- Revenue: INR677.9 crore (Q1 FY24) vs. INR914.6 crore (Q1 FY23).
- EBITDA: INR31 crore (Q1 FY24) vs. INR95.5 crore (Q1 FY23).
- PBT: INR2.0 crore (Q1 FY24) vs. INR67.8 crore (Q1 FY23).
- Cash Profit: INR15.1 crore (Q1 FY24) vs. INR69.5 crore (Q1 FY23).
- Sugar Crushed: 0.4 lakh tons (Q1 FY24) vs. 7.45 lakh tons (Q1 FY23).
- Sugar Production: 0.04 lakh tons (Q1 FY24) vs. 0.51 lakh tons (Q1 FY23).
- Average Sugar Realization: INR38,967 per ton (Q1 FY24) vs. INR36,387 per ton (Q1 FY23).
- Sugar Inventory: 1.3 lakh tons (June 30, 2024) vs. 0.48 lakh tons (June 30, 2023).
- Ethanol Production: 120.55 lakh liters (Q1 FY24) vs. 335.3 lakh liters (Q1 FY23).
- Ethanol Sales: 145.12 lakh liters (Q1 FY24) vs. 357.45 lakh liters (Q1 FY23).
- Ethyl Acetate Production: 92.76 lakh kg (Q1 FY24) vs. 101.85 lakh kg (Q1 FY23).
- Ethyl Acetate Sales: 95.02 lakh kg (Q1 FY24) vs. 101.78 lakh kg (Q1 FY23).
- Potable Spirits Production: 8.06 lakh cases (Q1 FY24) vs. 6.2 lakh cases (Q1 FY23).
- Potable Spirits Sales: 7.87 lakh cases (Q1 FY24) vs. 5.95 lakh cases (Q1 FY23).
- Revenue Mix: Sugar 45.7%, Ethanol 15.5%, Power 2.1%, Chemicals 9.5%, Potable Spirits 26.7% (Q1 FY24).
- Profit Mix: Sugar 60.6%, Ethanol 19.6%, Power 4.2%, Chemicals 2.8%, Potable Spirits 11.7% (Q1 FY24).
- Consolidated Revenue: INR678.2 crore (Q1 FY24) vs. INR915.1 crore (Q1 FY23).
- Consolidated EBITDA: INR31.3 crore (Q1 FY24) vs. INR95.7 crore (Q1 FY23).
- Consolidated PBT: INR2.2 crore (Q1 FY24) vs. INR68 crore (Q1 FY23).
- Consolidated PAT: INR1.6 crore (Q1 FY24) vs. INR45.4 crore (Q1 FY23).
- Consolidated Cash Profit: INR15.4 crore (Q1 FY24) vs. INR69.7 crore (Q1 FY23).
Release Date: August 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Average sugar realization increased by about 7% to INR38,967 per ton compared to the corresponding quarter last year.
- Sugar inventory increased to 1.3 lakh tons as of June 30, 2024, from 0.48 lakh tons as of June 30, 2023.
- Potable spirits segment showed significant improvement with production increasing to 8.06 lakh cases from 6.2 lakh cases and sales increasing to 7.87 lakh cases from 5.95 lakh cases in the corresponding quarter last year.
- Revenue from chemicals increased to 9.5% of the total revenue from 7.4% in the corresponding quarter last year.
- The company maintains a healthy balance sheet with sufficient cash reserves and no immediate expansion plans, indicating financial stability.
Negative Points
- Revenue from operations decreased to INR677.9 crore from INR914.6 crore in the same quarter last year.
- EBITDA dropped significantly to INR31 crore from INR95.5 crore in the corresponding quarter last year.
- PBT fell to INR2.0 crore from INR67.8 crore, and cash profit decreased to INR15.1 crore from INR69.5 crore in the corresponding quarter last year.
- Sugar production was minimal at 0.04 lakh tons compared to 0.51 lakh tons in the corresponding quarter last year due to lower cane availability.
- Ethanol production and sales were significantly lower due to the ban on the use of syrup and B-heavy molasses for ethanol production, despite additional volume from maize.
Q & A Highlights
Q: What is your outlook on ethanol currently? When do you think the policy would change and even for exports?
A: We've been in dialogue with the government, and we are hoping that they will allow syrup and B-heavy for the year '24-'25. As far as exports go, the file is in movement, but it's still early days. We expect clarity within the next four weeks regarding the policy on B-heavy and syrup.
Q: So the ethanol policy restrictions should not extend beyond September?
A: Yes, the new policy will start post its release. We are also waiting for the new price of syrup and B-heavy. The government knows there is enough sugarcane for '24-'25, so we expect clarity within the next four weeks.
Q: How has the rainfall been this year, and what is the general outlook for the crop?
A: Rainfall has been good so far, unlike the very heavy rainfall last year. Up till now, it has been perfect, and we hope it stays the same for the next eight weeks.
Q: What is the company's outlook and any expansion plans for the year '24-'25?
A: The company is healthy with a strong balance sheet and enough cash in the bank. There are no expansion plans for '24-'25 as of now. We are considering CBG and other projects, but those are still in process.
Q: There were reports of red rot disease affecting crops. What measures have been taken, and is it under control?
A: Red rot was an issue last year. We have started replacing the 238 variety with other varieties like 118 and 9423. The process began three years ago, and we aim to manage the red rot issue effectively.
Q: Can you share the plant-wise action being taken for both of your plants?
A: We have started changing the seed from 238 to 118. This plan is already in action, and a large part of the area impacted by red rot has been replaced with 118. This transition will continue.
Q: What percentage of the area has been replaced with 118, and what is the percentage of C 0238 right now?
A: It's a three-year transition. For the Rajpura plant, we purchased the most amount of seed from outside our factory. We see a large change in planting next year, but we also keep ratoon for the early part of the season.
Q: How much cane are we expecting next season, given the significant drawdown last year?
A: It's early days, but we believe both our plants will see a higher crush compared to last year. We will have a better idea in the next call.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
