Bcl Industries Ltd · NSE:BCLIND
Bcl Industries — Q3 FY2025 Earnings Presentation
48 slides from Bcl Industries's earnings presentation, Feb 14, 2025
Slide 1: Submission of Investors presentation to exchanges
Regd. Office: Hazi Rattan Link Road, Post Box No. 71, Bathinda-151001 Ph.: 0164-2240163, 2240443, 2211628, Fax: 0164- 5003638 Website: www.bcl.ind.in Email: bcl@mittalgroup.co.in CIN: L24231PB1976PLC003624 February 14, 2025 The National Stock Exchange of India BSE Limited Limited Exchange Plaza, 5 t
Slide 2: Investor Presentation February 2025
Investor Presentation February 2025 Excellence, Resilience, Growth 1
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 Strong Legacy – Entering the 50th Year of Incorporation o Prominent presence in ENA and IMIL segment 24%* 36%* 9% o Leading grain-based Ethanol producers Revenue EBITDA
Slide 5: Entering 50th Year of Strength, Growth & Excellence
Entering 50th Year of Strength, Growth & Excellence Strong Foundation Promising Future Entering 50th Year of Incorporation: Incorporated Distillery Expansion – Capacity set to grow from 700 on 3rd February 1975, BCL has become a KLPD to 1,100 KLPD with Haryana & Bathinda leading grain-based ethanol
Slide 6: 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 Rs. 3-5/litre o Moving beyond FCI rice-to- o Ethanol: Strong Regulatory o Leading by example in Ethanol Support Innovation 5
Slide 7: 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) Damaged Grain ENA Maize Fully Integrated Distillery Plant with State-of-the-Art Technology Ethanol FCI Rice IMIL Husk
Slide 8: ENA: A High Entry Barrier Business
ENA: A High Entry Barrier Business Price increase in ENA (Rs/Litre) IMIL Market (Million Cases) 25% 445 330 340 350 69 55 FY2022 FY2023 FY2015 FY2020 FY2023 FY2028 o State-controlled liquor policies create significant barriers for new entrants, favouring established industry players. o Increasing go
Slide 9: 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 3.7% 14 141 102 7 2022 2032 2023 2032 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 produc
Slide 10: 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 13,21,223 Boxes of PML in 9MFY25 o Our Country liquor brands Green Apple Vodka Ranjha Saunfi Asli Santra Punjab Special Whisky 9
Slide 11: 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 12: Ethanol: Multi-Billion Dollar Opportunity
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 13: Uptick in Biodiesel Consumption in India
Uptick in Biodiesel Consumption in India Biodiesel Consumption in India 2015-2028 (Bn Litres) Indian Biodiesel Market Size (USD Million) CAGR 8.2% 4.5 865 3.3 2.7 2.1 418 0.1 2015 2025 2026 2027 2028 2024 2032 o The government has set a 5% biodiesel target by 2030, requiring about 4.5 billion litres
Slide 14: BCL: Distillery Plants
BCL: Distillery Plants Sangat Distillery Capacity: 400 KLPD Location : Bhatinda (Punjab) Svaksha Distillery Capacity: 300 KLPD Location : Kharagpur (West Bengal) 13
Slide 15: India's Grain Productivity will Surpass Population Growth
1. India’s Grain Productivity will Surpass Population Growth 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 -2.00% -4.00% -6.00% Population Growth Grain Production Growth Source : PIB,The Economics Time, Macrotrends 14
Slide 16: Grain Based Ethanol: Compelling Rationale
Grain Based Ethanol: Compelling Rationale 15
Slide 17: 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 18: 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 19: Farmers Incentivised to Produce Maize
4. Famers Incentivised to Produce Maize Maize MSP Price Trend (Rs/Quintal) 2,225 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 2024-25 o India plans to use about 156 lakh tonnes of grains, mainly maize, to meet its 2025-26 ethanol production target
Slide 20: BCL's Distillery Business Positioning
BCL’s Distillery Business Positioning 19
Slide 21: Industry Updates
Industry Updates Ethanol Price Rs/Ltr for ESY 2023-24 The government lifted a 13- Ethanol from Maize month ban, allowing ethanol increased by Rs distilleries to buy 2 lakh 5.79/Litre to Rs tonnes of rice from FCI. 71.86/Litre, effective Jan 2024 71.86 65.61 The government allowed 64 58.5 60.73 Ethan
Slide 22: 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 1,244 1050 860 850 800 700 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 BCL 200 FY26E: Top 6 Distillery* Play
Slide 23: Running Operations Efficiently
Running Operations Efficiently Asset Optimisation and Low Cost of Production Resulting in Industry Leading Profitability High-Capacity Utilisation BCL vs Industry EBITDA Margin ** 96% 100% 73% 100% 88% 13% 1,31,876 67,914 24,332 40,346 41,697 10% 39,077 29,003 30,229 36,876 40,787 FY20 FY21 FY22 FY2
Slide 24: 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 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: 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 28: 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 within3-4 Mont
Slide 29: Q3 & 9MFY25 Earnings
Q3 & 9MFY25 Earnings February 2025 28
Slide 30: Q3 & 9MFY25 Strategic Highlights
Q3 & 9MFY25 Strategic Highlights EDIBLE OIL oThe company maintained steady performance in edible oil this quarter, carefully monitoring the international market oA conservative approach continues to be followed to mitigate risks from global volatility DISTILLERY o The company primarily relies on mai
Slide 31: Comfortable Debt Repayment Schedule
Comfortable Debt Repayment Schedule Term Debt Repayment Schedule (Rs Cr) Consolidated Debt Break Up as on 30th Sept 2024 (Rs Cr) 40 38 38 38 35 30 99 26 18 277 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 Consolidated Term Loans Outstanding Consolidated Working Capital o The Average Cash Flow From Operat
Slide 32: Q3 & 9MFY25 – Financial Highlights
Q3 & 9MFY25 – Financial Highlights Total Revenue (Rs Cr) EBITDA (Rs Cr) & EBITDA Margin % PAT (Rs Cr) & PAT Margin % 9% 6% 5% 3% 763 646 33 57 48 21 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 9% 7% 5% 3% 2,172 147 161 1,593 72 75 9MFY24 9MFY25 9MFY24 9MFY25 9MFY24 9MFY25 Nos are consolidated basis 31
Slide 33: Consolidated Quarterly Income Statement
Consolidated Quarterly Income Statement In Rs Cr Particulars Q3FY25 Q3FY24 Y-o-Y Q2FY25 Q-o-Q Revenue from Operations 762 644 18.3% 746 2.1% Other Income 1.9 2.1 (9.5)% 2.3 (17.4)% Total Revenue 763 646 18.1% 748 2% Total Expenses 715 590 21.1% 691 3.4% EBITDA 48 57 (15.7)% 57 (15.7)% EBITDA Margin
Slide 34: Consolidated 9MFY25 Income Statement
Consolidated 9MFY25 Income Statement In Rs Cr Particulars 9MFY25 9MFY24 Y-o-Y Revenue from Operations 2,166 1,587 36.4% Other Income 6 5.9 1.69% Total Revenue 2,172 1,593 36.3% Total Expenses 2,011 1,446 39% EBITDA 161 147 9.5% EBITDA Margin % 7% 9% (200)bps Depreciation 34 26 30.7% Finance Cost 25
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet In Rs Cr Particulars H1FY25 H1FY24 Particulars H1FY25 H1FY24 Assets Equity and Liabilities Non‐Current Assets Equity Plant Property and Equipment 604.7 533.0 Share Capital 29.5 25.4 Other Equity 727.4 526.6 CWIP 35.0 50.6 Non Controlling Interest 26.0 19.1 Right to use ass
Slide 36: Distillery Operational Highlights
Distillery Operational Highlights Volume 1,49,764 50,005 50,914 48,845 38,471 39,054 90,895 29,395 10,480 10,319 9,567 30,578 8,185 5,830 20,773 5,376 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 9MFY24 9MFY25 ENA (In KL) Ethanol (In KL) ENA (In KL) Ethanol (In KL) 35
Slide 37: Distillery Financial Performance
Distillery Financial Performance Revenue (Rs Cr) EBITDA (Rs Cr) & EBITDA Margin % 12.3% 8.4% 350 49 42 254 68 70 Q3FY24 Q3FY25 Q3FY24 Q3FY25 ENA Ethanol 14% 9.8% 1,069 131 144 575 197 150 9MFY24 9MFY25 9MFY24 9MFY25 ENA Ethanol 36
Slide 38: Quarterly Distillery Segment Revenue Break Up
Quarterly Distillery Segment Revenue Break Up Q2FY25 Q3FY24 Q3FY25 3% 8% 3% 8% 7% 8% 14% 3% 18% 6% 7% 6% Rs 484 Cr Rs 429 Cr Rs 508 Cr 75% 65% 69% ENA Ethanol DDGS PML Others 37
Slide 39: 9MFY25 Distillery Segment Revenue Break Up
9MFY25 Distillery Segment Revenue Break Up FY24 9MFY24 9MFY25 3% 7% 3% 10% 8% 3% 8% 19% 21% 8% 6% 8% Rs 1,370 Cr Rs 970 Cr Rs 1,460 Cr 62% 61% 73% ENA Ethanol DDGS PML Others 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) 3.2% 2.08% 248 253 8 1.84 5.3 1.4 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 2.8% 2.07% 705 618 6.97 17 14.6 4.8 9MFY24 9MFY25 9MFY24 9MFY25 9MFY24 9MFY25 39
Slide 41: Annexure
Annexure February 2025 40
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 Major Gen. Parampal Singh Bal (Retd.) – Mr. Rajinder Mittal - Managing Director Mr. Kushal Mittal - Joint Managing Director Chairman & Independent Director A respected Punjab industrialist and philanthropist, has As Jt. Managing Director, Mr. Kushal Mittal is An independent Direct
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 FY22 FY23 FY24 Revenue from Operations 1,993 1,820 2,201 Other Income 8 7 8 Total Revenue 2,001 1,827 2,209 Total Expenses 1,855 1,696 2,009 EBITDA 146 130 199 EBITDA Margin % 7.3% 7.1% 9.02% Depreciation 15 25 36 Finance Cost 18 20 33 Pr
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: 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 48: Together we go Beyond
Together we go Beyond 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, Indi