Balrampur Chini Mills Ltd · NSE:BALRAMCHIN
Balrampur Chini Mills — Investor Presentation (April 2016)
21 slides from Balrampur Chini Mills's investor presentation, April 2016
Slide 1: Balrampur Chini Mills Limited Company Presentation April 2016
BALRAMPUR CHINI MILLS LIMITED COMPANY PRESENTATION APRIL 2016
Slide 2: Forward-looking statements
Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, agricultural policies, climatic conditions, technological risks, and many other fac
Slide 3: Global Scenario
GLOBAL SCENARIO 3
Slide 4: Global sugar demand is expected to increase to 198 mn tonnes in 2021
Global sugar demand is expected to increase to 198 mn tones in 2021 and 257 mn tones by 2030 compared with 173 mn tones in 2015 Asia will remain the biggest consumer of sugar, increasing its share of total consumption from around 45% to 50% by 2021 By 2030, India and China will respectively co
Slide 5: Supply Mismatch
Supply Mismatch • Over last 20 years sugar production has risen by 42% to 170 mn tones • Global consumption expected to rise to 257 mn World (Figures in million tonnes) tones by 2030 Major Sugar producing states Brazil, India, EU, China • Production gap of additional 90 mn tones requires to be met
Slide 6: Brazil, China, Thailand and EU sugar outlook
BRAZIL • Sugar production for 2015-16MY ~ 31 mln tones • In 2016-17 MY expects 42.8% of cane utilization for production of sugar, up 10.6% • IN 2016-17 MY sugar production expected to be ~ 34 mln tones • Weather favours sugar mills in Brazil to operate earlier than normal this year CHINA • Sugar
Slide 7: Indian Scenario
INDIAN SCENARIO 7
Slide 8: Indian sugar industry key facts
Area under Sugarcane : 5.10 million hectares Sugarcane Production : 345 million tones Number of Sugar Mills : In excess of 600 Average Capacity of Sugar Mills : 3800 TCD Production of Sugar : 28.2 million tones [2014-15] Average per capita consumption : 21.4 kgs of sugar and 6 kgs of oth
Slide 9: Indian sugar demand and supply balance
(Million Tones) 2011 2012 2014 2015 2016 [E] 2017 [P] Opening Stock 7.1 7.6 8.2 6.5 8.8 7.4 Production 26.3 25.1 24.3 28.3 25.5 25.0 Increase in Production 7.79% -4.56% -3.19% 16.46% -9.89% -1.96% Internal Consumption 22.4 23.0 24.0 24.8 25.3 25.5 Growth Y-O-Y 7.69% 2.68% 4.35% 3.33% 2.02% 0.79% Exp
Slide 10: Recent Developments in Indian Sugar Industry
RECENT DEVELOPMENTS IN INDIAN SUGAR INDUSTRY 10
Slide 11: Export quota, excise exemption and cane subsidy
The Government has announced mill-wise Minimum Indicative Export Quota (MIEQ) of 4 mln tons to be made by all mills in India • This would reduce inventory of sugar in the country which in turn has eased the pressure on sugar prices • Total export contracts so far 1.4 mln tones out of which 1.2 mln
Slide 12: Ethanol pricing and blending programme
Price mechanism for Ethanol supply has been changed from tender based to fixed price OMC have floated Main Tender of 266 cr ltrs to be supplied from December 2015 to November 2016 to achieve a target of 10% blending of Ethanol with petrol • This is keeping in mind 10% blending • In the 1st round
Slide 13: Upward revision in cogen tariff
Upward revision in Tariff of Cogen • On an average there has been an increase of 0.49 paisa per unit by UPERC • The increase is effective from 20th January 2015 Company is generating around INR 25 crs of annual Income from sale of Renewable Energy Certificates Incineration Project once implemented
Slide 14: BCML Business Model
BCML Business Model 14
Slide 15: Large Capacities
Sugarcane crushing capacity at 76,500 TCD, Distillery and Co-generation Large Capacities operations of 320 KLPD and 151.20 MW (Saleable) respectively SUGAR COGEN POWER COGEN POWER ORGANIC UNITS CAPACITY DISTILLERY [MW] INSTALLED [MW] SALEABLE MANURE [TCD] [KLPD] CAPACITY CAPACITY [TONS] BALRAMPUR 12
Slide 16: Board of Directors and Shareholding Pattern
Shareholding Pattern Board of Directors AS on 31st December, 2015 Chairman Emeritus : KAMAL NAYAN SARAOGI, Promoters 40.83 Board of Directors : NARESH CHANDRA [ Retd. IAS], Chairman (Independent Director) Fund Houses/Insurance 17.77 VIVEK SARAOGI, Managing Director, Cos/Banks MEENAKSHI SARAOGI, Non-
Slide 17: Q3 FY16 and 9MFY16 financial results
% Y-o-Y % Y-o-Y (` million) Q3 FY16 Q3 FY15 Growth 9MFY16 9MFY15 Growth Net Operating 8,488.8 8,416.9 0.85% 19,860.7 23,286.6 -14.71% Revenue EBITDA 1,195.3 (267.3) - 1,076.9 200.0 - EBITDA Margin (%) 14.08% -3.18% - 5.42% 0.86% - Depreciation 274.5 257.1 6.77% 838.7 875.7 -4.23% Interest 75.8 161.8
Slide 18: Segment revenue
(` million) Sugar Cogen Distillery Others Total Q3 FY 2016 7,852.1 1,005.6 662.5 12.5 9,532.7 Q3 FY 2015 7,363.2 1,112.0 664.5 14.20 9,153.9 % Shift 6.64% -9.57% -0.30% -11.97% 4.14% 9MFY 2016 17,642.5 2,047.1 2,022.0 37.2 21,748.8 9MFY 2015 20,133.8 2,281.8 2,200.7 35.0 24,651.3 % Shift -12.37% -10
Slide 19: Segment results
(` million) Sugar Cogen Distillery Others Total Q3 FY 2016 259.7 437.1 3003 4.3 1,001.4 Q3 FY 2015 (1,408.1) 666.3 314.3 0.7 (426.8) % Shift - -34.40% -4.45% - - 9MFY 2016 (1,068.4) 822.6 959.7 10.0 723.9 9MFY 2015 (2,652.0) 1,137.1 1,113.5 2.2 (399.2) % Shift - -27.66% -13.81% - - 19
Slide 20: Long term debt and repayment plans
Long Term Debt of ` 677.75 crores as on 31st March 2016 Scheduled repayment during FY2016-17 of ` 171.58 crores Further plans to utilize surplus cash as available during FY2016-17 to prepay debts No major capex in pipeline except for the ongoing incineration project 20
Slide 21: Thank You
THANK YOU For more information on the Company, please log on to www.chini.com. For further information contact: Mr. Pramod Patwari Chief Financial Officer Registered Office: Balrampur Chini Mills Limited FMC Fortuna, 2nd Floor. 234/3A, A. J. C. Bose Road. Kolkata – 700020 Corporate Identification Nu
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