Balrampur Chini Mills Ltd · NSE:BALRAMCHIN
Balrampur Chini Mills — Investor Presentation (November 2024)
56 slides from Balrampur Chini Mills's investor presentation, Nov 11, 2024
Slide 1: Exchange filing cover letter
11th November, 2024 National Stock Exchange of India Limited BSE Limited Listing Department, The Corporate Relationship Department ‘Exchange Plaza’, C/1, G Block, Bandra 1st Floor, New Trading Wing, Rotunda Kurla Complex, Bandra (E), Building, Phiroze Jeejeebhoy Towers, Mumbai 400051. Dalal Street,
Slide 2: Investor Presentation November 2024
“STRETCH” Deepening competence. Widening horizon. Investor Presentation November 2024
Slide 3: Safe Harbour
Safe Harbour Certain statements made in this document may constitute forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, agricultural policies, climatic conditions, technologica
Slide 4: Table of Contents
Table of Contents Company Overview 4 to 7 Company’s Diversification to Bio Speciality 8 to 18 Chemicals (PLA) Historic Trend – 5 Years Financial D& Operational 19 to 32 Data Historic Trend – 5 Years Financial Data - Company 33 to 37 as a whole Treasury Management 38 to 43 ESG & Enhanced Stakeholder
Slide 5: Company at a Glance
Company at a Glance 10 Number of sugar units 5 Number of distillery units 10 Number of co-generation units Aggregate cane crushing capacity 80,000 (TCD) 1,050 Aggregate distillery capacity (KLPD) 175.7 Aggregate Saleable co-generation 75,000 Poly Lactic Acid plant announced capacity (MW) (tonnes) in
Slide 6: Company at a Glance (contd.)
Company at a Glance (contd.) A multi-product integrated Company with manufacturing capability of Sugar, Ethanol and Bio Specialty Chemicals (Polylactic Acid)* Sugar Crushing (tonnes of BCML Units Distillery (kL/day) PLA* cane/day) Balrampur 12,500 330 UTTAR 10,000 100 Babhnan PRADESH Tulsipur 7,000
Slide 7: Journey of BCML over Decades
Journey of BCML over Decades 2000-2014: Integrated Growth Phase 2015-2024: Structural 1975-1989: Sugar 1990-1999: Growth & transformation of sugar and 2024 - onwards: Business – Foundation Expansion Phase 2004: Established greenfield integrated distillery divisions Decadal Future Years sugar plant w
Slide 8: Board of Directors
Board of Directors Vivek Saraogi – Chairman and Managing Director Avantika Saraogi – Executive Director ⚫ An eminent Industrialist, is a veteran in the sugar industry and has been one of ⚫ Pioneer in world of sugarcane operations. Fourth generation member of Saraogi the youngest president of the Ind
Slide 9: Company's Diversification to Bio Speciality Chemicals (PLA)
Company’s Diversification to Bio Speciality Chemicals (PLA) 8
Slide 10: The writing is on the wall
The writing is on the wall The global Carbon cycle in Billion tons Global energy-related CO2 emissions grew by 1.1% in 2023, increasing 410 million tonnes (Mt) to reach a new record high of 37.4 billion tonnes (Gt) Our current economic model is not environmentally sustainable ● The current carbon-ba
Slide 11: What could 2050 look like?
What could 2050 look like? Key message: Even replacing ALL carbon in the polymer and chemical industry will be possible requiring a manageable ~2.5% of all biomass of planet earth. Source: Nova Institute 2021/2023 (https://www.unilever.com/files/5a9d4ed5-36ba-4bf1-af56-42367841343a/turning-off-the-t
Slide 12: How bioplastic is an active measure
How bioplastic is an active measure Bioplastics help to reduce • GHG emissions and • Plastic pollution Bioplastics fit in as an active measure? ● Bioplastics can be “biobased” ● Bioplastics can be “biodegradable” ● Bioplastics can also be both (PLA is both) ● PLA is also easy to chemically recycle 1
Slide 13: BioE3 Policy: An era of Bio-Revolution
BioE3 Policy: An era of Bio-Revolution Government has introduced BioE3 Policy in August 2024 to promote bio-manufacturing and support the shift from a sustainable, bio- based economy. • The BioE3 Policy will facilitate sustainable and efficient utilization of biological resources • The carbon captur
Slide 14: The place of PLA within Biopolymers
The place of PLA within Biopolymers Key message: PLA is the lowest cost biopolymer with a great hardness and great transparent. PLA has clear advantages in chemical recycling. 13
Slide 15: BCML – PLA (bio-polymer) Project
BCML – PLA (bio-polymer) Project A strategic decision: • Diversifying goals aim reduce risk associated with regulated sugar and ethanol supply, and align with the Make in India Initiative and Swachh Bharat Abhiyan. • The market for sustainable products is growing and our current initiative is to mee
Slide 16: Overview on Poly Lactic Acid (PLA)
Overview on Poly Lactic Acid (PLA) US$ billion, value of the %, CAGR, projected The key properties of PLA 1 global PLA market, 18 PLA market growth from 2022 2022 to 2028 Crystallinity In its versatility, PLA can be amorphous Melting and glass transition and transparent or if triggered temperature c
Slide 17: PLA: A Progressive Solution
PLA: A Progressive Solution What makes PLA a futuristic alternative to conventional plastic PLA is compostable and can break down in industrial PLA is easy to process in various manufacturing Ease of Biodegradability composting facilities. This reduces environmental techniques. For example, injectio
Slide 18: Popular PLA Applications
Popular PLA Applications Other Foamed Packaging 3D printing Textiles Medical devices applications applications Packaging PLA is used in 3D PLA can be spun into PLA is used to make a PLA is also used in PLA can be foamed for PLA is used to make a printing for a fibers to create textiles variety of me
Slide 19: PLA Project Status
PLA Project Status • Entire land for the Project has been acquired • Contracts for foreign technology partners viz. Sulzer and Alpine has been executed • EPMC contract executed with Jacobs Solutions • Till 30th September 2024 Company has spent ~Rs. 333 crores • Final EIA (Environment Impact Assessme
Slide 20: Historic Trend: 5 Years Financial & Operational Data
Historic Trend: 5 Years Financial & Operational Data 19
Slide 21: Sugar Business Overview
Sugar Business Overview 20
Slide 22: Policy intervention from Government
Policy intervention from Government ⚫ FRP: Fair & Remunerative Price (FRP) of sugarcane for the sugar season 2023-24 has been revised to ₹315 per quintal from ₹305 per quintal in the previous season (linked to a basic recovery of 10.25%). FRP for the sugar season 2024-25 has been revised to ₹340 per
Slide 23: Sugar Segment – Financial Performance
Sugar Segment – Financial Performance Revenue (Rs. Cr.) PBIT (Rs. cr) PBIT Margin (%) Sugar Sales (lac quintals) Average blended realization of sugar (Rs./kg) 4,697.3 419.7 4,423.3 4,351.7 38.0 4,263.0 4,338.6 389.0 120.5 36.0 113.3 34.7 329.5 102.6 32.0 8.8% 8.9% 30.3 296.3 94.7 90.4 7.6% 6.9% 238.
Slide 24: Sugar Segment – Operational Performance (1 of 2)
Sugar Segment – Operational Performance (1 of 2) Sugarcane crushed Net Sugar Recovery (%) * Sugar Recovery Pre-sacrifice Sugar Production (lac quintals) (%) (lac quintals) 1,084.5 11.44 1,020.3 1,032.6 11.93 11.77 11.73 116.7 10.63 11.55 11.55 112.2 $ 936.6 10.27 10.34 109.8 885.4 9.43 91.0 88.3 FY2
Slide 25: Sugar Segment – Operational Performance (2 of 2)
Sugar Segment – Operational Performance (2 of 2) Sugarcane diverted towards Sugarcane diverted towards Sugar sacrifice under B- Sugar sacrifice under Syrup B-heavy route (lac quintals) Syrup route (lac quintals) heavy route (lac quintals) route (lac quintals) 675.6 85.8 11.7 10.2 11.3 613.4 616.3 60
Slide 26: Distillery & Co-generation Business Overview
Distillery & Co-generation Business Overview 25
Slide 27: Trend in Ethanol Supply Fulfilling the Domestic Demand
Trend in Ethanol Supply Fulfilling the Domestic Demand Ethanol Procurement by OMC’s (in crore litres) Blending in Petrol achieved % 12.0% 13.9% 10.2% 8.0% 3.5% 4.2% 5.0% 5.1% 1.5% 2.3% 2.1% 38.0 67.4 111.0 66.5 150.5 188.5 173.0 290.0 434.0 506.4 606.6 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Slide 28: Comparative Analysis: Water usage, crop productivity & Ethanol correlation
Comparative Analysis: Water usage, crop productivity & Ethanol correlation Total water requirement and productivity of sugarcane and competing crops and its correlation with Ethanol production Productivity Productivity Quantity of of Ethanol Total Water of Crop per Ethanol Ethanol per Crop Yield per
Slide 29: Greenhouse emissions from Ethanol produced from various feed-stocks
Greenhouse emissions from Ethanol produced from various feed-stocks The Greenhouse gas emitted from Ethanol produced from various feed-stocks shows that Ethanol produced from sugarcane produces far less greenhouse gas as compared to other feed-stocks Source: Harro (von Blottnitz) and Mary Ann Curran
Slide 30: Distillery Segment – Financial Performance
Distillery Segment – Financial Performance Distillery Revenue (Rs. Cr.) Segment PBIT (Rs. cr) Alcohol Sales* (Cr BL) Average blended realization Segment PBIT Margin (%) (including ENA & Other 1,689.0 27.1 Products) ** (Rs./BL) 38.2% 40.9% 382.4 19.3% 46.7% 344.1 57.5 326.2 55.3 1,164.0 22.5% 19.8 53
Slide 31: Distillery Segment – Operational Performance (1 of 2)
Distillery Segment – Operational Performance (1 of 2) Alcohol Production* (Cr BL) Ethanol Production from B- Ethanol Production from Ethanol Production from heavy molasses route (Cr BL) Syrup route (Cr BL) Grain route (Cr BL) 28.0 4.6 15.9 6.7 13.3 10.2 11.2 4.1 21.5 3.6 0.4 - - - - - - 17.1 16.3 FY
Slide 32: Distillery Segment – Operational Performance (2 of 2)
Distillery Segment – Operational Performance (2 of 2) Ethanol Production from C- Ethanol Sales from C-heavy ENA & Other Products ENA & Other Products Sales heavy molasses route (Cr BL) molasses route (Cr BL) Production (Cr BL) (Cr BL) 2.8 2.8 2.7 2.8 8.0 8.4 2.0 2.0 2.0 1.8 4.8 4.9 1.2 1.0 1.2 0.7 1
Slide 33: Business Overview – Co-generation
Business Overview – Co-generation Co-generated Power Co-generated Power Sales Average Realization Production (Cr Units) (Cr Units) (Rs./Unit) 90.2 89.8 4.0 80.7 3.4 72.7 71.9 3.3 3.2 3.1 52.6 42.6 40.8 34.9 31.7 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 On expiry of
Slide 34: Historic Trend: 5 Years Financial Data – Company as a Whole
Historic Trend: 5 Years Financial Data – Company as a Whole 33
Slide 35: Consolidated Financial Performance
Consolidated Financial Performance Revenue (Rs. Cr.) PBT (Rs. cr) PBT Margin (%) TCI (Rs. cr) TCI Margin (%) Basic EPS (Rs.) 5,593.7 742.2 542.6 26.49 512.5 4,741.3 4,811.7 4,846.0 4,665.9 479.2 461.0 23.44 609.2 598.7 22.48 22.44 568.1 10.8% 13.3% 12.7% 12.4% 10.0% 9.7% 12.0% 9.5% 408.3 277.9 13.94
Slide 36: Standalone Financial Performance (1 of 3)
Standalone Financial Performance (1 of 3 ) Segmental Revenues (Rs. Cr.)* Segmental PBIT (Rs. Cr.) Sugar Distillery Others Sugar Distillery Others 24 13 24 11 10 22 20 5 12 1,689 566 842 1,001 1,164 13 326 264 344 382 261 4,423 4,352 4,263 4,339 4,697 389 329 296 238 420 FY20 FY21 FY22 FY23 FY24 FY20
Slide 37: Standalone Financial Performance (2 of 3)
Standalone Financial Performance (2 of 3 ) Revenue (Rs. Cr.) EBITDA (Rs. cr) EBITDA Margin (%) PBT (Rs. cr) PBT Margin (%) TCI (Rs. cr) TCI Margin (%) 5,593.7 655.6 786.2 596.1 610.2 511.0 502.3 4,741.3 4,811.7 4,846.0 4,665.9 713.8 699.7 554.9 469.2 682.0 441.3 13.5% 12.4% 14.4% 14.8% 14.4% 14.1% 1
Slide 38: Standalone Financial Performance (3 of 3)
Standalone Financial Performance (3 of 3 ) Capital Employed (Rs. Crs) ROCE * (%) Net Worth (Rs. Crs) RONW ** (%) EBITDA/Net Block (%)^^ 14.3% 3,227 19.7% 9.9% 44.7% 42.0% 42.8% 19.5% 2,822 23.4% 2,705 17.2% 2,511 20.7% 12.6% 2,317 21.8% 21.6% 3,878 29.8% 3,562 2,921 3,034 2,789 19.7% FY20 FY21 FY22
Slide 39: Treasury Management
Treasury Management 38
Slide 40: Factors Influencing BCML's Treasury Management
Factors Influencing BCML’s Treasury Management ⚫ BCML’s product mix (to manufacture sugar or produce ethanol) ⚫ To sell sugar within India or export ⚫ The government’s allocation of sugar sale quota ⚫ The terms of trade related to sales ⚫ The cost of debt on the company’s books / external credit rat
Slide 41: Major Working Capital Components / Long Term Debt
Major Working Capital Components / Long Term Debt Cane price dues (Rs. Cr.) Long Term Debt Short Term Debt [excluding current (on the Balance Sheet date) (including current maturities) (Rs. Cr.) maturities of long term debt] (Rs. Cr.) 1,547 606 617 1,264 496 446 461 1,059 891 960 363 216 228 188 257
Slide 42: Standalone Cash Flow Analysis
Standalone Cash Flow Analysis Rs. Cr Sl. no. Particulars FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 1 Profit before tax 554.93 596.11 655.61 396.97 610.19 2 Cash generated from operating activities 849.61 649.21 694.65 452.91 177.83 3 Net cash (used in) investing activities (304.71) (81.13) (309.3
Slide 43: Dividend & Share buy-back track record
Dividend & Share buy-back track record Sl. no. Particulars FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 1 Dividend (%) 250% 250% 250% 250% 300% 2 Dividend (Rs./share) 2.50 2.50 2.50 2.50 3.00 3 Dividend Payout (including DDT *) (Rs. Crs.) 66.31 52.50 51.01 50.84 60.52 4 Buy-back Payout (including ta
Slide 44: Treasury management update
Treasury management update Long-term credit rating stands at AA+ with Stable As of 30th September 2024, long term borrowings of outlook and the short-term rating at A1+ by CRISIL the Company stands at ` 252.52 crores Yearly repayment schedule as per terms of sanction for the next four years (Rs. cro
Slide 45: ESG and enhanced stakeholder value
ESG and enhanced stakeholder value 44
Slide 46: BCML's ESG Overview
BCML’s ESG Framework: A BCML’s ESG Overview platform leading to secure, scalable and sustainable long- Company’s Vision – To retain our position as one of the “greenest” term growth companies in India’s sugar sector Environmental The nature of energy products: Environment approach has been Ethanol h
Slide 47: Our ESG Achievements
Our ESG Achievements Total effluents Steam consumption No. of trees planted (Ltrs/MT)) (as a % of cane) (units) 196.16 43.82 1,84,354 186.98 177.45 1,66,773 156.59 $ 1,50,137 151.32 42.58 42.00 42.16 40.92 45,700 50,298 FY 20 FY 21 FY 22 FY 23 FY 24 SS 20 SS 21 SS 22 SS 23 SS24 SS 20 SS 21 SS 22 SS
Slide 48: Socially Conscious Corporate Citizen
Socially Conscious Corporate Citizen Corporate Social Responsibility COMMUNITY DEVELOPMENT CSR spend (Rs. Cr) 11.95 12.91 70,902 individuals benefitted 10.93 10.68 11.20 134 Hand pump installed 16 RO water unit installed 17 CCTV Systems installed 18 High Mast & Street Lights installed 5 Waiting Hall
Slide 49: How we moderated our carbon footprint
How we moderated our carbon footprint Further, as a part of value chain Accountability initiatives, the purchased sugarcane by BCML sequestered approximately 4.27 million tonnes of carbon dioxide Social BCML’s total GHG emissions responsibility Transparency (excluding biogenic emissions) for FY 2023
Slide 50: Deep dive into Scope 3 emissions
Deep dive into Scope 3 emissions In FY 23-24, we undertook an exercise to calculate emissions across our value chain - upstream and downstream. Under upstream emissions, we accounted for the purchase of Accountability goods and services, procurement of capital goods, emissions from fuel and energy r
Slide 51: Life Cycle Assessment (LCA) of Sugar and Ethanol
Life Cycle Assessment (LCA) of Sugar and Ethanol Given below is the extract of the environment impact on climate change for producing 1 kg of sugar, which has negative emission of -1.546 (cradle to gate) and 1 kg of ethanol having a negative emission of - 1.396 (cradle to gate) 1 KG OF SUGAR Account
Slide 52: BCML's Governance Framework
BCML’s Governance Framework Focus on de-risking coupled with Accountability controlled growth Social responsibility Transparency BCML’s Core Governance Principles Environment Integrity and regulatory compliances 51
Slide 53: Awards and Recognitions
Awards and Recognitions Bonsucro Certification: Balrampur Chini Mills demonstrated the operation of a management system that is compliant with the requirements of: Bonsucro Smallholder Production Standard for Smallholder Farmers V1.0; Bonsucro Production Standard V 4.2 and Bonsucro Mass Balance Chai
Slide 54: Market Snapshot
Market Snapshot Key Market Statistics As on 8-November-2024 BSE/NSE Ticker 500038 / BALRAMCHIN CMP (Rs.) 593.25 Market Cap (Rs. Crore) 11,969 Shareholding Pattern* Others, Resident Number of outstanding shares (Crore) 20.17 2.89% Individuals, Face Value (Rs.) 1.00 14.89% 52-week High / Low (Rs.) 691
Slide 55: Contact Us
Contact Us About Balrampur Chini Mills Limited For more information on the Company, please CIN: L15421WB1975PLC030118 log on to www.chini.com Balrampur Chini Mills Limited (BCML) is one of the largest integrated sugar companies in India. The allied For further information contact: businesses of the
Slide 56: Thank You
Thank You 55
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