Associated Alcohols & Breweries Ltd.
7,298words
5turns
0analyst exchanges
0executives
Key numbers — 40 extracted
16
million
14%
15%
12%
10%
21%
8%
16%
0.04x
22x
58%
10.5 MW
Guidance — 5 items
C O M F O R TA B L E D E B T L E V E L
opening
“29 Sources : Technopak Report January 2024 I N D I A N A L C O - B E V I N D U S T R Y P O I S E D F O R G R O W T H Alco-Bev Volume in India (Mn Cases) and CAGR Indian Alco- Beverage market (Rs.”
C O M F O R TA B L E D E B T L E V E L
opening
“Lac Cr) 960 1,018 1,068 1,491 CAGR : 1.2 % CAGR: 1.6% CAGR:6.9 % 325 330 300 355 340 320 385 350 330 560 445 480 3 3.2 2 5 2015 2020 2023 2028P Beer Country Liquor IMFL Wine 2015 2020 2023 2028P CAGR ❑ India's alcohol market surging with urbanization, lifestyle shifts, and a burgeoning middle class.”
C O M F O R TA B L E D E B T L E V E L
opening
“❑ Raw Material Prices Soften: Rice and maize prices stabilising, offering margin relief into FY26.”
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opening
“Ankit Agrawal Group Chief Financial Officer A Chartered Accountant and Company Secretary with over 14 years of diverse experience in finance, audit, taxation, IPOs, mergers, acquisitions, and project management.”
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opening
“Arun Sahni, A seasoned operations leader with over 39 years of experience in Project Management, Operations Management, Risk Assessment & Resources Management Mr.”
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Risks & concerns — 2 flagged
❑ Raw Material Prices Soften: Rice and maize prices stabilising, offering margin relief into FY26.
— C O M F O R TA B L E D E B T L E V E L
Arun Sahni, A seasoned operations leader with over 39 years of experience in Project Management, Operations Management, Risk Assessment & Resources Management Mr.
— Adjustments for
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Opening remarks
By Products
Cattle Feeds 58% of ENA used for captive consumption B2B B2C 3 P R E S E N T A C R O S S L I Q U O R V A L U E C H A I N Adaptability and Flexibility in using varied grains as Feedstock On Ground Intelligence for Raw Material Sourcing Proprietary Brands - IMFL - IMIL IMFL Licensed Contract Manufacturing ENA Manufacturing - For Captive Consumption - For Alco Bev Companies Ethanol Manufacturing For OMCs/Private Players By Products Cattle Feed 150 Acres of Single Location Land Bank o Energy Cost - Efficiency o Net Energy Surplus Unit o 10.5 MW Captive Power Sustainable EBITDA Margin IMFL (Proprietary) c.15%-18% IMFL (Licensed) c.12%-15% IMIL c.9%-11% ENA c.8%-9% Total EBITDA Margin c.11%-13% Ethanol c.7%-8% 4 A A B L I M F L – G A I N I N G T R A C T I O N E C O N O M Y B o m b ay S p e c i a l W h i s ky S u p er m a n F i n e W h i s ky P O P U L A R C e n t ra l P rov i n c e W h i s ky T i t a n i u m Vo d k a P R E S T I G E & A B O V E S u p e r P r e m i u m B r a n d N i c o b a r
Activities include
— Deploy widespread use ofCCSand L e m o u n t renewable feedstocks — Transitionfleetto zero emissions — Targetsourcing of ~100% renewable/ — Address remainderthroughnegative low-carbon power emissionsprojects H i l l f o r t P re m i u m b l e n d ed M a l t W h i s ky 5 A A B L’ S B R A N D P O R T F O L I O Whisky Vodka Gin Brandy Rum P r e s t i g e & A b o v e MRP: Rs 1,400-2,600 P o p u l a r MRP: Rs 680-1,000 E c o n o m y MRP: Rs 500-560 6 L I C E N S E D B R A N D S - P R E F E R R E D PA R T N E R S Blue Riband Gin Bagpiper White Mischief Director’s Special McDowell’s 7 C O N T R A C T M A N U F A C T U R I N G – L O N G T E R M R E L A T I O N S B L A C K & W H I T E S M I R N O F F V A T 6 9 B L A C K D O G 8 I N D U S T R Y L E A D I N G F I N A N C I A L P O S I T I O N Robust Financial Position: Low Gearing and Adequate Interest Coverage Ratio Setting Industry Standards Net Debt/Equity Ratio as on FY24 Interest Coverage Ratio as on FY24 0.16 20.7 0.04 12.6 Associated Alc
C O M F O R TA B L E D E B T L E V E L
F I N A N C I A L S T R E N G T H Debt Repayment Schedule (Rs Mn) for Debt Funding of Ethanol Plant 200 200 200 96 FY24-25 FY25-26 FY26-27 FY27-28 ❑ Ethanol Plant expansion was funded by Loan taken out under Interest Subvention Scheme ❑ AABL’s strong cash flows guarantee that the company is well-positioned to comfortably meet its debt repayment obligations 22 F U N G I B I L I T Y O F R A W M A T E R I A L S A N D F I N I S H E D P R O D U C T S Diverse Grain Usage as Feedstock Rice Maize Jawar Any Other Starch Rich Feedstock State of the art Manufacturing Facility & Flexible Energy Source Coal Husk Briquettes 2 3 1 1 Single Manufacturing Facility 4 4 2 3 Flexible Product Offerings IMFL (Proprietary) IMFL (Licensed) IMIL ENA for Captive Consumption and Supply to Bottlers Ethanol to OMCs/Private Players 23 Strong Investment Thesis Strong Industry Tailwinds Q4 & FY25 - Earnings Annexure 24 G R O W T H C A TA LY S T S Driving Alco-bev Industry Expansion Urbanisation o Accelerated urban de
Adjustments for
Depreciation / Amortisation Finance Cost Other Adjustements Interest Income Operating Profit before Working Capital Changes 1,290 Movement in Working Capital (Increase)/Decrease in Trade Receivables (Increase)/Decrease in Inventories Increase/(Decrease) in Trade Payables Increase/(Decrease) in Other Liabilities & Provisions Cash From Operations Direct Tax Net Cash From Operating Activities 174 57 (13) (24) (48) (339) 75 (3) 975 144 37 (56) (47) 761 (170) (186) 132 (86) 451 (236) (167) 739 284 Proceed from the Sale of Property Plant & Equipment Other Investing Avtivities Interest Income received 2 3 25 1 666 47 Net Cash Flow used in Investing Activities (831) (325) CASH FLOW FROM FINANCING ACTIVITIES Proceeds from Non Current Borrowings Repayment of Non Current Borrowings Proceeds from/(Repayment) of Current Borrowings Proceeds from/(Repayment) of Lease Liabilities Finance Cost paid Interest Paid on Lease Liabilities Dividend Paid Proceeds from Share Warrants Net Cash Flow used in Finan
Adjustments for
Depreciation / Amortisation Finance Cost Other Adjustements Interest Income Movement in Working Capital (Increase)/Decrease in Trade Receivables (Increase)/Decrease in Inventories Increase/(Decrease) in Trade Payables Increase/(Decrease) in Other Liabilities & Provisions Cash From Operations Direct Tax 174 57 (13) (24) 144 37 (56) (47) (48) (339) 75 (3) 975 (170) (186) 132 (86) 451 144 14 (7) (59) 646 55 (202) (202) (84) 214 (236) (167) (146) Proceed from the Sale of Property Plant & Equipment Other Investing Avtivities Interest Income received 2 3 25 1 666 47 - (44) 31 Net Cash Flow used in Investing Activities (831) (325) (942) CASH FLOW FROM FINANCING ACTIVITIES Proceeds from Non Current Borrowings Repayment of Non Current Borrowings Proceeds from/(Repayment) of Current Borrowings Proceeds from/(Repayment) of Lease Liabilities Finance Cost paid Interest Paid on Lease Liabilities Dividend Paid Proceeds from Share Warrants Net Cash Flow used in Financing Activities Net increase/(decre
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