We Can Because We Think We Can

8/14/2019 We Can Because We Think We Can

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We can because we think we can

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ADDRESSESRegistered Office

Dwarikesh Sugar Industries Limited

Dwarikesh Nagar 246 762District Bijnor,

Uttar Pradesh

Corporate OfficeDwarikesh Sugar Industries Limited

511, Maker Chamber V,

Nariman Point,

Mumbai 400 021


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ABBREVIATION

ABBREVIATIONFactory units:

DN Dwarikesh Nagar , Tehsil Nagina,

District- Bijnor, Uttar Pradesh, IndiaDP - Dwarikesh Puram, Tehsil Dhampur,

District- Bijnor , Uttar Pradesh, India

DD - Dwarikesh Dham, Tehsil- Faridpur,

District Bareilly, Uttar Pradesh,India.


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Division

(Plant capacity)

DN DP DD Total

Sugar

(TCD)

6,500 7,500 7,500

(under

implementation)

21,500

Co gen

(Mw)

17 33

(24 mw underimplementation)

36

(underimplementation)

86

Supply to State Grid(Mw)

8 24 24 56

Distillery

(KLPD)

30 - - 30

METRICS OF PLANT CAPACITY


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Important infoDate of incorporation 1st November 1993

Web site address www.dwarikesh.com

Status Public Limited Company

Listed on NSE, BSE, LuxembourgStock Exchange
http://www.dwarikesh.com/http://www.dwarikesh.com/


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ASSOCIATES1. Morarka Finance Limited - Pursuing investment activities.

2. Dwarikesh Trading Company Limited - engaged in

the business of trading & investments in shares and stocks

3. Dwarikesh Samvad Limited - engaged in the business ofmedia and software development. It is successfully running anews based portal in the name of PRABHASAKSHI. The portal is

one of the most viewed and most popular Hindi portal attractingnearly 500,000 hits everyday.


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STATUTORY AUDITORS, BANKERS & SOLICITORSStatutory Auditors

S S Kothari Mehta & Company

Chartered Accountants,

146-149, Tribhuvan Complex,

Ishwar Nagar , Mathura Road, N Delhi 65

Bankers

Punjab National BankIndustrial Development Bank of India

Solicitors

Mulla & Mulla & Craigie Blunt & Caroe

Kanga & Co.


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BOARD ROOM

Mr. G R Morarka (CMD)- Key Promoter

Mr. Suresh Neotia Chairman- Gujarat Ambuja Cements Ltd

Mr. S S Vaidya Partner, Kanga & Company, solicitors

Mr. M G Diwan Ex chairman LIC of India

Mr. K P Medhekar Ex DGP , Maharasthra

Mr. Milind J Vichare IDBI Nominee

Mr. L.N.Heda Management Expert

Mr. B K Agrawal Ex Secretary (industry), Maharasthra Mr.Ravindra Gupta IREDA Nominee


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MEN AT THE HELM

Mr. B J Maheshwari Vice President (Taxation) & C S Mr. Vijay S Banka Chief Financial Officer Mr. M.N.Agrawal Chief General Manager

(works)-DN Mr. R.K.Goel Chief General Manager (works)

DP Mr. N S Shekhawat Chief General Manager (Cane)

Mr. K P Gadia Chief General Manager(Commercial) Mr. R L Sahu Addl. General Manager (Cane) Mr. Narpat Singh Addl. General Manager (Cane)


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INCREASE IN PLANT CAPACITY (A CHRONOLOGY)

Year Sugar (TCD) Export power (Mw) Distillery (KLPD)

1995-96 to 1996-97 2,500

1997-98 3,500

1998-99 to 1999-00 4,000

2000-01 to 2001-02 5,000

2002-03 to 2003-04 6,500 2

2004-05 6,500 8 30

2005-06 to 06-07 14,000 8 30

2007-08 21,500 56 30


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INFRASTRUCTURE SUGAR PLANT

Particulars DN DP DD

Total LandAvailability

(Acres)

86 58 72

Command Area ofCane (Hect.)

24,304 23,374 25,054

Total Sugar StorageCapacity (LacsQuintal)

7.5 5 6

Total Molassesstorage Capacity(Lacs Quintal)

1.60 1.00 2.00


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INFRASTRUCTURE DISTILLERY PLANT

Total Molasses StorageCapacity

58,143 Quintals

Total Rectified SpiritStorage Capacity

11,15,150 BulkLiters

Total Ethanol StorageCapacity

11,15,150 BulkLiters


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FINANCIAL RESULTS (YEAR ENDED 30TH SEPTEMBER)

ear Endedon

GrossIncome (Rsin Million)

PAT (Rs. InMillion)

OperatingProfit (PBDIT)

(Rs. InMillion)

BookValue per

share(Rs.)

EPS (Rs.) Net Worth(Rs in

Million)

1996 468 4.47 96.90 25.50 0.50 227.50

1997 663 22.54 158.20 26.93 2.52 240.23

1998 876 82.06 212.30 34.32 9.05 306.12

1999 985 72.90 203.40 40.58 7.90 361.87

2000 1059 95.70 226.50 49.28 10.55 439.58

2001 1028 23.33 163.90 46.03 2.63 347.97

2002 1161 10.21 138.50 45.94 0.41 347.30

2003 1178 20.59 153.40 40.80 1.75 347.30

2004 1302 97.61 225.80 50.10 12.13 378.77

2005 1679 266.00 466.70 70.24 23.17 893.59

2006 2401 208.44 456.20 97.89 13.90 1534.58


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TRACK RECORD OF EQUITY DIVIDEND PAYMENT

Year Dividend %

1996-97 10%

1997-98 15%

1998-99 15%1999-00 15%

2000-01 15%

2001-02 5%

2002-03 5%2003-04 20%

2004-05 60%

2005-06 60%

2006-07 --


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38.4846.99

57.3364.75 66.35 65.75

74.98

86.48

75.1980.15

105.99

172.72

20

40

60

80

100

120

140

160

180

200

95- 96 96- 97 97- 98 98- 99 99- 00 00- 01 01- 02 02- 03 03- 04 04- 05 05- 06 06- 07

Year

Lacs

quin

tls

Growth Trajectory - Cane Crushed


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Growth Trajectory - Sugar Production

3 . 84 . 8

5 . 8 6 . 26 . 5 6 . 7

7 . 68 . 8

7 . 8 8 .

1 0 . 7

1 7 . 8

3

5

7

9

1 1

1 3

1 5

1 7

1 9

9 5 - 9 69 6 - 9 79 7 - 9 89 8 - 9 99 9 - 0 00 0 - 0 10 1 - 0 20 2 - 0 30 3 - 0 40 4 - 0 50 5 - 0 60 6 - 0 7

Y e a

LacsQuintls


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Recovery

9 . 9

1 0 .2 1 0 .2

9 . 6

9 . 9

1 0 . 31 0 .2 1 0 .2

1 0 .31 0 .4

1 0 .1

1 0 .3

9 .0 0

9 .2 5

9 .5 0

9 .7 5

1 0 .0 0

1 0 .2 5

1 0 .5 0

1 0 .7 5

9 5 - 9 69 6 - 9 79 7 - 9 89 8 - 9 99 9 - 0 00 0 - 0 10 1 - 0 20 2 - 0 30 3 - 0 40 4 - 0 50 5 - 0 60 6 - 0 7

Y e a

recovery%


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SHARE CAPITAL STRUCTURE

Till April 2001 89.20 Lacs Equity share of Rs 10 each. Total share capitalRs 8.92 crores.

April 2001 Issued bonus share in the ratio of 13:100. Share capital of thecompany increased to Rs 10.08 Crores

August 2001Buy back of 25.20 Lacs shares @ Rs 40/- per share. Total sharecapital reduced to Rs 7.56 crores

Nov. 2004 IPO of 50 Lacs equity shares @ Rs 65/- per share including Rs 55/-share towards share premium. Total share capital increased to Rs

12.56 crores.

Dec. 05 GDR issue of 30 Lacs equity share @ US$4 per share. Total sharecapital increased to Rs 15.56 crores

July 07 15 Lacs share warrants convertible into equal number of equityshares were allotted to promoters. These warrants are convertible intoequity shares at the option of warrants holder at any time after 31st Jan2008 but before the expiry of 18 months from the date of allotment.


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SHARE HOLDING PATTERN

(as on 31st December, 2007)Category Total no. of

shares hold%

Promoters and Promoters Group 69,92,099 44.92%

Public Shareholding 85,72,577 55.08%


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SWOT ANALYSIS

Strengths

Most Modern Plants with adequate provision for expansion

Well planned infrastructure Abundant and assured supply of sugarcane

Power supply to state grid

Sugar Business virtually de-risked with forays in power andethanol

Lowest process losses. Highly skilled and motivated work force

Self reliant in respect of its requirement of power andwater.


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SWOT ANALYSIS CONTD

Weakness

Industry cyclic in nature and highly regulatedby Governmental Controls

Virtually no control over raw material price

Lackadaisical attitude of Government inproviding infrastructure such as roads etc.


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SWOT ANALYSIS CONTD

Opportunity

Possibility of increasing capacity

Opportunity to get into value added businessOpportunity to set up a bagasse based paper

plant

Threats

Import of Sugar

Frequent changes in Government PoliciesAll the threats are surmountable


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RAW MATERIAL PRICE A MAJOR COST DRIVER

Season SMP (Rs per qtl) SAP (Rs per Qtl)

1998-99 52.70 80.00

1999-00 56.10 85.00

2000-01 59.50 90.00

2001-02 62.05 95.00

2002-03 69.50 95.00

2003-04 73.00 95.00

2004-05 74.50 107.00

2005-06 79.50 115.00

2006-07 80.25 125.00 (under reviewby court)

2007-08 81.18 110 (Interim courtorder)


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OPERATING RATIOSParticulars 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Manufacturing &Operating expenses / TotalIncome

67.93% 71.13% 73.23% 62.28% 58.49% 67.02

Excise duty / Total Income 6.68% 8.12% 6.29% 7.70% 5.58% 5.64

Staff Expenses / TotalIncome

5.14% 4.89% 4.89% 4.82% 4.79% 5.02

Selling & Administrationexpenses / Total Income

4.30% 3.93% 2.57% 3.05% 3.22% 3.19

PBIDT / Total Income 15.94% 11.93% 13.02% 17.34% 27.80% 19.00

PBIT / Total Income 12.37% 8.22% 9.38% 13.80% 24.52% 13.91

PBT / Total Income 2.47% 0.81% 3.23% 8.40% 20.98% 11.21

PAT/ Total Income 2.27% 0.88% 1.75% 7.49% 15.84% 8.68


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SUGAR INDUSTRY - OUTLOOK

Indian sugar industry is subject to cyclic forces

Typical cycle Two goods years followed by tow bad years and then anaverage year

Cycle repeated once in every five years

The year 2006-07, for sugar industry was defining year for all the wrongreasons.

The Sugarcane production and consequently sugar production was alltime high.

The sugar prices plummeted to low levels.

Industry was saddled the high inventory and mounting cane arrears.

Low international prices on account of record production of sugar inBrazil.


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SUGAR INDUSTRY OUTLOOK CONTD..

The year 2007-2008 is expected to be slightly better than theprevious year.

The gap between supply and demand is expected to becomemore pronounced with supply far exceeding the demand.

The correction is expected in the year 2008-09.

Oil prices, world over should increase resulting in utilization ofsugarcane in Brazil for production of ethanol.

Mounting cane arrears would also dissuade farmers fromgrowing more and more sugarcane.

Standalonesugar companies will again find the going tough


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OUTLOOK - DWARIKESH

Dwarikesh has transformed from a single unit companyto a conglomerate with composite manufacturingfacilities. It should therefore break even in the year2007-08.

In the year 2008-09 Dwarikesh should witness runawaygrowth in bottom line. Having incurred the capitalexpenditure to put its assets in place.

Dwarikesh is now poised to reap the benefits. Where asthe cost side is already reflected in numbers, therevenue side has just begun to unfold.


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OUTLOOK DWARIKESH CONTD..

In the year 2007-08 sugar business may notcontribute to the bottom line.

Enhanced production of power to be the money

spinner.

Capacity to generate and supply power to thestate grid increased from 8 Mw to 56 Mw,

Power generation to partially mitigate risksassociated with sugar business.

Dwarikesh poised to earn carbon credits

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We Can Because We Think We Can