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Title Slide No
Performance Highlights 4
Management’s Message 5
Company Highlights 6
Sector Perspectives 7
Financial Overview 9
Financial Discussion 10
Segmental Overview 11
2
Large Capacities
Focus on Value Maximization
Management expertize
Operational efficiencies
Healthy Balance sheet
Sugarcane crushing capacity at 76,500 TCD, Distillery and Co-generation operations of 320 KLPD and 126 MW (Saleable) respectively
One of the pioneers of Integrated Business Model in India
Stabilizes revenue streams along with providing a hedge against the sugar cycle
Strong management team with years of sugar industry experience
Employ latest technology to achieve highest operational results
Leveraging inter-plant synergies to maximize by-product utilization
One of the strongest balance sheet in the industry
3
Net Revenue grew by 23% to ` 5,778 million
EBITDA stood at ` 1,935 million
Net Profit stood at ` 1,299 million
Diluted EPS at ` 5.32 per share
FY2012 Financial Performance highlights
Q4 FY2012 Financial Performance highlights
Net Revenue at ` 23,096 million
EBITDA at ` 2,382 million
Net Profit at ` 66 million
Diluted EPS at ` 0.27 per share
4
Commenting on the performance for Q4 & FY2012, Mr. Vivek Saraogi, Managing Director, Balrampur Chini Mills Limited, said:
“We ended the year with steady growth in revenues recorded by all business segments due to increased volumes and better realizations. While our allied businesses registered better profitability, sugar segment continued to be under pressure primarily owing to high cane prices.
The latest development involving removal of cap on sugar exports and bringing it under OGL is a positive move for the sector. Given the current surplus situation, exports should enable liquidation of excess inventories from the system which should lead to stability in sugar prices. Going forward, we are hopeful the State Government in Uttar Pradesh will consider implementing progressive policies to help relieve the stressed sugar sector. Furthermore, an expert committee set-up directly by Honorable Prime Minister is earnestly evaluating deregulation of the industry, and we are optimistic that the first phase of decontrol will include removal of levy obligation and release mechanism.
Our integrated business model has been tested for its efficacy in the most challenging period and has proved to be crucial in mitigating the down-turns witnessed in the sugar industry. Going forward, building on the foundation of a solid business model, we remain focused on creating shareholder value through sustained efforts at improving overall operational and financial performance.”
5
The Company registered total cane crushing of 8.5 crore quintal for the sugar season 2011 – 12;
Higher crushing achieved owing to higher cane availability
8.1 lakh tonne sugar produced in the current season
BCML recorded average sugar recovery of 9.54% in the current sugar season – one of the highest in the State of Uttar Pradesh (U.P.)
In January 2012, the Supreme Court ordered payment of differential sugarcane dues in the state of Uttar
Pradesh for the sugar season 2006-07 and 2007-08
Provision for outstanding principal amount of 2007-08 have been made in the Company’s books
amounting to ` 920 million
Payment of towards the same of ` 1150 million for both the sugar season has been made in the
current quarter
6
Central Government steps are pragmatic steps and will improve overall health of the sugar sector
Limit on sugar export volumes removed and brought under open general license (OGL) during the
quarter; domestic sugar price expected to stabilize
High-level expert committee under Dr. C. Rangarajan, Chairman, Prime Minister's Economic Advisory
Council (EAC), set-up to examine de-regulation of the sugar sector – a time-bound program to submit
its recommendation over the next few months
The country’s sugar production for 2011-12 sugar season is estimated to be ~26 million tonne – higher as
compared to the previous year mainly on account of increased availability of cane
Maharashtra and Uttar Pradesh likely to record an output of over 9 million tonne and 7 million tonne
respectively in the current season
Sugar production in India for the sugar season 2012-13 is anticipated to remain steady
Drought like situation in Maharashtra likely to impact production by 10%; other states led by Uttar
Pradesh are likely to compensate for production loss in Maharashtra
7
Cumulative cane arrears across the country for the 2011-12 sugar season is estimated to be over ` 10,000
crore; cane arrears in Uttar Pradesh exceeds ` 4,500 crore
Huge difference between the cost of production of sugar and sales realization the key reason for
arrears build-up
Global sugar prices anticipated to remain subdued due to the current demand-supply scenario
Thailand, China and Russia report significant jump in sugar output
Sugar production in Brazil, the world’s largest exporter of sugar, is expected to remain high – decline of
the Brazilian real against the US dollar making mills in Brazil shift towards sugar than ethanol
Exports from India also impacting sentiments in the international markets
8
Profit & Loss Statement
(` million) Q4 FY2012 Q6 FY2011 % Y-o-Y Growth FY2012
Net Operating Revenue 5,778 4,682 23.4% 23,096
EBITDA 1,935 2,054 (5.8%) 2,382
EBITDA Margin (%) 33.5% 43.8% 10.3%
Depreciation 280 270 3.4% 1,108
Interest 411 333 23.7% 1,474
Profit Before Tax 1,311 1,486 (11.8%) 78
Profit After Tax 1,299 1,128 15.2% 66
Profit After Tax Margin (%) 22.5% 24.1% 0.3%
Diluted EPS (`) 5.32 4.34 0.27
9
Q4 FY2012 Operating overview (Compared with Q6 FY2011)
Interest costs during the quarter stood at ` 411 million as compared to ` 333 million in Q6 FY2011
Combined effect of higher effective base rates and increased working capital requirements during the
crushing season
As on 31 March 2011, BCML’s long-term loan stood at ` 763 crore and working capital was at ` 1221
crore
PAT stood at ` 1,299 million in Q4 FY2012 as compared to ` 1,128 million in Q6FY2011
Profits during the year were impacted on account of provision made for differential sugarcane price for
sugar season 2007-2008 amounting to ` 920 million
10
(` million) Segment
Revenues % contribution
to Revenues PBIT % contribution
to PBIT
Q4 FY2012 5,179 74.5% 803 45.3%
Q6 FY2011 3,926 69.1% 957 49.9%
% Shift 31.9% (16.1%)
FY2012 20,698 82.0% (221) (12.7%)
Sugar sales for the quarter was 15.2 lakh quintals as compared to 11.5 lakh quintals in the
corresponding quarter of the previous year. Sales during the year was 67.2 lakh quintals.
Free sale realizations during the quarter was ` 29 per kg as compared to ` 28.6 per kg in the
corresponding quarter of the previous year. Free sale realizations for the year stood at ` 28.7 per
kg
Landed sugarcane costs during the year stood at ` 252 per quintal as compared to ` 227 during the
previous year
11
1231.51
846.29
491.17 564.24
0
200
400
600
800
1000
1200
1400
FY 2011 FY 2012 Q6 FY2011 Q4 FY2012
Cane Crushed (Lakh Quintals)
115.47
80.72
46.8755.75
0
20
40
60
80
100
120
140
FY 2011 FY 2012 Q6 FY2011 Q4 FY2012
Production (Lakh Quintals)
9.38
9.54 9.54
9.88
9.109.209.309.409.509.609.709.809.90
10.00
FY 2011 FY 2012 Q6 FY2011 Q4 FY2012
Recovery (%)
*FY 2011 was for a period of 18 months
29.70
28.7428.61
29.02
28.00
28.50
29.00
29.50
30.00
FY 2011 FY 2012 Q6 FY2011 Q4 FY2012
Avg. Realization – Free Sugar (` per kg)
12
RS and ENA volumes stood at 11,062.5 KL Q4 FY2012 as compared to 10,899.0 KL in Q6 FY2011;
blended realizations for RS and ENA improved to ` 26.48 per BL as compared to ` 25.54 per BL in
the corresponding quarter of the previous year
RS and ENA volumes for the year stood at 36,989.2 KL; blended realizations for RS and ENA were at
` 26.55 per BL
Ethanol sales in Q4 FY2012 was 5778 KL as compared to 8043 KL in the corresponding quarter last
year; average realizations stood at ` 27 per BL
(` million) Segment
Revenues % contribution
to Revenues PBIT % contribution
to PBIT
Q4 FY2012 453 6.5% 218 12.3%
Q6 FY2011 507 8.9% 204 10.6%
% Shift (10.6%) 7.4%
FY2012 1,477 5.9% 538 31.0%
13
70859.5
55785.0
24073.5 24654.0
0
10000
20000
30000
40000
50000
60000
70000
80000
FY 2011 FY 2012 Q6 FY2011 Q4 FY2012
Production (KL)
63179.3
54717.2
18942.0 16840.5
0
10000
20000
30000
40000
50000
60000
70000
FY 2011 FY 2012 Q6 FY2011 Q4 FY2012
Total Sales (KL)
25.10
26.70
26.16
26.66
24.00
24.50
25.00
25.50
26.00
26.50
27.00
FY 2011 FY 2012 Q6 FY2011 Q4 FY2012
Blended Realizations (` per BL)
*FY 2011 was for a period of 18 months
14160.4
16531.3
11096.4
7921.3
0
5000
10000
15000
20000
FY 2011 FY 2012 Q6 FY2011 Q4 FY2012
Ethanol production (KL)
14
(` million) Segment
Revenues % contribution
to Revenues PBIT % contribution
to PBIT
Q4 FY2012 1,309 18.8% 751 42.4%
Q6 FY2011 1,243 21.9% 754 39.3%
% Shift 5.3% (0.4%)
FY2012 3,030 12.0% 1,421 81.9%
Sales for the quarter stood at 2208.7 lakh units as compared to 2181.4 lakh units in the
corresponding quarter
Contribution of the co-generation segment has been vital for the Company especially in a
challenging sugar sector environment
15
10159.6
7393.0
3293.3 3435.6
0
2000
4000
6000
8000
10000
12000
FY 2011 FY 2012 Q6 FY2011 Q4 FY2012
Total Power Generation (Lakh units)
7110.8
5268.0
2181.4 2208.7
0.0
1000.0
2000.0
3000.0
4000.0
5000.0
6000.0
7000.0
8000.0
FY 2011 FY 2012 Q6 FY2011 Q4 FY2012
Total Power sales (Lakh units)
*FY 2011 was for a period of 18 months
3.99
4.02 4.02
3.93
3.85
3.90
3.95
4.00
4.05
FY 2011 FY 2012 Q6 FY2011 Q4 FY2012
Realization from Bagasse Based Sales(` per
unit)
16
About Balrampur Chini Mills Limited
Balrampur Chini Mills Limited (BCML) is one of the largest integrated sugar companies in India. The allied businesses of the Company comprise distillery operations, cogeneration of power and manufacturing of bio-compost. The Company presently has ten sugar factories located in Uttar Pradesh (India) having an aggregate sugarcane crushing capacity of 76,500 TCD, distillery and co-generation operations of 320 KLPD and 126 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 the years. For more information on the Company, please log on to www.chini.com.
For further information contact: Kishor Shah Balrampur Chini Mills Limited Tel: +91 33 2287 4749 Fax: +91 33 2287 3083 Email: [email protected]
Anoop Poojari / Dipti Yadava Citigate Dewe Rogerson Tel: +91 22 6645 1211 / 1218 Fax: +91 22 6645 1213 Email: [email protected] / [email protected]
http://www.chini.com/http://www.chini.com/http://www.chini.com/http://www.chini.com/http://www.chini.com/