Any current/future capex/capital investment/strategic investment?

Dhampur Sugar Mills is expanding its distillery capacity to 350 KLPD using C-Heavy molasses. The company has received consent to operate for its new distillery plant but is awaiting certain final approvals expected shortly for commissioning. They plan to start their grain-based distillery plant by end of March 2023. Grain-based ethanol production is an optional strategy based on grain prices; they will produce ethanol using wheat, rice, and maize. Debt levels are expected to increase due to distillery expansion, with term loans rising from around INR 234 crore to approximately INR 270-280 cror

Future growth expectations in sales/revenue/volumes?

Ethanol production expected to increase from 8.5 crore liters in FY '23 to about 11.5-12.5 crore liters post expansion, starting end of March. Crushing volume for FY '23 expected to be around 37 lakh tonnes, up ~9% compared to last year’s 35.83 lakh tonnes. Sugar production projected to be stable with marginally better recovery and yields compared to last year. Increased diversion of cane for ethanol production expected, with syrup-based ethanol diversion rising to 24-25% by March. Revenue growth seen in ethanol business (INR 158.7 crores in Q3 FY '23 vs INR 100 crores last year) and p

Future growth expectations in earnings/operating earnings/profits/EPS?

Ethanol production is expected to increase from 8.5 crore liters currently to about 12 to 12.5 crore liters after the expansion, driving higher revenues and profits. Recovery and yield are expected to be at least stable or slightly better than last year, supporting consistent sugar production levels (~37 lakh tonnes). Margins on ethanol, especially from syrup and B-Heavy, are expected to remain stable, supporting profitability. Revenue growth is anticipated from higher ethanol and potable spirits sales, with ethanol revenue notably increasing from INR 100 crores to INR 158.7 crores this quarte

IN US

Sale is live|00:00:00left today

Dhampur Sugar Mills LtdQ4 FY24Agricultural Food & other Products

Dhampur Sugar Mills Ltd Q4 FY24 Earnings Call Analysis

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

Price: ₹140P/E: 14.2Market Cap: ₹973 CrSector: Agricultural Food & other Products

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Ethanol production expected to increase from 8.5 crore liters in FY '23 to about 11.5-12.5 crore liters post expansion, starting end of March.
→Crushing volume for FY '23 expected to be around 37 lakh tonnes, up ~9% compared to last year’s 35.83 lakh tonnes.
→Sugar production projected to be stable with marginally better recovery and yields compared to last year.
→Increased diversion of cane for ethanol production expected, with syrup-based ethanol diversion rising to 24-25% by March.
→Revenue growth seen in ethanol business (INR 158.7 crores in Q3 FY '23 vs INR 100 crores last year) and potable spirits, signaling focus on value-added products.
→Overall production and sales volumes across segments are anticipated to grow driven by expanded distillery capacity and stable sugar output.

Margin guidance

Category 3

→Ethanol production is expected to increase from 8.5 crore liters currently to about 12 to 12.5 crore liters after the expansion, driving higher revenues and profits.
→Recovery and yield are expected to be at least stable or slightly better than last year, supporting consistent sugar production levels (~37 lakh tonnes).
→Margins on ethanol, especially from syrup and B-Heavy, are expected to remain stable, supporting profitability.
→Revenue growth is anticipated from higher ethanol and potable spirits sales, with ethanol revenue notably increasing from INR 100 crores to INR 158.7 crores this quarter.
→Debt levels are expected to rise slightly due to distillery expansion (term loans around INR 270-280 crores).
→Sugar prices are projected to remain range-bound with moderate upside to INR 35.5 per kg by April-May, supporting stable operating earnings.
→Overall, the company projects growth in operating earnings driven by capacity expansion in distillery and stable production and pricing in sugar.

3 more insights locked — sign up free to unlock

Fundraise plans

Yes

- The company’s term loan debt as of December 31, 2022, stands at INR 234.1 crore. - They plan to draw down additional debt for the distillery expansion, which will increase term loan debt to around INR 270-280 crore. - Apart from this, working capital utilization will vary seasonally depending on inventory levels. - No mention of any planned equity fundraising or issuance during the quarter or near future was made in the transcript. In summary, Dhampur Sugar Mills is planning incremental debt raising (term loans) for their distillery expansion, with no current plans disclosed for equity fundraising.

Order book

The transcript does not mention any information regarding the current or expected order book or pending orders for Dhampur Sugar Mills Limited. The discussion mostly focuses on financial performance, production numbers, costs, policies, and market outlook without any direct reference to order book status.

Capex plans

Yes

→Dhampur Sugar Mills is expanding its distillery capacity to 350 KLPD using C-Heavy molasses.
→The company has received consent to operate for its new distillery plant but is awaiting certain final approvals expected shortly for commissioning.
→They plan to start their grain-based distillery plant by end of March 2023.
→Grain-based ethanol production is an optional strategy based on grain prices; they will produce ethanol using wheat, rice, and maize.
→Debt levels are expected to increase due to distillery expansion, with term loans rising from around INR 234 crore to approximately INR 270-280 crore by March 2023.

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

Pro feature

1Dhampur Sugar Mills Ltd

Rev 3Mar 3

See full Agricultural Food & other Products sector rankings

Want more stocks like Dhampur Sugar Mills Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.

Build my portfolio