Balrampur Chini Mills Limited

rs,

Balrampur Chini Mills Limited, said: " Our results for the quarter were impacted by seasonal factors, leading to lower sugar volumes. However, the decline was partially offset by higher realizations. Th

35 crore

ies and weather conditions, taking the total distillery capacity to 1050 KLPD. This will result in ~35 crore of distillation capacity on an annual basis. These facilities are capable of operating with either

Rs. 2.50

eeping this commitment, I am pleased to announce that the Board has declared an interim dividend of Rs. 2.50 per Equity Share of Re. 1 each. Additionally, we commenced our 6th consecutive buy-back of equity sh

Rs. 8092.70

ty (MW) Among the largest integrated sugar companies Principle business sugar + distillery Rs. 8092.70 cr. market capitalization as on 31st December 2022 42.43% promoter shareholding 6 UTTAR PR

42.43%

business sugar + distillery Rs. 8092.70 cr. market capitalization as on 31st December 2022 42.43% promoter shareholding 6 UTTAR PRADESH Gularia Maizapur Rauzagaon Haidergarh Kumbhi Tulsi

rs 12

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

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842 20 1001 4,423 4,352 4,263 8 496 3,822 Segmental PBIT (Rs. Cr.) Sugar Distillery Others 3 323 338 5 264 389 11 344 10 382 329 296 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 •

19%

Y21 FY22 • 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

16.1%

ges (contd.) EBITDA (Rs. cr) EBITDA Margin (%) TCI (Rs. cr) TCI Margin (%) 689 682 714 700 16.1% 14.4% 14.8% 14.4% 452 10.3% 565 13.2% 502 10.6% 469 9.8% 511 10.6% 217 4.9% FY18 F

“Entire stake was sold off in Mar-22 - - - Higher interest rates & Deployment of internal accruals in project 27.99 17.0% Impact of capex 86.10 9.2% Mainly owing to regulatory fee on molasses & Higher freight expenses for export of raw sugar 23.49 -29.0% - 0.09 - 13 Our Consolidated Financial Performance Revenue (Rs.”

“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.”

“55 Our governance framework Focus on de- risking coupled with controlled growth Strategic guidance from experienced and diversified Board of Directors Investment in digitalisation, processes and systems 56 Board of Directors Vivek Saraogi – Chairman and Managing Director ➢ An eminent industrialist, is a veteran in the sugar industry and has been one of the youngest presidents of the Indian Sugar Mills Association.”

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- Other Comprehensive Income (7.78) 16.96 -37.6% Total Comprehensive Income 0.24 - (3.62) (0.56) (7.01) (5.14) (4.55) 225.94 -92.5% 511.04 469.21 502.27 565.50 216.57 - EPS (Rs.) 1.21 10.85 - 24.86 22.01 22.98 24.98 9.41 • Seasonal nature of the industry. • Lower cane availability in the sugar season 2020-21 & 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 and Syrup route resulting in sacrifice of sugar for production of Ethanol, dependence on sugar export is declining. 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 R

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• Consolidated results of the Company upto 31st December 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 31st December 2022 stands at 44.30%. * 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 85.72 % of Company’s revenues, Q3 FY23 965.70 Rs. cr. revenues in Q3 FY 23 1123.35 cr. revenues in Q3 FY 22 14.03% 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 sug

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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 ➢ 25.4% decrease in sales volume in Q3 FY23 (compared with Q3 FY22) ➢ 0.39% increase in blended sugar realizations in Q3 FY23 (compared with Q3 FY22) ➢ Bottomline: Lower sugar volumes partly off-set by marginal higher realizations Inventory size Inventory valuation 15.85 Lac quintals, sugar inventory, as on 31st Dec. 2022 16.67 Lac quintals, sugar inventory, as on 31st Dec. 2021 35.47 Rs./ kg, value of sugar inventory, Q3 FY 23 34.54 Rs./ kg, value of sugar inventory, Q3 FY 22 Cane diversion 65.5% 70.7% Cane diverted for B-heavy Ethanol in 3M FY23 Cane diverted for B-heavy Ethanol in 3MFY22 5.9% Cane diverted for Syrup Ethanol in

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❖ Cost of production (including cane cost) is net of credit for bagasse, molasses and pressmud. ❖ Sugar inventory being valued at lower of net realizable value (NRV) or cumulative year to date costing Cost of production for 9M FY 2023 has gone up because of higher diversion of cane to B-heavy molasses and Syrup route leading to sugar sacrifice, 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 current season for the Company ➢ Asset modernization and upgradation completed in November/December 2022 ➢ Relatively low incentive in our cogeneration business is on account of moderated tariffs ➢ 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 been contracted for physical exports and balance has been swapped with domestic quota 23 Business Overview - Sugar Business overview:

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* 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 1030 47.1% 1030 1030 w.e.f Oct-21 47.1% 1030 w.e.f Oct-21 700 700 N.A. (Rs. Cr) 4.07 4.62 17.06 18.94 32.61 22.44 12.28 5.37 (Rs. Cr) 5.84 7.67 27.50 31.61 50.35 40.89 25.78 21.15 Net freight expenses (Rs. Cr) 1.77 3.05 10.44 12.67 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 2022-23 Syrup route Ethanol B-heavy Ethanol (Rs./BL) 0.81 1.02 1.15 1.18 Total Total C-heavy Ethanol Total (Cr. BL) (Cr. BL) Contracted volume 8.79 Contracted volume 12.34 (Cr. BL) Contracted volume 0.25 1.13 1.27 1.24 1.46 Grain route Ethanol Total (Cr. BL) Contracted volume 5.37 28 Business Overview – Distillery - Operational numbers Total Production * (Cr BL) 12.76 10.66 8.10 17.06 16.31 11.07 11.99 Ethanol Production from C-heavy molasses route (Cr BL) 10.29

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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 re-affirmed by CRISIL at AA+ (Stable) and the short-term rating at A1+ As of 31st December 2022, long term borrowings of the Company stands at Rs. 500.64 crores which carries low interest rate of ~4.1%-5.0% (net of interest subvention). Repayment obligation towards long-term borrowings is as under: Yearly repayment schedule as per terms of sanction (` in crores) 186.08 134.80 23.26 89.00 59.00 8.50 FY2022-23 * FY2023-24 FY2024-25 FY 2025-26 FY 2026-27 FY 2027-28 * For the balance period During 9MFY2023, Company availed Long Term borrowings of Rs. 326 crores for the ongoing capex in the Distille