Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BCL Industries Ltd (BOM:524332, Financial) reported a strong financial performance with total revenue reaching INR 748 crore, marking a 55% year-on-year increase.
- The company achieved a significant growth in ethanol volumes, with a 73% increase, contributing to a 95% year-on-year rise in revenue from the ethanol segment.
- BCL Industries Ltd successfully reached full utilization of its recently added 100 KLPD capacity at its Bathinda facility, enhancing operational efficiency.
- The acquisition of Gold Distilleries Private Limited is expected to bolster BCL's position in the grain-based ethanol manufacturing sector, with plans to establish a 250 KLPD plant.
- The company is focusing on green energy solutions, including the establishment of a 75 KLPD biodiesel plant and a biogas plant, aligning with India's green energy initiatives.
Negative Points
- The company faces challenges due to rising maize prices, which have impacted EBITDA margins in the distillery segment.
- BCL Industries Ltd's exit from the edible oil business is expected to decrease overall revenue, although the impact on profitability is anticipated to be minimal.
- There is uncertainty regarding the completion timeline for the 75 KLPD biodiesel plant, with expectations set for April or May of the next calendar year.
- The company is experiencing delays in the commissioning of new capacity expansions, with conservative timelines extending to FY 27-28.
- BCL Industries Ltd's stock is currently categorized under the edible oil segment, which may not accurately reflect its primary revenue source from ethanol, potentially affecting its market valuation.
Q & A Highlights
Q: What is the status and projected completion of the 75 KPD biodiesel plant?
A: The biodiesel plant is planned to be completed by April or May of the next calendar year. - Kushal Mittal, Joint Managing Director
Q: How will BCL's exit from the edible oil business affect its financial position?
A: The revenue will decrease significantly, but the overall profit is not expected to decrease much since the edible oil business is low margin. The addition of biodiesel is expected to help maintain profitability. - Kushal Mittal, Joint Managing Director
Q: What are the company's strategies to address challenges posed by rising maize prices?
A: BCL has long-standing relationships with sellers and traders, which helps in procuring maize at competitive rates. The company is also innovating and planning according to crop availability. - Kushal Mittal, Joint Managing Director
Q: What is the expected timeline for the new 150 KLPD and 250 KLPD plants?
A: The 150 KLPD plant is expected to be commissioned within 12 months after order placement, likely by FY 26. The 250 KLPD plant is conservatively expected to be operational by FY 27-28. - Kushal Mittal, Joint Managing Director
Q: How does BCL plan to fund the new plant expansions?
A: Funding options are currently being explored, and more clarity will be provided in the future. - Kushal Mittal, Joint Managing Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
