Dalmia Dalmia Bhar Bharat Suga Su gar r & & Ind - - PowerPoint PPT Presentation

Dalmia Dalmia

Bharat rat Su Sugar

Dalmia Dalmia Bhar Bharat

Su Suga gar r & & Ind Industries ustries Limit Limited ed

September 2016

Dalmia Dalmia

Bharat rat Su Sugar

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Contents

About Company Global Scenario Financials & Operational Performance

Dalmia Dalmia

Bharat rat Su Sugar

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Contents

About Company Global Scenario Financials & Operational Performance

Dalmia Dalmia

Bharat rat Su Sugar

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About Company

2006

Diversification & Integration

• Presence in 3 location in U.P.
• Sugar Capacity expansion to 22,500 TCD
• Integration of Sugar Operations
• Distillery commissioning - 80 KLPD
• Cogen commissioning - 54MW

Distillery Plant of 60 KLPD commissioned in Maharashtra

Regional Diversification

• Acquisition of sugar mill in Kolhapur,

Maharashtra crushing with capacity of 2,500 TCD

• Total Capacity increased to 25,000 TCD

Step towards sustainable model

• Acquisition of another mill at Sangli,

Maharashtra of 1,750 TCD, total crushing capacity increased to 29,250 TCD

• Cogen expansion at Maharashtra taking total

renewable energy capacity to 119 MW

2007 2015 2014 2013 2008 2016

Sugar Capacity at One Location in U.P. of 7500 TCD Cogeneration Expansion, total capacity increased to 79 MW in U.P. Enhanced crushing capacity in Maharashtra to 5,000 TCD

Dalmia Bharat Sugar and Industries Ltd.

• Geographically well diversified
• Integrated Sugar Operations

Capacity Details: Only listed Company operating from Maharashtra. Only Company in U.P. region to diversify business to Maharashtra

Unit Sugar (TCD) Distillary ('000 KLPD) Cogeneration (MW) Ramgarh 7,500 25 Jawaharpur 7,500 80 27 Nigohi 7,500 27 UP 22,500 80 79 Kolhapur 5,000 60 23 Ninaidevi 1,750 Maharashtra 6,750 60 23 Total 29,250 140 102

Wind farm of 16.5 MW at Tamil Nadu.

Dalmia Dalmia

Bharat rat Su Sugar

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Expanding footprints in Maharashtra

“Capacities in Maharashtra scaled up to 23% in FY16 and 31% in near term within a span of 5 years.”

Work-in-progress to increase Maharashtra crushing capacity to 10,000 TCD from existing 6,750 TCD.

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Bharat rat Su Sugar

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Contents

About Company Global Scenario Financials & Operational Performance

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Bharat rat Su Sugar

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Assuring better Cane quality

Sugar Recovery % – U.P. & Maharashtra

Highest sugar recovery amongst peers

Cane Crushed (Lakh MT):

21 24 28 28 31 31 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 9.1 9.9 10.5 10.9 12.1 FY12 FY13 FY14 FY15 FY16

Sugar Recovery % (Consolidated):

9.1 9.4 10.1 10.3 11.7 13.7 13.2 13.3 13.0 FY12 FY13 FY14 FY15 FY16 DBSIL-UP DBSIL- Maharashtra

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Bharat rat Su Sugar

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Focus towards increasing Ethanol Production:

Ethanol Production and realisation:

Factors which support our strategic move towards increasing Ethanol production:

• Better realisation: Realisation on Ethanol is better than other distillery products leading to improved

profit margins.

• Mandatory Ethanol Blending: Central government initiatives of mandatory blending of 5% ethanol

which is expected to be increased to 10%. Focused towards better realisation distillery product.

4,673 13,196 15,218 12,618 1,670 4,237 6,405 16,711 30.7 33.0 37.1 39.0 37.4 33.8 38.7 42.5 23.0 28.0 33.0 38.0 43.0 48.0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 FY2012 FY2013 FY2014 FY2015 FY2016 ENA Production (KL) Ethanol Production (KL) ENA Realization (Rs./ L) Ethanol Realization (Rs./ L)

Dalmia Dalmia

Bharat rat Su Sugar

3.9 4.3 4.2 4.2 4.8 4.8 5.2 6.2 6.3 4.2 5.2 5.3 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 U.P. (Rs./ Kwh) Maharashtra (Rs./ Kwh) Consolidated (Rs./ Kwh)

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Regional diversification leading to higher power realisations

Region-wise power Export: Region-wise power realisation rates:

Higher power tariff in Maharashtra region

1437 2247 2603 2347 2114 2021 32 809 1028 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 U.P. (Lakh Units) Maharashtra (Lakh Units)

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Bharat rat Su Sugar

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Focus on Maharashtra Region

Higher cogen realisation

• Rs. 6.25/ unit

Kolhapur region - highest sugar recovery in India 13% Linkage of cane prices with Sugar realisation

50%

Higher Cane Yield Proximity to Ports Expected benefits due to Government of India intervention on raw sugar imports Higher Operating Days 150-160 Days No restriction on cane area reservation

DBSIL: Only listed company operating from Maharashtra…

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Bharat rat Su Sugar

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Contents

About Company Global Scenario Financials & Operational Performance

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Bharat rat Su Sugar

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Financial Performance

Particulars (Rs. Crore) FY15 FY16 YoY Total Operating Income 1,150 1,166 1% Operating Expenses 1,037 940

• 9%

EBITDA 113 227 101% EBITDA Margin% 10% 19% 900bps EBIT 78 135 72% Profit Before Tax 0.3 47.4 16017% Profit After Tax 1.49 58.4 3809%

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Bharat rat Su Sugar

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Balance Sheet as on 31st March, 2016

Particulars (Rs. Crore) 31-Mar-15 31-Mar-16 Equity Funds 460 513 Debt Long Term 577 747 Short Term 355 391 TOTAL 1,392 1,651 Fixed Assets 774 759 Cash & Cash Equivalents 103 117 Net Current Assets 515 775 TOTAL 1,392 1,651 Net Debt 829 1.021 Net Debt/ EBITDA 7.3 4.5 Net Debt/ Equity 1.8 2.0

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Bharat rat Su Sugar

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Financial Performance

Net Operating Income (Rs. Crore) Profit before Tax (Rs. Crore) Profit after Tax (Rs. Crore) EBITDA (Rs. Crore)

1,150 1,166 265 343

FY15 FY16 Q1'16 Q1'17

113 227 21 86

FY15 FY16 Q1'16 Q1'17

1.5 58

• 10

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FY15 FY16 Q1'16 Q1'17

0.29 47

• 11

48

FY15 FY16 Q1'16 Q1'17

29% 308% 101%

Dalmia Dalmia

Bharat rat Su Sugar

Sugar 87% Cogen + Distillery 13%

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Improved profitability

Downstream Products* Share in total revenue (%) EBITDA (Rs. Cr.) & EBITDA Margin (%):

Increased share of downstream products contributing to higher profitability margins.

65 63 150 108 113 227 10% 9% 15% 9% 10% 19% FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Operating Profit (EBITDA) Rs. Crore Operating Profit Margin %

Sugar 78% Cogen + Distillery 22%

2011 2016

* Cogen & Distillery

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Bharat rat Su Sugar

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Improved realisations:

Yearly:

Particulars UOM FY15 FY16 Variance Sugar Rs./ MT 29,424 26,686

• 9%

Distillery Rs./ KL 38,866 41,843 8% Cogen Rs./ Kwh 5.2 5.3 3%

Quarterly:

Particulars UOM Q1 FY16 Q1 FY17 Variance Sugar Rs./ MT 26,115 34,201 31% Distillery Rs./ KL 39,713 45,131 14% Cogen Rs./ Kwh 5.4 5.8 7%

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Bharat rat Su Sugar

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Contents

About Company Global Scenario Financials & Operational Performance

Dalmia Dalmia

Bharat rat Su Sugar

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Indian Sugar Production and Consumption Trend

24.4 26.3 25.1 24.4 28.3 25.1 23.2 20.8 22.6 22.8 24.2 25.6 25.6 26.0 6.0 6.6 9.3 7.5 9.1 7.1 4.3

SS10-11 SS11-12 SS12-13 SS13-14 SS14-15 SS15-16 SS16-17E Production (MnT) Consumption (MnT) Closing Stock (MnT)

Production Consumption 10 Year CAGR 2.70% 3.30%

No sugar surplus is expected in forthcoming years…

Dalmia Dalmia

Bharat rat Su Sugar

67 47 46 41 39 38 34 28 20 12 Brazil Australia Thailand Russia Mexico EU US Pakistan India Mainland China 19

Lower per capita consumption; higher growth potential

Per capita sugar consumption (kg) in top 10 Sugar Producing countries: Per capita sugar consumption (kg)

36 22 20 24 Developed Countries Developing Countries India World

Source: Organisation for Economic Co-operation and Development Source: Organisation for Economic Co-operation and Development

Dalmia Dalmia

Bharat rat Su Sugar

24.4 26.3 25.1 24.4 28.0 25.4 29.9 32.3 35.1 33.1 31.0 32.0

21.0 24.0 27.0 30.0 33.0 36.0 21.0 23.0 25.0 27.0 29.0

10-11 11-12 12-13 13-14 14-15 15-16

Production (MnT) Average Sugar Prices (Rs/ Kg)

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India Sugar Industry

Source: ISMA

Strong and stable prices expected in future:

There is a reverse correlation between sugar production and sugar prices. Consumption is expected to be more than production in forthcoming years. Hence, sugar prices are expected to be firm.

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Bharat rat Su Sugar

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Sugar Industry - Regulations

Pre April’ 2013 Controls

Levy Sugar Cane Pricing Release Mechanism Levy Sugar Adopted Rangarajan formula in Maharashtra and Karnataka Release Mechanism

Post April’ 2013: Relaxation

• Higher chances of cane prices to be linked with sugar

prices in U.P. as already been adopted at Maharashtra and Karnataka.

• U.P. state government has been considerate by not

increasing the SAP for last 4 years.

• The gap between U.P. SAP and FRP has reduced.

Packing in Jute Bags Packing in Jute Bags

Only 20% quantity required to pack in Jute Bags

Mandatory Ethanol Blending

Government of India mandated 5% blending of ethanol

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Bharat rat Su Sugar

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Contents

About Company Global Scenario Financials & Operational Performance

Dalmia Dalmia

Bharat rat Su Sugar

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Global Scenario

India is second largest sugar producing country in world having 16% share in total sugar production after Brazil.

Country wise sugar production share:

Top 5 Countries have more than 50% share in World Sugar Production.

Source: Kingsman Statistical Update

Others 46% Brazil 23% India 15% Thailand 6% China 5% USA 5%

Dalmia Dalmia

Bharat rat Su Sugar

8.8 9.1

• 16.0
• 7.6

4.3 11.8 11.4 7.4 2.6

• 5.0
• 5.9

11.2 10.9 13.0 21.1 26.2 25.0 19.0 17.0 14.6 14.3 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0

• 16.0
• 12.0
• 8.0
• 4.0

0.0 4.0 8.0 12.0

06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17

Raw Sugar Prices (Cents/ lb) World Sugar Surplus/ Defict (MnT)

Surplus/ Deficit (MnT) Raw Sugar Prices (Cents/ lb)

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Global Scenario

• SS2015-16 witnessed a deficit in World Sugar Production and have broken the momentum of surplus

sugar production continuing from SS2010-11.

• Raw Sugar Prices witnessed an increase lately and expected to remain firm.

World Sugar Production Surplus/ Deficit and Raw Sugar Prices:

Source: Compiled from Kingsman Reports and USDA data

Dalmia Dalmia

Bharat rat Su Sugar

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Sugar Price Trend (International & India)

• International Sugar prices have recovered from a low of 10.7 cents/ pound in Aug-15 to 20.0

cents/ pound in Aug-16.

• Prices have started firming up since Sep-15 considering deficit of sugar globally as world’s

largest sugar producing country Brazil is set to record reduction in Sugar production compared to earlier years.

Month on month trend of Sugar prices:

Source:

• 1. International sugar prices - London International Financial Futures and Options Exchange
• 2. Indian sugar prices – National Commodity and Derivative Exchange

12.8 12.912.7 11.8 11.9 10.7 11.3 14.1 14.9 15.0 14.3 13.3 15.4 15.0 16.7 19.3 19.7 20.0 27.2 27.7 27.5 25.8 24.4 25.8 26.4 29.0 29.0 30.6 32.2 32.6 34.9 36.9 36.8 37.5 38.5 38.6 20.0 22.0 24.0 26.0 28.0 30.0 32.0 34.0 36.0 38.0 40.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 International Raw Sugar Prices (Cents/ lb) Indian Sugar Prices (Rs./ Kg)

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Bharat rat Su Sugar

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Contents

About Company Global Scenario Financials & Operational Performance

Dalmia Dalmia

Bharat rat Su Sugar

SHGs formed with more than 470 members

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Beneficiaries of health and sanitation initiatives

9,200

Beneficiaries of energy conservation and climate and change mitigation programme

10,775

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Focus towards sustainability

Design-driven environment consciousness Community Responsibility

Total Beneficiaries

21,100

Kolhapur distillery is being positioned as a zero ground water consumption unit

Zero

100% Renewable energy

118 MW

Bio-composting capacity at Jawaharpur

30,000 MT

Dalmia Dalmia

Bharat rat Su Sugar

thankyou

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