Investor presentation by Dwarikesh:
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Very good results from Oudh Sugar and Ugar
http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/F3B018DA_9533_4D1A_B12A_34D460BC90CA_134714.pdf
The crisis in sugarcane is shaping politics in western UP’s Jat belt
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Shree Renuka Sugar update:
As on 1st Feb 2017
TJ-SP authorizes new assembly of creditors of Renuka do Brasil
SAO PAULO - Judge Daniel Carnio Costa, the 1st Court of Bankruptcies and Judicial Recoveries of São Paulo Court of Justice (TJ-SP), authorized the convening of a new meeting of creditors of the sugar and alcohol company Renuka’s Brazil, after auction Of one of the company’s plants was suspended.
The company, controlled by India’s Shree Renuka Sugars, informed the court that it was concerned about its cash flow to comply with the payment of its debts to creditors according to the schedule established by the recovery plan, as the resources raised with the auction of the Madhu plant , Converted into an isolated productive unit (UPI) would be used to reduce part of the credits.
"In this sense, and based on a lot of authorizing jurisprudence, I believe it is the case of a new general meeting of creditors for discussion and eventual approval of modifications to the judicial recovery plan. In addition, it is observed that the creditors themselves decided in the recovery plan that in the case of non-sale of UPI, there would be the convening of a new general meeting of creditors for deliberation of alteration of the judicial recovery plan, "said the judge.
According to the judge, the approval of new plan will not renew the period of two years of judicial review, which began with the homologation of the original recovery plan.
The auction of the Madhu plant was suspended by a preliminary injunction at the request of the BNDES, which considers it illegal to sell the property under the terms of the approved plan and ratified by the courts. According to the plan, the funds raised from the auction can be used to pay off the debt with part of the creditors, among them the secured creditors, with a discount of 70%. Thus, if the BNDES, which owns the plant’s mortgage, receives 30% of the value of its credit, it should issue a discharge of the full amount of its credits.
Q3 Concall Summary
Dwarikesh Q3 Concall Summary.pdf (397.0 KB)
Edit : Can see a few mistakes mostly formatting and sentence formation since jotted down the points while hearing to the concall today morning .Dint have much time on hand as had to leave for office .Will correct the grammatical and sentence formation at the few places till evening and upload a new document. Anyways till then I hope this give u idea of almost everything which conspired during the concall
Uploading the new document which has some corrections in sentence formations
Dwarikesh Q3 Concall Summary_V1 Corrections.pdf (399.5 KB)
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Thanks for the share.
Any talk on FRP, cane price linkage ?
at the end part of the concall there was some talk about the cane price linkage . From what I remember , need to check that part of concall again is that the management and industry wants it but nothing has been done till date by the government . As I am not well aware of what FRP and cane price linkage is could u help point out to the article or explain the same to me . Anyways this season the average sugar can prices for Dwarikesh is 315 to 320 which is mostly like 35 to 40 rs increase over previous crushing season
The Rangarajan committee had deviced a formula which ensures 75 per cent of sugar revenues to farmers and 25 per cent to millers .Cane price is linked to the sugar realisation. This would stabilize the extreme volatility of the sugar cycle.Farmer miller acrimony would end. If implemented there would be a seismic shift in how sugar industry is viewed by the market.
Its been a demand for years. Hopefully it will be done post march elections, at least in a limited way.
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The problem with implementation of Rangarajan formula in UP is that …during upcycle, the industry does not want it (the mills dont want to share the profits with farmers) and during down cycle the farmers dont want it (they dont want to share the losses of sugar mills)…
The best time to implement this is just after rhe upcycle… like for the next sugar season.
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Anyone else cashing out on the Balrampur buyback of 175/share?
I’m inclined to hold these at least till Jul/Aug.
I have opted for buyback.It is 10% Buy Back (Small Investor<2L). Found it beneficial as my sugar scrips consttitutes 20% of my PF.
Any reason, why KM Sugar is falling so much?
Results were good, have I missed any news?
No particular reason, just profit booking after an impressive rally
Dhampur results have an entry under expenses “Off Season Expenses (net)”. For 9-months FY17 it was expense item of negative 43.78cr, meaning it was some kind of income item.
Appreciate if someone could explain how this works.
In Triveni Engg results, there is a note which states:
Does this mean that expenses have not been accounted for in the relevant period, and will be accounted for in Q4? Which means profits are overstated. Is this normal?
It means during Q1 and Q2 they had incurred expenses but deferred them (did not charge them to the P&L). These expenses would be charged to the P&L during Q3 and Q4. Incase of triveni they have charged 24.7 cr in Q3 FY and the remaining 85 cr approx would be charged in Q4 FY17. Similar logic goes for dhampur. This is cash flow neutral from a yearly standpoint but overstates the profit in Q1 and Q2 and understates the profit in Q3 and Q4
Pl see SP Tulsians commentary on off season numbers in Sugar companies…those who have booked these expenses now will come out with vrry good Q4 numbers…while others who have capitaluzed these expenses, will have to book the off season expenses in Q4 and their results will not be as impressive
Can you kindly direct me to where the Triveni numbers of 24.7cr and 85cr are mentioned?
Thanks. which ones are the culprits then? those who have not booked, and those who have?
Dhampur is expected to have a yearly profit of around 220-230 crores…its 9 month profit is 130 crores and it has been booking off season expenses…in Q4 the result for Dhampur can be hugely spectacular while other sugar companies book modest profits…in Q4 itself Dhampur can show around 90-100 crores profit…
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