Dhampur Sugar Mills Limited · NSE:DHAMPURSUG
Dhampur Sugar Mills — Q1 FY2017 Earnings Presentation
38 slides from Dhampur Sugar Mills's earnings presentation, August 2016
Slide 1: Investor Presentation Q1 FY 2016-17
INVESTOR PRESENTATION Q1 FY 2016-17
Slide 2: Disclaimer
Disclaimer This presentation is strictly confidential and may not be copied, published, distributed or transmitted. The information in this presentation is being provided by Dhampur Sugar Mills Limited (also referred to as the ‘Company’). By attending the meeting where this presentation is being mad
Slide 3: Agenda
Agenda 1. Business Overview 2. Segmental Information 3. Key Highlights 4. Financial Performance 5. Future Business Strategy Annexure – Facilities at a Glance 3
Slide 4: Overview – Company (FY 2015-16)
Overview – Company (FY 2015-16) We are an integrated sugar company producing sugar, ethanol and power in U.P. with a track record of several decades Dhampur Sugar Mills Sugar Power Distillery 45,500 TCD Total Installed Capacity 209 MW Total Capacity across 5 units Approx. 125 MW Surplus Capaci
Slide 5: Overview – Operations
Overview – Operations We operate with the goal of maximum efficiency and zero waste Farmers Bio-Fertilizer Spent Wash (around 190,000) Cane Development & Marketing Ethanol/RS/ENA Sugarcane Molasses Distillery (300,000 LPD) Clarification Crushing Sugar Company Sugarcane Juice Evaporation (5 Facilitie
Slide 6: Overview – Facilities
Overview – Facilities Dhampur Mansurpur Meerganj Rajpura Asmoli Uttar Pradesh Capacity Consolidated Dhampur Asmoli Rajpura Mansurpur Meerganj Sugar Crushing (TCD) 45,500 15,000 9,000 8,500 8,000 5,000 Sugar Refinery (TPD) 1,700 900 800 Renewal Energy (inc. Bio Gas 209 65 Bio Mass - 40 48 33 19 based
Slide 7: Key Milestones
Key Milestones Expanded Rajpura sugar crushing capacity to 8500 TCD Co-generation plant at Rajpura (48MW) and Methane based power 2015 generation at Asmoli (4MW) Expanded sugar crushing capacities - Dhampur to 15,000 TCD, Asmoli to 9000TCD and Mansurpur to 8000TCD Installed New sugar refin
Slide 8: Shareholding Pattern and Corporate Structure
Shareholding Pattern and Corporate Structure Shareholding Pattern (As on June 30, 2016) Corporate Structure Owns and operates all Dhampur Sugar Mills Limited five facilities 38.71% 100% 50.59% Dhampur International Pte Ltd. Trading of Commodities 10.70% Promoter Institutional Public 8
Slide 9: Agenda
Agenda 1. Business Overview 2. Segmental Information 3. Key Highlights 4. Financial Performance 5. Future Business Strategy Annexure – Facilities at a Glance 9
Slide 10: Sugar
Sugar Improving sugar prices and recovery rates driving the turnaround Rising cane crushing… And improving sugar production & sales… 4,511 4,583 4,831 517 534 4,062 417 415 436 375 397 296 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 Cane Crushed ('000 tonnes) Sugar Produced ('000 tonnes) Sugar Sold ('00
Slide 11: Power
Power Multi-fuel high-pressure boilers run efficiently and generate valuable profits Generation and Average realizations are increasing… Generating attractive EBITDA margins 5.05 45.8% 42.4% 39.9% 39.6% 4.71 4.26 4.31 660.2 574.9 570.6 4,789 537.5 430.7 3,553 3,458 3,804 377.5 332.5 373.1 FY13 FY14
Slide 12: Distillery
Distillery Among India’s largest manufacturers of Ethanol Improving average realizations… Driving impressive growth in EBITDA margins 41.55 38.68 36.93 17.1% 17.8% 30.94 13.0% 13.4% 71 61 38 38 37 31 25 14 3,296 4,383 3,267 4,130 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 RS/ENA/Ethanol Produced (in mn
Slide 13: Agenda
Agenda 1. Business Overview 2. Segmental Information 3. Key Highlights 4. Financial Performance 5. Future Business Strategy Annexure – Facilities at a Glance 13
Slide 14: Key Highlights
Key Highlights Experienced Established brand Promoters and with a track Management record of Team innovation Integrated Improving business Sectoral Trends processes Strong relationship with farmers 14
Slide 15: Established Brand with a Track Record of Innovation
Established Brand with a Track Record of Innovation Total sugarcane crushing capacity of 45,500 TCD Leading Sugar Five sugar mills, each with a crushing capacity of 5,000 TCD or more Manufacturer Our size allows economies of scale Dhampur unit crushed 1.59 mn tonnes sugarcanes in FY 2016, la
Slide 16: Integrated Business Processes
Integrated Business Processes Enables diversification and flexibility in operations Helps counter cyclicality in the sugar business During FY14-16, over 50% of Revenue was contributed by the Sugar segment, which saw negative EBITDA margins. Still the consolidated EBITDA margins remained between
Slide 17: Strong Relationship with Farmers
Strong Relationship with Farmers A hard-earned goodwill among the farmers of our reserved areas Dedicated cane department to supervise cane development and procurement Promotion of high yield seed varieties and more efficient pesticides Cane Development Monitors harvesting program to obtain de
Slide 18: Improving Sectoral Trends (1/4)
Improving Sectoral Trends (1/4) Global Trends SS15-16 is the first year of deficit, after 4 consecutive surplus years Brazil’s cane is diverted towards Ethanol production 4% 59% 57% 1% 55% -1% 52% -4% 175 164 173 168 175 171 168 174 23 26 27 28 SS 2012-13 SS 2013-14 SS 2014-15 SS 2015-16 (P) SS 2012
Slide 19: Improving Sectoral Trends (2/4)
Improving Sectoral Trends (2/4) India Trends Domestic sugar production is expected to shrunk to a nearly 4 states contribute c.83% of total domestic sugar production deficit situation in SS 2015-16 28.3 AP Others 25.7 25.6 24.8 24.3 24.1 24.8 3-5% 8-10% 23.0 GJ 3-5% MH TN 31-33% 7-9% KA 14-16% UP 27
Slide 20: Improving Sectoral Trends (3/4)
Improving Sectoral Trends (3/4) India Trends Sugar prices have declined for last three SS, SS16 to see recovery But the regulated sugarcane prices have increased, except in UP 297** 287* 285 285 285 280 280 280 280 278 278 278 265# 265# 274 235 230 9.9 220 210 8.6 8.4 170 7.5 INR / quintal 32.4 30.2
Slide 21: Improving Sectoral Trends (4/4)
Improving Sectoral Trends (4/4) Strong and consistent government support Subsidies for cane UP state government announced INR 35/quintal* subsidy for cane procurement for SS2015-16 procurement Supports unit economics of both the mills and the farmers Financial Incentives INR 60,000mn in soft l
Slide 22: Experienced Promoters and Management Team
Experienced Promoters and Management Team Direct involvement of promoter directors with decades of experience Around 56 years of experience Around 47 years of experience A reputed Sugar Technologist and Founder President of Indian Agro paper Mills Entrepreneur Association Former President
Slide 23: Agenda
Agenda 1. Business Overview 2. Segmental Information 3. Key Highlights 4. Financial Performance 5. Future Business Strategy Annexure – Facilities at a Glance 23
Slide 24: Annual Financial Trends
Annual Financial Trends Improving Financial Performance Impressive growth in Revenue and EBITDA Margin in FY 2016 Losses have shrunk and it’s time to make profits again 15% 227 259 1.5% 1.1% 10% -0.7% 8% 7% -4.1% (128) 15,329 18,978 18,561 23,250 (784) FY 2013 FY 2014 FY 2015 FY 2016 FY 2013 FY 2014
Slide 25: Quarterly Financial Trends
Quarterly Financial Trends Improving Financial Performance Increasing Revenues… Sharp Improvement in EBITDA and EBITDA Margins… 34.6 26% 22% 31.0 27.7 7% 9% 25.6 23.9 489 1,457 1032 429 5,087 6,247 5,283 5,615 4,777 (272) -5% Jun'15 Sep'15 Dec'15 Mar'16 Jun'16 Jun'15 Sep'15 Dec'15 Mar'16 Jun'16 Reve
Slide 26: Summary Financials
Summary Financials Key Balance Sheet Items Key Profit & Loss Items (INR million) (INR million) Particulars Mar-14 Mar-15 Mar-16# Particulars Mar-14 Mar-15 Mar-16 Jun-16 EQUITY AND LIABILITIES (3M) Shareholders’ Funds Revenue from Operations (incl. excise 18,978 18,561 23,250 5,207 4,438 4,237 7,107
Slide 27: Key operational data
Key operational data Key Operational Data Particulars Unit Jun 16 Jun 15 SUGAR Cane Crush Mn Qtls 2.69 5.83 Recovery % 10.9% 10.1% Sugar Sale Mn Qtls 0.9 1.2 Average Realisation Rs/Kg 34.62 25.6 Closing Stock Mn Qtls 2.76 3.02 Closing Valuation Rate Rs/kg 2.93 2.45 POWER Power Generated Mn units 84.
Slide 28: Agenda
Agenda 1. Business Overview 2. Segmental Information 3. Key Highlights 4. Financial Performance 5. Future Business Strategy Annexure – Facilities at a Glance 28
Slide 29: Future Business Strategy
Future Business Strategy We are currently one of the leading integrated sugar companies in India. We plan to increase our asset utilization while we keep improving on our best practices Be agile in our response to changing industry Continue educating farmers on best farming trends of demands/pri
Slide 30: Agenda
Agenda 1. Business Overview 2. Segmental Information 3. Key Highlights 4. Financial Performance 5. Future Business Strategy Annexure – Facilities at a Glance 30
Slide 31: Dhampur Facility (1/3)
Dhampur Facility (1/3) Mill House and Cane Receiving Station Bagasse Handling Power Generator Power Generation yards, ESPs and Flue Stacks 31
Slide 32: Dhampur Facility (2/3)
Dhampur Facility (2/3) Bagasse Dryer Cooling Towers Distillation Column Ethanol Plant 32
Slide 33: Dhampur Facility (3/3)
Dhampur Facility (3/3) Sugar Sorting Water Treatment Organic Manure Pushp Niketan School run at Dhampur 33
Slide 34: Asmoli Facility
Asmoli Facility Mill House Flue Stacks and Bagasse Handling Ethanol Plant Fermenters 34
Slide 35: Rajpura Facility
Rajpura Facility Plant Bio-Fertilizer Lab Bio-Fertilizer Plant Finished Bio-Fertilizer Products 35
Slide 36: Mansurpur Facility
Mansurpur Facility Mill House Refinery Power House Control Room Boiler and Chimney 36
Slide 37: Meerganj Facility
Meerganj Facility Plant Overview Entry Gate Boiler Chimney 37
Slide 38: 241 Okhla Industrial Estate Phase III, New Delhi – 110020. Tel: 91 - 11
241 Okhla Industrial Estate Phase III, New Delhi – 110020. Tel: 91 - 11 – 30659400 Fax: 91 - 11 – 41612466 Email: corporateoffice@dhampur.com Website: www.dhampur.com
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