Sukhjit Starch and Chemicals Limited Q1 FY25 Conference Call Summary
Financial Results
• Revenue: INR 389.83 crores (21% YoY growth)
• EBITDA: INR 31.5 crores
• Net Profit: INR 13.61 crores (4.4% YoY increase)
Expansion Plans
• Production Capacity Increase: 1,000 tons over three years (total capacity to reach 3,000 tons/day)
• CAPEX Estimate: INR 125 to 200 crores for expansion
Market Outlook
• Growth Drivers: Demand in packaging, FMCG, pharmaceuticals, and rural resurgence
• Starch Industry Growth: Anticipated 10-15% growth for FY '25
Industry Challenges
• Raw Material Pricing: Impact of maize prices on profitability
• Environmental Regulations: Indian manufacturers well-positioned against new Chinese regulations
Capacity and Margins
• Domestic Maize Processing: Challenges in estimating total capacity; optimism about demand absorption through exports
• Margin Differential: Attributed to operational efficiencies
Maize Market Dynamics
• Current Maize Production: Approximately 35 million tons in India
• Sector Consumption: Poultry (15-20 million tons), ethanol (2.5-3 million tons), starch (5.5-7.5 million tons)
Future Strategies
• International Market Targeting: Focus on Southeast Asia and Africa
• Infrastructure Division: Current revenues from services and cold chain operations
Closing Remarks
• Gratitude to Participants: Encouragement to reach out to Investor Relations for further inquiries
• Optimism for Growth: Supported by internal cash generation and prudent financial management

Sukhjit Starch and Chemicals Limited Conference Call Summary (May 31, 2024)
Financial Performance
• Q4 and FY24 Results:
• Net sales decreased to INR 1,370.86 crores from INR 1,435.25 crores in FY23.
• EBITDA fell to INR 134 crores from INR 145 crores.
• Profit before tax decreased to INR 77 crores; profit after tax dropped to INR 55.62 crores.
• Q4 sales were INR 368 crores, with EBITDA at INR 33 crores and PAT at INR 11.46 crores.
Market Challenges
• Pricing Pressures:
• Low demand in sectors like FMCG and pharma affected sales.
• Production volumes increased despite lower sales of high-value products.
Strategic Focus
• Growth and Expansion:
• Plans to expand capacity by 400 acres across various product lines.
• Exploring greenfield and brownfield opportunities based on market dynamics.
• Commitment to improving product portfolio and operational efficiency.
Inventory and Land Sale
• Inventory Management:
• High inventory levels seen as a strategic decision for operational continuity.
• Over 60% of inventory consists of raw materials.
• Land Sale Process:
• Ongoing assessment of pricing for land sales, with updates to be shared with stakeholders.
Future Outlook
• Volume Growth Projections:
• Anticipating around 10% growth in the next few years, contingent on expansion projects.
• Conservative revenue growth outlook of 6% to 8% for FY '25, with optimism for FY '26.
Industry Context
• Market Dynamics:
• Potential growth driven by domestic consumption and export opportunities.
• Challenges from raw material pricing acknowledged.
Partnerships and Contracts
• FMCG Partnerships:
• No fixed long-term contracts; pricing negotiated at order placement.
• Strong relationships with FMCG partners maintained.
Capacity Utilization and Investment
• Utilization Rates:
• Expected capacity utilization for FY '24 around 83% to 85%.
• Capex Plans:
• Possible investment of around INR 200 crores for new projects, taking 24 to 30 months to complete.
Conclusion
• Management's Optimism:
• Positive outlook on demand in FMCG, pharma, and textiles sectors.
• Encouragement for further inquiries through investor relations.

Sukhjit Starch and Chemicals Limited Earnings Conference Call Summary
Q4 and FY24 Results
• Net Sales: Decreased to INR 1,370.86 crores from INR 1,435.25 crores in FY23.
• EBITDA: Dropped to INR 134 crores from INR 145 crores.
• Profit Before Tax: Fell to INR 77 crores from INR 92 crores.
• Profit After Tax: Decreased to INR 55.62 crores from INR 70 crores.
• Challenges: Pricing pressures due to low demand in key sectors, despite increased production volumes.
Management Insights
• Diverse Product Portfolio: Highlighted by Senior VP Dhiraj Sardana for adaptability to market changes.
• Strategic Initiatives: Emphasized by Bhavdeep Sardana, including capacity expansion and focus on high-value products.
• Optimism for Recovery: Management expressed hope for recovering demand, especially in the FMCG sector.
Q&A Session Highlights
• High Closing Inventory: Explained as a strategic decision to ensure operational continuity amid fluctuating raw material prices.
• Capacity Expansion Timeline: Expected completion in FY '24/'25, with results anticipated in Q4.
• Land Sale Potential: Pricing evaluation ongoing, estimated between INR 50 to 100 crores.
• Volume Growth: Current status quo maintained, but optimism for future growth as capacity utilization increases.
Future Growth Projections
• Volume Target: Aiming for a 10% increase by FY '25-'26, contingent on successful expansion.
• Gross Margins: Expected to improve from a current bottom of around 31% through value-added products.
• Power Costs: Anticipated slight reductions for FY '24, with further decreases as capacity expands.
• Capacity Utilization: Projected at 83% to 85% for FY '24, with plans for future expansions.
Capital Expenditure Plans
• Greenfield/Brownfield Projects: Considering a plant capacity of 1,000 to 1,200 tons, with costs around INR 200 crores.
• Debt Management: Current debt-to-equity ratio at 0.16, with flexibility to increase to 0.6 for future expansion.
Revenue Expectations
• New Plant Revenue: Clarified that existing capacities are being expanded rather than establishing a new plant.
• Demand Trends: Noted growth in global peers and India's rising significance in manufacturing.
Conclusion
• Volume Growth for FY '24: Indicated there is growth, but specifics were not provided.
• Closing Remarks: Dhiraj Sardana thanked participants and invited further questions to be directed to Investor Relations.

Sukhjit Starch & Chemicals Limited Q2 and H1 FY24 Earnings Conference Call Summary
Financial Performance
• H1 FY24 Revenues: Rs. 647 crores (down from Rs. 705 crores in H1 FY23)
• EBITDA: Rs. 63.40 crores (down from Rs. 76.41 crores)
• Profit After Tax: Rs. 27 crores (down from Rs. 39 crores)
• Q2 FY24 Revenue: Stable at Rs. 323 crores despite maintenance shutdown
• EBITDA Margins: Improved to 10.05%
Challenges and Market Conditions
• Pricing Pressures: Faced on finished goods and weak demand for seasonal products
• Raw Material Availability: Stable, but subdued demand affected revenue, especially in rural areas
• Proactive Measures: Secured raw materials at optimal costs to mitigate climatic impacts
Future Plans and Growth Strategy
• Production Capacity Expansion: Planned 25% increase
• Operational Efficiency: Focus on enhancing product portfolio and efficiency
• Cost Management: Aiming to pass some rising costs to the market
Market Insights
• Maize Prices: Impacted by erratic rainfall; higher prices expected due to delayed harvests
• Domestic Demand: Strong in India, particularly in rural areas during festive seasons
• Client Acquisition: Strategy to tailor products to specific needs to maintain market share
Capacity and Expansion Plans
• Installed Capacity Increase: 25% expected in the coming months
• Expansion Options: Evaluating Greenfield or Brownfield projects
• Debt Management: No plans for debt for existing expansions; future decisions based on project needs
Industry Dynamics
• Starch Industry Growth: Aligns with GDP growth; few manufacturers consistently expanding
• Production Scaling Strategy: Starting with a 600 tons per day plant, gradually increasing utilization
Inventory and Consumer Trends
• Inventory Management: Typically holds three to four months of inventory
• Consumer Preferences: Shifts post-COVID, particularly in skincare; exploring new product lines
Food Park Business
• Leasable Area: 55% leased with ongoing discussions for more
• Revenue Generation: Primarily from utility service charges; expects 35-40% revenue increase as utilization improves
Conclusion
• Management's Closing Remarks: Thanked participants and invited further inquiries through investor relations.

Sukhjit Starch and Chemicals Limited Q4 and FY23 Earnings Conference Call Summary
Company Overview
• Commitment: Focus on operational performance, transparency, and shareholder value.
• Financial Performance:
• 24% increase in net sales for FY23 (INR 1,435 crores).
• Slight declines in EBITDA and profits due to high raw material and energy costs.
• Reduction in long-term debt and low net debt-to-equity ratio.
Operations and Strategy
• Manufacturing: One of India's largest starch producers with strategically located plants.
• Future Growth:
• Plans to expand production capacity by 400 tons per day.
• Targeted capital expenditure of INR 40 crores for FY24.
• Focus on optimizing product mix to meet customer demands.
Market Insights
• Starch Industry in India:
• Sukhjit holds an estimated 9% to 11% market share.
• Potential for growth due to lower per capita starch consumption compared to the US and China.
• Maize Pricing:
• Recent stabilization in maize prices; future prices depend on monsoon conditions.
• 60% to 70% of maize used for poultry and animal feed.
Product Development and Competition
• High Fructose Corn Syrup (HFCS):
• India’s robust sugar industry poses challenges for HFCS market entry.
• Maize Procurement:
• Mixed model involving direct farmer engagement and aggregators.
• Value-Added Products:
• Importance of customization and technical sales for enhancing product value.
Sukhjit Mega Food Park
• Investment: INR 140 crores with current revenue of approximately INR 65 crores.
• Future Revenue Model: Aims for better revenue realization while being cash surplus.
Growth Potential and Challenges
• Scalability:
• Current revenue at INR 1,500 crores with optimism for growth.
• Potential for improvement in margins as capacity utilization increases.
• Debt Profile:
• Total debt high due to short-term inventory financing; long-term debt is low and decreasing.
Inventory and Market Dynamics
• Inventory Increase:
• Strategic procurement based on competitive market prices.
• Margin Structure:
• Stable margins expected depending on market demand and competition.
Future Outlook
• Sophisticated Maize Derivatives:
• Potential for import replacement as Indian manufacturers adapt to new technologies.
• Export Opportunities:
• Global "China Plus One" strategy presents opportunities for Indian exports, especially in starch products.
Conclusion
• Engagement: Gratitude expressed for participants' time and engagement during the call.