Balrampur Chini Mills Limited

35 crore

ith our expansion at Balrampur unit, will take our distillery capacity to 1,050 KLPD, resulting in ~35 crore of distillation capacity on an annual basis. ➢ I am also pleased to announce that Board has approv

Rs. 360.00

announce that Board has approved Buy-back of equity shares of the Company at a price not exceeding Rs. 360.00 per share for an amount not exceeding Rs.145.44 crore from the “Open Market” through Stock Exchange

Rs.145.44 crore

ity shares of the Company at a price not exceeding Rs. 360.00 per share for an amount not exceeding Rs.145.44 crore from the “Open Market” through Stock Exchange mechanism. ➢ Overall, we are focused on creating val

Rs. 7094.47

75.7 1050 Among the largest integrated sugar companies Principle business sugar + distillery Rs. 7094.47 cr. market capitalization as on 30th September 2022 42.42% promoter shareholding 6 UTTAR PR

42.42%

business sugar + distillery Rs. 7094.47 cr. market capitalization as on 30th September 2022 42.42% promoter shareholding 6 UTTAR PRADESH Gularia Maizapur Rauzagaon Haidergarh Kumbhi Tulsip

rs 20

rformance on the back of structural changes Segmental Revenues (Rs. Cr.) * Sugar Distillery Others 20 1001 22 842 12 566 4,263 4,352 4,423 8 496 3,822 Segmental PBIT (Rs. Cr.) Sugar Distill

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842 12 566 4,263 4,352 4,423 8 496 3,822 Segmental PBIT (Rs. Cr.) Sugar Distillery Others 10 382 11 344 296 329 5 264 389 3 323 338 FY22 FY21 FY20 FY19 FY22 FY21 FY20 FY19 •

19%

Y20 FY19 • Revenues includes inter segment revenues Revenue from distillery segment contributed ~19% of overall revenues in FY22 as compared to 11% in FY19 Going forward distillery segment is expected

11%

venues Revenue from distillery segment contributed ~19% of overall revenues in FY22 as compared to 11% in FY19 Going forward distillery segment is expected to contribute around 35% of overall revenues D

35%

n FY22 as compared to 11% in FY19 Going forward distillery segment is expected to contribute around 35% of overall revenues Distillery segment contributed ~56% of PBIT in FY22 Company is focusing on inc

56%

ry segment is expected to contribute around 35% of overall revenues Distillery segment contributed ~56% of PBIT in FY22 Company is focusing on increasing the share of revenue / profit from distillery se

14.4%

ges (contd.) EBITDA (Rs. cr) EBITDA Margin (%) TCI (Rs. cr) TCI Margin (%) 700 714 682 689 14.4% 14.8% 14.4% 16.1% 452 10.3% 511 10.6% 469 9.8% 502 10.6% 565 13.2% 217 4.9% FY22 F

“Key benefits highlighted by the government include: Eliminate dependence on exports of sugar (target to sacrifice ~6 million tonnes of sugar by 2025-26) Reduce import dependency of fuels (savings of ~$4 billion forex i.e.”

“30,000 crs.) Cleaner environment through E20 fuel Carbon Monoxide emissions will be 50% lower in two-wheelers and 30% lower in four-wheelers.”

“Hydrocarbon emissions will be 20% lower in both Additional income to farmers, Infrastructural investment in rural areas Employment generation Health benefits Municipal Solid Waste Management In January 2021, the target of achieving 20% Ethanol-blending with petrol was preponed to 2025.”

“• Global consumption is expected to go up and tightness in sugar availability will be felt by the global trade flows till end of Q1 of calendar year 2023.”

“– • • • • Replace Reuse Recycle Reduce We achieved zero liquid discharge target in all our distilleries and are now targeting zero water drawal in sugar units.”

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Global Consumption Outlook

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Global Price Outlook

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Proposed Funding

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For further information contact

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Foot Note

• Seasonal nature of the industry. • Lower cane availability in the sugar season 2021-22 owing to weather conditions. • The Company is actively working on varietal re-balancing of cane / disease management activities. • Because of sugar sacrifice for conversion into Ethanol, there has been a corresponding sacrifice of potential profit on the sacrificed sugar, resulting in enhanced profitability in the distillery segment. Outcome: In view of the aggressive diversion of cane towards B-heavy molasses route resulting in sacrifice of sugar for production of Ethanol, dependence on sugar export has declined. 11 Performance highlight (standalone numbers) Revenue, EBIDTA& EBIDTA Margins Rs. in Crs 6000.00 5000.00 4000.00 3000.00 2000.00 1000.00 0.00 -1000.00 Revenue EBITDA -1.4% 11.1% 1.3% 11.4% 14.4% 14.8% 14.4% 16.1% 10.3% Q2FY23 1113.10 -15.93 Q2FY22 1213.83 134.83 H1FY23 2193.18 28.48 H1FY22 2354.27 268.88 FY22 4846.03 699.70 FY21 4811.66 713.83 FY20 4741.29 681.97 FY19 4285.78 689.07 FY18

Note

• Consolidated results of the Company upto 30th September 2022 includes results of one Associate of the Company viz. Auxilo Finserve Pvt. Ltd. • During Q4FY22, Company sold its entire Investment in Visual Percept Solar Projects Pvt. Ltd. • Company’s share in Auxilo Finserve Pvt. Ltd. as on 30th September 2022 stands at 44.36%. * TCI - Total Comprehensive Income 14 ➢ PART TWO The performance of our principal businesses 15 Business Overview - Sugar “Attractively placed” Management’s overarching 5 messages for Q4FY22 79.91 % of Company’s revenues, Q2 FY23 936.20 Rs. cr. revenues in Q2 FY 23 1021.81 cr. revenues in Q2 FY 22 8.38% decrease 16 Policy intervention from Government ▪ FRP: Fair & Remunerative Price (FRP) of sugarcane for the sugar season 2022-23 has been increased to Rs. 305 per quintal (linked to a basic recovery of 10.25%) as compared to Rs. 290 per quintal in the sugar season 2021-22 (linked to a basic recovery of 10%). ▪ SAP: State Advised Price (SAP) of sugarcane for the su

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CACP Report – Sugarcane 2022-23; Kharif 2022-23; Rabi 2023-23 In addition to being 2nd most remunerative crop after wheat, sugarcane has the advantage of being a sturdy crop, has an assured buyer, gets the assured price and does not have any middleman between farmers and mills 18 This is what our sugar business achieved This is what our sugar business achieved ➢ 3.22% increase in average sugar realizations in Q2 FY23 (compared with Q2 FY22) ➢ Bottomline: Lower sugar volumes partly off-set by higher realizations Inventory size Inventory valuation Cane diversion 11.90 Lac quintals, sugar inventory, as on 30th Sep. 2022 18.89 Lac quintals, sugar inventory, as on 30th Sep. 2021 34.82 Rs./ kg, value of sugar inventory, Q2 FY 23 33.01 Rs./ kg, value of sugar inventory, Q2 FY 22 79.8% 79.9% Cane diverted for B-heavy Ethanol in H1 FY23 Cane diverted for B-heavy Ethanol in H1FY22 19 Performance Overview – Sugar Financial data U.O.M. Q2 FY23 Q2 FY22 Change (%) H1 FY23 H1 FY22 Change (%) FY22 FY2

Note

❖ Cost of production (including cane cost) was net of credit for bagasse, molasses and pressmud. ❖ Sugar inventory was valued at lower of net realizable value (NRV) or cumulative year to date costing Sugarcane price for sugar season 2021-22 increased by Rs. 25/- per qtl. Cost of production has also gone up because of higher diversion of cane to B-heavy molasses route with higher sugar sacrifice ratio, which resulted in lower sugar production. 22 This is the outlook of our sugar business This is what our sugar business achieved ➢ Expectation of better cane availability in ensuing season ➢ Asset modernization and upgradation are expected to be completed by November 2022 ➢ Relatively low incentive in our cogeneration business is on account of moderated tariffs ➢ Focus on sweating existing assets ➢ With depleting inventory, sugar realization to improve ➢ Company has been allocated export quota of 1.99 lac tonnes against which 1.4 lac tonnes has already been contracted for physical exports

Notes

* Includes Freight reimbursement on the sale of Ethanol Transport charges incurred on sales booked on the expense side of the P/L account Rs./qtl. 1030 700 47.1% 1030 700 47.1% Rs./qtl. 210 350 -40.0% 210 350 -40.0% 1030 w.e.f Oct-21 700 700 N.A. 210 w.e.f Oct-21 350 w.e.f Oct-19 300 w.e.f Apr-19 15 w.e.f Apr-18 (Rs. Cr) 3.80 7.26 12.99 14.32 32.61 22.44 12.28 5.37 (Rs. Cr) 7.26 11.40 21.66 23.94 50.35 40.89 25.78 21.15 Net freight expenses (Rs. Cr) 3.46 4.14 8.67 9.62 17.74 18.45 13.50 15.78 Incidence of net freight expenses per/BL of ethanol despatch Status of Ethanol contracts by the Company for the Ethanol Year 2021-22 (Rs./BL) 1.14 1.07 0.99 1.01 1.13 1.27 1.24 1.46 B-heavy Ethanol (Cr. BL) Contracted volume Supplied (31.10.2022) Total 14.84 13.09 C-heavy Ethanol (Cr. BL) Contracted volume Supplied (31.10.2022) Total 0.90 0.84 Higher the transfer prices of molasses, lower is the margin in the distillery segment 28 Business Overview – Distillery - Operational numbers Total Producti

Note

In March 2018, sugar inventory was valued at Rs. 26.80 per kg whereas the cost of production was Rs. 31.08 per kg. During June 2018, Central Government introduced the concept of Minimum Selling Price (MSP) of sugar. This policy change/intervention resulted in sustainable revenues and profit while negating variations and induced cyclicality. 36 Treasury management update • Long-term credit rating as assigned by CRISIL stands at AA+ (Stable) and the short-term rating at A1+ As of 30th September 2022, long term borrowings of the Company stands at Rs. 484.45 crores which carries low interest rate of ~3.6%-5.00% (net of interest subvention). Repayment obligation towards long- term borrowings is as under: Yearly repayment schedule as per terms of sanction (` in crores) 179.32 59.04 125.80 80.00 34.04 6.25 FY2022-23 * FY2023-24 FY2024-25 FY 2025-26 FY 2026-27 FY 2027-08 * For the balance period During H1FY2023, Company availed Long Term borrowings of Rs. 274.04 crores for the ongoing capex in