Balrampur Chini Mills Ltd · NSE:BALRAMCHIN
Balrampur Chini Mills — FY2021 Earnings Presentation
49 slides from Balrampur Chini Mills's earnings presentation, Jun 1, 2021
Slide 1: Cover letter to stock exchanges
BALRAMPUR CHINI MILLS LIMITED CIN - L15421WB1975PLC030118 REGO. OFF. : "FMC FORTUNA" 2ND FLOOR, 234/3A, A. J. C. BOSE ROAD, KOLKATA- 700 020 PHONE: 2287-4749 •FAX: (033) 2283-4487 •Email:bcml@bcml.in•www.chini.com 1st June, 2021 National Stock Exchange of India Limited BSE Limited Listing Department
Slide 2: Investors Presentation June 2021
Balrampur Chini Mills Limited Investors Presentation June 2021
Slide 3: 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, technological risks, an
Slide 4: Conference Call Details
Conference Call Details Timing 12:00 noon IST on Wednesday, June 2, 2021 Conference dial-in Primary number: +91 22 6280 1141 / 7115 8042 Toll free Number Singapore: 800 101 2045 Hong Kong: 800 964 448 USA: 1 866 746 2133 UK: 0 808 101 1573 3
Slide 5: Table of Contents
Table of Contents Industry Company Q4 & 12M FY21 Annexures Overview Overview Results Update 6 15 24 41 4
Slide 6: Management's Message
Management’s “I am pleased to share that we have delivered a healthy performance during the year Message ended 31st March 2021 despite the prevalent challenging environment due to pandemic in general and in the sugar sector in particular. While the Government- imposed certain restrictions and partia
Slide 7: Industry Overview
Industry Overview 6
Slide 8: Global Scenario
Global Scenario 2020-21 Estimated (MMT) CS Brazil is expected to produce much lower sugar in the current season on account of dry weather conditions. Closing sugar inventory expected Brazil is the largest exporter of sugar in the for ~3 months 169.0 world. 173.8 Production Consumption With productio
Slide 9: India: World's Second Largest Sugar Producing Country
India: World’s Second Largest Sugar Producing Country India's Sugar Production State-Wise Sugar Production India's Sugar Export (MMT) Others (MMT) 17% Maharashtra 5.80 6.00 34% 32.48 33.16 Karnataka 30.80 3.80 27.41 14% 20.28 0.46 0.05 UP SS16-17 SS17-18 SS18-19 SS19-20 SS20-21 35% (E) SS16-17 SS17-
Slide 10: India: World's Largest Sugar Consumer
India: World’s Largest Sugar Consumer India's Sugar Consumption India's Sugar Consumption (MMT) 25.39 25.50 25.30 26.00 24.56 SS16-17 SS17-18 SS18-19 SS19-20 SS20-21(E) Direct Bulk B2B Households 35% Consumers 65% Steady & sustainable demand opportunity: Sugar consumption in India is expected to gro
Slide 11: Domestic Sugar Balance Sheet
Domestic Sugar Balance Sheet Sugar Season 2020-21 (Estimated) (MMT) 30.8 26.0 10.7 6 9.5 SS 21 Opening Production Domestic Consumption Exports SS 21 Closing For SS 2020-21, India’s sugar production of 30.8 MMT is net of sugar sacrifice of ~2.0 MMT for production of Ethanol As per market sources,
Slide 12: Classical Indian Sugar Sector Cycle
Classical Indian Sugar Sector Cycle Natural Induced Cyclicality Cyclicality (due to cane arrears) Issues of Induced Cyclicality Higher sugar Decline in production sugar prices Lower Higher Profitability Erratic supply sugarcane production High High cane arrears sugarcane Improved arrears profitabili
Slide 13: Current Sugar Sector Scenario: Man-Induced Sugar Cycle No Longer Prevalent
Current Sugar Sector Scenario: Man-Induced Sugar Cycle No Longer Prevalent Improvement in cane recovery Reduced losses & improving efficiency Minimum I Rational cane Support Price M pricing (MSP) for P Setting standard floor price for sugar i.e. Sugar R Minimum Selling Price (MSP) O Key V Manage exc
Slide 14: Policy intervention from Govt. on Sugar / Ethanol
Policy intervention from Govt. on Sugar / Ethanol- Fair & Remunerative Price (FRP) of sugarcane for the sugar season 2020-21 was revised to Rs. 285 per quintal from Rs.275 per quintal in the previous year (linked to a basic recovery of 10%). State Advised Price (SAP) of sugarcane for the state o
Slide 15: Rising Fuel Ethanol Supply to meet huge Demand in India
Rising Fuel Ethanol Supply to meet huge Demand in India Ethanol Procurement by OMC’s (in crore litres) Blending in Petrol achieved % 8.5% 325 5.0% 5.1% 4.2% 196 189 3.5% 151 2.1% 111 67 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21(E) * * OMC has finalized tenders for 346.52 crore litres out of wh
Slide 16: Company Overview
Company Overview 15
Slide 17: Experienced Board of Directors
Experienced Board of Directors Vivek Saraogi – Managing Director Sumit Mazumder – Chairman & Independent Former President of the Indian Sugar Mills Association Director Former committee member of FICCI & the Indian Chamber of Commerce in Kolkata Executive Chairman and Managing Director of TIL
Slide 18: Manufacturing facilities & capacities at a glance
Manufacturing facilities & capacities at a glance BCML – A multi-product integrated Company with manufacturing capability of Sugar, Ethanol and Co-Generation 10 Sugar Distillery Cogen Units capacity Saleable (KLPD) manufacturing units in (TCD) Capacity (MW) close proximity Balrampur 12,000 160 27.25
Slide 19: Robust Business Model
Robust Business Model Maximize value Economic sized accrual from operations every tonne of driving cost cane crushed efficiencies Supported by Integrated very strong operations farmer Intra-plant relationships synergies Close proximity Greater hedge between plants against the maximizes by- fluctuati
Slide 20: Moving towards next orbit
Moving towards next orbit Expansion Creating value into for all Robust and Ethanol stakeholders Strong integrated Sustainable business model Financial performance Emerging as a key growth driver for the Successfully completed four Company going consecutive Buy-Backs over forward four years along
Slide 21: Socially Conscious Corporate Citizen
Socially Conscious Corporate Citizen 5 Year CSR spend (Rs. Cr) 10.93 10.68 3.97 2.93 0.44 FY17 FY18 FY19 FY20 FY21 HEALTH & COMMUNITY EMPOWERMENT ENVIRONMENT EDUCATION AGRICULTURE DEVELOPMENT 1050 women trained in 44 acres land 75,000+ students Heath check-up and 3500+ farming retail assistance affo
Slide 22: Emphasis on Growth through Ethanol Expansion
Emphasis on Growth through Ethanol Expansion Setting up of a 320 KLPD distillery at Maizapur unit Multi-feed raw material facility – to produce Ethanol directly from sugarcane juice during the crushing season and grains during off season Expected to be commissioned by December 2022 Investmen
Slide 23: Robust and Sustainable Financial Performance on back of structural changes
Robust and Sustainable Financial Performance on back of structural changes Segmental Revenues (Rs. Cr.) * Segmental PBIT (Rs. Cr.) Sugar Distillery Co-Generation Sugar Distillery Co-Generation 450 438 48 55 531 549 826 179 332 616 468 261 341 172 317 4,164 4,513 4,468 3,822 108 344 278 139 166 FY18
Slide 24: Robust and Sustainable Financial Performance on back of structural changes
Robust and Sustainable Financial Performance on back of structural changes EBITDA (Rs cr) EBITDA Margin (%) TCI (Rs cr) TCI Margin (%) 565 689 682 714 502 13.2% 469 452 16.1% 14.4% 14.8% 10.6% 9.8% 10.3% 217 4.9% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Healthy profitability on the back of structural
Slide 25: Q4 & 12M FY21 Result Update
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Slide 26: Performance Highlights (Consolidated)
Performance Highlights (Consolidated) Revenue (Rs. Cr) 4,741.29 4,811.66 1,740.05 1,019.36 FY20 FY21 Q4 FY20 Q4 FY21 TCI (Rs. Cr) 512.46 479.23 237.14 239.30 FY20 FY21 Q4 FY20 Q4 FY21 25 TCI - Total Comprehensive Income
Slide 27: Financial Overview - Consolidated Results
Financial Overview - Consolidated Results Q4 FY21 Q4 FY20 Particulars FY21 FY20 (Rs. Cr) (Rs. Cr) Change (%) (Rs. Cr) (Rs. Cr) Change (%) 1019.36 1740.05 -41.4% Revenue from 4741.29 1.5% Operations 4811.66 306.24 226.52 35.2% Profit Before Tax 609.18 568.06 7.2% 70.74 (14.92) - Tax 129.39 48.70 165.
Slide 28: Performance Highlights (Standalone)
Performance Highlights (Standalone) Revenue (Rs. Cr) 4,741.29 4,811.66 EBITDA (Rs. Cr) 681.97 713.83 1,740.05 1,019.36 332.24 241.33 FY20 FY21 Q4 FY20 Q4 FY21 1.48% increase in revenues in FY21 as compared to FY20 FY20 FY21 Q4 FY20 Q4 FY21 41.42% decrease in revenues in Q4FY21 as compared to Q4FY20
Slide 29: Highlights
Highlights Company diverted 65.4% sugarcane to B-heavy molasses during FY21 as compared to 32.0% during FY20 resulting in sugar sacrifice of 11.7 lac quintals as compared to 5.1 lac quintals in previous year • This will aid higher volumes of B-heavy molasses and thereby higher volumes of B-heavy Eth
Slide 30: Financial Overview - Standalone Results
Financial Overview - Standalone Results Q4 FY21 Q4 FY20 Change Particulars FY21 FY20 Change (Rs. Cr) (Rs. Cr) (%) (Rs. Cr) (Rs. Cr) (%) 1019.36 1740.05 -41.4% Revenue from Operations 4811.66 4741.29 1.5% 332.24 241.33 37.7% EBITDA 713.83 681.97 4.7% 32.6% 13.9% 1870 bps EBITDA Margin (%) 14.8% 14.4%
Slide 31: Movement in Segment Revenue & Segment PBIT
Movement in Segment Revenue & Segment PBIT Segment Revenues (Rs. Cr) Segment PBIT (Rs. Cr) 276.4 10.7 5753.5 684.0 658.4 5.3 5524.3 79.6 45.0 66.4 12.9 7.1 FY20 Segment Change in Change in Change in Change in FY21 Segment FY20 Segment Change in Change in Change in Change in FY21 Segment Revenues Sug
Slide 32: Financial Overview - Standalone Results – Yearly variations
Financial Overview - Standalone Results – Yearly variations FY21 FY20 Variance Key Reasons (Rs. Cr) (Rs. Cr) (%) Revenue from operations 4811.66 4741.29 1.5% - Last year higher interest income which was partly off- Other income 33.45 38.55 -13.2% set in current year with gain on buy-back of equity s
Slide 33: Segmental Overview – Sugar
Segmental Overview – Sugar Financial U.O.M. Q4FY21 Q4FY20 Change FY21 FY20 Change (%) (%) Segment Revenues * (Rs. Cr) 1031.30 1772.45 -41.8% 4468.07 4513.11 -1.0% Segment PBIT (Rs. Cr) 192.42 132.12 45.6% 277.84 344.22 -19.3% PBIT % % 18.7% 7.4% - 6.2% 7.6% - Change Change * Includes U.O.M. Q4FY21 Q
Slide 34: Segmental Overview – Sugar … contd.
Segmental Overview – Sugar … contd. Change Change Operational U.O.M. Q4FY21 Q4FY20 FY21 FY20 (%) (%) Sugarcane Crushed lac qtls. 568.63 590.81 -3.8% 1032.61 1020.30 1.2% Cane diverted towards B-heavy molasses lac qtls. 391.98 225.97 73.5% 675.56 327.00 106.6% Cane diverted towards B-heavy molasses %
Slide 35: Segmental Overview – Sugar … contd.
Segmental Overview – Sugar … contd. Sugarcane Crushed (lac quintals) Sugar Recovery (%) (post B-heavy diversion) 1,103.62 1020.30 1032.61 927.83 11.58 11.44 11.58 794.65 10.84 10.88 590.81 568.63 10.66 10.63 FY17 FY18 FY19 FY20 FY21 Q4FY20 Q4FY21 FY17 FY18 FY19 FY20 FY21 Q4FY20 Q4FY21 Pre-diversion
Slide 36: Quarterly Movement in Sugar Costing & Valuation
Quarterly Movement in Sugar Costing & Valuation (Rs./qtl. of sugar) Q1FY21 Q3FY21 Q4FY21 3,488 3,421 3,056 3,131 3,128 3,042 3,042 3,159 2,875 Cane Cost Cost of Sugar Cane Cost Cost of Sugar Cane Cost Cost of Sugar Production Inventory Production Inventory Production Inventory Valuation Valuation Va
Slide 37: Segmental Overview – Distillery
Segmental Overview – Distillery Financial U.O.M. Q4FY21 Q4FY20 FY21 FY20 Change (%) Change (%) Segment Revenues (Rs. Cr) 204.62 173.25 18.1% 825.51 549.09 50.3% Segment PBIT (Rs. Cr) 95.35 69.47 37.3% 341.06 261.46 30.4% PBIT % % 46.6% 40.1% - 41.3% 47.6% - Note: Revenues from the distillery segment
Slide 38: Segmental Overview – Distillery … contd.
Segmental Overview – Distillery … contd. Change Change Operational U.O.M. Q4FY21 Q4FY20 FY21 FY20 (%) (%) Ethanol Production from B-heavy route molasses Cr. BL 4.25 3.36 26.5% 10.18 3.58 184.4% Ethanol Production from C-heavy route molasses Cr. BL 0.31 0.86 -64.0% 4.84 7.99 -39.4% Total Ethanol Prod
Slide 39: Segmental Overview – Distillery … contd.
Segmental Overview – Distillery … contd. Total Production * (Cr BL) Ethanol Production from C-heavy Ethanol Production from B-heavy 17.06 molasses route (Cr BL) molasses route (Cr BL) 12.76 10.66 10.29 10.18 8.10 7.18 7.90 7.99 7.21 4.61 5.20 4.84 4.25 3.58 3.36 0.86 0.31 - - - FY17 FY18 FY19 FY20 F
Slide 40: Segmental Overview – Co-generation
Segmental Overview – Co-generation Change Change Financial U.O.M. Q4FY21 Q4FY20 FY21 FY20 (%) (%) Segment Revenues (Rs. Cr) 199.51 205.76 -3.0% 437.55 450.50 -2.9% Segment PBIT (Rs. Cr) 38.42 34.17 12.4% 54.66 47.55 15.0% PBIT % % 19.3% 16.6% - 12.5% 10.6% - Change Change Operational U.O.M. Q4FY21 Q
Slide 41: Segmental Overview – Co-generation … contd.
Segmental Overview – Co-generation … contd. Production (Cr units) 104.97 87.41 90.24 75.37 80.65 38.90 38.68 FY17 FY18 FY19 FY20 FY21 Q4FY20 Q4FY21 Power sales (Cr units) Average Realization (Rs. per unit) 66.38 56.80 4.81 4.81 4.94 51.05 52.61 42.63 3.06 3.17 3.01 3.16 20.97 20.96 FY17 FY18 FY19 FY
Slide 42: Annexures
(Fy Annexures
Slide 43: Major Working Capital Components / Long Term Debt
Major Working Capital Components / Long Term Debt Short Term Debt Cane Dues Long Term Debt (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) 1,395 683 609 1,059 524 498 866 891 446 376 363 124 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Owing to scheduled repayment Debt reduced over the years Subsidies
Slide 44: Cash Flow Analysis – on standalone basis
Cash Flow Analysis – on standalone basis Rs. Cr Sl. no. Particulars Mar – 18 Mar – 19 Mar – 20 Mar – 21 1 PBT 332.18 595.03 554.93 596.11 Cash generated from / (used) in operating 2 1179.84 (523.01) 849.61 649.66 activities 3 Net cash (used) in investing activities (159.32) (159.20) (304.71) (81.82)
Slide 45: Returns to Shareholders
Returns to Shareholders Rs Cr unless otherwise mentioned Sl. Particulars 2016-17 2017-18 2018-19 2019-20 2020-21 5 years Total No. 1 Dividend pay-out 85.75 58.76 57.11 55.00 52.50 309.12 Dividend distribution tax on above 17.45 11.96 11.74 11.31 - 52.46 - Dividend per share - (`) 3.50 2.50 2.50 2.50
Slide 46: Key Market Statistics
Key Market Statistics Particulars As on March 31, 2021 Shareholding Pattern (%) Others BSE / NSE Ticker 500038 / BALRAMCHIN 22.16% Promoter 41.21% No of shares outstanding (in crore) 21.00 DII 15.06% Face Value (Rs. per share) 1.00 FII 21.57% As on 31.03.2021 45
Slide 47: Extract of Statement of Assets & Liabilities and Profitability of Associates
Extract of Statement of Assets & Liabilities and Profitability of Associates (Rs. Cr except for EPS data) AUXILO FINSERVE PVT. LTD. VISUAL PERCEPT SOLAR PROJECTS PVT. LTD. Particulars March, 21 March, 20 Particulars March, 21 March, 20 Liabilities Liabilities Share Capital 344.06 344.06 Share Capita
Slide 48: Contact Us
Contact Us About Balrampur Chini Mills Limited CIN: L15421WB1975PLC030118 For further information contact: Balrampur Chini Mills Limited (BCML) is one of the largest integrated sugar companies in India. The allied businesses of the Pramod Patwari Company comprise distillery operations and cogenerati
Slide 49: Thank You
Thank You 48