Balrampur Chini Mills Ltd · NSE:BALRAMCHIN
Balrampur Chini Mills — Q4 FY24 Earnings Presentation
52 slides from Balrampur Chini Mills's earnings presentation, May 17, 2024
Slide 1: Covering letter to stock exchanges: Investor Presentation
17th May, 2024 National Stock Exchange of India Limited BSE Limited Listing Department, The Corporate Relationship Department ‘Exchange Plaza’, C/1, G Block, Bandra 1st Floor, New Trading Wing, Rotunda Kurla Complex, Bandra (E), Mumbai Building, Phiroze Jeejeebhoy Towers 400051. Dalal Street, Fort,
Slide 2: Balrampur Chini Mills Limited Q4FY24 Results Presentation
Balrampur Chini Mills Limited Q4FY24 Results Presentation 17th May 2024 “STRETCH” Building a larger, more sustainable and more governance-driven Company
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, and
Slide 4: Conference Call Details
Conference Call Details Timing 12:00 noon IST on Tuesday, May 21, 2024 Conference dial-in Primary number: +91 22 6280 1141 / 7115 8042 3
Slide 5: Table of Contents
Table of Contents 1 Message from the Chairman and Managing Director 5 2 Brief perspective about our company 6-8 This presentation comprises of eight parts 1 Q4 performance in numbers 9-12 2 The performance of our principal business 13-26 3 Treasury management 27-31 4 Global and Indian sugar sector o
Slide 6: A message from the Chairman and Managing Director
“We delivered robust results during the year aided by strong volumes and realizations both in sugar and distillery segment. A message from During the year ended March 2024, sugarcane crushing was higher by ~16% and sugar production increased by the Chairman ~27%. This increase is attributed to vario
Slide 7: A Brief perspective about our company
A Brief perspective about our company BCML – A multi-product integrated Company with manufacturing capability of Sugar, Ethanol and Co-Generation 10 manufacturing units, Among the all in Uttar Pradesh, in largest Principle close proximity integrated business sugar sugar + distillery companies 80000
Slide 8: 5 Year Financial Performance
5 Year Financial Performance Segmental Revenues (Rs. Cr.) * Segmental PBIT (Rs. Cr.) Sugar Distillery Others Sugar Distillery Others 13 24 11 10 5 24 22 20 1689 12 326 842 1001 1164 264 13 566 344 382 261 4,423 4,697 4,352 4,263 4,339 389 329 296 238 420.00 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY
Slide 9: 5 Year Financial Performance (contd.)
5 Year Financial Performance (contd.) EBITDA (Rs. cr) EBITDA Margin (%) TCI (Rs. cr) TCI Margin (%) 502 511 786 469 441 682 714 700 10.6% 10.6% 9.8% 14.4% 14.8% 14.4% 512 14.1% 269 7.9% 11.0% 5.8% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Sustainable profitability on the back of structural c
Slide 10: Q4FY24 performance in numbers
➢ PART ONE Q4FY24 performance in numbers 9
Slide 11: Consolidated Financial Performance
Consolidated Financial Performance EPS (Rs.) Revenue (Rs. Cr.) PBT (Rs. cr) TCI (Rs. cr) 5,593.7 26.49 PBT Margin (%) TCI Margin (%) 4,665.9 742.2 364.2 542.6 17.2% 289.4 14.6% 13.94 12.51 408.3 277.9 10.08 256.0 208.7 1,491.5 1,434.3 13.3% 24.4% 20.2% 9.7% 8.7% 6.0% FY23 FY24 Q4 Q4 FY23 FY24 FY23 F
Slide 12: Standalone Financial Performance
Standalone Financial Performance Revenue (Rs. Cr.) EBITDA (Rs. cr) PBT (Rs. cr) TCI (Rs. cr) 5,593.7 EBITDA Margin (%) PBT Margin (%) TCI Margin (%) 4,665.9 786.2 610.2 24.1% 441.3 16.9% 27.1% 24.0% 14.1% 19.6% 397.0 269.3 252.4 512.3 359.4 1,491.5 1,434.3 404.2 281.5 202.7 14.1% 344.7 10.9% 8.5% 5.
Slide 13: Q4FY24 performance (standalone numbers) explained
Q4FY24 performance (standalone numbers) explained Q4FY23 Q4FY24 Variance Key Reasons (Rs. Crs.) (Rs. Crs.) (%) Lower volumes in both sugar & distillery segment which was Revenue from operations 1491.52 1434.26 -3.8% partly offset by higher sugar realizations. Other income 16.49 4.30 -73.9% Mainly on
Slide 14: The performance of our principal businesses
➢ PART TWO The performance of our principal businesses 13
Slide 15: Business Overview Sugar
“Attractively Business placed”- Management’s Overview Sugar overarching 5 messages for Q4FY22 14
Slide 16: Policy intervention from Government
Policy intervention from Government ▪ FRP: Fair & Remunerative Price (FRP) of sugarcane for the sugar season 2023-24 has been revised to ₹315 per quintal from ₹305 per quintal in the previous season (linked to a basic recovery of 10.25%). FRP for the sugar season 2024-25 has been revised to ₹340 per
Slide 17: Business Overview - Sugar
Business Overview - Sugar Sugar Revenue (Rs. Cr.) Average blended realization 4,697.3 Segment PBIT (Rs. cr) Total Sugar Sales (lac 4,338.6 quintals) of sugar (Rs./kg) 90.38 94.72 38.00 38.22 419.7 20.6% 35.97 36.21 17.8% 1,522.3 238.5 1,310.9 8.9% 5.5% 313.8 233.1 24.28 22.49 FY23 FY24 Q4 Q4 FY23 FY
Slide 18: Business Overview – Sugar – Operational numbers
Business Overview – Sugar – Operational numbers Sugarcane crushed (lac quintals) Sugar Recovery (%) * Sugar Recovery Pre-sacrifice Sugar Production (lac (%) quintals) 10.98 1,084.5 10.34 9.48 112.18 9.43 11.82 12.08 936.6 11.55 11.73 88.33 629.2 68.16 621.1 59.62 FY23 FY24 Q4 Q4 FY23 FY24 Q4 Q4 FY23
Slide 19: Business Overview – Sugar – Operational numbers (contd.)
Business Overview – Sugar – Operational numbers (contd.) Sugarcane diverted towards B- Sugarcane diverted towards Sugar sacrifice under B-heavy Sugar sacrifice under Syrup heavy route (lac quintals) Syrup route (lac quintals) route (lac quintals) route (lac quintals) 616.29 600.37 85.79 10.23 9.64 9
Slide 20: Movement in Sugar Costs, Inventory & Valuation
Movement in Sugar Costs, Inventory & Valuation FY23 FY24 (Rs./quintal) (Rs./quintal) 3,552 3,371 3,560 3,343 3,411 3,422 Sugar Inventory (including WIP) Cane Cost Cost of Sugar Inventory Cane Cost Cost of Sugar Inventory Production Valuation Production Valuation (lac quintals) Cane Crushed * (lac qt
Slide 21: Business Overview: Distillery
Business Business Overview overview: -Distillery Sugar 20
Slide 22: Trend in Ethanol Supply fulfilling the domestic demand
Trend in Ethanol Supply fulfilling the domestic demand Ethanol Procurement by OMC’s (in crore litres) Blending in Petrol achieved % 12.01% 10.02% 8.0% 2.33% 4.2% 5.0% 5.1% 1.53% 3.5% 2.1% 290 506 38 111 67 151 189 173 434 67 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 202
Slide 23: Business Overview - Distillery
Business Overview - Distillery Distillery Revenue (Rs. Cr.) Total Sales * (Cr BL) Average blended realization Segment PBIT (Rs. cr) 1,689.0 27.07 (including ENA & Others) ** Segment PBIT Margin (%) (Rs./BL) 1,164.0 23.6% 19.79 22.5% 19.3% 17.6% 57.53 55.30 58.76 57.73 477.8 412.9 7.70 261.3 326.2 84
Slide 24: Business Overview – Distillery – Operational numbers
Business Overview – Distillery – Operational numbers Ethanol Production from B-heavy Ethanol Production from Syrup Ethanol Production from Grain Total Production * (Cr BL) route (Cr BL) route (Cr BL) molasses route (Cr BL) 27.99 15.88 6.71 4.57 11.21 4.09 5.78 1.47 0.37 - 0.88 21.49 2.60 5.12 FY23 F
Slide 25: Business Overview – Distillery – Operational numbers (contd.)
Business Overview – Distillery – Operational numbers (contd.) Ethanol Production from C-heavy ENA & Other Products Production Stock of Alcohol molasses route (Cr BL) (Cr BL) (Cr BL) 0.44 0.67 2.76 2.79 0.10 0.37 1.02 0.86 3.15 2.27 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 Ethanol Sales from C
Slide 26: Update on distillery business
This is what Update on distillery our sugarbusiness business achieved Ethanol prices under the EBP Programme for ESY 2023-24 are as under: Sl. Period Price of Ethanol under various feed-stock (Rs./BL) No. Ethanol Year C-route B-route Syrup DFG SFG Maize ESY 2021-22: 1 46.66 59.08 63.45 52.92 56.87 5
Slide 27: Business Overview – Co-generation
Business Overview – Co-generation Co-generated Power Co-generated Power Sales Average Realization Production (Cr Units) (Cr Units) (Rs./Unit) Stock of Bagasse (lac MT) 89.8 40.8 3.97 71.9 4.02 3.88 31.7 3.42 3.44 2.86 41.7 44.1 19.2 20.6 31st March, 2023 31st March, 2024 FY23 FY24 Q4FY23 Q4FY24 FY23
Slide 28: Treasury management
➢ PART THREE Treasury management 27
Slide 29: Factors influencing our treasury management
Factors influencing our treasury management • Our product mix (to manufacture sugar or produce ethanol) • To sell sugar within India or export • The government’s allocation of sugar sale quota to the company • The terms of trade related to sales • The cost of debt on the company’s books / external c
Slide 30: Major Working Capital Components / Long Term Debt
Major Working Capital Components / Long Term Debt Cane price payable Long Term Debt Short Term Debt [excluding current (Rs. Cr.) (including current maturities) maturities of long term debt] (Rs. Cr.) (Rs. Cr.) 1,547 606 617 1,264 496 1,059 446 461 891 960 363 228 * 257 216 188 * FY20 FY21 FY22 FY23
Slide 31: Cash Flow Analysis – (standalone)
Cash Flow Analysis – (standalone) Rs. Cr Sl. no. Particulars FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 1 Profit before tax 554.93 596.11 655.61 396.97 610.19 2 Cash generated from in operating activities 849.61 649.21 694.65 452.91 177.83 3 Net cash (used) in investing activities (304.71) (81.13)
Slide 32: Treasury management update
Treasury management update • Long-term credit rating re-affirmed at AA+ with Stable outlook and the short-term rating at A1+ by CRISIL As of 31st March 2024, long term borrowings of the Company stands at ` 461.30 crores Yearly repayment schedule as per terms of sanction (` in crores) 229.00 134.80 8
Slide 33: Global & Indian Sugar Sector Overview
➢ PART FOUR Global & Indian Sugar Sector Overview The company’s sugar prospects are influenced by trends in the global and domestic sugar markets 32
Slide 34: The Global Sugar Scenario
TheSugar Global Global Scenario Production Outlook ( metric million tonnes) Net of sugar sacrifice of ~2 Diversion ? MMT Total Global production at 179.5 MMT Total Global production estimated at 186.8 MMT Global production is forecasted at 186.8 MMT with higher production in Thailand, EU & EK and Ch
Slide 35: Factors influencing global sugar industry trends
Factors influencing global sugar industry trends 1 Global oil prices Million tonnes, Weather / Acreage (23-24) 2 Government policies catalyzing the shift between sugar to ethanol 179.5 global sugar production, 2023- • Favorable weather and increased 24 area have resulted in additional sugarcane avai
Slide 36: Domestic Sugar Balance Sheet
Domestic Sugar Balance Sheet ( metric million tonnes) 22-23 23-24 (Estimated) 24-25 (Projected) 32.80 Net of sugar Diversion – To sacrifice of 32.00 Net of sugar be decided 31.00 27.85 ~3.8 MMT 28.70 sacrifice of ~2 29.50 MMT 10.35 8.85 8.85 7.00 6.40 5.55 5.55 Op. Prod. Cons. Cl. Op. Prod. Cons. Ex
Slide 37: India: World's Largest Sugar Consumer
India: World’s Largest Sugar Consumer India's Sugar Consumption India's Sugar Consumption (MMT) Direct Bulk B2B Households 35% Consumers 65% 28.70 29.5 27.40 27.85 26.50 25.30 SS19-20 SS20-21 SS21-22 SS22-23 SS23-24 SS24-25 Per capita consumption in India as compared to global average (Est.) (Pro.)
Slide 38: ESG and enhanced stakeholder value
➢ PART SIX ESG and enhanced stakeholder value 37
Slide 39: Our ESG vision
Our ESG vision To retain our position as one of the “greenest” companies in India’s sugar sector The relevance of same to Company’s business The nature of our energy We are engaged in a social A sustainable business can products: business, marked by be only built through a engagements with around st
Slide 40: Our ESG Framework
Our ESG Framework Environmental Social Governance Our environment approach has been Our Company takes a holistic Our Governance policies are framed woven around the elements of Plan- approach to sustainable value on the basis of transparency, Mitigate-Adapt-Resilience. creation for all its stakehold
Slide 41: Our ESG Achievements
Our ESG Achievements Total effluents Steam consumption No. of trees planted (Ltrs/MT)) (per MT of cane) (units) 0.44 196.16 186.98 177.45 0.43 1,84,354 156.59 1,66,773 151.20 1,50,137 0.42 0.42 0.41 45,700 50,298 SS 20 SS 21 SS 22 SS 23 SS24 FY 20 FY 21 FY 22 FY 23 FY 24 FY 20 FY 21 FY 22 FY 23 FY 2
Slide 42: Socially Conscious Corporate Citizen
Socially Conscious Corporate Citizen 70,902 individuals benefitted CSR spend (Rs. Cr) 134 Hand pump installed 11.95 12.91 16 RO water unit installed 10.93 10.68 11.20 17 CCTV Systems installed 2.93 18 High Mast Street lights installed 5 Waiting Hall Constructed FY19 FY20 FY21 FY22 FY23 FY24 6 Toilet
Slide 43: Our Governance Framework
Our Governance Framework Strategic Focus on de- Investment in guidance from risking coupled digitalisation, experienced with controlled processes and and diversified growth systems Board of Directors 42
Slide 44: Our Awards and Recognitions
Our Awards and Recognitions Bonsucro Certification: Balrampur Chini Mills demonstrated the operation of a management system that is compliant with the requirements of: Bonsucro Smallholder Production Standard for Smallholder Farmers V1.0; Bonsucro Production Standard V 4.2 and Bonsucro Mass Balance
Slide 45: Board of Directors
Board of Directors Dr. Indu Bhushan (Retd. IAS) – Independent Director Vivek Saraogi - Chairman and Managing Director ➢ Served as the Chief Executive Officer (CEO) of National Health Authority ➢ An eminent Industrialist, is a veteran in the sugar industry and has been (NHA) and Ayushman Bharat – Pra
Slide 46: Shareholding Pattern
Shareholding Pattern Promoter Group Holding Foreign Holding Domestic Mutual Funds 42.90% 42.90% 42.90% 42.90% 42.90% 14.14% 14.27% 15.28% 14.76% 10.93% 11.72% 17.55% 18.81% 18.93% 19.36% Mar,23 June,23 Sept,23 Dec,23 Mar,24 Mar,23 June,23 Sept,23 Dec.,23 Mar,24 Mar,23 June,23 Sept,23 Dec,23 Mar,24 Q
Slide 47: Top 10 Non-Promoter Shareholding as on 31st March 2024
Top 10 Non-Promoter Shareholding as on 31st March 2024 Shareholder % Shareholding NIPPON LIFE INDIA TRUSTEE LTD-A/C (Nippon India Small Cap Fund) 4.61% KOTAK SMALL CAP FUND 2.10% QUANT MUTUAL FUND - QUANT SMALL CAP FUND 1.93% ABU DHABI INVESTMENT AUTHORITY – MONSOON 1.22% HSBC SMALL CAP FUND 0.97% I
Slide 48: Update on Auxilo Finserve Private Limited – An Associate of the Company
Update on Auxilo Finserve Private Limited – An Associate of the Company Equity Shareholding Pattern (%) * Extract of Statement of Assets & Liabilities/ Rs. Crs. Profitability of Associates Except EPS Particulars March 2024 March 2023 33.72 33.72 Liabilities Financial Liabilities 2373.6 1490.9 9.32 1
Slide 49: Auxilo Finserve – FY 2023-24
Update on Auxilo Finserve Private Limited – An Associate of the Company – FY 2023-24 Balance Sheet Profit and Loss Total assets – Cash and cash Advances – Interest Finance costs Profit after tax Rs. 3369 crs equivalents – income – Rs. – Rs. 195 crs – Rs. 69 crs Rs. 2878 crs 320 crs Rs. 373 crs Share
Slide 50: Key Events to Watch Out
This Events Key is what to our Watch sugarOut business achieved ➢ Ethanol policy for ESY 2024-25 ➢ Revision in price of Ethanol from different feed-stock for ESY 2024-25 (usually follows FRP) ➢ Export Policy for SS 2024-25 ➢ Likely increase in Minimum Selling Price (MSP) of sugar ➢ IMD is predicting
Slide 51: Contact Us
About Balrampur Chini Mills Limited Contact Us CIN: L15421WB1975PLC030118 Balrampur Chini Mills Limited (BCML) is one of the largest integrated sugar companies in India. The allied businesses of the For further information contact: Company comprise distillery operations and cogeneration of power. Th
Slide 52: Thank You
Thank You 51
Balrampur Chini Mills — Q4 FY24 Earnings Presentation on 6ix