Zuari Industries to explore organic and inorganic growth prospects to scale up production of ethanol to around 1000 KLPD

Sugar and ethanol producer Zuari Industries Limited (ZIL) on May 29 announced its financial results for the fourth quarter and full year ended Mar 31, 2024. ZIL achieved standalone revenues of 900.8 Cr for the year ended March 31, 2024. EBITDA for the Company stood at 235.4 Cr recording a healthy y-o-y growth of 21%, on the back of higher sugar recovery, monetization of land parcels, reduction in finance costs and implementation of digital initiatives. The Company also concluded the merger of its 100% subsidiary, Zuari Sugar and Power Limited (ZSPL) with itself. For the quarter ended March 31, 2024, the standalone revenues stood at 253.0 Cr, lower by 22% owing to restriction on exports of sugar, which got partially offset by higher realization and income from sale of land parcels. The Company posted a standalone PAT of 22.7 Cr. The Company achieved an increase of 24.1% in Sugar Production (14.4 Lakh Quintals) along with highest ever ethanol production of 27,362 KL for the year ended March 31, 2024.

In a presentation for investors, the company provided a business overview, stating that ZIL, in a joint venture with Envien International, Slovakia, is establishing a grain-based distillery in Aira, Lakhimpur Kheri, Uttar Pradesh. The facility, with a capacity of 180 KLPD, will be situated on 20.06 acres of land. Construction commenced on 22 February 2024, and commercial operations are expected to begin by mid-2025.

Speaking on future strategy, company said that will explore organic and inorganic growth prospects to scale up the production of ethanol to ~ 1000 KLPD. And taking first mover advantage and adopting state-of-the-art technology.

Performance highlights:
• Sugar production stood at 14.4 Lakh Qtls (FY24) vs 11.6 Lakh Qtls (FY23) owing to higher sugar recovery of 10.41% (FY24) Vs 9.85% (FY23)
• Sugar sales were lower by 4 .4 Lakh Qtls (Y-o-Y) owing to lower quota allocation and continued restriction on exports by the Govt. of India. The effect of lower sales of sugar was partially offset by higher realization in sugar prices.
• Power Production was at 1291.3 Lakh Units (FY24) vs 1365.0 Lakh Units (FY23), lower due to lower operating days (128 vs 150 in FY23) due to boiler outage in Q1 FY24
• Achieved milestone of highest ever ethanol production for FY 24
• Ethanol production stood at 27,362 KL (FY24) vs 26,502 KL (FY23) due to higher operating days (247 Vs 232 in FY23)
• Total land sales worth 166.8 Cr (102.2 Acres)
• Participated in CFCL buyback selling 20.52 L shares @ 450/share realizing 92.36 Cr
• Total Income from operations in FY24: INR 900.8 Cr

Financial Highlights :
• Refinanced high-cost debt
• Achieved reduction in finance cost by 85 bps
• The standalone EBITDA and PBT (before exceptional items) for FY 24 stood at Rs. 235.4 Cr and Rs. 76.6 Cr compared with Rs. 195.1 Cr and Rs. 13.5 Cr in FY 23, respectively.
• The standalone PAT for the year stood at 22.7 Cr Vs 7.5 Cr in FY 23.


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