Summary Links:
* Summaries created by AI. Please verify by checking the actual call transcript.
Dhampur Sugar Mills Limited Earnings Conference Call Summary
Date and Context • Date of Call: August 5, 2024 • Financial Results: Unaudited results for the quarter ending June 30, 2024 • Management Present: Managing Director, CFO, COO, VP of Finance
Financial Performance • Revenue Decline: • Q1 FY25 Revenue: Rs. 677.9 crore (down from Rs. 914.6 crore YoY) • EBITDA: • Fell to Rs. 31 crore (from Rs. 95.5 crore YoY) • Profit Before Tax: • Dropped to Rs. 2 crore (from Rs. 67.8 crore YoY) • Sugar Production: • Only 0.04 lakh tonnes produced (compared to 0.51 lakh tonnes previous year) • Ethanol Production: • Decreased significantly due to a ban on syrup and B-Heavy molasses • Sugar Realization: • Increased by 7% year-on-year
Challenges Faced • Lower Sugarcane Yields: • Resulting from heavy rains • Ethanol Production Ban: • Impacting revenue and production
Management Outlook • Future Ethanol Policies: • Optimism regarding upcoming policies • Crop Outlook: • Favorable rainfall noted • Balance Sheet: • Healthy, with no immediate expansion plans
Investor Q&A Highlights • Red Rot Disease: • Confirmed as an ongoing issue; plans for a five-year transition to new cane varieties • 50% of the crop to be under new variety 118 within three years • Transition Plans: • Significant new cane seed acquired; management optimistic about seamless transition • Future Cane Availability: • Anticipated increase, but precise guidance not yet available
Conclusion • Management thanked participants and invited further questions via email or website.
Submission Details • Date of submission: May 6, 2024 • Transcript of Earnings Conference Call for Q4 and FY'24 results • Call held on: May 2, 2024 • Directed to: National Stock Exchange of India and BSE Limited • Compliance: SEBI regulations • Key personnel: • Gaurav Goel (Managing Director) • Susheel Mehrotra (CFO) • Navin Agarwal (Moderator from SKP Securities) • Transcript availability: Company website
Financial Performance Overview • Q4 Results: • Revenue from operations: Rs. 666.9 crores (down from Rs. 754 crores) • EBITDA: Rs. 100.5 crores (down from Rs. 105.1 crores)
• Full-Year Results: • Revenue: Rs. 2,644.1 crores (down from Rs. 2,826 crores) • Stable EBITDA margin: 11% • Sugar production: 3.5 lakh tons • Ethanol production: 1,189.78 lakh liters • Revenue mix: Sugar (43.5%), Ethanol (24.7%)
Key Challenges Discussed • Increased sugarcane prices • Lower sugarcane availability due to adverse weather • Regulatory changes affecting ethanol production • Need for new sugarcane varieties to address low yields
Additional Topics • Transfer pricing for molasses: • B-Heavy: Rs. 1,200 • C-Heavy: Rs. 850 • Net recovery rate for sugar season: 11.73% • Current mill closures due to low sugarcane yields • Expectations for sugar prices: Stable at Rs. 38-39 over the next six months • Awaiting government approval for potential sugar exports post-June
Conclusion • The call concluded with an invitation for further inquiries from investors.
Notice Submission • Date: February 11, 2024 • Submitted to: National Stock Exchange of India and BSE Limited • Topic: Transcript of Earnings Conference Call held on February 7, 2024 • Content: Unaudited financial results for Q3 FY24 • Availability: Transcript on company website
Key Management Personnel • Managing Director: Gaurav Goel • CFO: Susheel Mehrotra • Moderator: Navin Agarwal (SKP Securities)
Financial Highlights • Sugarcane and Sugar Production • 4% increase in sugarcane crushed • 26% rise in sugar production • Significant drop in sugar sales volume
• Ethanol Production • 61% decrease due to regulatory changes • 23% increase in total ethanol production from all feedstocks
• Financial Performance • Revenue from operations: Rs. 482.3 crore (down from Rs. 643.5 crore) • Net profit: Rs. 31.8 crore (down from Rs. 46.4 crore) • Shift in revenue mix with reduced sugar contribution
Regulatory Updates • Equity share buyback program: 10 lakh shares repurchased • Government order halting sugarcane juice use for ethanol production
Crop Yield and Weather Impact • Slightly lower yields due to flooding, but improved weather expected • Anticipated shortfall of 30 lakh quintals in cane availability • Minimal current impact of red rot on crops, with management plans in place
Sugar Prices and Market Outlook • Average sugar price decrease from 39.2 to 37.5-38 • Stability expected in sugar prices for the coming year • Recovery rates projected to be similar to last year
Future Plans and Opportunities • No immediate capital expenditure plans • Exploration of compressed biogas opportunities, pending logistical resolution • Potential for biogas production from press mud generated during sugar processing
Conclusion • Call concluded with Q&A session addressing future ethanol production and procurement policy impacts • Participants invited to submit further questions via phone, email, or website.
Dhampur Sugar Mills Limited Q2 FY 2024 Earnings Conference Call Summary
Date and Submission • Date of Call: November 1, 2023 • Submission: Transcript submitted to National Stock Exchange of India and BSE Limited on November 7, 2023.
Key Management Participants • Managing Director: Gaurav Goel • CFO: Susheel Mehrotra
Financial Highlights • Ethanol Production: More than doubled compared to the previous year. • Sugar Sales: Decreased. • Income from Operations: INR 585.6 crores (decline). • Profit Before Tax: INR 6.5 crores (down from INR 15.9 crores last year). • Impact of Levy Molasses: INR 18.83 crore due to higher obligations from Uttar Pradesh government.
Accounting and Policy Discussions • Excise Policy: Addressed implications and accounting treatment of levy impact. • Adjustment Inquiry: Pavan Sharma questioned an INR 18.83 lakh adjustment; Gaurav Goel clarified the decision for accurate financials.
Ethanol and Sugarcane Pricing • Pending Announcements: Ethanol pricing and sugarcane prices still awaited from the government. • Sugar Production Estimates: ISMA projects around 30 million tons for the season. • Cane Availability: Efforts underway to mitigate losses from red rot and new plant impacts.
New Molasses Policy • Financial Impact: Potential permanent hit of INR 20 crores if production strategy remains unchanged. • Feedstock Strategy: Currently using rice; plans to switch back to corn later.
Export and Shareholder Concerns • Sugar Exports: Unlikely until at least May due to local supply issues. • Share Buybacks: Options open; decisions pending by the Board.
New Sugar Plant and Feedstock Availability • Plant Status: New sugar plant to start in two to four weeks. • Feedstock Inventory: Maintains a two to three-week inventory; choice depends on pricing.
Conclusion • Call Closure: Gaurav Goel thanked participants and invited further questions.
Dhampur Sugar Mills Limited Q1 FY24 Earnings Call Summary
Date and Submission • Date of Call: August 9, 2023 • Submission to Exchanges: August 14, 2023 • Key Executives Present: • Gaurav Goel (Managing Director) • Susheel Mehrotra (CFO)
Financial Performance Highlights • Income from Operations: Increased by 11% to ₹915.9 crores • Profit Before Tax: Rose by 26% to ₹67.8 crores • Profit After Tax: Increased by 27% to ₹45.2 crores • Sugar Production: Decreased to 0.51 lakh tons due to higher ethanol production • Ethanol Revenue: Increased by 66% to ₹238.3 crores
Q&A Session Insights • Distillery Capacity: Expanded to 350 kl/day from C-Heavy molasses and 100 kl from grain • Sugar Production Outlook: Early predictions indicate potential higher yields in North India • Ethanol Production Guidance: Anticipated supply of 11.5 to 12 crores liters to OMCs, with market flexibility • Inventory Management: Preference for lower sugar stocks while diversifying production • Grain Prices Viability: Current prices at breakeven; exploring maize for production
Strategic Focus • Production Diversification: Emphasis on adapting to market conditions • Future Opportunities: No immediate plans for chemicals or bioplastics; focus on CBG and potash • Capital Expenditures: Minor expansion of 1,000 tons of cane crushing per day; no major plans • Confidence in Crushing Levels: Despite potential cane loss to Bindal Agro plant
Conclusion • The call concluded with an invitation for further inquiries and appreciation for participation.
Earnings Performance • Q4 Standalone Income: Increased by 32% to ₹756.9 crores. • Profit After Tax (PAT): Rose by 76% to ₹57.9 crores. • Ethanol Revenue: Increased by 68% due to expanded distillery capacity. • Sugar Production: Decreased due to cane diversion for ethanol, but sugar sales rose by 25%. • Full Fiscal Year Income: Total income reached ₹2,840.8 crores, a 29% increase.
Operational Insights • Bagasse Price: Confirmed at ₹100 per quintal; no sales yet due to sufficient fuel stock. • Steam Efficiency: Improved to 32.5%-33% from 40% last year. • Ethanol Production from Grains: Current grain prices favorable, margins sufficient. • Cane Supply Concerns: Confidence in supply despite potential El Niño effects.
Future Projections • Crushing Increase: Projected 22% increase for the next financial year, dependent on planting and monsoon conditions. • Ethanol Production Guidance: Expected over 12 crore liters for the next year. • Expansion Plans: Focus on efficiency rather than major expansions; a grain-based plant to start operations by end of May 2023.
Market and Pricing Strategy • Overhead Costs: Uncertain export possibilities; total debt expected to be lower than the previous year. • Revenue Discrepancies: Stable profit margins attributed to transfer pricing and operational adjustments. • Sugar Prices: Stability expected without significant increases; bagasse prices steady despite coal price fluctuations.
Margin Insights • Gross Margin Drop: 500 basis point decrease attributed to transfer pricing issues. • Future Margin Expectations: Anticipated improvement due to new distillery operations, though country liquor segment may pressure margins.
Conclusion • Overall Outlook: Positive financial outlook with a focus on ethanol segment profitability; invitation for further questions at the end of the call.
Dhampur Sugar Mills Limited Earnings Call Summary
Date and Submission • Date of Call: January 31, 2023 • Submission: Transcript submitted on February 6, 2023, to National Stock Exchange of India and BSE Limited.
Key Executives • Participants: • Gaurav Goel (Managing Director) • Susheel Mehrotra (CFO)
Financial Highlights • Cane Crushed: 9% increase year-over-year. • Sugar Production: 1.02 lakh tonnes (down from 1.22 lakh tonnes). • Ethanol Production: Increased to 239.96 lakh liters. • Income from Operations: INR 643.7 crores (up from INR 630.6 crores). • Profit Before Tax: INR 66.7 crores (down from INR 78.4 crores).
Market Insights • Global Sugar Prices: No shortage expected in Q2 and Q3 FY '23-24; potential shortage in Q4. • Sugarcane Prices: Clarity expected within two weeks. • Projected Sugar Production: 2-2.5% increase in crushing numbers for FY '23.
Production and Inventory Projections • Ethanol Production FY '23: Expected to reach about 8.5 crore liters. • Ethanol Projections FY '24: Estimated between 11.5 to 12.5 crore liters post-expansion. • Closing Inventory for Sugar Cycle: Expected around 6 million tons.
Financial Outlook • Debt Projection: Expected to rise to INR 270-280 crores by end of March. • Cost of Sugar Production: INR 33.60; ex-mill prices around INR 34.52. • Minimum Support Price (MSP): Expected to remain at INR 31.
Ethanol Production Details • Grain Usage: Primarily rice and wheat. • Cost of Ethanol Production: • From molasses: INR 43 per liter. • B-Heavy: INR 43; Syrup: INR 50. • Transfer Prices: B-Heavy at INR 1,100; Syrup at INR 1,375.
Conclusion • Call Closure: Participants encouraged to reach out with further questions. • Gratitude Expressed: Thanks from Gaurav Goel and Anant Pande to attendees.