Balrampur Chini Mills Limited. Corporate Presentation September

Transcription

1 Balrampur Chini Mills Limited Corporate Presentation September

2 Safe Harbour 2 Certain statements in this document may be forward-looking statements. Such forwardlooking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, agricultural policies, climatic conditions, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Balrampur Chini Mills Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

3 Table of Content 3 Global Scenario Indian Scenario BCML BCML Financial Performance

4 Global Scenario

5 The Global Story 5 Global sugar demand is expected to increase to 192 mn tones by 2021 and 235 mn tones by 2030 compared to 183 mn tones in 2017 Asia will remain the biggest consumer of sugar, increasing its share of total consumption from around 40% to 45% by 2021 By 2030, India and China will still remain the biggest consumers accounting for nearly 25% of global consumption Consumption in Europe is expected to remain stable Africa will also begin to emerge as a major consumer by 2030

6 Global Sugar Status 6 Supply Mismatch Over last 20 years sugar production has risen by 45% to over 195 mn tones Global consumption expected to be around 183 mn tones Concentrated Industry Fig. in Mln tons Sugar Opening Stocks Sugar Production E Industry is mature and increasing production is difficult given the demand on acreage India, Africa and EU Key to fill Demand Brazil has almost reached its saturation point, which currently accounts for 45% of global exports Weather A key Determinant World sugar production still heavily dependent on weather and continued cyclical production patterns Sugar Diversion to Ethanol Sugarcane is also getting diverted towards Ethanol globally in view of need to produce green power Internal Consumption Consumption Growth Y-o-Y Closing Stock Months of Consumption E = Estimated

7 Global Sugar Scenario - Updates 7 China EU Production is expected ~ 20.2 mn tones Expected to be ~3 mn tones net exporter USDA estimates sugar output ~10.6 mn tones ~5% higher than previous year Demand expected to increase to ~15.2 mn tones Imports are forecast at ~3.0 mn tones a decline of ~1.2 mn tones CS Brazil UNICA projects CS Brazil cane crush of ~588 mn tones in MY , down from mn tones Sugar production expected at ~29 mn tones, lower by 7 mn tones on account of climatic conditions and higher switch to Ethanol Thailand Production is expected ~ 14.2 mn tones Exports expected to increase to ~10 mn tones From a peak deficit of 7 mln ton the world has made a swift recovery to show back to back surpluses during both E an E (October to September) of 11.6 mln ton and 11.9 mln ton

8 Indian Scenario

9 Indian Sugar Industry Size & Overview 9 Area under Sugarcane: 4.95 million hectares [sugar season ] Sugarcane Production: 304 million tones [sugar season ] Number of Sugar Mills in Operation: 493 [sugar season ] Average Capacity of Sugar Mills: 3,800 TCD Production of Sugar: ~32 million tones [sugar season ] as compared to 20.2 million tones [sugar season ] Average per capita consumption: 18.9 kgs of sugar and 4.1 kgs of other sweeteners Refinery capacity: 4.50 million tones Provides direct employment: ~5 million workers

10 Domestic Sugar Balance 10 Opening Stock Production Increase in Production Internal Consumption Growth Y-O-Y Exports Imports Closing Stock Months of Consumption ( Fig. in Mln tons ) E % -3.19% 16.46% % % 59.90% % 4.35% 3.33% -0.81% -1.63% 4.08%

11 Sector Perspectives 11 India s sugar production for the season was ~32.3 million tones, up ~59.90% as compared to 20.2 million tones produced in previous season Sugar mills in U.P. was ~12 million tones of sugar in SS as compared to 8.8 million tones last season, owing to better yields. Maharashtra mills produced ~10.8 million tones in SS as compared to 4.2. million tones in previous season, owing to higher acreage. Sugar production in Karnataka was ~3.6 million tons in SS as compared to 2.2 million tones in previous season. For season production is expected ~34 million tones. U.P. set to produce ~13~mln tones whereas Maharashtra and Karnataka is expected ~~11.5 mln tones and 4.5 mln tones respectively

12 Key data on Indian Sugar Industry 12 Acreage (000 Hectares) Sugarcane Production (lac Ton) Yield per hectares (tones) Cane Crushed (lac tones) Drawal % Production (lac tones) Average Recovery % Average Duration (days) No. of mills in operation % 69.01% 74.43% 70.20% 63.93% % 10.23% 10.37% 10.62% 10.44%

13 Comparison of FRP with SAP paid by some States 13 `/Qtl. of sugarcane FRP* SAP as announced by respective states for the normal variety of sugarcane Uttar Pradesh Bihar Punjab Haryana * Linked to recovery of 9.50% FRP for SS has been fixed at Rs. 275 per qtl. of cane linked o recovery of 10%

14 BCML

15 A Leading Integrated Sugar Player In India 15 76, TCD Sugar Capacity MW Cogen Saleable Capacity KLPD Distillery Capacity Locations Integrated model Operational efficiencies One of the pioneers of Integrated Business Model in India that stabilizes revenue streams along with providing a hedge against the sugar cycle Latest technology implemented to achieve highest operational results and leverage inter-plant synergies to maximize by-product utilization Management expertize: Strong management team with years of sugar industry experience

16 Business Model 16 Integrated operations Maximize value accrual from every ton of cane crushed Greater hedge against the sugar cycle Supported by very strong farmer relationships Intra-plant synergies Economic sized operations driving cost efficiencies Close proximity between plants maximizes by-product utilization

17 Plant Locations 17 Sugarcane crushing capacity at 76,500 TCD, Distillery and Co-generation operations of 360 KLPD and MW (Saleable) respectively Babhnan Haidergarh Gularia Kumbhi UTTAR PRADESH Factory Locations Tulsipur Balrampur Mankapur Rauzagaon Akbarpur Maizapur UNITS Sugar Capacity (TCD) Distillery (KPLD) * During season saleable cogeneration capacity is 16 MW COGEN POWER (MW) SALEABLE CAPACITY BALRAMPUR 12, BABHNAN 10, TULSIPUR 7, HAIDERGARH 5, AKBARPUR 7, MANKAPUR 8, RAUZAGAON * 8, KUMBHI 8, GULARIA 8, MAIZAPUR 3,

18 Update on Allied Segments 18 Achieved zero discharge at all the three distilleries Distillery Cogeneration Benefits of Ethanol Blending Programme: Improves ability to pay farmers on time Eco-friendly product Generates green power through bagasse where nearly 32% of the power produced is self consumed and rest is exported to state electricity grid at predetermined tariff The Board of Directors of the Company has approved setting up of 160 KLPD Zero Liquid Discharge distillery at Gularia Unit at an estimated Capex of around 207 crores. The augmentation of the said distillery will enhance the total distillation capacity of the Company to 520 KLPD

19 Board of Directors 19 KAMAL NAYAN SARAOGI Chairman Emeritus MEENAKSHI SARAOGI Chief Mentor SUMIT MAZUMDAR, Chairman (Independent Director) VIVEK SARAOGI, Managing Director DINESH K. MITTAL (Retd. IAS), Lead Independent Director R. N. DAS (Retd. IAS), Independent Director KRISHNAVA DUTT, Independent Director NOVEL L. LAVASA, Independent Director SAKTI PRASAD GHOSH, Independent Director NARESH DAYAL, Non-Executive Director DR. ARVIND KRISHNA SAXENA, Whole-time Director

20 Shareholding Pattern As on 30th June, Public & Others, 27 Body Corporate, 5 Promoters, 41 FII / FPI, 19 Fund Houses / Insurance Cos. / Banks 8

21 BCML Financial Performance

22 5 Year Operational Summary 22 (` in Crores) FY14 FY15 FY16 FY17 FY18 Revenue from Operations Gross Profit PBDIT Finance Costs PBDT Depreciation & Amortization Profit before tax and exceptional items (76.16) Exceptional items Pre-tax profits (76.16) Tax 9.03 (18.43) Profit for the year 3.64 (57.73) Other comprehensive income (net of tax) N.A. N.A. (0.38) (3.63) (4.55) Total comprehensive income N.A. N.A Equity capital Reserves (excluding revaluation reserve)

23 Statement of latest quarterly Profit & Loss 23 (` in Crores) Q1 FY19 Q1 FY18 % Y-o-Y Growth FY18 Revenue from operations % EBITDA % Depreciation % Finance costs % Profit Before Tax % Total Comprehensive Income % Diluted EPS (`)

24 Segmental Overview Sugar 24 Cane Crushed (Lac Quintals) Sugar Recovery (%) FY14 FY15 FY16 FY17 FY18 Q1 FY18 Q1 FY19 FY14 FY15 FY16 FY17 FY18 Q1 FY18 Q1 FY19 Production (Lac Quintals) Avg. Realization - Sugar (` per kg) FY14 FY15 FY16 FY17 FY18 Q1 FY18 Q1 FY19 FY14 FY15 FY16 FY17 FY18 Q1 FY18 Q1 FY19

25 Segmental Overview Distillery 25 Production (KL) 77,950 69,903 70,555 72,158 81,003 21,561 28,806 FY 14 FY 15 FY 16 FY 17 FY 18 Q1 FY18 Q1 FY19 74,080 74,202 Sales (KL) 64,749 69,180 80, Avg. Realization - Distillery (` per BL) ,402 29,961 FY 14 FY 15 FY 16 FY 17 FY 18 Q1 FY18 Q1 FY19 FY 14 FY 15 FY 16 FY 17 * FY 18 Q1 FY18 Q1 FY19 * Govt. had waived excise duty on supply of Ethanol for sugar season which resulted in higher realization for FY17.

26 Segmental Overview Co-generation 26 7,505 Production (Lac units) 8,295 8,741 7,469 7,537 1,972 3,028 FY 14 FY 15 FY 16 FY 17 FY 18 Q1 FY18 Q1 FY19 Power sales (Lac units) Avg. Realization - Cogen (` per unit) 5,474 6,168 5,307 5,105 5, ,457 2,111 FY 14 FY 15 FY 16 FY 17 FY 18 Q1 FY18 Q1 FY19 FY 14 FY 15 FY 16 FY 17 FY 18 Q1 FY18 Q1 FY19

27 Going Forward 27 Investing in the entire ecosystem Working together with farmers to inculcate better agricultural practices and educating them to adopt modern techniques Improving varietal balance, following stringent process and quality control procedures Focus on creating value for all stakeholders Declared dividend of `2.50 (250%) for the FY leading to a total outgo of `70.72 crore( including dividend distribution tax of `11.96 crore) and also completed buy-back of 66 lac equity shares involving an outgo of `99.00 crores During FY declared dividend of `3.50 (350%) and also completed buy-back of 1 cr equity shares involving an outgo of `175 crores Strengthening the Balance Sheet Long term debt as on June 30, 18 stood at `105.5 crore. Long-term Debt-Equity ratio stood at 0.06 as on June 30, 2018 ICRA and CRISIL both has assigned the long-term loan rating to AA and the short-term credit rating to A1+

28 Contact Us 28 About Balrampur Chini Mills Limited - CIN: L15421WB1975PLC Balrampur Chini Mills Limited (BCML) is one of the largest integrated sugar companies in India. The allied businesses of the Company comprise distillery operations and cogeneration of power. The Company presently has ten sugar factories located in Uttar Pradesh (India) having an aggregate sugarcane crushing capacity of TCD, distillery and co-generation operations of 360 KLPD and MW (Saleable) respectively. BCML is one of the most efficient integrated sugar producers in the country. The Company has grown its capacity by well-planned capacity expansion projects and the acquisition of existing companies over recent years. For more information on the Company, please log on to For further information contact: Pramod Patwari Chief Financial Officer Balrampur Chini Mills Limited Tel : Fax: pramod.patwari@bcml.in Anoop Poojari / Karl Kolah CDR India Tel: / 1220 Fax: anoop@cdr-india.com / karl@cdr-india.com Registered Office: FMC Fortuna, 2nd Floor, 234/3A, A. J. C. Bose Road, Kolkata

29 Thank You