Balrampur Chini Mills Ltd · NSE:BALRAMCHIN
Balrampur Chini Mills — Q2 FY22 Earnings Presentation
57 slides from Balrampur Chini Mills's earnings presentation, Nov 8, 2021
Slide 1: Results Presentation covering letter to stock exchanges
CIN - L15421WB1975PLC030118 Reg. Off. : FMC Fortuna, 2nd Floor, 234/3A, A J. C. Bose Road, Kolkata - 700 020 P:033 2287 4749 F : 033 2283 4487 E : bcml@bcml.in BALRAMPUR CHINf MILLS LIMITED _________ w: www ch. i _ _ _ _ _ ni.com 8th November, 2021 National Stock Exchange of India Limited BSE Limite
Slide 2: Q2FY22 Results Investors Presentation
Balrampur Chini Mills Limited Q2FY22 Results Investors Presentation 8th November 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, and
Slide 4: Conference Call Details
Conference Call Details Timing 12:00 noon IST on Tuesday, November 9, 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 Management’s Industry Company Q2 FY22 Annexures Message Overview Overview Results Update 5 6 17 32 48 4
Slide 6: Management's Message
Management’s “The results for the quarter were stable due to seasonality. The impact of lower sugar volumes was broadly off-set by robust sugar prices. While pan India Message release of quota increased to 67.5 lac quintals in Q2FY22 from 63.5 lac quintals in Q2FY21, the government allocated a lower
Slide 7: Industry Overview
Industry Overview 6
Slide 8: The Sugar Global Scenario: Production Outlook
TheSugar Global Global Scenario Production Outlook ( metric million tonnes) Total Global production estimated at 169.0 MMT Total Global production estimated at 172.5 MMT Brazil has been witnessing one of its worst droughts in 90 years, which is expected to result in significant lower production 7
Slide 9: The Sugar Global Scenario: Balance Sheet
TheSugar Global Global Scenario Balance Sheet ( metric million tonnes) 2020-21 (Estimated) 2021-22 (Projected) 169.0 173.8 172.5 175.0 92.8 90.3 97.6 92.8 Opening Production Consumption Closing Opening Production Consumption Closing Rising freight rates, historic drought in Brazil and weakness of th
Slide 10: India: World's Second Largest Sugar Producing Country
India: World’s Second Largest Sugar Producing Country State-Wise Sugar India's Sugar Export India's Sugar Production Production (MMT) (MMT) 7.20 Others 5.80 5.50 Net of sugar sacrifice 17% 3.80 32.48 33.16 31.20 30.50 Maharashtra 27.41 34% 0.46 20.28 Karnataka 0.05 14% SS SS16-17 SS17-18 SS18-19 SS1
Slide 11: 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% 26.50 27.00 25.39 25.50 25.30 24.56 SS16-17 SS17-18 SS18-19 SS19-20 SS20-21 SS21-22 Per capita consumption in India as compared to global average (Est.) is at
Slide 12: Domestic Sugar Balance Sheet
Domestic Sugar Balance Sheet ( metric million tonnes) Sugar Season 2020-21 Sugar Season 2021-22 (Estimated) 26.5 31.2 27.0 30.5 7.2 10.7 5.5 8.2 8.2 6.2 SS 21 Opening Production Domestic Exports SS 21 Closing SS 22 Opening Production Domestic Exports SS 22 Closing Consumption Consumption Managed dem
Slide 13: Domestic Sugar Quota Release
The Global Domestic Scenario Sugar Quota Release ( lac quintals) H1FY21 H1FY22 32.91 39.27 46.73 Total 50.56 Total 117.0 133.5 UP - 35% UP - 43% Maharashtra - 36% Maharashtra - 29% 33.53 Rest of India - 29% Rest of India - 28% 47.5 Q2FY21 Q2FY22 17.62 19.20 24.83 Total 27.74 Total 63.5 67.5 UP - 37%
Slide 14: 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 15: Current Sugar Sector Scenario: Man-Induced Sugar Cycle No Longer Prevails
Current Sugar Sector Scenario: Man-Induced Sugar Cycle No Longer Prevails Improvement in sugarcane yield / recovery Setting standard floor price for sugar i.e. Robust Ethanol Prudent Minimum Selling Price (MSP) blending Government programme policy O U Addressing excess sugar production through T con
Slide 16: Policy intervention from Govt. on Sugar / Ethanol
Policy intervention from Govt. on Sugar / Ethanol- ▪ Fair & Remunerative Price (FRP) of sugarcane for the sugar ▪ A higher customs duty continues on import of sugar. season 2021-22 was revised to Rs. 290 per quintal from ▪ Export of sugar continues to attract zero customs duty. Rs.285 per quintal in
Slide 17: 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 % 8.0% 5.0% 5.1% 3.5% 4.2% * 271.9 cr liters has been delivered till 1.53% 2.33% 2.1% 31st Oct 2021 151 189 173 290 38 67 111 67 * 2013-14 2014-15 2015-16 2016-17 2017-1
Slide 18: Road-map for Ethanol Blending in India 2025-26
Road-map for Ethanol Blending in India 2025-26 = total Distillation Capacity Ethanol Demand Ethanol available for fuel (in million ltrs) (in million ltrs) (in million ltrs) 9880 10160 14300 15000 12880 13500 11750 9880 9750 8280 6980 8190 7400 7070 6660 5480 6840 7100 7000 4230 5920 6280 4370 4380 4
Slide 19: Company Overview
Company Overview 18
Slide 20: Board of Directors
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 Limited ➢ Un
Slide 21: 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 Existing Proposed Post Units expansion Capacities Expansion manufacturing units in capacity close proximity Sugar (TCD) 76500 - 76500 Salea
Slide 22: The Balrampur Way: The Stretch Way of Life
The Balrampur Way: The Stretch Way of Life Grow through Vision diversified products Cane Development - Sweating existing assets - Drive Operational Efficiencies Engagement with farmers Capabilities - Capture the potential for downstream value Operational Efficiencies - Calibrated approach to Capex D
Slide 23: Our Strategy
Our Strategy Our businesses SUGAR Focused & Complementary ETHANOL CO-GEN AGRI-INPUTS Portfolio Our differentiated capabilities The Balrampur way of execution Management Stakeholder Operational Innovation Prudent Capital Stewardship Management Efficiency Allocation Our winning aspiration Value Creati
Slide 24: Pro-active Mix
Pro-active Mix Ongoing migration towards the more value-accretive segments such as Ethanol Product mix • Sacrificing Sugar for B-Heavy Ethanol • Converting sugarcane juice to Ethanol • Grain based Ethanol • Informed choices on top-line • Multiple mix drivers • Blended outcome contributes Segment mix
Slide 25: Our Competitive Advantage
Our Competitive Advantage • Providing holistic support to farmers Lean Balance Location • Enhancing cross-functional Robust internal Sheet; efficiencies controls; advantage; East • Strengthening the financials Consistently U.P. (8 plants out • Being environmentally Focus on rewarding the of 10) fetc
Slide 26: 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 five Company going consecutive Buy-Backs over five forward years along
Slide 27: ESG Vision at the core of our Growth Aspirations
ESG Vision at the core of our Growth Aspirations Environmental Social Governance Our environment approach has been Our Business transformation is Our governance platform woven around the elements of Plan- accelerated by a passionate team mix comprises a strategic clarity on the Mitigate-Adapt-Resili
Slide 28: Our ESG Achievements
Our ESG Achievements Water effluents emission Non hazardous waste (cubic metres) Water re-cycled (Kgs/MT) (in cubic metres) Improvement Improvement Improvement 4.56 5,67,813 19,16,984 18,47,527 18,26,927 4,44,314 4,70,054 4,88,298 3.42 3.32 15,66,960 2.85 2.77 13,85,679 57,241 FY 17 FY 18 FY 19 FY 2
Slide 29: Socially Conscious Corporate Citizen
Socially Conscious Corporate Citizen 5 Year CSR spend (Rs. Cr) 10.93 10.68 10.34 3.97 2.93 0.44 FY17 FY18 FY19 FY20 FY21* FY22 (E) * Company’s mandatory target under CSR spend was Rs. 9.67 crores HEALTH & COMMUNITY EMPOWERMENT ENVIRONMENT EDUCATION AGRICULTURE DEVELOPMENT 1050 women trained in 44 ac
Slide 30: Road-map for capex upto November 2022
Road-map for capex upto November 2022 (excluding normal / running capex) Distillery Capacity (KLPD) 170 40 1050 Post this 320 expansion; 520 the Company’s distillation capacity Existing Maizapur (Greenfield) Balrampur (Expansion) Gularia (Expansion) Post expansion would be Estimated Capex Rs. Crs. 4
Slide 31: 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 438 55 450 48 549 826 179 531 616 332 468 261 341 172 317 4,513 4,468 4,164 3,822 108 344 278 139 166 FY18
Slide 32: 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 33: Q2FY22 Results Update
Q2FY22 Results Update 32
Slide 34: Performance Highlights (Consolidated)
Performance Highlights (Consolidated) Revenue (Rs. Cr) 4,811.7 4,741.3 4,285.8 2,354.3 2,720.1 1,213.8 1,289.8 Q2 FY22 Q2 FY21 H1 FY22 H1 FY21 FY21 FY20 FY19 TCI (Rs. Cr) 570.7 479.2 512.5 214.5 160.2 83.6 76.9 Q2 FY22 Q2 FY21 H1 FY22 H1 FY21 FY21 FY20 FY19 33 TCI - Total Comprehensive Income
Slide 35: Financial Overview - Consolidated Results
Financial Overview - Consolidated Results Q2 FY22 Q2 FY21 Change Particulars H1FY22 H1FY21 Change FY21 FY20 FY19 (Rs. Cr) (Rs. Cr) (%) (Rs. Cr.) (Rs. Cr.) (%) (Rs. Cr) (Rs. Cr) (Rs. Cr) 1213.83 1289.80 -5.9% Revenue from Operations 2354.27 2720.13 -13.5% 4811.66 4741.29 4285.78 106.84 99.46 7.4% Pro
Slide 36: Performance Highlights (Standalone)
Performance Highlights (Standalone) 6000.0 4,811.7 4,741.3 4,285.8 5000.0 4000.0 3000.0 2,720.1 2,354.3 2000.0 14.84% 14.38% 16.08% 1,213.8 1,289.8 9.90% 11.42% 12.69% 11.11% 713.8 682.0 1000.0 689.1 268.9 345.2 134.8 127.7 0.0 Q2FY22 Q2FY21 H1FY22 H1FY21 FY21 FY20 FY19 Revenue EBITDA EBITDA Margin
Slide 37: Highlights
Highlights Company diverted ~80% sugarcane to B-heavy molasses during H1FY22 as compared to 52.0% during H1FY21. • Lower dependence on financially assisted exports • Will reduce working capital requirements The credit rating agencies viz. CRISIL and ICRA have reaffirmed the credit ratings for both l
Slide 38: Financial Overview - Standalone Results
Financial Overview - Standalone Results Q2 FY22 Q2 FY21 Change Particulars H1FY22 H1FY21 FY21 Change (Rs. FY20 FY19 (Rs. Cr) (Rs. Cr) (%) (Rs. Cr.) (Rs. Cr.) (%) Cr) (Rs. Cr) (Rs. Cr) 1213.83 1289.80 -5.9% Revenue from Operations 2354.27 2720.13 -13.5% 4811.66 4741.29 4285.78 134.84 127.74 5.6% EBIT
Slide 39: Financial Overview - Standalone Results – reasons for variance
Financial Overview - Standalone Results – reasons for variance Q2FY22 Q2FY21 Variance Key Reasons (Rs. Cr) (Rs. Cr) (%) Lower sugar volumes by 3.91 lac qtls.(due to lower sale Revenue from operations 1213.83 1289.80 -5.9% quota) and lower cogen volume which was partly off-set by higher sugar realiza
Slide 40: Segmental Overview – Sugar
Segmental Overview – Sugar Q2 Q2 H1 H1 Change Financial data U.O.M. Change FY21 FY20 FY19 FY22 FY21 FY22 FY21 (%) (%) Segment Revenues * (Rs. Cr) 1020.46 1063.43 -4.0% 1963.73 2404.55 -18.3% 4468.07 4513.11 3821.59 Segment PBIT (Rs. Cr) 25.22 23.48 7.4% 39.60 118.44 -66.6% 277.84 344.22 166.17 PBIT
Slide 41: Segmental Overview – Sugar … contd.
Segmental Overview – Sugar … contd. Q2 Q2 Change H1 H1 Change Operational data U.O.M. FY21 FY20 FY19 FY22 FY21 (%) FY22 FY21 (%) Sugarcane Crushed * lac qtls. - - - 43.32 200.76 -78.4% 1032.61 1020.30 1103.62 Cane diverted towards B-heavy molasses lac qtls. - - - 34.60 104.38 -66.9% 675.56 327.00 -
Slide 42: Movement in Sugar Costing & Valuation
Movement in Sugar Costing & Valuation (Rs./qtl. of sugar) H1FY21 3,491 12MFY21 3,202 3,069 3,119 3,128 3,128 Cane Cost Cost of Production Sugar Inventory Cane Cost Cost of Production Sugar Inventory Valuation Valuation Cane Crushed (lac qtls.) – 200.76 Cane Crushed (lac qtls.) – 1032.61 Sugar Produc
Slide 43: 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 11.44 794.65 11.27 11.07 10.84 10.66 10.63 200.76 43.32 FY17 FY18 FY19 FY20 FY21 H1FY21 H1FY22 FY17 FY18 FY19 FY20 FY21 H1FY21 H1FY22 Pre-diversion s
Slide 44: Segmental Overview – Distillery
Segmental Overview – Distillery Q2 Q2 H1 H1 Change Financial data U.O.M. Change FY21 FY20 FY19 FY22 FY21 FY22 FY21 (%) (%) Segment Revenues (Rs. Cr) 253.08 262.82 -3.7% 520.31 486.08 7.0% 825.51 549.09 467.70 Segment PBIT (Rs. Cr) 111.71 100.99 10.6% 229.46 196.85 16.6% 341.06 261.46 316.53 PBIT % %
Slide 45: Segmental Overview – Distillery … contd.
Segmental Overview – Distillery … contd. Q2 Q2 Change H1 H1 Change Operational data U.O.M. FY21 FY20 FY19 FY22 FY21 (%) FY22 FY21 (%) Ethanol Production from B-heavy route molasses Cr. BL 3.62 1.51 139.7% 7.45 4.74 57.2% 10.18 3.58 - Ethanol Production from C-heavy route molasses Cr. BL 0.22 2.07 -8
Slide 46: 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 8.87 8.73 7.90 7.99 7.45 7.21 7.18 4.20 4.25 4.84 4.74 3.16 3.58 3.62 2.07 1.51 0.47 0.
Slide 47: Segmental Overview – Co-generation
Segmental Overview – Co-generation Q2 Q2 Change H1 H1 Change Financial data U.O.M. FY21 FY20 FY19 FY22 FY21 (%) FY22 FY21 (%) Segment Revenues (Rs. Cr) 27.72 30.79 -10.0% 70.56 126.44 -44.2% 437.55 450.50 615.83 Segment PBIT (Rs. Cr) -13.69 -9.91 - -21.44 1.70 - 54.66 47.55 178.58 PBIT % % - - - - -
Slide 48: Segmental Overview – Co-generation … contd.
Segmental Overview – Co-generation … contd. Production (Cr units) 104.97 87.41 90.24 75.37 80.65 21.76 11.72 4.15 3.35 FY17 FY18 FY19 FY20 FY21 H1FY21 H1FY22 Q2FY21 Q2FY22 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 3.34 3.35 3.06 3.17 3.20
Slide 49: Annexures
Annexures 48
Slide 50: 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 1,059 524 498 866 891 413 446 376 363 316 124 0 0 0 FY18 FY19 FY20 FY21 H1 H1 FY18 FY19 FY20 FY21 H1 H1 FY21 FY22 FY18 FY19 FY20 FY21 H1FY22 FY21 FY22 Nil cane dues
Slide 51: Cash Flow Analysis – on standalone basis
Cash Flow Analysis – on standalone basis Rs. Cr Sl. no. Particulars FY 17-18 FY 18–19 FY 19–20 FY 20–21 1 PBT 332.18 595.03 554.93 596.11 2 Cash generated from / (used) in operating activities 1179.84 (523.01) 849.61 649.66 3 Net cash (used) in investing activities (159.32) (159.20) (304.71) (81.82)
Slide 52: Shareholder value creation model
Shareholder value creation model Strong cash flow funds multiple drivers of value for shareholders Capital INR 751 cr Expenditure (27.2%) Strong ROBUST Cash Flow Dividend + SHAREHOLDER VALUE # INR 362 cr Taxes CREATION (INR 2765 cr (13.1%) FY17-FY21) 78% utilized for Buy-back + Taxes INR 644 cr dist
Slide 53: Shareholding Pattern
Shareholding Pattern Promoter Group Holding Foreign Holding Domestic Mutual Funds 41.21% 41.21% 41.21% 41.21% 41.40% 13.87% 13.39% 21.57% 12.60% 12.61% 20.79% 20.89% 9.55% 20.26% 20.06% Sept,20 Dec,20 Mar,21 June,21 Sept,21 Sept,20 Dec,20 Mar,21 June,21 Sept,21 Sept,20 Dec,20 Mar,21 June,21 Sept,21
Slide 54: Top 10 Non-Promoter Shareholding as on 30th September 2021
Top 10 Non-Promoter Shareholding as on 30th September 2021 Shareholder % Shareholding Nippon Life India Trustee Ltd-a/c Nippon India (under various funds) 4.7% L & T Mutual Fund Trustee Ltd (under various funds) 3.6% Goldman Sachs India Equity Portfolio 2.1% Abu Dhabi Investment Authority - BEHAVE 1
Slide 55: Key events to watch out
Key events to watch out • Hike in Minimum Selling Price (MSP) of sugar • Export Policy for the sugar season 2021-22 • Ethanol prices for EY 2021-22 • Brazilian sugar production for the sugar season 2022-23 54
Slide 56: 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 57: Thank You
Thank You 56
Balrampur Chini Mills — Q2 FY22 Earnings Presentation on 6ix