Q1 FY 23 Consolidated Results
- Revenue from Operations (Net of excise duty) at ` 1225.67 crore, a growth of 18.2% primarily driven by higher sugar and alcohol dispatches along with higher realizations
- Profit before tax (PBT) declined by 28.4% on a year-on-year basis to ₹ 88.68 crore. This is mainly
because the previous corresponding quarter included a net income of ₹ 45.31 crore on account of
export subsidy pertaining to FY 21. - In respect of distillery operations, higher realization along with commissioning of additional capacity in Q1 FY 23 resulting in higher sales volumes, have contributed to the increase in profitability by 44.3% on a year-on-year basis.
- Engineering business at an aggregate level reported strong revenue increase of 32.9% during the
current quarter over the corresponding period last year. - Power Transmission Business order booking in Q1 FY 23 reported an impressive growth of 41.5% over the corresponding period last year. We expect this strong growth trend to sustain in the coming quarters, which would boost revenue growth for FY 23 and FY 24.
- On a consolidated basis, the total debt is at ₹ 1617.68 crore as on June 30, 2022 as against ₹1567.96 crore as on March 31, 2022.
- Overall average cost of funds is at 5.07% during Q1 FY 23 as against 5.27% in the corresponding period of previous year.
Sugar Businesses
- In Sugar Season (SS) 2021-22, achieved sugarcane crush at 8.41 million tonnes with gross recovery of ~ 11.70% and sugar production of 0.89 million tonnes.
- Distillery revenues (net of excise duty) and profitability grew substantially due to commissioning of additional capacity of 200 KLPD during the quarter resulting in increased sales volumes
- With the commissioning of a new 60 KLPD grain-based distillery at existing distillery complex at Muzaffarnagar (U.P.) and enhancement of the capacity of two existing distilleries by 40 KLPD each, subsequent to the quarter, presently, total distillery capacity stands at 660 KLPD
- Ethanol produced from B-heavy molasses constitutes 90% of the sales volume in the current quarter as against 81% in the corresponding period of the previous year
- Unit-wise capacities are as follows:
** Milak Narayanpur distillery 200 KLPD
** Sabitgarh distillery 200KLPD
** Muzaffarnagar facility 260 KLPD
*** 200 KLPD on molasses
*** 60 KLPD on grain
Engineering Businesses
- Water business has secured its second international project, in Bangladesh
- Robust order booking in both Power Transmission and Water Business
- Order booking in Power Transmission grew 41.5% year-on-year, this trend is
expected to continue and support strong revenue growth in FY 23 and FY 24 - Outstanding order book of ` 1,889 crore for combined Engineering Businesses
Expansion
- Expansion program to set up two new dual feedstock (sugarcane derived and grain) distilleries with an aggregate capacity of 450 KLPD at Rani Nangal and Sabitgarh, U.P., subject to receipt of necessary statutory clearances, raising total distillation capacity to 1110 KLPD at an aggregate cost of about ` 460 crore. These distilleries are expected to commence commercial production in Q3 FY 24.
Disinvestment
- Triveni Turbine stake sale(21.85%) are expected to complete by October 2022.
Feedback
All the business verticals are having robust financial performance and are promised to grow at much faster rate. Company can grow around 12-15% annually and even can improve much further once Water business starting contributing to its bottom-line. Even Power Transmission business also catching up as expected will also contribute more in coming year. Even for Distillery business, government having hard target of 12% blending is expected to be achieved for year 2022-23 which is estimated that 545 crore litres of ethanol would be required which even grow Distillery business.
Q1FY23 Concall
https://www.youtube.com/embed/dFMhFcrxkt0
Disclosure: Invested in this counter from long time(around 17Rs). So, my views can be biased.
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