Magadh Sugar & Energy Ltd. · NSE:MAGADSUGAR
Magadh Sugar & Energy — Q1 FY2020 Earnings Presentation
26 slides from Magadh Sugar & Energy's earnings presentation, Aug 16, 2019
Slide 1: Exchange filing cover letter
.MASEAQE! MSEL/SE/2019—20/44 August 16, 2019 The Manager The Manager The Secretary Listing Department Listing Department The Calcutta Stock National Stock Exchange of India BSE Ltd. Exchange Ltd. Limited 1st Floor, New Trading Ring, 7, Lyons Range “Exchange Plaza’, C - 1, Rotunda Building Kolkata 70
Slide 2: Magadh Sugar and Energy Limited Investor Presentation August 2019
Magadh Sugar and Energy Limited Investor Presentation August| 2019 1
Slide 3: Agenda
Agenda Q1FY20 Quarter Highlights Operational Highlights – Q1FY20 Industry Scenario Growth Strategy
Slide 4: Q1FY20 Quarter Highlights
Q1FY20 Quarter Highlights
Slide 5: Business Updates Q1FY20
Business Updates Q1FY20 Sugar Stock as on 30th June 2019, 18.12 lakh quintals Average realization in Q1FY20 Rs. 3,335 per quintal; Q1FY19 Rs. 2,821 per quintal SS 18-19 closed with total crushing 247.21 lac quintal at average recovery of 11.03% Stock Position (Qtls) Opening stock as on 01.04.2
Slide 6: Q1FY20 Result Highlights
Q1FY20 Result Highlights Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) 726 739 107 34 25 66 217 180 27 18 6 1 Q1FY19 Q1FY20 FY18 FY19 Q1FY19 Q1FY20 FY18 FY19 Q1FY19 Q1FY20 FY18 FY19 5
Slide 7: Profitability Highlights
Profitability Highlights Rs. Crore Q1FY20 Q1FY19 YoY FY19 FY18 YoY Total Income 180.4 219.1 -17.8% 745.2 728.8 2.3% Total Expenditure 153.3 201.1 637.9 662.7 EBITDA 27.1 18.2 49.5% 107.3 66.0 62.4% EBIDTA margin (%) 15.0 8.2 680 bps 14.4% 9.1% 530 bps Depreciation 4.3 4.6 18.0 18.7 PBIT 22.8 13.4 62
Slide 8: Operational Highlights – Q1FY20
Operational Highlights – Q1FY20
Slide 9: Sugar Segment Performance
Sugar Segment Performance Segmental Revenues PBIT (Rs. Lakh) (Rs. Lakh) Q1FY20 16,417 1,385 Q1FY19 19,288 321 FY19 66,934 1,669 FY18 69,789 1,437 Sugarcane Crushed Sugar Sold Average Realization Sugar Recovery (%) (lakh quintals) (Lakh quintals) (Rs. Per kg) Q1FY20 21.55 11.42 4.64 33.35 Q1FY19 16.6
Slide 10: Distillery Segment Performance
Distillery Segment Performance Segmental Revenues PBIT (Rs. Lakh) (Rs. Lakh) Q1FY20 1,748 832 Q1FY19 2,019 884 FY19 8,335 3,728 FY18 5,503 1,507 Average Realization of Total Alcohol Production Total Alcohol Sales Ethanol (Lakh litres) (Lac litres) (Rs./litre) Q1FY20 45.01 38.67 43.46 Q1FY19 52.37 48
Slide 11: Co-Generation Segment Performance
Co-Generation Segment Performance Segmental Revenues PBIT (Rs. Lakh) (Rs. Lakh) Q1FY20 1297 366 Q1FY19 1439 191 FY19 1,418 3,759 FY18 6,818 2,907 Power Generation Average Realization (lakh units) (Rs. Per Unit) Q1FY20 219.66 5.22 Q1FY19 303.21 4.76 FY19 1,270 4.98 FY18 900 5.11 10
Slide 12: Company Overview
Company Overview
Slide 13: Background of Magadh Sugar & Energy Limited
Background of Magadh Sugar & Energy Limited Upper Ganges Oudh Sugar Sugar Sugar, Ethyl Sugar, Ethyl Alcohol including Alcohol including Ethanol, co- Tea Business Other Business Ethanol, co- Food Processing Other Business generation of generation of Power and By Power and By Products Products Uttar P
Slide 14: Company Overview
Company Overview • Incorporated in 1932 (Group in Sugar Business over 7 decades), consequent upon various schemes of merger and demerger this company formed in 2015 Plant Region Capacity • Company’s core business includes (Bihar) New Swadeshi Sugar Mills 7,500 TCD – Sugar and sugar products, Spirits
Slide 15: Ready to reap the benefits going ahead
Ready to reap the benefits going ahead New Swadeshi Sugar Mills - 7,500 TCD New Swadeshi Distillery - 60 KLPD New Swadeshi Co-generation -10 MW Bharat Sugar Mills – 5,000 TCD Bharat Co-generation -18 MW Hasanpur Sugar Mills – 5,000 TCD Hasanpur Co-generation -10 MW 14
Slide 16: Integrated Business Model
Integrated Business Model Industrial Spirit & Cane Ethanol Molasses Distillery Development (60 KLPD) & Marketing Farmers Clarification Sugarcane Sugar Evaporation Juice (17,500 TCD) Crystallization Sugarcane Magadh Sugar & Crushing Energy Limited (3 Facilities) Power Co-Generation Bagasse Generation
Slide 17: Continuous innovation in business model
Continuous innovation in business model Integrated operations •Maximize value from every ton of cane crushed •Liquor ban in Bihar enhanced ethanol Intra-plant synergies business •Economic sized operations driving cost efficiencies •Close proximity maximizes by-product utilization “Supported by stron
Slide 18: Industry Scenario
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Slide 19: Key Industry Updates
Key Industry Updates As per ISMA total sugar Bihar Govt committed to Centre revised Sugar Minimum production in India hit 32.12 provide subsidy of Rs. 12.50 per Selling price to Rs 31 per kg Million Tones as on 30th April, quintal of sugarcane crushed (overall Rs. 2 increase), a major 2019 compared
Slide 20: Sugar industry – production and consumption
Sugar industry – production and consumption Domestic Sugar Balance 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 #Est Opening Stock 7.6 8.2 6.5 8.8 7.7 3.96 10.72 Production 25.1 24.3 28.3 25.1 20.3 32.47 33.0 Increase in Production -4.56% -3.19% 16.46% -11.31% -19.21% 59.95%
Slide 21: Strategy Going Forward
Strategy Going Forward
Slide 22: Continuous efforts to increase sugar productivity
Continuous efforts to increase sugar productivity Varietal Increase in Improvement of Reap the benefits of yield per Acre Cane manufacturing ethanol Educating farmers on Distillery expansion best farming practices 21
Slide 23: Government's focus to drive ethanol segment
Government’s focus to drive ethanol segment Finance Ministry has raised the rate of Realization of Ethanol to ~Rs.43 per Ethanol is higher in litre for the SS18-19 comparison to Leading to rise in Industrial spirit the production of Ethanol Intends to blend more Ethanol in petroleum product Governme
Slide 24: Focus on creating value for all stakeholders
Focus on creating value for all stakeholders Strengthen the Balance-Sheet • Helps to reduce interest outgo/blended cost by liquidating old high cost debts • No major capex plans • Improving current ratio by reducing debt going forward 23
Slide 25: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Magadh Sugar & Energy Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 26: Let's Connect
Let’s Connect Mr. Dilip Patodia /Mr. Sunil Choraria Mr. Vikash Verma / Mr. Abhishek Bhatt dilip.patodia@birla-sugar.com sunil@birla-sugar.com vikash.verma@stellar-ir.com abhishek@stellar-ir.com 9/1,R.N. Mukherjee Road, Kolkata B-707, Kanakia Wallstreet, Andheri (East), Mumbai For more information vi
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