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Earnings Conference Call Overview • Date: July 26, 2024 • Focus: Unaudited financial results for Q1 FY '25 and insights into sugar and ethanol industries. • Key Participants: Managing Director, CFO, and other management personnel.
Financial Highlights • Operational Revenue: Rs. 637.84 crores (down from Rs. 676.26 crores in Q1 FY '24). • Profit Before Tax: Rs. 1.71 crores (slight increase from Rs. 1.67 crores). • Profit After Tax: Rs. 1.11 crores (up from Rs. 1.09 crores). • Sugar Segment Revenue: Rs. 428.77 crores (decrease noted). • Ethanol Production: Decline due to restrictions on sugar diversion.
Sugar and Ethanol Market Insights • Sugar Cane Crush: Estimated at over 310 million tonnes for 2023-2024. • Domestic Consumption: Projected at 28.5 million tonnes. • Minimum Selling Price: Anticipated increase to stabilize prices. • Ethanol Blending Ratio: Currently at 13.14%, with hopes to increase to 18%.
Production and Capacity Updates • Sugar Production: Lower at 26,800 tonnes compared to 50,000 tonnes the previous year. • Grain-Based Distillery: Expected operational by mid-November. • Capacity Utilization: Plans to increase crushing capacity with a growth rate of 11.4% anticipated.
Challenges and Strategic Responses • Molasses Supply: Lower availability impacting ethanol production. • Government Support: Requested for sugar exports and diversion to ethanol. • Pricing Power in Liquor Segment: Limited due to government-fixed prices.
Future Outlook • Sugar Sales: Expected increase due to higher stock levels and potential exports. • Recovery Rates: Improvement anticipated with new cane varieties. • Market Conditions: Optimism about leveraging resources for growth amidst challenges.
Conclusion • Overall Sentiment: Cautiously optimistic outlook contingent on favorable weather and market conditions, with a focus on operational flexibility and strategic investments.
Dhamapur Bio Organics Limited Earnings Conference Call Summary
Overview • Date: April 26, 2024 • Moderated by: Mr. Navin Agrawal • Featured Speakers: Mr. Gautam Goel (Managing Director), Mr. Nalin Gupta (CFO)
Financial Highlights • Q4 FY '24 Results: • Revenue: INR 594.62 crores (down from INR 917.48 crores in Q4 FY '23) • EBITDA: INR 87.06 crores (up from INR 15.61 crores) • EBITDA Margin: 14.64% • Full-Year Results: • Revenue: INR 2,361.16 crores (down from INR 2,648.60 crores in FY '23) • Full-Year EBITDA: INR 161.60 crores (down from INR 212.91 crores) • Segment Performance: • Sugar Segment: Revenue dropped to INR 437.98 crores (from INR 807.88 crores) • Biofuels and Spirits: Revenue decreased to INR 98.50 crores (from INR 151.98 crores)
Market Conditions • Sugar Market: • Volatility noted with significant production reductions in Maharashtra and Karnataka. • Final estimates showed over 34 million metric tons of sugar production in India. • Request for an increase in minimum selling price due to rising production costs. • Ethanol Market: • Increased ethanol prices influencing production decisions. • Anticipated surplus in the international sugar market for 2024-2025.
Production and Sales • Ethanol Sales: • Total sales: 74.35 million bulk liters for FY 2024. • Average realization: INR 60.02 per BL (up from INR 58.74). • Cane Crushing: • Crushed 41.44 lakh tons of cane in FY24 (down from 43.22 lakh tons in FY23). • Spirits Segment: • Revenue: INR 47.67 crore in Q4 FY24 (down from INR 131.47 crore in Q4 FY23).
Future Outlook • Production Expectations: • Anticipated sugar production of 27,500 tons for the current quarter. • Expected increase in sugar quotas for May and June by 4% to 5%. • Capital Expenditure: • Minimal future capex focused on maintenance and retrofitting. • Long-term loan balance: INR 241.44 crore.
Strategic Initiatives • Ethanol Policy: • Optimism about favorable policies for diversification. • Plans to convert existing distillery into a dual-feed distillery. • Branded Sugar Market: • Commitment to maintaining margins without discounting. • Projected growth rate of 10% to 15% in branded sugar.
Challenges and Considerations • Employee Costs: • Significant drop in employee costs from INR 33.79 crores to INR 22.81 crores. • ESG Initiatives: • Commitment to ESG practices managed prudently to avoid margin impacts. • Market Dynamics: • Ongoing efforts to adapt to market conditions while enhancing operational efficiency.
Conclusion • The company remains focused on cautious growth, enhancing profitability, and improving operational capabilities amidst market challenges.
Dhampur Bio Organics Q3 FY24 Earnings Conference Call Summary
Submission Details • Date of submission: January 30, 2024 • Conference call date: January 22, 2024 • Participants: Managing Director Gautam Goel and CFO Nalin Gupta
Key Highlights • Sugar Production Impact: • Reduced sugarcane yields due to uneven rainfall in Maharashtra and Karnataka. • Projected sugar production: ~31 million tonnes. • Ethanol Production Decline: • Government restrictions on sugar diversion to ethanol. • Year-over-year ethanol production decreased from 25.06 million BL to 17.35 million BL. • Financial Performance: • Q3 FY24 adjusted EBIT: Rs. 5.11 crores (1.20% margin), improved from negative EBIT in Q3 FY23. • Revenue dropped to Rs. 424.78 crores from Rs. 693.79 crores in Q3 FY23. • EBITDA fell to Rs. 12.89 crores (3.03% margin), down from 4.90%. • Loss after tax: Rs. 4.16 crores vs. profit of Rs. 13.74 crores in Q3 FY23.
Segment Performance • Sugar Segment: • Revenue: Rs. 237.80 crores; EBIT loss of Rs. 9.17 crores. • Increased sugar production but decreased sales volume. • Biofuel Segment: Revenue decline noted. • Country Liquor Segment: Growth in both revenue and EBIT.
Industry Outlook • Sugar Industry: • No anticipated sugar deficit; potential price increase post-elections. • Expected cane crushing to be 4-5% higher than the previous year. • Distillery Operations: • Currently not multi-feedstock; evaluating conversion for next year. • Cautious approach due to policy volatility.
Strategic Discussions • Raw Materials for Country Liquor: • Transition from B-heavy to C-molasses planned. • Inventory Valuation: Clarifications provided on gross profit impacts. • Legal Case Adjustment: Rs. 20 crore adjustment related to UP Government levy explained.
Future Projections • Cost of Sugar Production: Expected lower than previous year (Rs. 36 to Rs. 36.50 per kg). • Profitability Concerns: Lower profitability in sugar segment due to reduced sales and government quotas. • Biofuel Segment: Consideration of dual feed distillery and ongoing discussions for retrofitting.
Company Strategy • Cane Crush and Recovery Rates: Steady increase anticipated, impacting production costs positively. • Branding Strategy: Dhampure brand launched, but significant investment in branding not prioritized. • Pharma-Grade Sugar Sales: Projected 40-50% rise in volume and realization compared to the previous year.
Conclusion • Gautam Goel thanked participants and invited further questions via email.
Dhampur Bio Organics Ltd. Q2 FY24 Earnings Conference Call Summary
Overview • Date of Call: October 11, 2023 • Transcript submitted to BSE and NSE on October 17, 2023 • Participants: Managing Director Gautam Goel and CFO Nalin Gupta
Domestic Sugar Industry Insights • Projected decrease in India's sugar production for 2023-24 due to inconsistent rainfall. • Sugar prices expected to remain firm due to tight global production.
Financial Performance • Q2 FY24 Revenue: INR 666 crores (up 23% from INR 542 crores in Q2 FY23) • Profit Before Tax: Fell from INR 10.32 crores to INR 1.23 crores. • EBITDA: Decreased to INR 21 crores from INR 28 crores year-on-year (EBITDA margin: 3.1%). • H1 FY24 Revenue: INR 1,342 crores (up 29%). • Debt Management: Repaid INR 117 crores in long-term loans; debt-equity ratio maintained at 0.25.
Segment Performance • Sugar Segment: Generated INR 459 crores in Q2 FY24 with improved EBIT margins. • Biofuel Segment: Revenue increased by 8.6% to INR 157 crores.
Strategic Adjustments • Considering conversion of existing Asmoli unit for multi-feed distillery instead of new facility. • Plans to divert more sugarcane into sugar production rather than ethanol.
Market Challenges and Expectations • Anticipated stable sugar prices despite challenges from pest infestations. • No expected increases in government export quotas due to lower sugar production forecasts.
Investor Inquiries • Concerns about ethanol realization and potential financial impacts of an export ban. • Discussions on sugar production estimates, pricing, and government policies (e.g., Minimum Support Price). • Clarifications on trade receivables, inventory, and the impact of GST on molasses.
Future Outlook • Optimism for improved recovery rates and sugar prices. • Expected start of sugar crushing in early November, with a target of over 45 lakh tons production.
Closing Remarks • Encouragement for participants to reach out with further questions. • Assurance of improved pest control measures and focus on productivity-enhancing cane varieties.
Dhampur Bio Organics Limited Earnings Conference Call Summary
Call Details • Date: August 2, 2023 • Earnings Call Date: July 27, 2023 • Participants: Mr. Gautam Goel (Managing Director), Mr. Nalin Gupta (CFO)
Key Operational Highlights • Cane Crush: 550,000 metric tons (7.4% growth YoY) • Sugar Sales: 97,967 tons (including exports) • Ethanol Production: 23.87 million liters • Ethanol from B-heavy Molasses: Increased to 18.65 million liters (Q1 FY '24)
Capital Expenditures • Investment: INR 120 crore for expanding sugar plants • Crushing Capacity Increase: From 22,000 TCD to 29,500 TCD • New Distillery: Planned capacity of 250,000 liters per day, budgeted at INR 240 crore, operational by Q2 FY '26
Market Overview • Current Sugar Production in India: Estimated at 32.8 million tons • Exports: Approximately 6.35 million tons • Domestic Prices: Firm due to lower production and government quotas • Global Production Trends: Decline expected in India and Thailand; Brazil projected at 40 million tons
Financial Performance • Revenue from Operations: Increased from INR 495.7 crores to INR 676 crores • Ethanol Sales Growth: From 20.89 million liters to 23.86 million liters • Profit Before Tax: Rose to INR 16.78 crores • Sugar Segment Revenue: INR 455 crores, EBIT at INR 20.57 crores • Debt-Equity Ratio: 0.23, with an A+ rating
ESG Initiatives • Commitment to sustainable practices and social programs • Upcoming publication of the first sustainability report
Q&A Session Highlights • Capital Expenditure Inquiry: New 250 KL PD plant costs discussed • Cane Crushing Capacity: Confirmed at 22,000 tons per day, with 50% utilization • Impact of FCI Rice Supply Decision: Potential disruptions acknowledged
Strategic Focus • Cost Reduction Efforts: Emphasis on controlling pest infestations • Future Profitability Uncertainty: Challenges in predicting due to variable costs • Ethanol Capacity: Current capacity at 312,500 liters per day, with expected production of 11 crores liters of alcohol
Conclusion • Management highlighted growth trajectory, operational efficiency, and proactive strategies to navigate industry challenges.
Dhampur Bio Organics Limited Q4 and FY 2023 Earnings Conference Call Summary
Conference Call Overview • Date: April 27, 2023 • Moderated by: Mr. Navin Agrawal (SKP Securities) • Key Executives: • Mr. Gautam Goel (Managing Director) • Mr. Nalin Gupta (CFO) • Mr. Mukul Sharma (Chief of Staff)
Financial Highlights • Revenue Growth: • Q4 revenue: INR 917.48 crores (up from INR 505.86 crores) • FY revenue: INR 2,648.60 crores (up from INR 1,564.09 crores) • Profit Before Tax (PBT): • Q4 PBT: INR 94.13 crores • FY PBT: INR 135.78 crores • Sugar Segment: • Revenue per kg: INR 36.68 • Sugar sales: 4.53 lakh metric tons (including 0.7 lakh tons exports)
Segment Performance • Biofuel Segment: • Revenue: INR 839.39 crores (up from INR 274.83 crores) • Ethanol sales: 885.21 lakh bulk liters • Country Liquor Sales: • Revenue: INR 275.6 crores in FY '23
Production and Operational Insights • Cane Crushing: • Increased to 23.11 lakh metric tons in Q4 • Ethanol Production: • Doubled to 980.59 lakh bulk liters • Bagasse Sales: • Sold worth INR 0.53 crores
Market Conditions • Sugar Production: • Estimated at 10.5 million tons for the season • 5.4 million tons exported out of 6 million tons permitted • Domestic Sugar Prices: • Increased by 7% in April due to lower production • Global Market: • Tight conditions with production shortfalls in major countries
Management Strategies • Pest Management: • Addressing pest-related damage affecting over 70% of cane crush • Cane Development: • Introducing new cane varieties for improved yields • Capex Plans: • INR 65 crores planned for Meerganj unit expansion and energy efficiency
Q&A Highlights • Bagasse Usage: • Primarily used for fueling operations; increased production allows for sales • Ethanol Production Costs: • Syrup-derived ethanol: INR 54/liter; B-heavy ethanol: INR 45/liter • Capital Expenditures: • Focus on Meerganj unit; no further expansion in country liquor segment
Future Outlook • Sugar Inventory: • Projected drawdown of approximately 1.5 million tons • Price Stability: • Confidence in steady or slightly increasing sugar prices • Impact of El Niño: • High probability of occurrence, but minimal expected production drops
Overall, management expressed optimism about future capacity utilization and expansion efforts.
Dhampur Bio Organics Limited Q3 FY23 Conference Call Summary
Conference Call Overview • Date: January 24, 2023 • Moderator: Mr. Navin Agrawal (SKP Securities) • Key Management Present: • Mr. Gautam Goel (Managing Director) • Mr. Sandeep Sharma (Chief Operating Officer) • Mr. Nalin Kumar Gupta (Chief Financial Officer) • Mr. Mukul Sharma (Chief of Staff) • Ms. Sonika Malhotra (Senior Manager, Finance & Accounts)
Financial Highlights • Revenue: Increased by 100% to Rs. 696.1 crore • Profit Before Tax (PBT): Rs. 20.2 crore (down from Rs. 24.6 crore YoY) • Revenue Breakdown: • Sugar Segment: Rs. 565.92 crore (69% of total revenue) • Biofuels Segment: Rs. 250.25 crore (significant growth due to ethanol sales) • Challenges: Decline in overall margins due to lower sugar recovery and higher costs.
Industry Insights • Sugar Production: Revised downward projections due to adverse weather and pest infestations. • Ethanol Sector: Government incentives for flex-fuel vehicles; plans to expand ethanol production to 250 stations in five years. • Export Quota: India has released a 6 million tonnes export quota under the MAEQ scheme.
Operational Challenges • Sugarcane Yields: Decline attributed to regional factors; ongoing pest control efforts. • Excise Duty Impact: Significant effect on revenue from country liquor sales. • Rising Expenses: Increased costs related to sugar manufacturing and headcount.
Future Outlook • Ethanol Production Capacity: Current capacity of 250 kiloliters per day for cane and 312.5 kiloliters for molasses/syrup. • Production Goals: Optimism about maintaining sugarcane crushing levels and improving margins in Q4. • CAPEX Plans: Consideration for increasing ethanol capacity and addressing cane-related issues.
Conclusion • Management expressed cautious optimism about future production results and margin improvements, with a focus on operational efficiencies and new sugarcane varieties.