Avadh Sugar & Energy Limited — PPTs, 12-05-2025: Investor Presentation

1. Financial Highlights:

Avadh Sugar posted Q4FY25 revenue of Rs 679 Cr, up 9%, while FY25 revenue slipped 2% to Rs 2,636 Cr. Q4 EBITDA rose 22% to Rs 149 Cr, but full-year EBITDA declined 16% to Rs 280 Cr due to cost pressures and volume dips. Q4 PAT surged 31% to Rs 72 Cr, offset by a 31% full-year PAT decline to Rs 88 Cr, impacted by rising raw material costs. Sugar segment Q4 revenue improved 15% to Rs 712 Cr despite 10% lower crushing and a ~10.5% recovery rate drop. Ethanol volumes jumped 21% QoQ but were down 17% YoY due to molasses constraints; distillery revenue followed a similar pattern. Co-gen power revenue rose 18% in Q4 but fell 6% for FY25. Net debt stood at Rs 137 Cr with positive operating cash flows of Rs 154 Cr.

2. Strategic Initiatives & Growth Drivers:

Capex focuses on increasing crushing capacity at Hargaon (10,000 to 13,000 TCD) and Seohara (10,000 to 12,000 TCD), targeting greater operational efficiency and steam savings. Digitalization and governance improvements aim to enhance transparency and institutionalize processes. Emphasis on blending youth and experienced leadership to boost productivity and organizational strength.

3. Business Developments:

The turbine conversion from condensing to back-pressure mode boosts energy efficiency and profitability. No new acquisitions or partnerships reported. The government allocated 17,377 MT export quota for Sugar Season 2024-25.

4. Market Position & Competitive Advantage:

Avadh’s integrated model across sugar, distillery, and power provides scale and diversification. Its strong farmer base (~2.9 lakh farmers) and strategic footprint in Uttar Pradesh enhance supply stability. Ongoing capex and efficiency drives help counter commodity headwinds, supporting margin improvement potential.

5. Investor Implications:

Capacity expansions and energy efficiency upgrades underpin positive growth potential amid recovering sugar prices and export incentives. Execution risks include raw material cost volatility and ethanol supply challenges. Investors should watch capex progress and margin trends. A 100% dividend payout reflects board confidence despite industry pressures.