Dhampur Sugar Mills Limited · NSE:DHAMPURSUG

Dhampur Sugar Mills — Q4 FY2016 Earnings Presentation

37 slides from Dhampur Sugar Mills's earnings presentation, May 2016

  1. Slide 1: Dhampur Sugar Mills Limited Q4FY16 Investor Presentation

    DHAMPUR SUGAR MILLS LIMITED Q4FY16 INVESTOR PRESENTATION MAY 2016

  2. Slide 2: Disclaimer

    Disclaimer This presentation is strictly confidential and may not be copied, published, distributed or transmitted. The information in this presentation is being provided by Dhampur Sugar Mills Limited (also referred to as the ‘Company’). By attending the meeting where this presentation is being mad

  3. Slide 3: Agenda

    Agenda 1. Business Overview 2. Segmental Information 3. Key Highlights 4. Financial Performance 5. Future Business Strategy Annexure – Facilities at a Glance 3

  4. Slide 4: Overview – Company

    Overview – Company We are an integrated sugar company producing sugar, ethanol and power in U.P. with a track record of several decades Dhampur Sugar Mills Sugar Power Distillery  45,500 TCD Total Installed Capacity  209 MW Total Capacity across 5 units  Approx. 125 MW Surplus Capacity for Chemic

  5. Slide 5: Overview – Operations

    Overview – Operations We operate with the goal of maximum efficiency and zero waste Farmers Bio-Fertilizer Spent Wash (around 190,000) Cane Development & Marketing Ethanol/RS/ENA Sugarcane Molasses Distillery (300,000 LPD) Clarification Crushing Sugar Company Sugarcane Juice Evaporation (5 Facilitie

  6. Slide 6: Overview – Facilities

    Overview – Facilities Dhampur Mansurpur Meerganj Rajpura Asmoli Uttar Pradesh Capacity Consolidated Dhampur Asmoli Rajpura Mansurpur Meerganj Sugar Crushing (TCD) 45,500 15,000 9,000 8,500 8,000 5,000 Sugar Refinery (TPD) 1,700 900 800 Renewal Energy (inc. Bio Gas 209 65 Bio Mass - 40 48 33 19 based

  7. Slide 7: Key Milestones

    Key Milestones  Expanded Rajpura sugar crushing capacity to 8500 TCD  Co-generation plant at Rajpura (48MW) and Methane based power 2015 generation at Asmoli (4MW)  Expanded sugar crushing capacities - Dhampur to 15,000 TCD, Asmoli to 9000TCD and Mansurpur to 8000TCD  Installed  New sugar refin

  8. Slide 8: Shareholding Pattern and Corporate Structure

    Shareholding Pattern and Corporate Structure Shareholding Pattern (As on March 31, 2016) Corporate Structure Promoter 55.78% Owns and operates all Dhampur Sugar Mills Limited five facilities Public 40.66% 100% Dhampur International Pte Ltd. Trading of Commodities Institutional 3.56% 8

  9. Slide 9: Agenda

    Agenda 1. Business Overview 2. Segmental Information 3. Key Highlights 4. Financial Performance 5. Future Business Strategy Annexure – Facilities at a Glance 9

  10. Slide 10: Sugar

    Sugar Improving sugar prices and recovery rates driving the turnaround Rising cane crushing… And improving sugar production & sales… 4,511 4,583 4,831 517 534 4,062 417 415 436 375 397 296 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 Cane Crushed ('000 tonnes) Sugar Produced ('000 tonnes) Sugar Sold ('00

  11. Slide 11: Power

    Power Multi-fuel high-pressure boilers run efficiently and generate valuable profits Generation and Average realizations are increasing… Generating attractive EBITDA margins 5.05 45.8% 42.4% 39.9% 39.6% 4.71 4.26 4.31 660.2 574.9 570.6 4,789 537.5 430.7 3,553 3,458 3,804 377.5 332.5 373.1 FY13 FY14

  12. Slide 12: Distillery

    Distillery Among India’s largest manufacturers of Ethanol Improving average realizations… Driving impressive growth in EBITDA margins 41.55 38.68 36.93 17.1% 17.8% 30.94 13.0% 13.4% 71 61 38 38 37 31 25 14 3,296 4,383 3,267 4,130 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 RS/ENA/Ethanol Produced (in mn

  13. Slide 13: Agenda

    Agenda 1. Business Overview 2. Segmental Information 3. Key Highlights 4. Financial Performance 5. Future Business Strategy Annexure – Facilities at a Glance 13

  14. Slide 14: Key Highlights

    Key Highlights Experienced Established brand Promoters and with a track Management record of Team innovation Integrated Improving business Sectoral Trends processes Strong relationship with farmers 14

  15. Slide 15: Established Brand with a Track Record of Innovation

    Established Brand with a Track Record of Innovation  Total sugarcane crushing capacity of 45,500 TCD Leading Sugar  Five sugar mills, each with a crushing capacity of 5,000 TCD or more Manufacturer  Our size allows economies of scale  Dhampur unit crushed 1.59 mn tonnes sugarcanes in FY 2016, la

  16. Slide 16: Integrated Business Processes

    Integrated Business Processes Enables diversification and flexibility in operations  Helps counter cyclicality in the sugar business  During FY14-16, over 50% of Revenue was contributed by the Sugar segment, which saw negative EBITDA margins. Still the consolidated EBITDA margins remained between

  17. Slide 17: Strong Relationship with Farmers

    Strong Relationship with Farmers A hard-earned goodwill among the farmers of our reserved areas  Timely payment to sugarcane farmers No pending arrears  No principal amount outstanding to the farmers as on May 2, 2016  Competitive advantage assuring unhindered raw material supply  Dedicated cane

  18. Slide 18: Improving Sectoral Trends (1/4)

    Improving Sectoral Trends (1/4) Global Trends SS15-16 is the first year of deficit, after 4 consecutive surplus years Brazil’s cane is diverted towards Ethanol production 4% 59% 57% 1% 55% -1% 52% -4% 175 164 173 168 175 171 168 174 23 26 27 28 SS 2012-13 SS 2013-14 SS 2014-15 SS 2015-16 (P) SS 2012

  19. Slide 19: Improving Sectoral Trends (2/4)

    Improving Sectoral Trends (2/4) India Trends Domestic sugar production is expected to shrunk to a nearly 4 states contribute c.83% of total domestic sugar production deficit situation in SS 2015-16 28.3 AP Others 25.7 25.6 24.8 24.3 24.1 24.8 3-5% 8-10% 23.0 GJ 3-5% MH TN 31-33% 7-9% KA 14-16% UP 27

  20. Slide 20: Improving Sectoral Trends (3/4)

    Improving Sectoral Trends (3/4) India Trends Sugar prices have declined for last three SS, SS16 to see recovery But the regulated sugarcane prices have increased, except in UP 297** 287* 285 285 285 280 280 280 280 278 278 278 265# 265# 274 235 230 9.9 220 210 8.6 8.4 170 7.5 INR / quintal 32.4 30.2

  21. Slide 21: Improving Sectoral Trends (4/4)

    Improving Sectoral Trends (4/4) Strong and consistent government support Subsidies for cane  UP state government announced INR 35/quintal* subsidy for cane procurement for SS2015-16 procurement  Supports unit economics of both the mills and the farmers Financial Incentives  INR 60,000mn in soft l

  22. Slide 22: Experienced Promoters and Management Team

    Experienced Promoters and Management Team Direct involvement of promoter directors with decades of experience  Around 56 years of experience  Around 47 years of experience  Chemical Engineer and a reputed Sugar  Founder President of Indian Agro paper Mills Technologist and Entrepreneur Associati

  23. Slide 23: Agenda

    Agenda 1. Business Overview 2. Segmental Information 3. Key Highlights 4. Financial Performance 5. Future Business Strategy Annexure – Facilities at a Glance 23

  24. Slide 24: Annual Financial Trends

    Annual Financial Trends Improving Financial Performance Impressive growth in Revenue and EBITDA Margin in FY 2016 Losses have shrunk and it’s time to make profits again 15% 227 259 1.5% 1.1% 10% -0.7% 8% 7% -4.1% (128) 15,329 18,978 18,561 23,250 (784) FY 2013 FY 2014 FY 2015 FY 2016 FY 2013 FY 2014

  25. Slide 25: Quarterly Financial Trends

    Quarterly Financial Trends Improving Financial Performance Increasing Revenues… Sharp Improvement in EBITDA and EBITDA Margins… 31.0 26% 22% 27.0 27.7 25.6 9% 23.9 7% 929 429 489 1,457 (272) -5% 4,296 5,087 6,247 5,283 5,615 Mar'15 Jun'15 Sep'15 Dec'15 Mar'16 Mar'15 Jun'15 Sep'15 Dec'15 Mar'16 Reven

  26. Slide 26: Summary Financials

    Summary Financials Key Balance Sheet Items Key Profit & Loss Items (INR million) (INR million) Particulars Mar-13 Mar-14 Mar-15 Mar-16# Particulars Mar-13 Mar-14 Mar-15 Mar-16# EQUITY AND LIABILITIES Revenue from Operations (incl. excise duty) 15,329 18,978 18,561 23,250 Shareholders’ Funds 4,871 4,

  27. Slide 27: Agenda

    Agenda 1. Business Overview 2. Segmental Information 3. Key Highlights 4. Financial Performance 5. Future Business Strategy Annexure – Facilities at a Glance 27

  28. Slide 28: Future Business Strategy

    Future Business Strategy We are currently one of the leading integrated sugar companies in India. We plan to increase our asset utilization while we keep improving on our best practices  Be agile in our response to changing industry  Continue educating farmers on best farming trends of demands/pri

  29. Slide 29: Agenda

    Agenda 1. Business Overview 2. Segmental Information 3. Key Highlights 4. Financial Performance 5. Future Business Strategy Annexure – Facilities at a Glance 29

  30. Slide 30: Dhampur Facility (1/3)

    Dhampur Facility (1/3) Mill House and Cane Receiving Station Bagasse Handling Power Generator Power Generation yards, ESPs and Flue Stacks 30

  31. Slide 31: Dhampur Facility (2/3)

    Dhampur Facility (2/3) Bagasse Dryer Cooling Towers Distillation Column Ethanol Plant 31

  32. Slide 32: Dhampur Facility (3/3)

    Dhampur Facility (3/3) Sugar Sorting Water Treatment Organic Manure Pushp Niketan School run at Dhampur 32

  33. Slide 33: Asmoli Facility

    Asmoli Facility Mill House Flue Stacks and Bagasse Handling Ethanol Plant Fermenters 33

  34. Slide 34: Rajpura Facility

    Rajpura Facility Plant Bio-Fertilizer Lab Bio-Fertilizer Plant Finished Bio-Fertilizer Products 34

  35. Slide 35: Mansurpur Facility

    Mansurpur Facility Mill House Refinery Power House Control Room Boiler and Chimney 35

  36. Slide 36: Meerganj Facility

    Meerganj Facility Plant Overview Entry Gate Boiler Chimney 36

  37. Slide 37: Contact details

    241 Okhla Industrial Estate Phase III, New Delhi – 110020. Tel: 91 - 11 – 30659400 Fax: 91 - 11 – 41612466 Email: [email protected] Website: www.dhampur.com

Dhampur Sugar Mills — Q4 FY2016 Earnings Presentation on 6ix