Gulshan Polyols Limited
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Key numbers — 40 extracted
rs,
rs,,
250
crore
INR 2,701.8
INR 217.8
INR 101.9
13.3%
7.5%
7.7%
8.0%
50.0%
16.2%
Guidance — 14 items
Capex Updates
opening
“Of this ~INR 3,000 Mn will be required to set up the 500 KLPD Ethanol plant in the state of M.P.”
Capex Updates
opening
“during FY23 and ~INR 1,850 Mn will be required for setting up 250 KLPD Ethanol plant in the state of Assam over FY23 and FY24.”
Management Comments
opening
“We expect the raw material related cost pressures to start easing out from third quarters onwards as we witness fresh harvesting of kharif crops and some respite in coal cost.”
Management Comments
opening
“We envisage a capex of ~INR4,850 Mn for the two facilities of which ~INR3,000 Mn will be deployed in FY23 and the balance will be deployed by FY24.”
Management Comments
opening
“As we move forward in seizing the growth opportunities that lie ahead of us, we would like to thank our employees for their continuous efforts and our investors / stakeholders for their continued support and encouragement.” Forward Outlook/Guidance: Management is expecting a revenue of ~INR 23,000 Mn by FY24 and ~INR 28,000 Mn by FY25, on back of significant capacity expansion in Ethanol segment.”
About Gulshan Polyols Limited
opening
“By FY25 the company plans to expand its ethanol capacity to 810 KLPD from current 60 KLPD.”
About Gulshan Polyols Limited
opening
“22 Key highlights of ethanol segment 20% ethanol blending target from current ~ 9.5% gives immense opportunity for growth.”
About Gulshan Polyols Limited
opening
“23 PROSPECT OF ETHANOL SEGMENT Current ethanol blending levels 10 8 6 4 2 0 Ethanol Procrement by OMC’s (in crore litres) Blending in Petrol achieved % 9.9% 8.0% CAGR 29% 5.0% 5.1% 4.2% 3.5% 2.33% 2.1% 1.53% 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 OMC have finalized tenders for 428.56 Cr.”
Logistical Support
opening
“33 Capex update Gulshan is looking at a total capex of INR 4,500 MN over the next 12 months, out of which INR 3,000 MN will be required to set up the 500 KLPD Ethanol plant in the state of M.P.”
Logistical Support
opening
“and INR 1,500 MN will be required for expanding the aggregate capacities across the grain processing division.”
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Risks & concerns — 2 flagged
Further, overall inflation headwinds impacted our basic raw material prices as well thereby putting stress on our EBITDA margins on a yearly basis.
— Management Comments
EBITDA degrew by 50% from INR 435.30 Mn in Q1 FY22 to INR 217.83 Mn in Q1 FY23 owing to decline in EBITDA margin from 18.2% to 8.0% primarily led by commodity cost headwinds faced by the industry on account of continued high inflation in the prices of basic raw materials, rice and maize.
— Financial Performance Comparison
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Opening remarks
Capex Updates
Company is undertaking a capex of ~INR 4,850 Mn for expanding capacities in the ethanol segment. Of this ~INR 3,000 Mn will be required to set up the 500 KLPD Ethanol plant in the state of M.P. during FY23 and ~INR 1,850 Mn will be required for setting up 250 KLPD Ethanol plant in the state of Assam over FY23 and FY24. The aforementioned capital expenditure is proceeding as planned. In the grain processing segment, Company is expanding its aggregate capacities by ~ 20%. The budgeted capex for same is ~ INR 1,500 Mn. The Company is progressing well on the said capex.
Business Updates
The Oil Marketing Companies (OMCs) - HPCL, IOCL and BPCL have confirmed a six-month relief scheme from 1st June, 2022 to 30th November, 2022, to support the ethanol manufacturers challenged with high input cost, primarily on account of fuel and electricity. The relief is supportive of profit margins and reflects another show of positive intent of the OMCs to achieve objectives of Ethanol Blending Program. Q1 FY23 Earnings Update The Company participated in the 15th exhibition of “Paperex”. Paperex, an international exhibition and conference on pulp, paper and allied industries, was conducted from 10th to 13th May, 2022 at Greater Noida, Delhi NCR, India. The Company’s stall was a one stop shop for online PCC/WGCC fillers and coating pigment solutions. The Company received a positive response from this event and plans to build a strong network of business partnerships and capitalize on the same. The Company has signed a contract with Meghna Pulp & Paper Mills Limited for supplying
Management Comments
Commenting on the performance of Q1 FY23, Dr. Chandra Kumar Jain, Chairman and Managing Director, Gulshan Polyols Ltd. Said “We are happy to share with you our financial and business performance for Q1 FY23, revenue from operations stood at INR 2,701.8 Mn showing a growth of 13.3% on YOY basis predominantly driven by good growth across our three business segment. We have managed to achieve good growth across all the three segment during the quarter. In each of the segment we witnessed robust and satisfying demand. One of the key challenges faced by us during the quarter was the rising price of coal and other input costs. The global coal crisis has led to an increase in our power cost. Further, overall inflation headwinds impacted our basic raw material prices as well thereby putting stress on our EBITDA margins on a yearly basis. We expect the raw material related cost pressures to start easing out from third quarters onwards as we witness fresh harvesting of kharif crops and some resp
About Gulshan Polyols Limited
Gulshan Polyols Limited ("Gulshan") is a multi-location, multi-product manufacturing company with global presence in 35 countries, across 3 continents. The company features three main business segments namely, Grain Processing, Ethanol Distillery & Mineral Processing. Gulshan is amongst one of the market leader in manufacturing sorbitol, precipitated calcium carbonate (PCC) and wet ground calcium carbonate (WGCC). The Company is planning to expand its footprints in distillery segment and has embarked on a significant capex plan for manufacturing ethanol. By FY25 the company plans to expand its ethanol capacity to 810 KLPD from current 60 KLPD. Gulshan's product portfolio comprises of starch sugars and native starches, calcium carbonate; agro based animal feed, alcohol business & on-site PCC plants. Gulshan is providing solution to diverse range of Industries & niche markets in core sector i.e. from toothpaste to alcohol, from sweeteners to paints, from paper to medicines, from plastics
Policy Advancement
New policies would encourage the use of 100% ethanol-efficient vehicles creating huge demand for ethanol in the future
Logistical Support
Government is setting up pumps to support supply from ethanol manufacturers Investor Presentation August, 2022. 27 Very supportive governement policies favouring investment Recent interventions by both the Central Government and the State Government reflect a gradual shift towards sustainable blending of ethanol which augurs well for the industry. Presently, 14 states allow unrestricted interstate movement of ethanol in India with more states undergoing positive policy changes. Ethanol prices delinked from crude or petrol prices ₹ Differential and attractive prices for ethanol produced from damaged/surplus food grains, broken rice and maize A lower GST of 5% on ethanol from 18% Government Support Interest subvention scheme for molasses and grain-based distilleries (DFPD) Setting of standards for E5 (Ethanol 5%, Petrol 95%), E10 and E20 blends of ethanol blended petrol, as well as introducing E100 two-wheeler vehicles BS-VI Emission norms effectively applicable for E-20 Vehicles Investo
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