Magadh Sugar & Energy Limited — PPTs, 13-05-2025: Investor Presentation

1. Financial Highlights:

Magadh Sugar & Energy reported consolidated revenue of Rs 1,325 Cr in FY25, up 21% YoY, driven by a 21% rise in sugar volumes and 3% higher realizations. Q4 revenue jumped 44% to Rs 365 Cr. Sugar segment PBIT surged 212% QoQ to Rs 88 Cr and rose 28% for FY25 at Rs 114 Cr despite a 7.5% drop in crushing volumes and lower recovery. Distillery revenue declined 23% in Q4 to Rs 64 Cr, with PBIT down 51% due to an 18% fall in ethanol volumes amid molasses shortages. Power segment revenue remained steady at ~Rs 84 Cr, but PBIT fell 36% on reduced power exports. Net profit in Q4 improved 53% to Rs 50.75/share. Total debt edged up to Rs 707 Cr with credit rating stable at ‘A’.

2. Strategic Initiatives & Growth Drivers:

Sugar plant capacity at Narkatiagunj expanded from 7,500 TCD to 10,000 TCD, boosting crushing and steam efficiency. Sidhwalia distillery conversion to multi-feed nearing completion; a new 100 KLPD multi-feed distillery at Hasanpur is under construction with Rs 210 Cr capex, enhancing feedstock diversity and steam savings. Digitization and governance reforms focus on transparency and productivity gains.

3. Business Developments:

No new acquisitions or partnerships. New distillery facilities commissioning continues, targeting feedstock diversification. Export quota of 17,377 tons allocated under the national sugar export scheme, supporting external sales growth.

4. Market Position & Competitive Advantage:

With nearly 100 years in sugar and integrated operations spanning sugar, ethanol, and power in Bihar, Magadh enjoys scale and diversification benefits. Recent capacity upgrades and digital initiatives enhance cost competitiveness. Strong credit profile and governance add to investor confidence.

5. Investor Implications:

Strong sugar segment momentum and capacity expansions signal positive growth potential, partly offset by molasses-driven ethanol volume pressure and lower power output. Multi-feed distillery projects are key to mitigating feedstock risks and stabilizing earnings. Investors should watch execution of distillery capacity additions and raw material trends. Overall, operational upgrades and solid fundamentals paint a favorable outlook with some risks around project execution.