the process of prioritizing oilseeds like mustard, sunflower, cottonseed, and groundnut to benefit farmers instead of promoting water-intensive crops like oil palm. o BCL is dedicated to the promotion of indigenous oilseeds. Vanaspati Ghee Soya Bean Refin
Slide 28: BCL: Compelling Investment Thesis
BCL : Compelling Investment Thesis 4 Decades of Grain Procurement Business Sustainable Energy Solution, regulatory tailwinds De-risked business model-Flexible raw material, flexible product mix, multi location Flexibility to produce ENA and Ethanol Cost Leadership through technological Innovation Re
Slide 29: Strong Momentum Expected to Continue in FY25
Strong Momentum Expected to Continue in FY25 Outlook o The company expects full capacity utilization of its 700 KLPD distillery in FY 24-25 o Expected revenue: Over ~ Rs1,750 crores from distillery operations Biodiesel Plant Commissioning o Target to commission 75 KLPD Biodiesel plant within 12 Mont
Slide 30: Q4FY24 Earnings
iff — BCL Industries Limited
Slide 31: Q4FY24 Strategic Highlights
Q4FY24 Strategic Highlights EDIBLE OIL o Monitoring the international market for edible oils and maintaining a conservative approach to avoid losses due to global volatility DISTILLERY o Majority of ethanol production continues to use maize. Raw material price increases led to a slight decrease in E
Slide 32: Comfortable Debt Repayment Schedule
Comfortable Debt Repayment Schedule Term Debt Repayment Schedule (Rs Cr) Consolidated Debt Break Up as on 31st March 2024 (Rs Cr) 40 38 38 38 35 30 26 189 18 287 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 Consolidated Term Loans Outstanding Consolidated Working Capital o The Average Cash Flow From Oper
Slide 33: Q4 & FY24 – Financial Highlights
Q4 & FY24 – Financial Highlights Total Revenue (Rs Cr) EBITDA (Rs Cr) & EBITDA Margin % PAT (Rs Cr) & PAT Margin % 5.4% 10.5% 8.5% 3.9% 48 616 52 458 25 24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 7.1% 9.0% 4.4% 3.5% 2,209 199 130 1,827 97 64 FY23 FY24 FY23 FY24 FY23 FY24 Nos are consolidated basis
Slide 34: Consolidated Quarterly Income Statement
Consolidated Quarterly Income Statement In Rs Cr Particulars Q4FY24 Q4FY23 Y-o-Y Q3FY24 Q-o-Q Revenue from Operations 614 457 34.3% 644 (4.7%) Other Income 2.0 0.7 186.0% 2.1 (4.76%) Total Revenue 616 458 34.5% 646 (4.7%) Total Expenses 563 410 37.5% 590 (4.5%) EBITDA 52 48 8.3% 57 (8.7%) EBITDA Mar
Slide 35: Consolidated FY24 Income Statement
Consolidated FY24 Income Statement In Rs Cr Particulars FY24 FY23 YoY Revenue from Operations 2,201 1,820 21% Other Income 8 7 14.% Total Revenue 2,209 1,827 21% Total Expenses 2,009 1,696 18% EBITDA 199 130 53% EBITDA Margin % 9.0% 7.1% 190bps Depreciation 36 25 44% Finance Cost 33 20 65% Profit Be
Slide 36: Consolidated Balance Sheet
Consolidated Balance Sheet In Rs Cr Particulars FY23 FY24 Particulars FY23 FY24 Assets Equity and Liabilities Non‐Current Assets Equity Plant Property and Equipment 316.0 617.8 Share Capital 24.2 27.2 CWIP 212.4 12.7 Other Equity 456.3 624.4 Non Controlling Interest 9.8 21.9 Right to use assets 0.0
Slide 37: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement In Rs Cr Particulars FY22 FY23 FY24 Operating cash flow Profit Before Tax 113 85 130 Interest Expense 18 20 33 Interest / Dividend Income 0 0 0 Depreciation 15 25 36 Other non cash items (1) (0) (6) Change in Working Capital Change in Inventory 55 (125) (64) Change i
Slide 38: Distillery Operational Highlights
Distillery Operational Highlights Volume 1,29,949 38,471 39,054 29,395 23,029 19,992 67,400 10,870 38,763 9,779 10,480 10,319 8,185 29,389 7,667 6,809 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 FY23 FY24 ENA (In KL) Ethanol (In KL) ENA (In KL) Ethanol (In KL) 37
Slide 39: Distillery Financial Performance
Distillery Financial Performance Revenue (Rs Cr) EBITDA (Rs Cr) & EBITDA Margin % 15.8% 11.8% 278 35 47 118 43 57 Q4FY23 Q4FY24 Q4FY23 Q4FY24 ENA Ethanol 12.9% 13.0% 853 178 390 254 96 180 FY23 FY24 FY23 FY24 ENA Ethanol 38
Slide 40: Edible Oil Segment and Real Estate
Edible Oil Segment and Real Estate Edible Oil Revenue (Rs Cr) Edible Oil EBITDA (Rs Cr) & EBITDA Margin % Real Estate Revenue (Rs Cr) 4.5% 2.4% 4.7 249 213 11.3 5.07 2.15 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 2.7% 2.6% 1,119 13.0 831 30 7.0 22 FY23 FY24 FY23 FY24 FY23 FY24 39
Slide 41: Annexure
BCL Industries Limited
Slide 42: Strong Legacy
Strong Legacy 1988: Installed and commissioned an oil 2007: Expanded into the distillery business. crushing unit. 2010: Installed a new grain-based distillery-ethanol 1990: Commenced the production of unit with a daily capacity of 100,000 litres (KLPD) Vanaspati by setting up a 100 MT Vanaspati Capa
Slide 43: Board of Directors
Board of Directors Mr. R.C. Nayyar - Chairman & Independent Mr. Rajinder Mittal - Managing Director Mr. Kushal Mittal - Joint Managing Director Director Started in family business at 21, mentored Northeastern Univ. Business Admin- 1982 IAS graduate with a PhD in Science from by father Late Sh. Dwark
Slide 44: Consolidated Financial Highlights
Consolidated Financial Highlights Total Revenue (Rs Cr) EBITDA (Rs Cr) & EBITDA Margin % 2,209 9.02% 2,001 6.6% 1,827 7.3% 7.1% 1,459 6.8% 926 199 146 130 97 63 FY 20 FY 21 FY 22 FY 23 FY24 FY 20 FY 21 FY 22 FY 23 FY24 Profit After Tax (Rs Cr) & PAT Margin % Shareholder’s Equity (Rs Cr) 4.3% 4.4% 67
Slide 45: Consolidated Historical Income Statement
Consolidated Historical Income Statement In Rs Cr Particulars FY21 FY22 FY23 FY24 Revenue from Operations 1,431 1,993 1,820 2,201 Other Income 28 8 7 8 Total Revenue 1,459 2,001 1,827 2,209 Total Expenses 1,363 1,855 1,696 2,009 EBITDA 97 146 130 199 EBITDA Margin % 6.6% 7.3% 7.1% 9.02% Depreciation
Slide 46: Consolidated Historical Balance Sheet
Consolidated Historical Balance Sheet In Rs Cr Particulars FY22 FY23 FY24 Particulars FY22 FY23 FY24 Assets Equity and Liabilities Non‐Current Assets Equity Plant Property and Equipment 129.6 316.0 617.8 Share Capital 24.2 24.2 27.2 Other Equity 342.5 456.3 624.4 CWIP 166.3 212.4 12.7 Non Controllin
Slide 47: Company Contact and Investor Relations Contact
Company Contact: Investor Relations Contact: Ajeet Kumar Thakur (Company Secretary) Priya Sen Sheetal Khanduja cs_bcl@mittalgroup.co.in Go India Advisors Go India Advisors Hazi Rattan Link Road, Bathinda-151005, priya@GoIndiaAdvisors.com sheetal@GoIndiaAdvisors.com Punjab, India M:+91 8334841047 M:+