The document provides an overview of Bannari Amman Sugars Ltd, an Indian sugar manufacturing company. It details the company's background, operations, financial performance, industry and competitive landscape. Key details include the company having 4 sugar units with a total capacity of 19,000 tonnes crushed per day. It also manufactures alcohol and generates power. The financial section shows consistent revenue growth and increasing profits year-over-year.
The document provides an overview of Bannari Amman Sugars Ltd, an Indian sugar manufacturing company. It details the company's background, operations, financial performance, industry and competitive landscape. Key details include the company having 4 sugar units with a total capacity of 19,000 tonnes crushed per day. It also manufactures alcohol and generates power. The financial section shows consistent revenue growth and increasing profits year-over-year.
The document provides an overview of Bannari Amman Sugars Ltd, an Indian sugar manufacturing company. It details the company's background, operations, financial performance, industry and competitive landscape. Key details include the company having 4 sugar units with a total capacity of 19,000 tonnes crushed per day. It also manufactures alcohol and generates power. The financial section shows consistent revenue growth and increasing profits year-over-year.
The document provides an overview of Bannari Amman Sugars Ltd, an Indian sugar manufacturing company. It details the company's background, operations, financial performance, industry and competitive landscape. Key details include the company having 4 sugar units with a total capacity of 19,000 tonnes crushed per day. It also manufactures alcohol and generates power. The financial section shows consistent revenue growth and increasing profits year-over-year.
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GICS Industry: Food products l Sub Industry : Packaged Foods & Meats l Website : www.bannari.
com
Bannari Amman Sugars Ltd.
Key Stock Indicators NSE Ticker: Bloomberg Ticker: Face value / Share: Div. Yield (%): BANARISUG BNRI: IN 10.0 1.2 CMP (as on 07 Jan 2011Rs/share): 52-week range up to 07 Jan 2011 (Rs) (H/L): Market Cap as on 07 Jan 2011 (Rs mn): Enterprise Value as on 07 Jan 2011 (Rs mn): Div. Yield (%): 0.0 834.1 1220.65/804.0 9,542 11,669 Shares outstanding (mn): Free Float (%): Average daily volumes (12 months): Beta (2 year): 11.4 45.3 1,773 0.7
Bannari Amman Sugars Limited (BASL), a flagship company of Bannari Amman group (BAG) was incorporated in 1983 with an installed capacity of 1,250 tonnes of sugarcane crushed per day (TCD) at its first sugar unit. The company today has 4 sugar units with a total capacity of 19,000 TCD. Its units are located in Karnataka and Tamil Nadu (2 each).
KEY HIGHLIGHTS Strong player in south BASL is part of the Tamil Nadu-based Bannari Amman group, one of the largest business conglomerates in southern India. The company has four sugar units 2 in Tamil Nadu and 2 in Karnataka. As on March 31, 2010, BASLs sugar factories had a combined cane capacity of 19,000 TCD. The sugar manufacturing units crushed 1.45 million tonnes of cane in FY10, which contributed to 67% of total revenue. Diversified revenue streams BASL manufactures a wide range of products, which diversifies its revenue stream. It manufactures sugar, granite and alcohol, and also generates power. The sugar segment comprises ~74% of Bannaris consolidated sales. The granite division accounted for ~5% of BASLs turnover. The distillery or alcohol segment accounts for ~11% of revenues, manufacturing Indian-made foreign liquors and other alcohol products. The company also generates power, which contributed ~9% to revenues in FY10.
Shareholding (As on September 30, 2010)
FII 0% Others 45%
KEY RISKS
DII 0%
Climatic conditions Government regulations
Stock Performances vis--vis market
Returns (%) YTD BANARISUG NIFTY Note: 1) YTD returns are since Apr 01, 2010 to Jan 07, 2011. 2) 1-m, 3-m and 12-m returns are up to Jan 07, 2011.
BACKGROUND BASL was incorporated in 1983; it started commercial production in the year 1986 with an initial capacity of 1,250 TCD at Sathyamangalam in Erode district, Tamil Nadu. As on March 31, 2010, the company has a total capacity of 19,000 TCD. The companys other sugar units are at Nanjangud and Kunthur in Karnataka and at Kolundampattu in Tiruvannamalai district in Tamil Nadu. The company also has distillery units, with a total capacity of 127.5 kilolitres per day, situated in Tamil Nadu and Karnataka. Through these distillery units, the company manufactures extra neutral alcohol (ENA), ethanol or absolute alcohol, depending on the market demand. BASL has also developed cogeneration plants at Karnataka and Tamil Nadu, having combined power generation capacity of 84 MW. The company also has wind power generation capacity of 29 MW in Poolavadi and Gudimangalam near Coimbatore.
COMPETITIVE POSITION Peer Comparison
Revenue (Rs mn) EBITDA ma rgins (%) PAT (Rs mn) PAT ma rgins (%) Gea ring (x) EPS (Rs /s ha re) PE (x) P/BV (x) RoCE (%) RoE (%) EV/EBITDA (x) n.m: Not meaningful
FINANCIAL PROFILE Consistent growth in top-line; PAT increases due to buoyant sugar prices
Key Financial Indicators Units Revenue Rs million Per cent Rs million Per cent Per cent Per cent Per cent Times Per cent Per cent EBITDA margins PAT PAT margins Revenue growth EBITDA growth PAT growth Gearing RoCE RoE
BASL registered a CAGR of ~28% in top-line from FY08 to FY10. Sales growth in sugar and other segments helped it register ~25% growth in revenue in FY10. Top-line increased to Rs 8.8 bn in FY10 from Rs 7.1 bn in FY09. PAT increased by 20% (year-on-year) to Rs 1.4 bn in FY10, as compared with Rs 1.1 bn in FY09, principally due to buoyant sugar prices.
INDUSTRY PROFILE Sugar India is the world`s largest consumer of sugar and it is also among the world`s leading sugarcane and sugar producers. Sugar production in India is concentrated in six states namely, Maharashtra (30-35 per cent), Uttar Pradesh (30-35 per cent), Tamil Nadu (10 per cent), Karnataka (10 per cent), Gujarat (5 per cent) and Andhra Pradesh (4 per cent). The industry is fragmented, with close to 500 mills operating in the country. Being an agricultural commodity, the production of sugarcane the main input in the manufacture of sugar - is vulnerable to weather vagaries. The sugar industry is also highly regulated. The government controls the distribution of sugar in the open market, i.e. free sale of sugar, through a regulated release mechanism. The government controls sugarcane pricing through the Fair and Remunerative Price (F&RP) (earlier the statutory minimum price). The F&RP for sugarcane for SS 2010-11 has been pegged at at Rs 139.12 per quintal, linked to a recovery rate of 9.5 per cent. Players with integrated operations (distillery and co-generation) are better placed to tackle the cyclicality in the business, as the distillery and co-generation businesses provide a steady revenue stream throughout the cycle.
CRISIL COMPANY REPORT | 2
Bannari Amman Sugars Ltd.
ANNUAL RESULTS Income Statement (Rs million ) Net Sales Operating Income EBITDA EBITDA Margin Depreciation Interest Other Income PBT PAT PAT Margin No. of shares (Mn No.) Earnings per share (EPS) Cash flow (Rs million ) Pre-tax profit Total tax paid Depreciation Change in working capital Cash flow from operating activities Capital Expenditure Investments and others Balance sheet (Rs million ) Equity share capital Reserves and surplus Tangible net worth Deferred tax liablity:|asset| Long-term debt Short-term-debt Total debt Current liabilities Total provisions Total liabilities Gross block Net fixed assets Investments Current assets Receivables Inventories Cash Total assets Ratio Mar-08 373.7 -2.1 348.2 -1,179.0 -459.2 -822.0 -140.8 Mar-09 1,324.1 -80.5 340.8 225.2 1,809.6 -1,309.6 131.1 Mar-10 1,984.1 -309.2 383.4 745.0 2,803.3 -2,418.3 5.0 Revenue growth (%) EBITDA growth(%) PAT growth(%) EBITDA margins(%) Tax rate (%) PAT margins (%) Dividend payout (%) Dividend per share (Rs) BV (Rs) Return on Equity (%) Return on capital employed (%) Gearing (x) Interest coverage (x) Debt/EBITDA (x) Asset turnover (x) Current ratio (x) Gross current assets (days) Mar-08 -21.7 -49.1 -53.1 14.2 0.5 7.9 18.9 5.5 393.1 9.8 6.3 0.8 6.7 5.0 0.9 Mar-09 32.2 131.4 182.9 24.9 6.1 16.8 9.6 8.5 482.5 23.9 16.8 0.4 11.1 1.4 1.0 Mar-10 24.6 34.1 20.0 26.8 15.5 16.2 8.0 10.0 598.3 23.2 22.2 0.3 47.0 0.9 1.0 Mar-08 4,395.4 5,392.3 768.4 14.2 348.2 98.0 51.6 391.6 423.4 7.9 11.4 37.0 Mar-09 6,049.4 7,128.9 1,777.7 24.9 340.8 143.1 30.3 1,318.5 1,197.8 16.8 11.4 104.7 Mar-10 8,015.0 8,881.3 2,383.1 26.8 383.4 50.7 35.1 1,998.0 1,436.9 16.2 11.4 125.6 Mar-08 114.4 4,382.5 4,496.9 548.1 2,043.8 1,761.1 3,804.9 1,271.6 113.1 10,234.6 6,339.6 4,366.8 175.1 5,692.7 834.7 3,104.6 935.9 10,234.6 Mar-09 114.4 5,427.0 5,541.4 588.2 1,707.4 744.3 2,451.7 1,182.7 153.3 9,917.3 7,353.2 5,335.6 44.0 4,537.9 695.5 2,875.8 55.0 9,917.5 Mar-10 114.4 6,730.1 6,844.5 840.1 1,789.8 392.8 2,182.5 1,687.6 133.8 11,688.5 10,448.5 7,370.5 39.0 4,279.1 449.1 2,665.7 55.8 11,688.6
Shareholding Pattern (Per cent) Dec 2009 Mar 2010 Promoter 54.7 54.7 FII 0.2 0.2 DII 0.2 Others 44.9 45.1
Jun 2010 54.7 0.2 0.0 45.1
Sep 2010 54.7 0.2 0.1 45.0
Board of Directors Director Name Sa ngampal a ya m Veda na ya ga m Ba l a s ubra ma ni am (Dr.) Va l a s a reddi Venka ta Reddy (Mr.) Ba l a s ubra ma ni am Sa ra va na n (Mr.) Sa ngampal a ya m Veda na ya ga m Al a ga ppa n (Mr.) Sa ngampal a ya m Veda na ya ga m Arumuga m (Mr.) Era nga ttur Pa l a ni s a my Muthukuma r (Mr.) Al a thukomba i Ka ruppa Gounder Peruma l s a my (Mr.) Gunda n Tha tha Gowder (Mr.)
Designation Executi ve Chai rma n, Promoter-Di rector Non-Executi ve Vice Cha i rma n, NonExecuti ve Di rector Ma na gi ng Di rector Non-Executi ve Di rector Non-Executi ve Di rector Non-Executi ve Di rector Non-Executi ve Di rector Non-Executi ve Di rector
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