Magadh Sugar & Energy Limited Q4 and FY24 Earnings Conference Call Summary
Financial Highlights
• Q4 Performance:
• Revenue from operations: Rs 288 crores (slight decrease)
• EBITDA: Rs 81 crores (increase)
• PBT: Rs 63 crores (increase)
• PAT: Rs 47 crores (increase)
• FY24 Performance:
• Consolidated revenue: Rs 1,098 crores (increase)
• Significant increases in EBITDA, PBT, and PAT due to higher sugar and ethanol sales.
Operational Highlights
• Sugar Sales:
• Year-on-year increase: 20.12 lakh quintals (up from 18.55 lakh quintals)
• Average realization: Rs 3,796 per quintal (6% increase)
• Ethanol Production:
• Production: 498 lakh litres
• Sales: 467 lakh litres
• Average realization per litre: Rs 60.14 (slight decrease)
• Challenges:
• Lower sugarcane recovery rates due to red rot infestation.
• Implementation of varietal replacement strategy.
Strategic Plans
• Capacity Expansion:
• Plans to expand sugar plant capacity.
• Conversion of a distillery to a multi-feed facility.
• Ethanol Capacity Enhancement:
• Capital expenditures for a multi-feed distillery to utilize various grains.
Market Insights
• Global Sugar Market:
• Increased production expected from Brazil.
• Stable prices for white and raw sugar.
• Local Pricing:
• Landed cane cost: Rs 353.
• Sugarcane pricing in Bihar set collaboratively with the government.
Distillery Transition
• Multi-Feed Systems:
• Capital cost for conversion: Rs 32 crores.
• Maize yields more alcohol; sufficient local supply in Bihar.
• Distillery Capacity:
• Current capacity: 80 KLPD.
• Potential increase in cane crushing capacity by 28-29% at Narkatiaganj facility.
Competitive Landscape
• Cane Farming in Bihar:
• No significant threat from other crops; maize can be intercropped with cane.
• Power Capacity:
• Surplus of 22 megawatts, primarily utilized during the 140-day crushing season.
Sugar Production Preferences
• Production Mix:
• Mix of B Heavy and C Heavy sugar production depends on government regulations.
• Preference for B Heavy if permitted, aiming for a 90% B Heavy and 10% juice mix if conditions allow.
Conclusion
• The call concluded with an invitation for further inquiries and appreciation for participants' attendance.