Zuari Industries Limited Press Release FY24
FY24 Key Financial Snapshot (Standalone)
- Total Revenue: Rs. 900.8 Cr
- EBITDA: Rs. 235.4 Cr (20.6% (Y-o-Y))
- EBITDA Margin: 26% (557 bps (Y-o-Y))
Key Financial Highlights:
| Particulars (Rs Cr.) | Q4 FY24 | Q4 FY23 | FY24 | FY23 | Y-o-Y |
| Total Income | 253.0 | 325.4 | 900.8 | 949.2 | –5% |
| EBITDA | 67.2 | 112.4 | 235.4 | 195.1 | 21% |
| EBITDA % | 26.6% | 34.5% | 26.1% | 20.6% | 557 (bps) |
| Profit Before Tax and Exceptional Items | 32.4 | 68.2 | 76.6 | 13.45 | 470% |
| Profit for the year (PAT) | 16.04 | 55.9 | 22.7 | 5.4 | 203% |
*EBITDA% = EBITDA / Total Income
Zuari Industries Limited 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. The Company also operationalized Zuari Envien Bioenergy Pvt. Ltd., its JV with Envien International and commenced construction of its 180 KLPD Distillery Project on February 22, 2024.
Zuari Industries Limited has embarked on a journey of growth and transformation. In that context, the performance of the Company for the financial year ended 31 March 2024 represents an important milestone.
Our SPE Division produced 24.1% higher sugar compared to last year and achieved the milestone of highest ever ethanol production despite policy headwinds. Though sales remained muted due to lower quota, restrictions on sugar export and utilization of sugar syrup for ethanol, the Company was able to partially offset its impact on revenues through higher realization of sugar prices and opportunistic procurement of molasses for ethanol production. ZEBPL, our bio-energy JV was operationalized during the year and construction began in full swing on its first project in February. We expect the project to commence commercial operations by mid of May next year.
In line with our long-term strategy, our deleveraging plans have taken shape, with monetization of our land parcels gaining momentum. Our real estate subsidiary made substantial progress on its Dubai project and launched Phase IV of the Zuari Garden City, Mysore.
On financial front, we were able to reduce our finance costs significantly due to low-cost debt refinancing.
On the digitalization front, we took various initiatives across all the businesses which have started to yield results.
Our healthy EBITDA margin of 26% for the year ended March 31, 2024, demonstrates our commitment towards the strategic objectives of the Company and generating value for the shareholders.
We continue to remain committed to our stated objectives of pursuing simplification of structure, operational excellence, deleveraging, disciplined investing in growth sectors and digitalization in order to create value for our shareholders. In our journey we shall remain focused on people and build robust systems.
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.
