Balrampur Chini Mills Ltd · NSE:BALRAMCHIN
Balrampur Chini Mills — Q1 FY2022 Earnings Presentation
58 slides from Balrampur Chini Mills's earnings presentation, Aug 9, 2021
Slide 1: Results Presentation filing letter to 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 9th August, 2021 National Stock Exchange of India Limited BSE Limited Listing De
Slide 2: Q1FY22 Results Investors Presentation
Balrampur Chini Mills Limited Q1FY22 Results Investors Presentation 9th August 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 Tuesday, August 10, 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 Q1 FY22 Annexures Overview Overview Results Update 6 17 32 48 4
Slide 6: Management's Message
Management’s “The results for the quarter were muted owing to subdued prices and lower off-take of sugar (as the government fixed a lower domestic sale quota for the quarter). In addition, adverse weather conditions Message and red rot disease impacted the sugarcane yields, resulting in lower cane.
Slide 7: Industry Overview
Industry Overview 6
Slide 8: The Sugar Global Scenario: Production Outlook
TheSugar Global Global Scenario Production Outlook ( metric million tonnes) 2020-21 2021-22 31.5 38.5 73.6 65.35 Total Total 172.5 31.0 169.0 30.9 9.9 10.75 7.8 10.5 16.0 15.7 CS Brazil India Thailand EU China Rest of the World CS Brazil India Thailand EU China Rest of the World Brazil has been pass
Slide 9: The Sugar Global Scenario: Balance Sheet
TheSugar Global Global Scenario Balance Sheet ( metric million tonnes) 2020-21 (E) 2021-22 (E) 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, recent frost, weakness of the USD
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) 5.80 6.80 6.00 Net of sugar sacrifice Others 17% 3.80 32.48 33.16 30.90 31.00 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% 26.00 26.50 25.39 25.50 25.30 24.56 SS16-17 SS17-18 SS18-19 SS19-20 SS20-21 SS20-21 Per capita consumption in India is at 19 kilograms per year (Est.) (Proj.)
Slide 12: Domestic Sugar Balance Sheet
Domestic Sugar Balance Sheet ( metric million tonnes) Sugar Season 2020-21 (Estimated) Sugar Season 2021-22 (Projected) 26.0 30.9 26.5 31.0 6.8 10.7 8.8 6.0 8.8 7.3 SS 21 Opening Production Domestic Exports SS 21 Closing SS 22 Opening Production Domestic Exports SS 22 Closing Consumption Consumption
Slide 13: 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 14: 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 15: 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 2020-21 was revised to Rs. 285 per quintal from Export of sugar continues to attract zero customs duty. Rs.275 per quintal in
Slide 16: 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% 5.0% 5.1% 3.5% 4.2% 1.53% 2.33% 2.1% 151 189 173 325 38 67 111 67 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21(E) * * OMC have finalized tender
Slide 17: Road-map for Ethanol Blending in India 2025-26
Road-map for Ethanol Blending in India 2025-26 Distillation Capacity Ethanol Demand Ethanol available for fuel (in million ltrs) (in million ltrs) (in million ltrs) 15000 13500 9880 10160 14300 12880 11750 9880 9750 8280 6980 8190 7400 7070 6660 6840 7100 7000 5920 6280 5480 4380 4660 4500 4230 3880
Slide 18: Company Overview
Company Overview 17
Slide 19: 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 20: 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 21: 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 22: 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 23: 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 24: Our Competitive Advantage
Our Competitive Advantage • Providing holistic support to farmers Lean Balance Location • Enhancing cross-functional High internal Sheet; efficiencies controls; advantage; East • Strengthening the financials Consistently U.P. (8 plants out • Being environmentally Focus on rewarding the of 10) fetchi
Slide 25: 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 four forward years along
Slide 26: 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 27: 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 28: 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 29: Technology Innovation: Balram app for farmers
Technology Innovation for benefit of Farmers Launched on 9th July 2021 an app named “Balram” for the benefit of farmers community Empowering 600,000+ sugarcane Empowering 600,000+ sugarcane farmers farmers in in Uttar Uttar Pradesh – Pradesh helpingthem –helping themachieve achievemaximum maximumpro
Slide 30: Road-map for capex upto November 2022
Road-map for capex upto November 2022 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. 425 190 15 630 ~35 cr litres Propose
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: EBITDA and Return Ratios
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: Q1FY22 Results Update
Q1FY22 Results Update 32
Slide 34: Performance Highlights (Consolidated)
Performance Highlights (Consolidated) Revenue (Rs. Cr) 4,811.66 4,741.29 4,285.78 1,140.44 1,430.34 Q1 FY22 Q1 FY21 FY21 FY20 FY19 TCI (Rs. Cr) 570.68 479.23 512.46 137.65 76.60 Q1 FY22 Q1 FY21 FY21 FY20 FY19 33 TCI - Total Comprehensive Income
Slide 35: Financial Overview - Consolidated Results
Financial Overview - Consolidated Results Q1 FY22 Q1 FY21 Change Particulars FY21 FY20 FY19 (Rs. Cr) (Rs. Cr) (%) (Rs. Cr) (Rs. Cr) (Rs. Cr) 1140.44 1430.34 -20.3% Revenue from 4741.29 4285.78 Operations 4811.66 101.91 183.26 -44.4% Profit Before Tax 609.18 568.06 601.79 24.99 44.17 -43.4% Tax 129.3
Slide 36: Performance Highlights (Standalone)
Performance Highlights (Standalone) 4,811.7 4,741.3 4,285.8 1,430.3 1,140.4 14.8% 14.4% 16.1% 15.2% 713.8 682.0 689.1 11.8% 134.0 217.5 Q1FY22 Q1FY21 FY21 FY20 FY19 Revenue EBITDA EBITDA margin % 20.3% decrease in revenues in Q1FY22 as compared to Q1FY21 due to lower domestic sugar sale quota & lowe
Slide 37: Highlights
Highlights Company diverted ~80% sugarcane to B-heavy molasses during Q1FY22 as compared to 52.0% during Q1FY21. • 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 Q1 FY22 Q1 FY21 Change Particulars FY21 FY20 FY19 (Rs. Cr) (Rs. Cr) (%) (Rs. Cr) (Rs. Cr) (Rs. Cr) 1140.44 1430.34 -20.3% Revenue from Operations 4811.66 4741.29 4285.78 134.03 217.45 -38.3% EBITDA 713.83 681.97 689.07 11.75% 15.20% - EBITDA Margin (%) 14.84%
Slide 39: Standalone Results - reasons for variations
Financial Overview - Standalone Results – reasons for variations Q1FY22 Q1FY21 Variance Key Reasons (Rs. Cr) (Rs. Cr) (%) Lower sales in sugar (due to lower quota) and in Revenue from operations 1140.44 1430.34 -20.3% Cogen segment Other income 5.21 3.33 56.5% - Cost of materials consumed 192.52 670
Slide 40: Segmental Overview – Sugar
Segmental Overview – Sugar Financial data U.O.M. Q1FY22 Q1FY21 Change FY21 FY20 FY19 (%) Segment Revenues * (Rs. Cr) 943.26 1341.12 -29.7% 4468.07 4513.11 3821.59 Segment PBIT (Rs. Cr) 14.38 94.95 -84.9% 277.84 344.22 166.17 PBIT % % 1.52% 7.08% - 6.22% 7.63% 4.35% Change * Includes U.O.M. Q1FY22 Q1
Slide 41: Segmental Overview – Sugar … contd.
Segmental Overview – Sugar … contd. Change Operational data U.O.M. Q1FY22 Q1FY21 FY21 FY20 FY19 (%) 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 - Cane diverted towards B-heavy molasses %
Slide 42: Quarterly Movement in Sugar Costing & Valuation
Quarterly Movement in Sugar Costing & Valuation (Rs./qtl. of sugar) Q1FY21 12MFY21 3,202 3,056 3,042 3,042 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 Su
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 Q1FY21 Q1FY22 FY17 FY18 FY19 FY20 FY21 Q1FY21 Q1FY22 Pre-diversion s
Slide 44: Segmental Overview – Distillery
Segmental Overview – Distillery Financial data U.O.M. Q1FY22 Q1FY21 FY21 FY20 FY19 Change (%) Segment Revenues (Rs. Cr) 267.23 223.26 19.7% 825.51 549.09 467.70 Segment PBIT (Rs. Cr) 117.75 95.86 22.8% 341.06 261.46 316.53 PBIT % % 44.1% 42.9% - 41.3% 47.6% 67.7% Notes: Segment Revenues includes fre
Slide 45: Segmental Overview – Distillery … contd.
Segmental Overview – Distillery … contd. Change Operational data U.O.M. Q1FY22 Q1FY21 FY21 FY20 FY19 (%) Ethanol Production from B-heavy route molasses Cr. BL 3.83 3.23 18.6% 10.18 3.58 - Ethanol Production from C-heavy route molasses Cr. BL 0.25 1.08 -76.9% 4.84 7.99 10.29 Total Ethanol Production
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 7.18 7.90 7.99 7.21 4.67 4.48 4.84 3.83 3.58 3.23 1.08 0.25 - - - FY17 FY18 FY19 FY20 F
Slide 47: Segmental Overview – Co-generation
Segmental Overview – Co-generation Change Financial data U.O.M. Q1FY22 Q1FY21 FY21 FY20 FY19 (%) Segment Revenues (Rs. Cr) 42.84 95.65 -55.2% 437.55 450.50 615.83 Segment PBIT (Rs. Cr) (7.75) 11.60 -166.8% 54.66 47.55 178.58 PBIT % % -18.1% 12.1% - 12.5% 10.6% 29.0% Change Operational data U.O.M. Q1
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 17.61 8.37 FY17 FY18 FY19 FY20 FY21 Q1FY21 Q1FY22 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 3.19 3.33 9.07 3.78 FY17 FY18 FY19 FY20
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.) 1,395 683 609 634 1,059 524 498 866 891 919 446 679 376 363 339 87 124 FY18 FY19 FY20 FY21 Q1 Q1 FY18 FY19 FY20 FY21 Q1 Q1 FY21 FY22 FY18 FY19 FY20 FY21 Q1FY22 FY21 FY22 Nil cane
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 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 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: Back-to-back 5th buy-back in last 5 calendar years
Back-to-back 5th buy-back in last 5 calendar years In line with Company’s policy for distribution of profit to shareholders, the Board of Directors in its meeting held on 9th August, 2021 approved: Buyback Type: Open Market through Stock Exchange ₹ 215.25 Crores [8.68% of paid up capital & free rese
Slide 54: Shareholding Pattern
Shareholding Pattern Promoter Group Foreign Holding Domestic Mutual Funds Holding 41.21% 41.21% 41.21% 41.21% 21.57% 13.87% 12.60% 12.61% 20.79% 20.26% 20.06% 8.64% 9.55% 41.10% 19.04% June, 2020 Sept, 2020 Dec, 2020 Mar, 2021 June, 2021 June, 2020 Sept, 2020 Dec, 2020 Mar, 2021 June, 2021 June, 202
Slide 55: Top 10 Non-Promoter Shareholding as on 30th June 2021
Top 10 Non-Promoter Shareholding as on 30th June 2021 Shareholder % Shareholding Nippon Life India Trustee Ltd-a/c Nippon India (under various funds) 5.9% L & T Mutual Fund Trustee Ltd (under various funds) 3.6% Goldman Sachs India Limited 2.1% Kotak Funds - India Midcap Fund 1.3% Abu Dhabi Investme
Slide 56: Key events to watch out
Key events to watch out • Fair & Remunerative Price (FRP) for sugar season 2021-22 • 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 2021-22 • State Advised Price (SAP) for the
Slide 57: 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 58: Thank You
Thank You 57
Balrampur Chini Mills — Q1 FY2022 Earnings Presentation on 6ix