Balrampur Chini Mills Limited

16%

quality of the cane and enhance acreage and yield. This concerted effort has led to a significant ~16% increase in crushing during the season 2022-23 leading to healthy performance in this quarter. We

10%

this quarter. We are hopeful to report that our ongoing endeavors are expected to lead to further ~10% increase in sugarcane crushing in the ensuing season, subject to conducive weather conditions. F

rs,

on track to commission the additional capacity with the start of the ensuing season. Over the years, the integrated operations have allowed us to maintain a robust balance sheet and generate healthy c

Rs. 7760.28

y (MW) Among the largest integrated sugar companies Principle business sugar + distillery Rs. 7760.28 cr. market capitalization as on 30th June 2023 42.90% promoter shareholding as on 30th June

42.90%

iple business sugar + distillery Rs. 7760.28 cr. market capitalization as on 30th June 2023 42.90% promoter shareholding as on 30th June 2023 * 2000 TCD expansion under implementation 6 5 Ye

21%

338 13 10 11 5 3 FY23 FY22 FY21 FY20 FY19 Revenue from distillery segment contributed ~21% of overall revenues in FY23 as compared to 11% in FY19 Distillery segment contributed ~51% of PBIT

11%

FY19 Revenue from distillery segment contributed ~21% of overall revenues in FY23 as compared to 11% in FY19 Distillery segment contributed ~51% of PBIT in FY23 Company is focusing on increasing the

51%

ributed ~21% of overall revenues in FY23 as compared to 11% in FY19 Distillery segment contributed ~51% of PBIT in FY23 Company is focusing on increasing the share of revenue / profit from distillery se

27.9%

23 1.37 1.46 1.63 1.60 1.31 FY19 FY20 FY21 FY22 FY23 Capital Employed (Rs. Crs) ROCE * (%) 27.9% 32.0% Net Worth (Rs. Crs) RONW ** (%) EBITDA/Net Block^^ 21.8% 21.6% 20.7% 12.6% 23.4% 19

32.0%

7 1.46 1.63 1.60 1.31 FY19 FY20 FY21 FY22 FY23 Capital Employed (Rs. Crs) ROCE * (%) 27.9% 32.0% Net Worth (Rs. Crs) RONW ** (%) EBITDA/Net Block^^ 21.8% 21.6% 20.7% 12.6% 23.4% 19.5% 19

21.8%

Employed (Rs. Crs) ROCE * (%) 27.9% 32.0% Net Worth (Rs. Crs) RONW ** (%) EBITDA/Net Block^^ 21.8% 21.6% 20.7% 12.6% 23.4% 19.5% 19.7% 9.9% 48.47% 41.99% 44.70% 42.80% 2,482 2,789 2,921

21.6%

d (Rs. Crs) ROCE * (%) 27.9% 32.0% Net Worth (Rs. Crs) RONW ** (%) EBITDA/Net Block^^ 21.8% 21.6% 20.7% 12.6% 23.4% 19.5% 19.7% 9.9% 48.47% 41.99% 44.70% 42.80% 2,482 2,789 2,921 3,034

“– • • • • Recycling Replacement (Restoration) Reduction Renewables We achieved zero liquid discharge target in all our distilleries and are now targeting zero water drawal in sugar units.”

Note

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Source

1

Transfer Price

1

Global Price Outlook

1

Global Consumption Outlook

1

Bonsucro Certification

1

Equity Share Capital

1

For further information contact

1

Note

• Consolidated results of the Company for the period ended 30th June 2023 includes results of Associate of the Company viz. Auxilo Finserve Pvt. Ltd. • Company’s share in Auxilo Finserve Pvt. Ltd. as on 30th June 2023 stands at 43.93%. TCI - Total Comprehensive Income 13 ➢ PART TWO The performance of our principal businesses 14 Business Overview - Sugar “Attractively placed” Management’s overarching 5 messages for Q4FY22 70.32% % of Company’s revenues, Q1 FY24 1116.08 Rs. cr. revenues in Q1 FY24 914.37 Rs. cr. revenues in Q1 FY23 22.06% increase in revenues 15 Policy intervention from Government ▪ FRP: Fair & Remunerative Price (FRP) of sugarcane for the sugar season 2023-24 has been revised to ₹315 per quintal from ₹305 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 2021-22 the state of Uttar Pradesh increased the SAP by Rs. 25 to Rs. 350 per quint

Source

CACP Report In addition to being the remunerative crop 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 The cost of production of sugarcane for the sugar season 2023-24 is estimated to be Rs.157/qtl. FRP of Rs.315/qtl. at a recovery rate of 10.25% is higher by 100.6% over production cost. The FRP for sugar season 2023-24 is 3.28% higher than current sugar season 2022-23. Returns from sugarcane continues to be very high as compared to other crops 17 Business Overview - Sugar Revenue (Rs. Cr.) Segment PBIT (Rs. cr) Segment PBIT Margin (%) Sugar Sales * (lac quintals) Average realization of sugar (Rs./kg) ** 8.9% 8.8% 7.6% 6.9% 5.5% 3,822 4,423 4,352 4,263 4,339 338.4 389.0 329.5 296.3 238.5 115.30 120.53 113.26 102.63 90.38 29.55 30.34 32.01 34.71 35.97 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Revenue (Rs. Cr.) 1,116.1 914.4

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 * Cost of production as calculated above is excluding the cane crush under sugar syrup route: FY23 - 85.79 lac qlts Q1FY24 – 10.79 lac qtls. 21 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 may lead to enhanced sugar recoveries ➢ With moderation of inventory, domestic sugar realization to improve ➢ Company has embarked on expansion of crushing capacity at one of its plant by 2000 TCD which will commence operations by November 2023. 22 Business Overview - Sugar Business overview: Distillery Distillery revenues 465.98 Rs. cr. Q1FY 24 298.10 Rs. cr. Q1FY 23 56.32% higher revenues Distillery PBIT 84.59 Rs. cr. Q1FY 24 98.43 Rs. cr. Q1FY 23 14.

Transfer Price

FY20 FY21 FY22 FY23 Q1FY23 Q1FY24 B-heavy molasses (Rs./quintal) 700 700 1030 w.e.f Oct-21 1090 w.e.f Dec-22 1030 1090 Syrup (Rs./quintal) N.A. N.A. N.A. 1709 N.A. 1616 29 This is the outlook of distillery business This is what our sugar business achieved ➢ Profitable foundation for sustainable growth ➢ Ethanol business to have higher contribution to top-line ➢ Ethanol prices under the EBP Programme for ESY 2022-23 are as under: Period C-route B-route Syrup Damaged Grains Surplus Rice Dec 22 - Oct 23 (ESY 2022- 23) Dec 21 - Nov 22 (ESY 2021- 22) (including incentive w.e.f. 1st June,22) % change (in ESY 2022-23 w.r.t. ESY 2021-22) 49.41 60.73 65.61 55.54 58.50 47.84 60.57 65.05 55.26 58.31 (1.18) (1.49) (1.60) (2.34) (1.44) 5.89% 2.79% 3.40% 4.95% 2.87% Ethanol supply contract for ESY 2022-23 (Total – 26.74 cr BL) Cr BL 8.30 12.46 Syrup route B-heavy route 5.63 Rice route 0.35 C heavy route Supply can be lower than the quantity contracted owing to sudden stoppage in supply of rice from

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. 33 How we managed our cash flow Strong cash flow funds multiple drivers of value for shareholders Capital Expenditure INR 1746.00 cr Dividend + Taxes INR 289.51 cr ROBUST SHAREHOLDER VALUE CREATION Buy-back + Taxes INR 834.49 cr Strong Cash Flow # (INR 2838.91 cr FY19-FY23) # PBT + Depreciation – Current Tax 34 Treasury management update • Long-term credit rating re-affirmed at AA+ with Stable outlook and the short-term rating at A1+ by CRISIL As of 30th June 2023, long term borrowings of the Company stands at ` 580.4 crores which carries average interest rate of ~5.4% (net of interest subvention). Yearly repayment schedule as per terms of sanction

Global Price Outlook

• The global Raw Sugar (Mar-24 contract) price traded in the range of ~22-26 c/lb during Q1FY24 quarter . • NY11 raw sugar price is expected to remain strong with upward bias. • Brazilian currency value to play an important role on the prices.