Dhampur Bio Organics Limited

Gautam Goel

MANAGING DIRECTOR

Nalin Gupta

CHIEF FINANCIAL OFFICER

Mukul Sharma

CHIEF OF STAFF

Atul Singh

HEAD OF SALES

Ashu Ra Wat

COMPANY SECRETARY

Sonika Malhotra

SR MANAGER FINANCE & ACCOUNTS

Navin Agra Wal

HEAD INSTITUTIONAL EQUITIES SKP SECURITIES LIMITED

36 million

utlook continues to be inflationary and cautious. We are aware the Indian sugar industry produced 36 million tons of sugar and about 3 .5 million tons of sugar was diverted into ethanol production this year

5 million

d cautious. We are aware the Indian sugar industry produced 36 million tons of sugar and about 3 .5 million tons of sugar was diverted into ethanol production this year. The domestic consumption is pegged

11 million

this year. The domestic consumption is pegged at 27 .5 million tons and after a record export of 11 million tons, we would be left with an opening stock of about 6 million tons. The production scenario for

6 million

tons and after a record export of 11 million tons, we would be left with an opening stock of about 6 million tons. The production scenario for the next year is equally bullish. Production estimates for next

36.5 million

ction scenario for the next year is equally bullish. Production estimates for next year is around 36.5 million tons post diversion of about 4.5 million tons of sugar to ethanol. It is believed the government

4.5 million

y bullish. Production estimates for next year is around 36.5 million tons post diversion of about 4.5 million tons of sugar to ethanol. It is believed the government of India will permit exports under the MA

6 million

to ethanol. It is believed the government of India will permit exports under the MAEQ Scheme with 6 million tons being allocated for exports in the first phase. The industry is hopeful that further quantit

2 million

r which there is a possibility of softness in the international markets. The trade believes about 2 million tons of sugar in all forms, which is raws, low-quality white and refined sugars have already been

4 million

r Dhampur BioOr9anics Ltd. On the global sugar front, 2022-23 global surplus is expected around 4 million tons. However, some of this surplus is sitting in regions which cannot export, like Pakistan and

590 million

is sitting in regions which cannot export, like Pakistan and Russia. Brazil is estimated to crush 590 million to 600 million tons in 2022-23 versus 542 million tons this year. Sugar production is estimated a

600 million

egions which cannot export, like Pakistan and Russia. Brazil is estimated to crush 590 million to 600 million tons in 2022-23 versus 542 million tons this year. Sugar production is estimated at 38-38.5 milli

542 million

kistan and Russia. Brazil is estimated to crush 590 million to 600 million tons in 2022-23 versus 542 million tons this year. Sugar production is estimated at 38-38.5 million tons in Brazil, which is up 5 mi

“After which we will be glad to answer any queries, you may have.”

“The production scenario for the next year is equally bullish.”

“Production estimates for next year is around 36.5 million tons post diversion of about 4.5 million tons of sugar to ethanol.”

“The industry is hopeful that further quantities could be permitted sometime during early part of next year, once there is a greater assurance on the production numbers.”

“The Thai production is estimated to be around 12 million tons, up 2 million tons, and this sugar in the form of raws and white would start trickling into the world markets from mid-January onwards, and will be competing with the Indian sugars.”

“They expect to produce 16.5 million tons this year which should be 1.24 million tons lower than last year.”

“As per the latest new reports the prices of C-Heavy ethanol prices have been increased by INR 2.75 per litre, and the new revised prices will be INR 49.41 per litre.”

“We are aggressively working to increase our sale of country liquor and hope it will take care of a substantial portion of our levy obligation going forward.”

“However, we don't anticipate any adverse impact on our overall cane availability.”

“Owing to our continuous cane development efforts, we expect a higher cane crush as compared to the previous years.”

Gautam Goel

13

Moderator

6

Udit Gupta

5

Nimis Sheth

4

Kaustubh Pawaskar

3

Navin Agrawal

2

Nalin Gupta

1

Management

1

Navin Agrawal

Good afternoon, ladies and gentlemen. It's my pleasure to welcome you on behalf of Dhampur Bio Organics Limited and SKP Securities to this financial results conference call. We have with us; Mr. Gautam Goel, Managing Director and his colleagues; Mr. Nalin Gupta, CFO; Mr. Mukul Sharma, COS; Mr. Atul Singh, Head of Sales; Ms. Ashu Rawat, Company Secretary and Ms. Sonika Malhotra, Senior Manager, Finance and Accounts. We'll have the opening remarks from Mr. Goel, followed by a Q&A session. Thank you, and over to you, Mr. Goel.

Gautam Goel

Thank you, Navin. Namaskar and a very warm welcome to the Q2 and Hl FY '23 Dhampur Bio Organics Limited (DBOL) Earnings Conference Call. As you are all aware, the equity shares ofDBOL listed on the BSE and NSE on September 81 \ 2022. The first section of our con call will contain a brief outline of our understanding of the macro environment, and its possible impact on our business. In the second section, we'll give a snapshot of our performance in this quarter, which will then be followed by our CFO, Nalin, running through the financial numbers for the quarter. After which we will be glad to answer any queries, you may have. The macro global and domestic outlook continues to be inflationary and cautious. We are aware the Indian sugar industry produced 36 million tons of sugar and about 3 .5 million tons of sugar was diverted into ethanol production this year. The domestic consumption is pegged at 27 .5 million tons and after a record export of 11 million tons, we would be left with an

Nalin Gupta

Thank you, Gautam, and Namaskar, to everyone. First, I would like to start with our key highlights for this quarter ended September 30, 2022. Our revenue, EBITDA and profit before tax in Q2 FY '23 stood at INR 541.63 crores. EBITDA ofINR 28.15 crores and PBT of INR 10.32 crores, respectively. Our revenues, EBITDA and PBT for the corresponding period last year was INR 359.20 crores, EBITDA ofINR 13.85 crores and PBT ofINR Page 4 of9 ,. dhampur Dhampur BioOr9anics Ltd. 2.53 crores. Profit after tax in this quarter stood at INR 7.56 crores against INR 76 lakhs in the same quarter last year. Our revenue was higher by 52%, EBITDA was higher by 103% and PBT was higher 307% as compared to the previous year in the same quarter. Our interest costs increased to INR 9.10 crores as against the INR 5.98 crores in the same quarter last year. Increase in interest cost is due to higher working capital utilization on account of higher inventory we are carrying and also due to higher interest rate as co