E.i.d.-parry (india) Limited · NSE:EIDPARRY
E.i.d.-parry (india) — E.I.D. - Parry (India) — FY2023 Earnings Presentation
49 slides from E.i.d.-parry (india)'s earnings presentation, May 31, 2023
Slide 1: Exchange filing cover letter - Investor Presentation
E.I.D. - Parry (India) Limited Regd.Office: Dare House, 234,N.S.C. Bose Road, Parrys Corner, Chennai 600 001, India. Tel : 91.44.25306789 Fax: 91.44.25341609 / 25340858 CIN: L24211TN1975PLC006989 Website: www.eidparry.com May 31, 2023 BSE Limited National Stock Exchange of India Limited ist Floor, N
Slide 2: FY 22-23 Performance Investor presentation
FY 22-23 Performance Investor presentation May 2023 E.I.D. Parry (India) Ltd. 1
Slide 3: Safe Harbour
E.I.D. Parry (India) Ltd.- Safe Harbour Certain statements made in this document may constitute forward-looking statements. These forward-looking statements are based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opini
Slide 4: Murugappa Group
Murugappa Group 122 years 60000 Happy of Existence $ 7 Bn Employees Turn over in FY 22 20 Million $34 Bn* Farmers Market Cap 100+ Mfg. 29 locations Businesses 40 Countries 10 Listed * As of 24th May 2023 6 Entities Continents 3
Slide 5: E.I.D. Parry (India) Ltd.- About us
E.I.D. Parry (India) Ltd.- About us 2500+ Happy Employees 8900 Crore 235 years in Business Market cap as on May 23 People Founded in 1788 Sugar Experts Great value Best in class 6 Sugar Factories Strong 5617 Crore* performance facilities in South India Revenue by FY23 Best in class facilities 5 Dist
Slide 6: E.I.D. Parry (India) Ltd.- Capacities
E.I.D. Parry (India) Ltd.- Capacities Expansion Location Sugar Power Distillery Planned Nellikuppam- TN 7500 TCD 25 MW 75 klpd 45 klpd* Pugalur- TN 4800 TCD 22 MW Sivaganga- TN 64 klpd Sankili- AP 5000 TCD 16 MW 168 klpd Haliyal- KA 12000 TCD 49 MW 50 klpd 120 klpd* Bagalkot- KA 6000 TCD 16 MW 60 kl
Slide 7: Sugar & Biofuel
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Slide 8: Global Sugar Scenario
Global Sugar Scenario All values in MMT Sugar Consumption- Global Global sugar production is slated to be lower 200 than earlier estimates by 3 MMT at 177.36 Dip due to Covid 190 MMT (concerns in Thailand and India), whereas the global demand is slated to 179 180 increase by 0.23 MMT reaching 176.51
Slide 9: Global Sugar Balance & Prices
Global Sugar Balance & Prices mtrv- Metric Tonnes Raw Value ➢ Global supply and demand balance has been virtually balanced per the latest estimates released in April 2023 amidst supply concerns in both India and Thailand ➢ Having breached the 11year peak of 27c/lb in April, the raw sugar futures are
Slide 10: Key Policies- GoI
Key Policies- GoI Key Policies SY 20-21 SY 21-22 SY 22-23 MSP- (INR/kg) 31 31 31 2850 for 10.00% 2900 for 10.00% 3050 for 10.25% FRP- (INR/MT) recovery recovery recovery Release quota for Yes Yes Yes Domestic Sales 6MMT up to May Sugar Exports 6 MMT (MAEQ) 11 MMT (OGL) 2023 (Quota) B Hy, Syrup & B H
Slide 11: Indian Sugar Balance
Indian Sugar Balance Opening Season Domestic Closing Diversion to Sugar Year UOM Exports Stock Production Consumption Stock Ethanol 2018-19 LMT 107 332 255 38 146 3 2019-20 LMT 146 274 253 60 108 8 2020-21 LMT 108 312 266 72 82 20 2021-22 LMT 82 357 273 110 55 32 2022-23 (E) LMT 55 328 275 60 48 40
Slide 12: Update on Ethanol Blending Program (EBP)
Update on Ethanol Blending Program (EBP) Diversion in SY 22-23 Expected diversion for Ethanol in SY 2022-23 ~ 4.0MMT of Sugar (against 3.2MMT diverted in SY 2021-22). Overall blending is expected to reach 12% in SY 2022-23 20% Blending Petrol blended with 20% Ethanol has been rolled-out in select pe
Slide 13: Strategies
murugappa Strategies 12
Slide 14: Strategies for Efficiencies and Profitability Improvement
Strategies for Efficiencies and Profitability Improvement Maximize Sugar Realization 02 Introduce value-added products in Retail & Institutions, to realise better Premium Grow the packaged retail business through Increase Cane Volume distribution & brand building Grow the cane volumes and improve th
Slide 15: Sugar Strategy- 1. Increase Cane Volume
Sugar Strategy- 1. Increase Cane Volume Cane Crush (LMT) Gross Recovery (%) Asset relocation from 10.8% 10.6% 10.6% 60.0 TN to KN (4500 TCD) 51.8* 10.6% 50.2 50.0 10.4% 10.3% 39.7 10.1% 36.7 37.2 36.7 10.2% 10.0% 40.0 24.6 10.0% Better Varietal mix has 27.4 helped improve 10.0% 30.0 19.3 recovery 19
Slide 16: Sugar Strategy- 2. Maximize realisation from sugar
Sugar Strategy- 2. Maximize realisation from sugar Sugar Export Volume (LMT) & Realisation Domestic Sales mix (LMT) (INR/kg) 120% 1.69 3.84 3.45 2.91 2.85 3.25 3.67 1.80 1.52 100% 5% 39.00 10% 1.60 18% 21% 22% 27% 37.00 80% 1.40 37% 36.01 1.15 59% 42% 1.20 35.00 60% 48% 50% 1.00 49% 0.81 33.00 40% 3
Slide 17: Sugar Strategy- 2. Maximize realisation from sugar
Sugar Strategy- 2. Maximize realisation from sugar Retail Sales Volume (MT) Trade Price vs Retail Price (INR/kg) 42.00 120000 39.94 40.00 100419 100000 38.00 36.84 36.73 36.04 35.94 80000 36.00 35.24 72077 34.00 59643 34.00 33.08 33.18 60000 53688 32.59 32.71 32.00 29.47 40000 35332 30.00 18000 2000
Slide 18: Sugar Strategy- 2. Maximize realisation from sugar
Sugar Strategy- 2. Maximize realisation from sugar EID RETAIL PRODUCT SUITE Superior Health Benefit Parrys Jaggery Natural Brown Low GI @ Sugar Rs.120 Premium Imagery Jaggery @ Superfine Amrit @Rs Rs 110 Premium Imagery Step up to PPRS Superfine 100 branded white Convert sugar PPRS @ Rs @ Rs 75 cons
Slide 19: Sugar Strategy- 2. Maximize realisation from sugar
Sugar Strategy- 2. Maximize realisation from sugar Portfolio Build-up Distribution Growth Brand Building ➢ Implemented ‘Master Branding’ on packs Build portfolio of Next gen sweetener ➢ Focus in South India ➢ Rigorous consumer research to products to straddle across price ➢ Presence in 78000 outlets
Slide 20: Retail packs placement in Modern Trade outlets
Retail packs placement in Modern Trade outlets 19
Slide 21: Sugar Strategy- 3. Maximize EBP Opportunity
Sugar Strategy- 3. Maximize EBP Opportunity Alcohol Mix and Realisation 120% 70.00 100% 609 LL 662 LL 627 LL 594 LL 847 LL 1044 LL 23% 60.39 60.00 ✓ Ethanol volumes being 26% 31% 32% 80% 59.80 55.65 56% 57.10 62% 50.00 maximized to capitalize 60% 46.12 49.06 on the EBP opportunity 40.00 40% 74% 77%
Slide 22: Sugar Strategy- 4. Rationalize Fixed cost
Sugar Strategy- 4. Rationalize Fixed cost (INR/MT of Cane crush) Cash Fixed Cost (INR/MT) 900 800 768 732 695 700 663 629 600 537 500 400 300 200 100 FY '18 FY '19 FY '20 FY '21 FY '22 FY '23 Fixed cost under absorption in FY 23 due to- 1) Lesser cane volumes in Karnataka due to late start and early
Slide 23: Company Performance
COMPANY PERFORMANCE 22
Slide 24: Segment sales- Sugar & Power
Segment sales- Sugar & Power Sugar sales (LMT) and Average Realisation (INR/kg) 6 38 5 36.82 34.50 35.97 36 34.10 4 33.19 34 3 4.04 31.03 32 2 3.84 3.72 4.00 4.94 5.19 1 30 0 28 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 Significant growth in sugar Sales (LMT) Avg Realisation (INR/kg) sales volume (35% gro
Slide 25: Segment sales- Distillery
Segment sales- Distillery Distillery sales (LL) and Average Price (INR/L) 1200 65.00 59.70 60.39 60.00 1000 55.65 57.10 55.00 800 50.00 49.06 1044 Ethanol Blending Program 46.12 847 45.00 has helped in growth of 600 volumes (71% in 5 years) 40.00 and better realizations 609 662 627 594 400 35.00 30.
Slide 26: 5 Year Standalone performance
5 Year Standalone performance EID Financial Performance FY’19 FY’20 FY’21 FY’22 FY’23 INR in Cr Revenue from Operations 1,845 1,875 2,024 2,489 2,895 EBIDTA 414 235 1,271 478 416 Exceptional Items PBIT (Before Exceptional) 57 116 436 372 392 FY’19 PBIT includes PBIT 301 116 1,151 358 281 • Sale of B
Slide 27: Sugar Division- EBITDA/MT of Cane Crush
Sugar Division- EBITDA/MT of Cane Crush (INR/MT) EBITDA /Ton (INR/MT) 600 583 550 500 482 488 450 400 347 Significant Improvement in profitability with 350 focused execution of core strategies 300 FY'20 FY'21 FY'22 FY'23 26
Slide 28: Standalone Debt Position
Standalone Debt Position Standalone debt position (INR Crore) Total Finance Cost (INR Crore)* 1,200 150 136 1,000 113 113 800 432 492 93 100 600 375 400 46 355 353 36 586 543 50 200 457 4 200 101 155 - FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 - FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 Long Term Short Term • L
Slide 29: Consolidated Nutra Performance
Consolidated Nutra Performance 28
Slide 30: Nutraceuticals- Product Mix
Nutraceuticals- Product Mix Nutraceuticals Product Mix (INR Crore) 300 250 128 200 115 143 75 67 97 150 100 80 111 117 96 65 83 50 69 44 51 30 27 30 0 FY’18 FY’19 FY’20 FY’21 FY’22 FY’23 Greens Joint Health Prostate Health 29
Slide 31: Nutraceuticals- Initiatives
Nutraceuticals- Initiatives Saw Palmetto Significant Market Flomentum – B2C • Built science equity for the growth share gain - efficacy of saw palmetto on 8% growth in FY’23 in the core saw palmetto B2B vertical (Sales Spirulina • Prostate Health. Initiated field force deployment $16 Mn) • US. Growt
Slide 32: Consolidated Nutraceuticals Performance
Consolidated Nutraceuticals Performance Revenue from Operations (INR Crore) Year PBIT (INR Crore) 300 277 FY’18 8 254 259 FY’19 7 250 FY’20 -10 216 210 210 FY’21 16 200 FY’22 -8 FY’23 -76 150 FY’23 losses are on account of impairment of assets due 100 to discontinuance of Alimtec Operations, impairm
Slide 33: Sweeter up the value chain
Sugar Refinery Sweeter up the value chain Adding value & volume to manage restricted spread environments, increase profitability and create premium customer segments 32
Slide 34: Refinery Business Profile
Refinery - Business Profile Customers Overview Capacity: 9 LMT FY 23 Sales: 7.20 LMT FY23 Revenue: INR 2870 Crore Refinery Business Profile Certifications Suppliers Raw Sugar: Ex Brazil/India Coal: Ex Indonesia 33
Slide 35: Refined Sugar constitutes 40% of the global traded sugar volumes
Refined Sugar constitutes 40% of the global traded sugar volumes PSRIPL operates in this 40% business space 60% Global Trade White 23.6 Raw 35.4 33 57 Target % Market Target 175 Market Consumption 118 In production country 2016 2026 Production Consumption Source: FAO, Copersucar analysis MMT Source:
Slide 36: White Premium trends
White Premium trends European Exports & The White Sugar Premium ❖ Due to re-entry of EU, lower White Premiums in 2018- 2021 rationalized refining capacities ❖ White Premiums are expected to stay higher due to robust demand and higher cost for refining 35
Slide 37: Refinery - Journey so far..
Refinery - Journey so far.. Profitable & Sustainable Business Refinery Spread- $/MT 66 66 70 62 60 52 Factory Sales 50 42 44 42 43 ❖ Costs to be controlled ❖ Premiums to be earned within the Spread over and above spreads 40 32 ❖ Independent profitable ❖ Make profits net of FOB 30 toller charges 20 1
Slide 38: Refinery - Strategy - Move up the value chain
Refinery - Strategy 1 - Move up the value chain Premium in 2019 2025 USD/MT % of Value Added Sales 0% 14 13 30 In containers 12 2 2% 10 25 10 8 7 0% 20-25 6 4 1% 18 2 0 21% 1 16 FY 21 FY 22 FY 23 76% 8 0 37
Slide 39: Refinery - Strategy - Improve efficiencies and reduce the Cost of Conversion
Refinery - Strategy 2 - Improve efficiencies and reduce the Cost of Conversion COST OF CONVERSION - $/MT Key Initiatives 80 75 Impact of ➢ Increase melting rate and 70 Coal price reduce energy consumption 60 53 52 51 50 50 41 47 ➢ Process optimization to reduce 40 40 37 process loss 30 20 Efforts on
Slide 40: Refinery- Performance
Refinery- Performance Operational Performance UoM FY 19 FY 20 FY 21 FY 22 FY 23 Capacity LMT 8.00 9.00 9.00 9.00 9.00 Melting Rate MT/Day 2,445 2,700 2,564 2,595 2,649 Production LMT 6.99 6.37 7.90 6.11 7.78 Break Bulk % 85% 84% 87% 94% 97% Container % 15% 16% 13% 6% 3% Sales LMT 5.36 7.59 8.21 6.23
Slide 41: Refinery EBITDA Walkthrough FY22 vs FY23
Refinery EBITDA Walkthrough FY 22 vs FY 23 Amount in US$ Mn FY22 EBITDA 9.50 Higher Sales Volume 2.10 FY23 EBITDA -4.20 -4.40 -5.80 Lower other Mark to Higher refining cost income Market -13.70 One time losses -16.50 40 40
Slide 42: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE Consolidated Financial Performance 41
Slide 43: Consolidated Financials (excluding Coromandel International Ltd.)
Consolidated Financials (excluding Coromandel International Ltd.) EID Financial Performance FY’20 FY’21 FY’22 FY’23 INR in Cr Revenue from Operations 3,996 4,383 4,419 5,617 EBIDTA 307 1,259 517 368 Exceptional Items PBIT Before Exceptional 145 301 370 128 PBIT 145 1,016 356 172 PBT (51) 885 277 62
Slide 44: Consolidated external Borrowings (excluding Coromandel International)
Consolidated external Borrowings (excluding Coromandel International) INR Cr Segment FY’18 FY’19 FY’20 FY’21 FY’22 FY’23 Sugar 128 157 287 486 104 508 Refinery 717 1,311 1,187 203 647 614 Nutra 23 46 68 68 70 65 Others 873 655 731 39 - - Total 1,741 2,169 2,273 796 821 1,187 Note: ➢ Sugar - Long ter
Slide 45: Consolidated ROCE (excluding Coromandel International)
Consolidated ROCE (excluding Coromandel International) FY 19-20 FY 20-21 FY 21-22 FY 22-23 Capital Capital Capital Capital Employed ROCE (%) Employed ROCE (%) Employed ROCE (%) Employed ROCE (%) (INR Cr) (INR Cr) (INR Cr) (INR Cr) Sugar 1456 1% 1593 5% 1425 8% 2001 9% Refinery 1133 4% 332 (30%) 511
Slide 46: ESG- Sustainability Initiatives
ESG- Sustainability Initiatives Water Positive Practicing regenerative agriculture 86% energy consumption is from renewable source Project ‘Nanneer’ to conserve community water resource Practice circularity from farm to fork 45
Slide 47: Summary
Summary Better sweating of assets and Building a platform for maximize operating Consumer Product efficiencies Group (CPG) Cost Efficient refinery Operations Distillery Capacity- Significant investment to capitalize on EBP Better cash flow Higher mix of retail & management- Help institution sales wi
Slide 48: Glossary
Glossary ACRONYMS AP Andhra Pradesh LU Lakh Unit CoP Cost of Production MMT Million Metric Tonne Cr Crore Mn Million EBIT Earnings Before Interest & Tax MSP Minimum Selling Price Earnings Before Interest, Tax & EBITDA MT Metric Tonne Depreciation EBP Ethanol Blending Program MW Mega Watt EY Ethanol
Slide 49: Thank you!!
Thank you!! Thank You Corporate Office: For Investor relations Contact: 234 NSC Bose Road, biswamohanrath@parry.murugappa.com Chennai-01 48
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