Balrampur Chini Mills Limited

11%

gher owing to higher cane area and better yield at farm level. During the quarter Company diverted ~11% cane towards syrup route and ~65% towards B-heavy route which resulted in higher sugar sacrifice an

65%

better yield at farm level. During the quarter Company diverted ~11% cane towards syrup route and ~65% towards B-heavy route which resulted in higher sugar sacrifice and thereby net lower sugar recovery

15%

cane quality. Crushing at all our mills have completed and we have ended the season with more than 15% higher crushing. We are hopeful of further increase in cane crushing by 10% in the next season, if

10%

e season with more than 15% higher crushing. We are hopeful of further increase in cane crushing by 10% in the next season, if not more, subject to weather conditions. Distillery segment also performed

Rs. 2.50

gh prudent investment and capital allocation plans. Keeping this commitment, an interim dividend of Rs. 2.50 per Equity Share of Re. 1 each was paid during the year. Additionally, we commenced our 6th consecut

Rs. 7984.23

ty (MW) Among the largest integrated sugar companies Principle business sugar + distillery Rs. 7984.23 cr. market capitalization as on 31st March 2023 42.90% promoter shareholding * 2000 TCD expa

42.90%

ple business sugar + distillery Rs. 7984.23 cr. market capitalization as on 31st March 2023 42.90% promoter shareholding * 2000 TCD expansion under implementation 6 UTTAR PRADESH Gularia Ma

rs 12

NS 5 Year Historical Financial Performance Segmental Revenues (Rs. Cr.) * Sugar Distillery Others 12 566 22 842 20 1001 24 1164 Segmental PBIT (Rs. Cr.) Sugar Distillery 3 5 11 Others 10

rs 10

s 12 566 22 842 20 1001 24 1164 Segmental PBIT (Rs. Cr.) Sugar Distillery 3 5 11 Others 10 323 264 344 382 4,423 4,352 4,263 4,339 338 389 329 296 8 496 3,822 13 261 238 FY1

21%

Y22 FY23 • Revenues includes inter segment revenues Revenue from distillery segment contributed ~21% of overall revenues in FY23 as compared to 11% in FY19 Going forward distillery segment is expected

35%

n FY23 as compared to 11% in FY19 Going forward distillery segment is expected to contribute around 35% of overall revenues Distillery segment contributed ~51% of PBIT in FY23 Company is focusing on inc

51%

ry segment is expected to contribute around 35% of overall revenues Distillery segment contributed ~51% of PBIT in FY23 Company is focusing on increasing the share of revenue / profit from distillery se

“Key benefits highlighted by the government include: Take care of surplus 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.”

“Cr.) 1,395 1,059 891 960 1,264 216 228 * 446 376 363 257 FY20 FY19 * No overdue FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Borrowings increased to fund capex FY19 FY20 FY21 FY22 FY23 Debt reduced/moderated over the years Increase in FY22 owing to speedy cane price payments Increase in FY23 owing to deployment of internal accruals into project Debtors (Rs.”

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

“54 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 55 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 president of the Indian Sugar Mills Association.”

“4.63% 2.39% 2.31% 1.82% 1.68% 1.25% 1.13% 1.13% 1.11% 0.99% 58 Key factors to watch out * State Advised Price (SAP) (for the State of U.P.) of sugarcane for the sugar season 2023-24 * Ethanol prices for ESY 2023-24 * Indian Export Policy going forward * Occurrence of El Nino 59 Contact Us About Balrampur Chini Mills Limited CIN: L15421WB1975PLC030118”

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Global Price Outlook

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Global Consumption Outlook

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For further information contact

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Footnote

4665.86 4846.03 -3.7% 4811.66 4741.29 4285.78 512.33 699.70 -26.8% 11.0% 14.4% - 129.50 113.86 13.7% 48.65 - 30.87 52.74 57.6% - 396.96 655.62 -39.5% 8.5% 13.5% - 121.44 140.96 -13.9% (6.22) (3.62) - 269.31 511.04 -47.3% 13.51 24.86 - 713.83 14.8% 111.88 39.30 - 596.11 12.4% 126.34 (0.56) 469.21 22.01 681.97 14.4% 101.42 64.17 - 554.93 11.7% 45.65 (7.01) 689.07 16.1% 95.85 40.94 - 595.03 13.9% 24.39 (5.14) 502.27 565.50 22.98 24.98 • Seasonal nature of the industry. • Lower cane availability in the sugar season 2020-21 & 2021-22 owing to weather conditions / pest attack on crop. • Higher cane availability in the sugar season 2022-23 owing to increased cane area along with higher yield at farm level. • The Company is actively working on varietal re-balancing of cane / disease management activities. 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, sugar inventory is moderating wh

Note

• Consolidated results of the Company for the year ended 31st March 2023 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 March 2023 stands at 43.93%. * 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 75.77 % of Company’s revenues, Q4 FY23 1522.31 Rs. cr. revenues in Q4 FY 23 1173.41 cr. revenues in Q4 FY 22 29.73% increase 16 Policy intervention from Government ▪ FRP: Fair & Remunerative Price (FRP) of sugarcane for the sugar season 2022-23 was revised to ₹305 per quintal from ₹290 per quintal in the previous season (linked to a basic recovery of 10.25%). ▪ SAP: State Advised Price (SAP) of sugarcane for the sugar season 2022-23 remained unchanged. In sugar season 2

Source

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 sugar business achieved ➢ 1.12% decrease in sugar sales volume in Q4 FY23 (compared with Q4 FY22) ➢ 4.87% increase in blended sugar realizations in Q4 FY23 (compared with Q4 FY22) ➢ Bottomline: Lower domestic sugar volumes off-set by higher export sales coupled with higher realizations Inventory size Inventory valuation 15.85 51.18 Lac quintals, Lac quintals, sugar inventory, sugar inventory, as on 31st Dec. as on 31st Mar. 2022 2023 53.27 Lac quintals, sugar inventory, as on 31st Mar. 2022 33.71 Rs./ kg, value of sugar inventory, as on 31st March 2023 34.22 Rs./ kg, value of sugar inventory, as on 31st March 2022 Cane diversion 64.9% 67.9% Cane diverted for B-heavy Ethanol in Q4 FY23 Cane diverte

Note

❖ Cost of production (including cane cost) is net of credit for bagasse, molasses. syrup and pressmud ❖ Sugar inventory being valued at lower of net realizable value (NRV) or cumulative year to date costing * Cane crushed excludes quantity diverted towards syrup: Q4FY23 - 70.31 lac qtls. FY23 - 85.79 lac qlts 22 This is the outlook of sugar business This is what our sugar business achieved ➢ Expectation of better cane availability in next season for the Company ➢ Improvement in varietal balance which will lead to enhanced sugar recoveries ➢ With depleting inventory, domestic sugar realization to improve ➢ Export quota allocated for sugar season 2022-23 has been despatched / swapped. ➢ Asset modernization and upgradation completed in November/December 2022 expected to be fully utilized from 2023-24 onward ➢ Company has embarked on expansion of crushing capacity at one of its plant by 2000 TCD. 23 Business Overview - Sugar Business overview: Distillery Distillery revenues 477.78 Rs. cr.

Notes

* Includes Freight reimbursement on the sale of Ethanol (Rs. Cr) 13.03 13.67 30.09 32.61 22.44 12.28 5.37 18.74 18.95 (Rs. Cr) Transport charges incurred on sales booked on the expense side of the P/L account Net freight expenses 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) (Rs. Cr) 16.36 17.74 46.45 50.35 1.13 5.07 5.91 0.87 1.08 0.96 Total Total C-heavy Ethanol Total (Cr. BL) (Cr. BL) Contracted volume 8.79 Contracted volume 12.34 (Cr. BL) Contracted volume 0.25 40.89 25.78 21.15 13.50 1.24 15.78 1.46 18.45 1.27 Total Grain route Ethanol (Cr. BL) Contracted volume 5.37 28 Business Overview – Distillery - Operational numbers Total Production * (Cr BL) 21.49 17.06 16.31 10.66 12.76 FY19 FY20 FY21 FY22 FY23 Total Sales * (Cr BL) 16.52 17.65 19.79 11.10 11.94 FY19 FY20 FY21 FY22 FY23 Ethanol Production from B-heavy molasses route (Cr BL) 13.30 11.21 10.18 3

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. 35 Treasury management update • Long-term credit rating re-affirmed at AA+ (Stable) and the short-term rating at A1+ by CRISIL As of 31st March 2023, long term borrowings of the Company stands at Rs. 617.38 crores which carries low interest rate of ~4.1%-8.9%. Repayment obligation towards long-term borrowings is as under: Yearly repayment schedule as per terms of sanction (` in crores) 186.08 134.80 229.00 59.00 8.50 FY2023-24 FY2024-25 FY 2025-26 FY 2026-27 FY 2027-28 During FY2023, Company availed Long Term borrowings of Rs. 326 crores for the capex in the Distillery segment which is eligible for 50% interest subvention In addition, Rs. 140 crores