Balrampur Chini Mills Ltd · NSE:BALRAMCHIN
Balrampur Chini Mills — Q2 FY2024 Earnings Presentation
44 slides from Balrampur Chini Mills's earnings presentation, Nov 7, 2023
Slide 1: Results Presentation cover letter to stock exchanges
7th November, 2023 National Stock Exchange of India BSE Limited Limited The Corporate Relationship Department Listing Department, Exchange Plaza, 1st Floor, New Trading Wing, 5th Floor, Plot No. C/1, G Block, Rotunda Building, Phiroze Jeejeebhoy Bandra Kurla Complex, Bandra (E) Tower, Mumbai- 400051
Slide 2: Q2FY24 Results Presentation
Balrampur Chini Mills Limited Q2FY24 Results Presentation 7th November 2023 “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 Wednesday, November 8, 2023 Conference dial-in Primary number: +91 22 6280 1141 / 7115 8042 3
Slide 5: Table of Contents
Table of Contents Message from the Chairman and Managing Director 5 Brief perspective about our company 6 This presentation comprises of 6 parts Q2FY24 performance in numbers 7-11 The performance of our principal businesses 12-25 Treasury management 26-28 Global and Indian sugar sector overview 29-3
Slide 6: A message from the Chairman and Managing Director
““BCML has delivered a commendable performance in a seasonally weak quarter. We A message from reported healthy improvement in volumes and realizations across our Sugar and Distillery the Chairman divisions that supported our overall performance. Furthermore, our profitability this quarter and Manag
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: Q2FY24 performance in numbers
➢ PART ONE Q2FY24 performance in numbers 7
Slide 9: Consolidated Financial Performance
Consolidated Financial Performance EPS (Rs.) Revenue (Rs. Cr.) PBT (Rs. cr) TCI (Rs. cr) PBT Margin (%) TCI Margin (%) 2,929.1 8.2% 11.0% 2,193.2 329.6 222.9 1,539.5 14.5% 1,113.1 11.3% (0.9%) -3.4% -1.1% -3.2% 11.88 8.24 241.6 168.9 -19.4 -37.3 -24.4 -0.81 -1.42 H1 H1 Q2 Q2 -35.9 FY23 FY24 FY23 FY2
Slide 10: This is what we achieved in Q2 FY24 (standalone numbers)
This is what we achieved in Q2 FY24 (standalone numbers) 108.85 164.89 5.27 Rs. cr. of total Rs. cr. of EBITDA Rs. earnings comprehensive per share income (TCI) Rs. (38.27) cr. in the Rs. (15.94) cr. in the Rs. (1.53) in the corresponding quarter, corresponding quarter, corresponding quarter, Q2 FY2
Slide 11: Financial Performance (standalone numbers)
Financial Performance (standalone numbers) Revenue (Rs. Cr.) EBITDA (Rs. cr) PBT (Rs. cr) TCI (Rs. cr) EBITDA Margin (%) PBT Margin (%) TCI Margin (%) 2,929.1 7.1% 2,193.2 10.7% 8.4% 9.4% 1,539.5 11.2% 6.10% 1,113.1 -1.4% -3.6% 1.3% (1.1%) -1.30% -3.4% -23.5 245.9 -40.3 144.6 177.4 108.9 28.5 328.1
Slide 12: Q2FY24 performance (standalone numbers) explained
Q2FY24 performance (standalone numbers) explained Q2FY23 Q2FY24 Variance Key Reasons (Rs. Crs.) (Rs. Crs.) (%) Higher volume in sugar & distillery segments coupled with Revenue from operations 1113.10 1539.47 38.3% higher realizations. Other income 11.73 38.20 225.7% Profit on sale of land (Rs. 31.1
Slide 13: The performance of our principal businesses
➢ PART TWO The performance of our principal businesses 12
Slide 14: Business Overview Sugar
“Attractively Business placed”- Management’s Overview Sugar overarching 5 messages for Q4FY22 66.26% 1109.39 936.20 % of Company’s Rs. cr. revenues Rs. cr. revenues revenues, in Q2 FY24 in Q2 FY23 Q2FY24 18.50% increase in revenues 13
Slide 15: 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%). ▪ SAP: State Advised Price (SAP) of sugarcane for the sugar s
Slide 16: Business Overview - Sugar
Business Overview - Sugar Sugar Revenue (Rs. Cr.) Segment PBIT (Rs. cr) Sugar Sales (lac quintals) Average realization of sugar 2,225.5 (Rs./kg) 1,850.6 Segment PBIT Margin (%) 45.84 49.41 5.0% 37.27 37.66 3.5% 936.2 1,109.4 35.63 35.65 -7.9% -9.6% 24.57 25.61 39.1 -145.9 110.5 -90.2 H1 H1 Q2 Q2 H1
Slide 17: Business Overview – Sugar – Operational numbers
Business Overview – Sugar – Operational numbers Sugarcane crushed (lac quintals) Sugar Recovery (%) * Sugar Recovery Pre-sacrifice Sugar Production (lac (%) quintals) 139.6 9.72 9.84 11.24 11.82 13.74 46.2 4.49 H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24 Sugarcane crushed (lac quintals)
Slide 18: 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) 10.79 1.27 98.60 1.50 36.86 0.70
Slide 19: Movement in Sugar Costs, Inventory & Valuation
Movement in Sugar Costs, Inventory & Valuation FY22 FY23 (Rs./quintal) (Rs./quintal) 3,576 3,436 3,422 3,552 3,343 3,371 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 qtls
Slide 20: Outlook of our sugar business
This is the whatoutlook our sugar of sugar business business achieved ➢ Expectation of higher cane availability in the current season for the Company ➢ Improvement in varietal balance and conducive weather conditions may lead to enhanced sugar recoveries ➢ With moderation of inventory, domestic suga
Slide 21: Business Overview - Distillery
Business Business Overview overview: -Distillery Sugar Distillery revenues 559.70 Rs. cr. Q2 FY24 229.87 Rs. cr. Q2 FY23 143.49% higher revenues 33.43 Distillery PBIT % of revenues, Q2 FY24 109.32 Rs. cr. Q2 FY24 72.97 Rs. cr. Q2 FY23 49.81% higher PBIT 20
Slide 22: Business Overview - Distillery
Business Overview - Distillery Distillery Revenue (Rs. Cr.) Total Sales * (Cr BL) Average blended realization Segment PBIT (Rs. cr) 1,025.7 (including ENA & Others) ** Segment PBIT Margin (%) 16.22 (Rs./BL) 171.4 31.7% 528.0 559.7 193.9 9.30 32.5% 19.5% 8.83 53.39 57.71 57.19 18.9% 52.41 229.9 73.0
Slide 23: 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) 7.60 9.31 3.36 15.64 1.13 3.22 5.03 - - 1.53 - - - 9.00 H1FY23 H1FY24 Q2FY23
Slide 24: 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) 0.28 0.25 1.13 1.59 0.05 0.15 0.60 0.63 1.66 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2FY24 0.29 Ethanol Sale
Slide 25: Outlook of our distillery business and ethanol update
This is the whatoutlook our sugar of distillery business business achieved ➢ Profitable foundation for sustainable growth Company Ethanol update ESY 2022-23 ➢ Ethanol prices under the EBP Programme for ESY 2022-23 are as under: Damaged Contract (Cr BL) Supply (Cr BL) Period C-route B-route Syrup Sur
Slide 26: 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) 23.7 4.00 4.55 9.6 3.33 3.15 11.4 0.99 1.22 6.9 3.6 3.0 2.7 0.6 30th Sep. 2022 30th Sep. 2023 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H1F
Slide 27: Treasury management
➢ PART THREE Treasury management 26
Slide 28: Cash Flow Analysis – (standalone)
Cash Flow Analysis – (standalone) Rs. Cr Sl. Particulars FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 H1FY23 H1FY24 no. 1 Profit before tax 595.03 554.93 596.11 655.61 396.97 (23.46) 245.92 Cash generated from / (used) in 2 operating activities (523.01) 849.61 649.21 694.65 452.91 1520.77 1613.58 3
Slide 29: Treasury management update
Treasury management update Long Term Debt (including current maturities) • Long-term credit rating re-affirmed at AA+ with Stable outlook (Rs. Cr.) and the short-term rating at A1+ by CRISIL 617.4 549.3 445.9 484.5 375.8 362.5 257.0 As of 30th September 2023, long term borrowings of the Company stan
Slide 30: 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 29
Slide 31: The Global Sugar Scenario
TheSugar Global Global Scenario Production Outlook ( metric million tonnes) 29.5-30.0 Total Global production at 176.0 MMT Total Global production estimated at 176.5-177.0 MMT Global production is forecasted at 176.5-177.0 MMT with higher production in Brazil and lower production from Thailand, Russ
Slide 32: Factors influencing global sugar industry trends
Factors influencing global sugar industry trends 1 Global oil prices Million tonnes, 2 Government policies catalyzing the shift between sugar to ethanol 176.0 global sugar production, 2022- Weather / Acreage • Favorable weather and increased 23 area are expected to result in additional sugarcane ava
Slide 33: Domestic Sugar Balance Sheet
Domestic Sugar Balance Sheet ( metric million tonnes) Sugar Season 2022-23 Sugar Season 2023-24 (Estimated) 32.80 27.85 29.5-30.0 28.70 7.00 6.40 5.55 6.35-6.85 5.55 ** Opening Stock Production Domestic Consumption Exports Closing Stock Opening Stock Production Domestic Consumption Exports Closing S
Slide 34: ESG and enhanced stakeholder value
➢ PART SIX ESG and enhanced stakeholder value 33
Slide 35: ESG represents the soul of what we are and what we seek to be
Our ESG vision ESG represents the soul of what 4 Big messages: we are and what we seek to be The relevance of same to Company’s business The Company intends to achieve sustainable green cover growth The nature of our energy We are engaged in a social A sustainable business can products: business, ma
Slide 36: Our ESG Framework
Our ESG Framework Environmental Social Governance Our environment approach has been Our Company takes a holistic approach Our Governance policies are framed woven around the elements of Plan- to sustainable value creation for all its on the basis of transparency, Mitigate-Adapt-Resilience. stakehold
Slide 37: Our ESG Achievements
Our ESG Achievements Total effluents Improvement Steam consumption No. of trees planted (Ltrs/MT)) Improvement (per MT of cane) Improvement (units) 0.44 196.16 186.98 1,84,354 177.45 0.43 151.32 1,50,137 0.42 0.41 45,700 50,298 SS 20 SS 21 SS 22 SS 23 FY 20 FY 21 FY 22 FY 23 FY 20 FY 21 FY 22 FY 23
Slide 38: Socially Conscious Corporate Citizen
Socially Conscious Corporate Citizen 372 Communities reached CSR spend (Rs. Cr) 35+ Ponds cleaned, renovated and recharged 10.93 10.68 11.20 11.95 750+ Installed solar street 2.93 lights COMMUNITY FY19 FY20 FY21 FY22 FY23 12 lakhs, individuals DEVELOPMENT benefitted HEALTH EMPOWERMENT ENVIRONMENT ED
Slide 39: 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; Bonsucro Production Standard and Bonsucro Mass Balance Chain of Cu
Slide 40: Board of Directors
Board of Directors Vivek Saraogi - Chairman and Managing Director Dr. Indu Bhushan (Retd. IAS) – Independent Director ➢ An eminent industrialist, is a veteran in the sugar industry and has been one of the youngest president of the Indian Sugar Mills ➢ Served as the Chief Executive Officer (CEO) of N
Slide 41: Key events/ factors to watch out
Key events/ factors to watch out * State Advised Price (SAP) (for the State of U.P.) of sugarcane for the sugar season 2023-24 * Ethanol prices for ESY 2023-24 (sugar / molasses route) * Ethanol prices for ESY 2023-24 (damaged grains / FCI rice route) 40
Slide 42: Update on Auxilo Finserve – An Associate of the Company
Update on Auxilo Finserve – An Associate of the Company Equity Shareholding Pattern (%) * Compulsory Convertible Preference • Investment by 3 PE investors and Shares - Series A CCPS existing shareholder ICICI Bank 37.15 37.15 Shareholding – Rs. Crs. • Money to be received in 3 9.63 9.47 175.00 tranc
Slide 43: 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 44: Thank You
Thank You 43
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