At last company managed to post good results even in the tough grain inflatory environment by using some wet maize procurement at lower price in Q2, but it’s not the case in Q3.
Expecting crop in RJ, PN & JH which may cool off current maize price ~ 25/- to some extent.
As per management current margins can be sustainable in Q3 & Q4.
Capex:
75KLPD bio diesel plant can comission in Q1FY26.
150KLPD batinda expansion can be commissioned in Q3/Q4 FY26.
250KLPD Goyal distillery equipment finalization is under process, exact time line of comission can be known after equipment order placement. If ever thing goes well then we can get this on stream by FY26 end or else spill over to FY27. Funding route is yet to finalized for 350Cr acquisition.
From the current 700KLPD to 1175 KLPD by FY26 end or mid of FY27 i.e 68% jump in capacity in 1.5 to 2 Years.
Edible oil:
Exit from this segment could be Q4FY25/Q1FY26.
Even though top line would be impacted meaningfully 800-1000Cr but impact on the bottom line would be < 20Cr, which can be compensated by biodiesel plant.
WC finance cost would also decrease after exiting from the edible oil.
Over all down the line 5-6 quarters numbers would be similar to Q2 results, I am not expecting any good jump in numbers unless there is substantial reduction in maize price or increase in ethanol price . FY27 would be good year as all capacities would be on stream
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