Avadh Sugar & Energy Ltd. · NSE:AVADHSUGAR
Avadh Sugar & Energy — H1 FY18 Earnings Presentation
30 slides from Avadh Sugar & Energy's earnings presentation, Nov 7, 2017
Slide 1: Stock exchange disclosure letter for investor presentation
AAVADH SUGAR & ENERGY LTD ASEL/SE/2017-18/38 7" November, 2017 The Manager The Manager The Secretary Listing Department Listing Department The Calcutta Stock National Stock Exchange of India Limited BSE Ltd. Exchange Ltd. ‘Exchange Plaza’ 1st Floor, New Trading Ring 7, Lyons Range C-1, Block G Rotun
Slide 2: Strong Fundamentals, Sustainable Value - Investor Presentation November 2017
K.K. BIRLA GROUP OF SUGAR COMPANIES Strong Fundamentals Sustainable Value Investor Presentation November 2017
Slide 3: Agenda
Agenda Company Overview Rationale for Business Re-arrangement scheme Sugar – Industry Scenario Strategy Going Forward Q2 & H1 FY18 Financial Highlights 2
Slide 4: Company Overview
Company Overview “Avadh Sugar & Energy Limited (ASEL) – K.K. Birla Group Company” 3
Slide 5: Patronage of Renowned K. K. Birla Group
Patronage of Renowned K. K. Birla Group Leadership of Mr. C.S. Nopany Associated with Birla Sugar since 1993 Pioneer in Sugar Industry Group is in Sugar Business since 1932 Wide experience in Commodity Business K.K. Birla Group a major player in key industries like fertilizers, chemicals, textiles,
Slide 6: The backbone of Avadh Sugar & Energy Limited
The backbone of Avadh Sugar & Energy Limited “Great Experience Builds remarkable Organisation” Mrs Nandini Nopany Mr C. S. Nopany Chairperson Co-Chairperson Mr Anand Ashvin Mr Pradip Kumar Mr Sunil Kanoria Mr Gaurav Swarup Mr Kalpataru Tripathy Dalal Bishnoi Independent Independent Independent Indep
Slide 7: An Integrated Sugar Company
An Integrated Sugar Company Cane Industrial Spirit & Molasses Distillery Ethanol Development & Marketing Farmers (200 KLPD) Clarification Sugar Sugarcane Juice Evaporation (31,800 TCD) Crystallization Sugarcane ASEL Crushing (4 Facilities) Power Co-generation Bagasse Generation (Total: 74 MW) Legend
Slide 8: Strategically Located in Leading Sugar Producing State – Uttar Pradesh
Strategically Located in Leading Sugar Producing State – Uttar Pradesh Total Sugar Production Total Ethanol Production Total Power Co-Generation 31,800 TCD 200 KLPD 74 MW Uttar Pradesh Avadh Sugar & Energy Limited Type Plant (Uttar Pradesh) Crushing Hargaon Sugar Mills 10,000 tonnes of sugarcane per
Slide 9: A Quick Glance at Manufacturing Units
A Quick Glance at Manufacturing Units Sugar 10,000 TCD Alcohol/Ethanol 100 KLPD Co-Generation 24 MW Sugar 4,800 TCD Sugar 10,000 TCD Alcohol/Ethanol 100 KLPD Co-Generation 15 MW Sugar 7,000 TCD Co-Generation 35 MW K.K. BIRLA GROUP OF SUGAR COMPANIES 8
Slide 10: Continuous efforts to Improve efficiency
Continuous efforts to Improve efficiency Integrated operations Greater hedge Maximize value against accrual from the sugar every ton of cycle cane crushed Close proximity maximizes by –product utilization Economic sized operations driving cost efficiencies Intra-plant Synergies K.K. BIRLA GROUP OF S
Slide 11: Operations at best efficiencies
Operations at best efficiencies Cane Crushed Alcohol/Ethanol Produced Power Generated (Lakh units) (lakh Ltr) 1,746 1,743 457 540 541 347 SS15-16 SS16-17 FY16 FY17 FY16 FY17 K.K. BIRLA GROUP OF SUGAR COMPANIES 10
Slide 12: Rationale to scheme
Rationale to scheme “To enhance operational, managerial, financial and technological synergy” 11
Slide 13: Scheme – to achieve better efficiencies & commercial synergies
Scheme – to achieve better efficiencies & commercial synergies Establish independent companies for • Uttar Pradesh Sugar & Bihar Sugar geographically • Food Processing and other Undertaking • Tea Undertaking and other Undertakings Concentrated efforts and focus by the senior management on each busin
Slide 14: Formation of Avadh Sugar & Energy Limited (ASEL)
Formation of Avadh Sugar & Energy Limited (ASEL) Upper Ganges Oudh Sugar Sugar & Industries Sugar, Ethyl Sugar, Ethyl Alcohol including Alcohol including Ethanol, co- Ethanol, co- Tea Business Other Business Food Processing Other Business generation of generation of Power and By Power and By Product
Slide 15: Sugar - Industry Scenario
Sugar - Industry Scenario “Our Efforts & Industry Support leads us to achieve our Goals” 14
Slide 16: Normal rainfall & better yield likely to boost Production
Normal rainfall & better yield likely to boost Production No shortage in domestic requirements Positive outlook of Sugar Production (production equal to consumption) Stable Sugar Outlook Sugar will move 2017 - 2018 from surplus sugar States to deficit areas • Sugar availability adequate for + = dome
Slide 17: Domestic Sugar Industry Production Estimates
Domestic Sugar Industry Production Estimates Total Domestic Sugar Production 25.1 Mn tons estimation June,2017 (SS 2017-2018) U.P. to produce 9.9 Mn tones of sugar in SS 2017-18 against 8.7 Mn Maharashtra to produce 7.4 Mn tones of sugar in SS 2017-18 against 4.4 Mn Karnataka to produce 2.5 Mn tones
Slide 18: Sugar cultivation in India at glance
Sugar cultivation in India at glance Sugar Co’s operate ~160/180 days between Nov to April Domestic Sugar Balance 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018E# Opening Stock 7.6 8.2 6.5 8.8 7.7 4.0 Production 25.1 24.3 28.3 25.1 20.3 25.1 Increase in Production -4.56% -3.19% 16.46% -
Slide 19: Strategy Going Forward
Strategy Going Forward “Loyalty & Dedication for growth comes with prominent strategy to achieve it” 18
Slide 20: Moving Ahead the Curve
Moving Ahead the Curve Current Scenario Strategy Going Forward Sugar Business – TCD 31,800 Increase in yield per Acre Educating farmers on best farming practices Varietal improvement of Cane De-bottlenecking to enhance crushing capacity Capex of ~Rs. 20-30 crores Co-Generation – MW 74 Focus on conti
Slide 21: Energy efficiency measure and de-bottlenecking
Energy efficiency measure and de-bottlenecking Consistent increase in Power Generation helps operational efficiency Surplus power is sold to grid Power Generated (lakh units) Surplus Power sold (lakh units) 1,746 1,743 Average Realisation (Rs.) 1,387 1,279 4.87 4.75 FY16 FY17 FY16 FY17 Capex of ~Rs.
Slide 22: Ethanol production to enhance profitability
Ethanol production to enhance profitability Finance Ministry has raised the rate of Realization of Ethanol to Rs.40.85 per Ethanol is higher litre for the SS17-18 in comparison to Leading to rise in Industrial spirit the production of Ethanol Intends to blend more Ethanol in petroleum product Govern
Slide 23: Efforts to strengthen the Financial Parameters
Efforts to strengthen the Financial Parameters Networth (Rs. Crore) Total Long-term Borrowings (Rs. Crore) 505 437 393 352 315 183 FY16 FY17 FY18 (E) FY16 FY17 FY18 (E) *excludes WC borrowings & current liabilities Reduction in Long-term Debt to Equity (x) 2.4 0.9 0.6 FY16 FY17 FY18 (E) (Long-Term B
Slide 24: Q2 & H1 FY18 Financial Highlights
Q2 & H1 FY18 Financial Highlights “Financial numbers are the reflection of the efforts” 23
Slide 25: Q2 & H1FY18 Result Highlights
Q2 & H1FY18 Result Highlights Total Income (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) 30% 37% YoY 18% YoY YoY 84 1,243 202 48% 25% YoY 39% 65 172 YoY 904 YoY 51 624 106 34 450 85 H1FY17 H1FY18 Q2FY17 Q2FY18 H1FY17 H1FY18 Q2FY17 Q2FY18 H1FY17 H1FY18 Q2FY17 Q2FY18 K.K. BIRLA GROUP OF SUGAR COMPANIES 24
Slide 26: Profitability Highlights
Profitability Highlights Rs. Crore Q2FY18 Q2FY17 YoY H1FY18 H1FY17 YoY FY17 Total Income 624 450 38.7% 1,243 904 37.4% 1,875 Raw Material Cost 466 298 906 612 1,229 Employee Cost 16 22 32 35 79 Other Cost 36 45 103 86 139 EBITDA 106 85 24.7% 202 172 17.7% 428 EBIDTA margin (%) 17.1% 19.0% 16.3% 19.0
Slide 27: Balance Sheet Highlights
Balance Sheet Highlights Rs. in Cr Sep – 17 Mar – 17 Rs. in Cr Sep – 17 Mar-17 Non-current assets 1,022 990 Shareholder’s Fund 398 327 Fixed assets 994 989 Share capital 10 10 Financial Assets 24 0 Reserves & Surplus 388 317 Other Non Current assets 4 1 Non-current liabilities 282 313 Current assets
Slide 28: Operational Highlights Plant Wise
Operational Highlights Plant Wise Sugar Cane Crushing (Lakh Qtls) Co-Generation (Lakh Units) Distillery (Lakh Litres) 59 52 400 353 43 263 266 30 169 143 835 879 177 130 277 275 511 510 SS16 SS17 Hata 43 59 FY16 FY17 Rosa 30 52 Hata 400 353 FY16 FY17 Seohara 143 169 Seohara 835 879 Seohara 263 266 H
Slide 29: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Avadh Sugar & Energy Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any s
Slide 30: Lets Connect
Lets Connect Mr. Dilip Patodia Mr. Vikash Verma / Mr. Abhishek Bhatt dilip.patodia@birla-sugar.com vikash.verma@stellar-ir.com abhishek@stellar-ir.com 9/1,R.N. Mukherjee Road, Kolkata Dynasty Business Park, Andheri (East), Mumbai 400 065 For more information visit: 29 www.birla-sugar.com