Bcl Industries Ltd · NSE:BCLIND
Bcl Industries — Q3 FY2024 Earnings Presentation
45 slides from Bcl Industries's earnings presentation, Feb 13, 2024
Slide 1: Submission of Investors Presentation cover letter
DATED: 12/02/2024 The BSE Limited The National Stock Exchange of India Corporate Relationship Dept. Limited 1st Floor, New Trading Ring Exchange Plaza, 5th Floor Plot No. C/1, G Rotunda Building Phiroze Jeejeebhoy Towers Dalal Block Bandra Kurla Complex Bandra Street, Fort, Mumbai-400001 (East) Mumb
Slide 2: Investor Presentation February 2024
INVESTOR PRESENTATION February 2024
Slide 3: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 4: 4 Decades of Legacy
4 Decades of Legacy o One of the largest agro-processing manufacturing companies in India with strong grain procurement expertise o Prominent presence in ENA and IMIL segment o Leading grain-based Ethanol producers 26%* 30%* 7% 3 Years 3 Years EBITDA o Fungible Resources and Technology Revenue EBITD
Slide 5: Business Model built on Multiple USPs
Business Model built on Multiple USPs o Strategically transitioning o ENA: Difficult License; o Paddy Straw Fuel: Cost from conversion business huge barrier to entry saving of INR 3-5/litre o Moving beyond FCI rice-to- o Ethanol: Strong Regulatory o Leading by example in Ethanol Support Innovation 4
Slide 6: Business Model: De-Risked and Diversified
Business Model: De-Risked and Diversified Flexible Raw Material Multi Location Flexible Product Mix Svaksha Sangat You can edit this Distillery Distillery text (West (Punjab) Bengal) ENA Damaged Grain Fully Integrated Distillery Plant with State-of-the-Art Technology Ethanol Maize IMIL Husk Paddy St
Slide 7: ENA: A High Entry Barrier Business
ENA: A High Entry Barrier Business Price increase in ENA (Rs/Litre) IMIL Market (Million Cases) 25% 330 340 325 350 300 290 69 55 FY2022 FY2023 FY2010 FY2015 FY2020 FY2021 FY2022 FY2025 o State-controlled liquor policies create significant barriers for new entrants, favouring established industry pl
Slide 8: Growing at a Healthy Pace
Growing at a Healthy Pace Global ENA Market Size USD Billion Indian ENA Market Size Rs Billion CAGR 7.0% CAGR 4.2% 14 125 7 98 2022 2032 2022 2028 o ENA, with a minimum alcohol content of 96%, is a key raw material for IMIL and IMFL ;also used in cosmetics, pharmaceuticals, and personal care product
Slide 9: BCL: Country Liquor Portfolio and Marquee Clients
BCL: Country Liquor Portfolio and Marquee Clients o We supply ENA to large bottlers like Pernod Ricard, Amrut, ABD, Mohan Meakin o BCL sold 3,80,355 Boxes of IMIL in Q3FY24 and 9,54,937 Boxes of IMIL in 9MFY24 o Our Country liquor brand Green Apple Vodka Ranjha Saunfi Asli Santra Punjab Special Whis
Slide 10: Ethanol: Strong Regulatory Tailwind
Ethanol: Strong Regulatory Tailwind Ethanol Requirement for Blending (Cr. Litres) Ethanol Requirement for other purposes (Cr. Litres) Target 1,016 Cr Ltr 20% 20% 15% 550 550 12% 10% 110 134 8.50% 110 110 490 100 110 110 5% 425 330 157 290 16 107 123 208 438 466 150 150 160 170 180 190 200 42 ESY 19-
Slide 11: Ethanol: Multi-Billion Dollar Opportunity and India needs to catch up
Ethanol: Multi-Billion Dollar Opportunity and India needs to catch up Global Ethanol Market Size USD Billion India Ethanol Market Size USD Billion CAGR 5% CAGR 14% 162 18 99 7 2022 2032 2023 2030 o India, Brazil, and Indonesia to collectively drive nearly two-thirds of the global growth in biofuel d
Slide 12: BCL: Distillery Plants
BCL: Distillery Plants Sangat Distillery Capacity: 400 KLPD Location : Bhatinda (Punjab) Svaksha Distillery Capacity: 200 KLPD Location : Kharagpur (West Bengal) 11
Slide 13: Grain Based Ethanol: Compelling Rationale
Grain Based Ethanol: Compelling Rationale
Slide 14: India's Grain Productivity will Surpass Population Growth
1. India’s Grain Productivity will Surpass Population Growth 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 F -2.00% -4.00% -6.00% Population Growth Grain Production Growth 13 Source : PIB,The Economics Time,Macrotrends
Slide 15: India's Sugarcane Yield Decreasing
2. India’s Sugarcane Yield Decreasing Contribution to Capacity from Various Feedstocks 63% 63% 64% 62% 62% 51% 51% 49% 49% 38% 38% 37% 37% 36% 2019-20 2020-21 2021-22 2022-23 2023-24 E 2024-25 E 2025-26 E Grain Molasses o Headroom for growth in grain-based distillation is much bigger o Molasses-base
Slide 16: Grains create less Strain on Infrastructure
3. Grains create less Strain on Infrastructure Grain vis-à-vis molasses Land Requirement 45% Lower Feedstock and Land requirement for achieving E20 by 2025-26 Ethanol Yield per tonne Water Requirement 2.3x Lower Feedstock Supply Target Feedstock Required Land Requirement feedstock Sugarcane 550 Cr L
Slide 17: Farmers Incentivised to Produce Maize
4. Famers Incentivised to Produce Maize Maize MSP Price Trend (Rs/Quintal) 2,090 1,850 1,870 1,962 1,700 1,760 1,425 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 o India plans to use about 156 lakh tonnes of grains, mainly maize, to meet its 2025-26 ethanol production target o As Price of
Slide 18: BCL's Distillery Business Positioning
BCL’s Distillery Business Positioning
Slide 19: Industry Updates
Industry Updates Ethanol Price Rs/Ltr for ESY 2023-24 Ethanol from Maize FCI Ban on Surplus Rice increased by Rs for Ethanol Production 5.79/Litre to Rs 71.86/Litre 71.86 65.61 64 58.5 60.73 Ethanol from C-Heavy 56.28 Prohibition on diversion of sugar cane juice for Molasse increased by Rs ethanol p
Slide 20: Sustainable Margin at c.14%-15%
Maize-Based Ethanol Pricing: Impact on BCL's Margin Market Price of Maize for Crop Year 2023-24 Rs Expertise in Grain 16% 2,250/Quintal Procurement 15% 14% 13% 11% Rs Innovative Fuel First Mover 8% 2,090/Quintal Solution advantage MSP Average Market Price FY20 FY21 FY22 FY23 H1FY24 9MFY24 Sustainabl
Slide 21: BCL: Strategically Placed; Large Multi Location Capacities
BCL: Strategically Placed; Large Multi Location Capacities BCL’s Capacity Augmentation (KLPD) Top 6 Players by FY26E 3.5x in 4 years FY23: Top 7 Distillery* Players by Capacity (KLPD) 300 1,250 1,050 845 765 710 660 600 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 BCL 200 FY26E: Top 6 Distillery* Playe
Slide 22: Running Operations Efficiently
Running Operations Efficiently Asset Optimisation and Low Cost of Production Resulting in Industry Leading Profitability High-Capacity Utilisation BCL vs Industry PBIT Margin 96% 100% 73% 88% 15% 67,914 24,332 40,346 41,697 39,077 29,003 30,229 36,876 * 10% FY20 FY21 FY22 FY23 ENA (KL) ETHANOL (KL)
Slide 23: Strong Balance Sheet to Support Growth
Strong Balance Sheet to Support Growth Gross Block (Rs Cr) ROCE & ROE 474 23% 249 264 236 17% 15% 12% 13% 11% 11% 10% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 ROCE ROE Net Debt/Equity & Interest Coverage Working Capital Days 117 8.2 6.6 73 73 4.3 3.7 51 40 40 21 21 25 19 19 19 0.75 0.59 0.64 0.88 FY2
Slide 24: Restructuring Legacy Business-Edible Oil
Restructuring Legacy Business-Edible Oil Streamline the business operation to focus on efficiency. Co-location and Sharing of Overheads. Will maintain a strong Edible Oil Brand and Distribution Channel. Focus on Maize Oil extraction and Refining. Promote the cultivation of locally sourced oilseeds.
Slide 25: Financial Impact
Financial Impact Reducing production by 20% and compensating with enhanced EBITDA margins Total Revenue * (Rs Cr) & Revenue Contribution % Total EBITDA * (Rs Cr) & EBITDA Contribution % 926 1,459 2,001 1,827 63 97 146 130 3% 2% 0% 1% 26% 8% 2% 3% 32% 40% 14% 44% 56% 51% 59% 74% 74% 66% 59% 53% 36% 4
Slide 26: BCL: Edible Oil and Vanaspati Segment
BCL: Edible Oil and Vanaspati Segment Edible Oil Business Total Capacity MT/Day Edible Oil Business Production (In MT) 14,246 11,565 200 200 200 200 2,660 71,717 45,078 300 300 300 300 40,015 4,465 33,810 27,980 42,037 220 220 220 220 26,749 9,227 10,320 6,882 100 100 100 100 15,736 13,247 65,606 54
Slide 27: BCL: Edible Oil Brand
BCL: Edible Oil Brand o The government is in the process of prioritizing oilseeds like mustard, sunflower, cottonseed, and groundnut to benefit farmers instead of promoting water-intensive crops like oil palm. o BCL is dedicated to the promotion of indigenous oilseeds. Vanaspati Ghee Soya Bean Refin
Slide 28: BCL: Compelling Investment Thesis
BCL : Compelling Investment Thesis 4 Decades of Grain Procurement Business Sustainable Energy Solution, regulatory tailwinds De-risked business model-Flexible raw material, flexible product mix, multi location Flexibility to produce ENA and Ethanol Cost Leadership through technological Innovation Re
Slide 29: Q3FY24 Earnings
Q3FY24 Earnings February 2024
Slide 30: Q3FY24 Strategic Highlights
Q3FY24 Strategic Highlights EDIBLE OIL •The company maintained steady performance in edible oils for the quarter by closely monitoring the international market and adopting a conservative approach to mitigate losses from global volatility. DISTILLERY • The company solely relies on Maize for Ethanol
Slide 31: Comfortable Debt Repayment Schedule
Comfortable Debt Repayment Schedule Term Debt Repayment Schedule (Rs Cr) Consolidated Debt Break Up as on 30th Sept 2023 (Rs Cr) 40 38 38 38 35 30 26 265 278 18 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 Consolidated Term Loans Outstanding Consolidated Working Capital o The Average Cash Flow From Opera
Slide 32: Q3 & 9MFY24 – Financial Highlights
Q3 & 9MFY24 – Financial Highlights Total Revenue (Rs Cr) EBITDA (Rs Cr) & EBITDA Margin % PAT (Rs Cr) & PAT Margin % 8.8% 5.1% 7.9% 4.3% 646 536 42 57 23 33 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 9.2% 6.0% 4.5% 2.9% 1,593 1,369 147 72 82 40 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 Nos are consol
Slide 33: Consolidated Quarterly Income Statement
Consolidated Quarterly Income Statement In Rs Cr Particulars Q3FY24 Q3FY23 Y-o-Y Q2FY24 Q-o-Q Revenue from Operations 644 534 20.62% 500 28.80% Other Income 2 2 14.62% 2 -1.16% Total Revenue 646 536 20.60% 502 28.68% Total Expenses 589 494 19.34% 453 30.02% EBITDA 57 42 35.33% 49 16.27% EBITDA Margi
Slide 34: Consolidated 9MFY24 Income Statement
Consolidated 9MFY24 Income Statement In Rs Cr Particulars 9MFY24 9MFY23 Y-o-Y Revenue from Operations 1,587 1,363 16.4% Other Income 6 6 0.1% Total Revenue 1,593 1,369 16.4% Total Expenses 1,446 1,287 12.4% EBITDA 147 82 78.6% EBITDA Margin % 9.23% 6.0% 323 bps Depreciation 26 18 47.2% Finance Cost
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet In Rs Cr Particulars H1FY24 H1FY23 Particulars H1FY24 H1FY23 Assets Equity and Liabilities Non‐Current Assets Equity Plant Property and Equipment 533.0 311.0 Share Capital 25.4 24.2 Other Equity 526.6 359.6 CWIP 50.6 111.0 Non Controlling Interest 19.1 10.1 Right to use as
Slide 36: Distillery Operational Highlights
Distillery Operational Highlights Volume 90,895 38,471 29,395 23,029 19,992 31,018 30,578 10,615 10,870 10,480 10,319 9,779 22,580 7,576 7,667 6,809 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 9MFY23 9MFY24 ENA (In KL) Ethanol (In KL) ENA (In KL) Ethanol (In KL) 35
Slide 37: Distillery Financial Performance
Distillery Financial Performance Revenue (Rs Cr) EBITDA (Rs Cr) & EBITDA Margin % 15.7% 12.3% 254 49 24 48 65 68 Q3FY23 Q3FY24 Q3FY23 Q3FY24 ENA Ethanol 575 14.5% 14% 131 178 197 137 59 9MFY23 9MFY24 9MFY23 9MFY24 ENA Ethanol 36
Slide 38: Edible Oil Segment and Real Estate
Edible Oil Segment and Real Estate Edible Oil Revenue (Rs Cr) Edible Oil EBITDA (Rs Cr) & EBITDA Margin % Real Estate Revenue (Rs Cr) 3.2% 4.2% 294 248 5.6 12 8 1.4 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 2.3% 2.8% 841 618 8.3 19 17 4.8 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 37
Slide 39: Annexure
Annexure February 2024
Slide 40: Strong Legacy
Strong Legacy 1988: Installed and commissioned an oil 2007: Expanded into the distillery business. crushing unit. 2010: Installed a new grain-based distillery-ethanol 1990: Commenced the production of unit with a daily capacity of 100,000 litres (KLPD) Vanaspati by setting up a 100 MT Vanaspati Capa
Slide 41: Board of Directors
Board of Directors Mr. R.C. Nayyar - Chairman & Independent Mr. Rajinder Mittal - Managing Director Mr. Kushal Mittal - Joint Managing Director Director Started in family business at 21, mentored Northeastern Univ. Business Admin- 1982 IAS graduate with a PhD in Science from by father Late Sh. Dwark
Slide 42: Consolidated Financial Highlights
Consolidated Financial Highlights Total Revenue (Rs Cr) EBITDA (Rs Cr) & EBITDA Margin % 9.2% 6.6% 7.3% 7.1% 2,001 1,827 6.8% 1,593 1,459 926 146 147 130 97 63 FY 20 FY 21 FY 22 FY 23 9MFY24 FY 20 FY 21 FY 22 FY 23 9MFY24 Profit After Tax (Rs Cr) & PAT Margin % Shareholder’s Equity (Rs Cr) 4.5% 571
Slide 43: Consolidated Historical Income Statement
Consolidated Historical Income Statement In Rs Cr Particulars FY21 FY22 FY23 9MFY24 Revenue from Operations 1,431 1,993 1,820 1,587 Other Income 28 8 7 6 Total Revenue 1,459 2,001 1,827 1,593 Total Expenses 1,363 1,856 1,696 1,446 EBITDA 97 146 130 147 EBITDA Margin % 6.6% 7.3% 7.1% 9.2% Depreciatio
Slide 44: Consolidated Historical Balance Sheet
Consolidated Historical Balance Sheet In Rs Cr Particulars FY22 FY23 H1FY24 Particulars FY22 FY23 H1FY24 Assets Equity and Liabilities Non‐Current Assets Equity Plant Property and Equipment 129.6 316.0 533.0 Share Capital 24.2 24.2 25.4 CWIP 166.3 212.4 50.6 Other Equity 342.5 456.3 526.6 Non Contro
Slide 45: Company Contact: Investor Relations Contact
Company Contact: Investor Relations Contact: Ajeet Kumar Thakur (Company Secretary) Priya Sen Sheetal Khanduja cs_bcl@mittalgroup.co.in Go India Advisors Go India Advisors Hazi Rattan Link Road, Bathinda-151005, priya@GoIndiaAdvisors.com sheetal@GoIndiaAdvisors.com Punjab, India M:+91 8334841047 M:+