Dhampur Sugar Mills LtdQ2 FY23

Dhampur Sugar Mills Ltd Q2 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹172P/E: 16.0Market Cap: ₹1.1K CrSector: Agricultural Food & other Products

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3
  • Ethanol capacity expansion of 130 KL is expected to start between January to March 2023, potentially boosting ethanol volumes.
  • Sugarcane crushed volumes expected to rise by about 7-8%, with Dhampur plant projecting 248 lakh quintals (up from 244 lakh) and Rajpura 128-132 lakh quintals (up from 122 lakh).
  • Ethanol production expected to increase with focus on syrup and B-Heavy routes, supported by potential government syrup price hikes and favorable ethanol policies.
  • Sugar export orders likely soon, with anticipated exports of 7-8 million tonnes till March 2023, supported by global shortages and favorable dollar rates, supporting sugar sales.
  • Post-expansion ethanol capacity to reach around 480 KL.
  • Possible further capex plans and capacity expansion decisions expected by January 2023 for FY24.
  • Sugar prices expected to remain stable around INR 35-36 per kg next year, maintaining revenue stability.

See what Dhampur Sugar Mills Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

  • As of the call in October 2022, Dhampur Sugar Mills Limited did not specifically mention any new fundraising plans through debt or equity.
  • The company discussed ongoing expansion plans, including a 130 KL ethanol capacity expansion expected by January-March 2023.
  • There was mention of finalizing Capex plans for FY 23-24 around January 2023, indicating possible future investment plans.
  • No explicit mention was made of raising funds via equity or debt during the call.
  • The company had long-term debt standing at INR 250.8 crores as of September 30, 2022, with an improving debt-to-equity ratio of 0.32.
  • Any future fundraising decisions might be communicated closer to the finalization of Capex plans for FY 23-24.

See what Dhampur Sugar Mills Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes
- Dhampur Sugar Mills is undertaking a 130 KL expansion in ethanol capacity, expected to start in Q4 FY'23 (January to March 2023). - This expansion will provide flexibility to produce ethanol from multiple feedstocks—C, B, syrup, and grain (with an option of 100 KL grain-based ethanol). - The expansion targets increasing capacity from the current 416 KL (on B-Heavy route) to around 480 KL. - Post this, the company is evaluating further Capex plans for FY 2023-24, expected to be finalized by January 2023. - No concrete plans shared yet for strategic investments beyond this; discussions and planning are ongoing. In summary, the company has a near-term ethanol capacity expansion underway and is considering additional Capex for FY'24, with details to be finalized early next year.

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How does Dhampur Sugar Mills Ltd rank vs peers in Agricultural Food & other Products?

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