Dwarikesh Sugar Industries Ltd. · NSE:DWARKESH
Dwarikesh Sugar Industries — Q2 FY17 Earnings Presentation
31 slides from Dwarikesh Sugar Industries's earnings presentation, October 2016
Slide 1: Dwarikesh Sugar Industries Limited Q2 FY17 Investor Presentation
Dwarikesh Sugar Industries Limited Q2 FY17 Investor Presentation October 2016 An Integrated Sugar Company
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Dwarikesh Sugar Industries Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for an
Slide 3: Q2/H1FY17 Financial Performance
Q2/H1FY17 Financial Performance
Slide 4: Performance Snapshot
Performance Snapshot Q2FY17 H1FY17 Sales Sales EBITDA EBITDA* Rs. 2,427mn Rs. 555mn Rs. 5,290mn Rs. 1,096mn +54% YoY -7.5% YoY +50% YoY PAT LT Debt PAT LT D/E Rs. 374mn Rs. 2,049mn Rs. 693mn 0.83x -29% YoY -250bps YoY Management Commentary TEXT HERE QIP Repaid Debt Sugar Realizations Reduce Leverage
Slide 5: Quarterly Financial Trends
Quarterly Financial Trends Improving Financial Performance Increasing Revenues and significant improvement in realizations Led to sharp improvement in EBITDA and margins 33.8 35.5 30% 30.4 38%* 23% 19% 24.8 26.3 10% 23.3 600* 204 685 541 555 -321 -16% 1,972 1,579 2,130 2,305 2,863 2,427 Jun-15 Sep-1
Slide 6: Summary Financials
Summary Financials Key Balance Sheet Items Key Profit & Loss Items (INR million) Mar-15 Mar-16 Sep-16 (INR million) Mar-15 Mar-16 Sep-15 Sep-16 H1-FY16 H1-FY17 (18M) (12M) (6M) Period Ending (18M) (12M) (3M) (3M) (6M) (6M) LIABILITIES Revenue from Operations 11,361 7,943 1,570 2,426 3,535 5,285 Shar
Slide 7: Financial Trends
Financial Trends Improving Financial Performance Impressive growth in EBITDA Margin in H1FY17 Coupled with strong bottom-line growth 693 21% 11,361 15% 390 13% 9,276 7,943 5,290 5% -194 -168 8% 8% -2% FY13 (12M) -1% FY15 (18M) FY16 (12M) H1FY17 (6M) FY13 (12M) FY15 (18M) FY16 (12M) H1FY17 (6M) Reven
Slide 8: Operational Trends
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Slide 9: Sugar
Sugar Increasing sugar prices and improving recovery rates driving the turnaround Despite lower cane crushed… Flat sugar production due to significant improvement in recovery 11.73% 2,426 2,331 2,087 2,105 10.78% 10.22% 9.81% 238 213 251 247 SS 2013 SS 2014 SS 2015 SS 2016 SS 2013 SS 2014 SS 2015 SS
Slide 10: Cogeneration
Cogeneration Vertical integration adding significantly to the aggregate margins Average realizations have increased… Generating attractive EBITDA margins 4.9 4.8 83% 78% 4.5 74% 4.3 38% 259 168 433 283 221 138 11 5 1,138 2,005 1,059 49 FY13 (12M) FY15 (18M) FY16 (12M) H1FY17 (6M) FY13 (12M) FY15 (18
Slide 11: Distillery
Distillery Vertical integration adding significantly to the aggregate margins Increasing volumes and average realizations… Driving impressive growth in EBITDA margins 45.5 40.0 47% 34.5 29.8 39% 38% 34% 3.3 3.7 5.4 3.7 99 129 216 169 FY13 (12M) FY15 (18M) FY16 (12M) H1FY17(6M) FY13 (12M) FY15 (18M)
Slide 12: Business Overview
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Slide 13: Overview – Company
Overview – Company Dwarikesh Nagar (Bijnor Dist.) Dwarikesh Puram (Bijnor Dist.) Dwarikesh Dham Capacity Dwarikesh Dwarikesh Dwarikesh (Bareilly Dist.) (June 30, 2016) Nagar Puram Dham Aggregate Sugar Uttar 6,500 7,500 7,500 21,500 (TCD) Pradesh Cogeneration 86 17 33 36 (MW) (Surplus: c. 56) Distill
Slide 14: Overview – Operations
Overview – Operations Endeavour is to extract maximum value out of sugarcane with minimal waste Molasses Farmers (External Sales) (around 87,000) Industrial Alcohol Cane Development Molasses Distillery (30,000 LPD at & Marketing Dwarikesh Nagar) Sugarcane Clarification Dwarikesh Sugar Crushing Sugar
Slide 15: Milestones
Milestones DN crushing capacity reached Set up DN Distillery with 30,000 LPD capacity; De-bottlenecking of 6,500 TCD; Commencement of Commissioned Dwarikesh Puram (DP) plant DN Distillery by DN plant commenced surplus power commissioning Bio- with crushing capacity of 7,500TCD and Inco
Slide 16: Key Highlights
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Slide 17: Key Highlights
Key Highlights 6 1 Committed and Consistently experienced achieving higher Management recoveries and Team profitability Strategically Integrated 5 located manufacturing 2 processes Improving Strong sectoral trends relationship with farmers 4 3 17
Slide 18: Consistently achieving higher recoveries and profitability
1 Consistently achieving higher recoveries and profitability Operating efficiencies resulting into higher recovery and profitability Achieved higher recovery compared to peers*… And higher profit margins compared to peers*… 4.9% 4.9% 11.73% 11.73%** 3.5% 11.13% 10.79% 10.66% 1.1% 1.7% 9.85%# 10.78%
Slide 19: Integrated Manufacturing Processes
2 Integrated Manufacturing Processes Enables diversification and supports margins Helps in countering the effect of cyclicality in sugar business Higher EBITDA margins in the Cogeneration and the Distillery segments supporting the aggregate margins Revenue Contribution EBITDA Margin 96% 87% 85% 82%
Slide 20: Strong Relationship with Farmers
3 Strong Relationship with Farmers Trust and goodwill of the farmers of our reserved areas Associated with around 87,000 farmer families Purchased sugarcane of INR 6,444* million and INR 12,011** million in FY16 (12M) and FY15 (18M) Increased Farmer respectively from farmers in our reserved area
Slide 21: Improving Sectoral Trends (1/2)
4 Improving Sectoral Trends (1/2) Global Trends Deficit in global sugar balance, which is expected to Resulting in decline in global sugar stock and a rise in widen further global prices 430-435 175 175 401 174 383 173 172 355-360 171 306 168 165 165 3.7 164 3.4 3.1 3.2 2.6 SS 2013 SS 2014 SS 2015 S
Slide 22: Improving Sectoral Trends (2/2)
4 Improving Sectoral Trends (2/2) India Trends Wider deficit in domestic sugar balance expected in SS 2017 UP mills all set to benefit from this deficit situation 28.3 Sugar Production (million tonnes) 26.2 10.5 24.8 24.3 24.1 24.8 25.4 25.6 23.0 22.4 8.5 8.0 7.7 7.4 7.2 7.1 7.1 6.4 5.3 5.0 4.3 4.2
Slide 23: Strategically Located in UP
5 Strategically Located in UP UP is among the largest sugar producing states in the country Two plants are located in Bijnor District – a All the 3 plants are located in one District with focused concentration on cane of the India’s largest sugar production on highly fertile and well-irrigated p
Slide 24: Committed and Experienced Management Team
6 Committed and Experienced Management Team Hands-on promoter involvement across two generations Founder Promoter with over two decades of experience Commerce graduate and ICWA Inter Received ‘Indira Gandhi Priyadarshini Award for Management’, ‘Bhamasha Award’, ‘Indira Gandhi Sadbhavna Award’
Slide 25: Business Strategy
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Slide 26: Business Strategy
Business Strategy We are currently one of the most efficient integrated sugar companies in Uttar Pradesh. We plan to further improve on our performance matrices while continuing with our best practices Continue educating farmers on best farming practices, high yield / sugar Cost Cane content seeds
Slide 27: Annexure - Facilities
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Slide 28: Dwarikesh Nagar Facility (Bijnor District)
Dwarikesh Nagar Facility (Bijnor District) Sugar Plant Overview Distillation House & Multi-Effect Evaporator Bagasse Silos & Feeders of Boiler Continuous Pan 28
Slide 29: Dwarikesh Puram Facility (Bijnor District)
Dwarikesh Puram Facility (Bijnor District) Juice Evaporator Centrifugal Station Cogeneration Control Panel Switch Yard 29
Slide 30: Dwarikesh Dham Facility (Bareilly District)
Dwarikesh Dham Facility (Bareilly District) Facility Overview 24 MW TG Set Pan Station Clarification Section 30
Slide 31: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : Dwarikesh Sugar Industries Ltd Strategic Growth Advisors Pvt. Ltd. CIN:L15421UP1993PLC018642 CIN: U74140MH2010PTC204285 Mr. Vijay S Banka, Whole Time Director & CFO Ms. Payal Dave/ Mr. Shogun Jain vsbanka@dwarikesh.com
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