Dalmia Dalmia Bharat rat Su Sugar Dalmia Dalmia Bhar Bharat Suga Su gar r & & Ind Industries ustries Limit Limited ed September 2016
Dalmia Dalmia Contents Bharat rat Su Sugar About Company Financials & Operational Performance Global Scenario 2
Dalmia Dalmia Contents Bharat rat Su Sugar About Company Financials & Operational Performance Global Scenario 3
Dalmia Dalmia About Company Bharat rat Su Sugar Distillery Plant of 60 KLPD commissioned in Dalmia Bharat Sugar and Industries Ltd. 2016 Maharashtra - Geographically well diversified - Integrated Sugar Operations Step towards sustainable model - Acquisition of another mill at Sangli, 2015 Maharashtra of 1,750 TCD, total crushing capacity increased to 29,250 TCD Only listed Company operating from - Cogen expansion at Maharashtra taking total Maharashtra. renewable energy capacity to 119 MW Enhanced crushing capacity in Maharashtra to 2014 5,000 TCD Capacity Details: Regional Diversification Unit Sugar Distillary Cogeneration - Acquisition of sugar mill in Kolhapur, (TCD) ('000 KLPD) (MW) 2013 Maharashtra crushing with capacity of 2,500 Ramgarh 7,500 0 25 TCD Jawaharpur 7,500 80 27 - Total Capacity increased to 25,000 TCD Nigohi 7,500 0 27 UP 22,500 80 79 Kolhapur 5,000 60 23 Cogeneration Expansion, total capacity 2008 Ninaidevi 1,750 0 0 increased to 79 MW in U.P. Maharashtra 6,750 60 23 Total 29,250 140 102 Diversification & Integration Wind farm of 16.5 MW at Tamil Nadu. - Presence in 3 location in U.P. 2007 - Sugar Capacity expansion to 22,500 TCD - Integration of Sugar Operations Only Company in U.P. region to • Distillery commissioning - 80 KLPD • Cogen commissioning - 54MW diversify business to Maharashtra Sugar Capacity at One Location in U.P. of 7500 2006 TCD 4
Dalmia Dalmia Expanding footprints in Maharashtra Bharat rat Su Sugar Work-in-progress to increase Maharashtra crushing capacity to 10,000 TCD from existing 6,750 TCD. “Capacities in Maharashtra scaled up to 23% in FY16 and 31% in near term within a span of 5 years .” 5
Dalmia Dalmia Contents Bharat rat Su Sugar About Company Financials & Operational Performance Global Scenario 6
Dalmia Dalmia Assuring better Cane quality Bharat rat Su Sugar Highest sugar Sugar Recovery % – U.P. & Maharashtra recovery amongst peers DBSIL-UP DBSIL- Maharashtra 13.7 13.3 13.2 13.0 11.7 10.3 10.1 9.4 9.1 FY12 FY13 FY14 FY15 FY16 12.1 Cane Crushed (Lakh MT): Sugar Recovery % (Consolidated): 31 31 10.9 28 28 10.5 9.9 24 21 9.1 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY12 FY13 FY14 FY15 FY16 7
Dalmia Dalmia Focus towards increasing Ethanol Production: Bharat rat Su Sugar Ethanol Production and realisation: Focused towards better realisation distillery product. 18,000 48.0 16,000 42.5 43.0 14,000 38.7 12,000 37.1 38.0 10,000 39.0 37.4 8,000 33.0 33.8 6,000 33.0 4,000 30.7 28.0 2,000 4,673 0 13,196 0 15,218 4,237 12,618 6,405 1,670 16,711 0 23.0 FY2012 FY2013 FY2014 FY2015 FY2016 ENA Production (KL) Ethanol Production (KL) ENA Realization (Rs./ L) Ethanol Realization (Rs./ L) 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%. 8
Dalmia Dalmia Regional diversification leading to higher power Bharat rat Su Sugar realisations Region-wise power Export: 2603 2347 2247 2114 2021 1437 1028 809 32 Region-wise power realisation rates: FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 6.3 U.P. (Lakh Units) Maharashtra (Lakh Units) 6.2 5.3 5.2 5.2 Higher power tariff in Maharashtra region 4.8 4.8 4.3 4.2 4.2 4.2 3.9 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 U.P. (Rs./ Kwh) Maharashtra (Rs./ Kwh) Consolidated (Rs./ Kwh) 9
Dalmia Dalmia Focus on Maharashtra Region Bharat rat Su Sugar Kolhapur region - Higher cogen highest sugar recovery Linkage of cane prices realisation in India with Sugar realisation Rs. 6.25/ unit 13% Proximity to Ports Expected benefits due to 50% Higher Operating Days Government of India 150-160 Days Higher Cane Yield intervention on raw sugar imports No restriction on cane area reservation DBSIL: Only listed company operating from Maharashtra… 10
Dalmia Dalmia Contents Bharat rat Su Sugar About Company Financials & Operational Performance Global Scenario 11
Dalmia Dalmia Financial Performance Bharat rat Su Sugar 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% 12
Dalmia Dalmia Balance Sheet as on 31st March, 2016 Bharat rat Su Sugar 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 13
Dalmia Dalmia Financial Performance Bharat rat Su Sugar EBITDA (Rs. Crore) Net Operating Income (Rs. Crore) 101% 227 1,166 1,150 308% 29% 113 86 343 265 21 FY15 FY16 Q1'16 Q1'17 FY15 FY16 Q1'16 Q1'17 Profit before Tax (Rs. Crore) Profit after Tax (Rs. Crore) 58 48 47 48 1.5 0.29 FY15 FY16 Q1'16 Q1'17 FY15 FY16 Q1'16 Q1'17 -10 -11 14
Dalmia Dalmia Improved profitability Bharat rat Su Sugar EBITDA (Rs. Cr.) & EBITDA Margin (%): Operating Profit (EBITDA) Rs. Crore Operating Profit Margin % 19% 227 10% 15% 10% 9% 9% 150 113 108 65 63 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Downstream Products* Share in total revenue (%) 2016 2011 Cogen + Cogen + Distillery Distillery 22% 13% Increased share of downstream products contributing to higher profitability margins. Sugar Sugar 78% 87% * Cogen & Distillery 15
Dalmia Dalmia Improved realisations: Bharat rat Su Sugar 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% 16
Dalmia Dalmia Contents Bharat rat Su Sugar About Company Financials & Operational Performance Global Scenario 17
Dalmia Dalmia Indian Sugar Production and Consumption Trend Bharat rat Su Sugar 9.3 9.1 7.5 7.1 28.3 6.6 26.3 26.0 25.6 25.6 25.1 25.1 24.4 24.4 24.2 23.2 22.8 22.6 20.8 6.0 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… 18
Dalmia Dalmia Lower per capita consumption; Bharat rat Su Sugar higher growth potential Per capita sugar consumption (kg) in top 10 Sugar Producing countries: 67 47 46 41 39 38 34 28 20 12 Brazil Australia Thailand Russia Mexico EU US Pakistan India Mainland China Per capita sugar consumption (kg) Source: Organisation for Economic Co-operation and Development 36 24 22 20 Developed Developing India World Countries Countries Source: Organisation for Economic Co-operation and Development 19
Dalmia Dalmia India Sugar Industry Bharat rat Su Sugar Strong and stable prices expected in future: 35.1 29.0 36.0 28.0 33.1 32.3 32.0 33.0 27.0 26.3 29.9 31.0 25.4 30.0 25.1 25.0 24.4 24.4 27.0 23.0 24.0 21.0 21.0 10-11 11-12 12-13 13-14 14-15 15-16 Production (MnT) Average Sugar Prices (Rs/ Kg) Source: ISMA 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. 20
Dalmia Dalmia Sugar Industry - Regulations Bharat rat Su Sugar Post April’ 2013: Pre April’ 2013 Mandatory Ethanol Blending Relaxation Controls Government of India mandated 5% blending of ethanol Levy Levy • Higher chances of cane prices to be linked with sugar Sugar Sugar prices in U.P. as already been adopted at Maharashtra and Karnataka. Release Release • U.P. state government has been considerate by not Mechanism Mechanism increasing the SAP for last 4 years. • The gap between U.P. SAP and FRP has reduced. Adopted Rangarajan Cane formula in Pricing Maharashtra and Karnataka Packing in Jute Bags Packing in Only 20% quantity Jute Bags required to pack in Jute Bags 21
Dalmia Dalmia Contents Bharat rat Su Sugar About Company Financials & Operational Performance Global Scenario 22
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