In due course, a 5% CBG mandate will be introduced for all orgs marketing natural gas. Compressed Bio Gas back in focus after a dissapointing start.
#Budget2023
I am not a subscriber to the value investing . io site. It allows 3 free DCF valuations. I used this site to save time.
DCF can be done easily in Excel. The hardest part of DCF is forecasting free cash flow for next five years or so. This can be learned in about 3 or 4 hours. So the question boils down to “are you willing to spend $180 to save 3 or 4 hours of your time”. I would think not 
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Thanks a lot Sahir for sharing the details about the site.
dr.vikas
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Praj Q3FY23 Concall
CBG plant the scope of Praj will be 55% of overall project which is processing unit. Yet to get details on the overall opportunity mentioned in the Budget 2023. One plant will cost around 30cr and TAM is 20k cr.
Cash on books 604cr
New order intake is not there in 2G, hoping orders in this segment after the commissioning the 1st plant in 2G segment. One plant will cost around 200M Euro
100cr investment in setting up new plant for manufacturing critical part manufacturing for Hydrogen Fuel segment. This will be additional to the brownfield expansion we already did.
Gross margins – old orders will be over in Q4&Q1. Margins will get better in FY24.
Axen MoU will come in the last process of manufacturing Aviation fuel from iso-butanol
Business strategy changed to concentrate more on margins than market share and as a result our Ethanol plant manufacturing market share are down to 50% from 65%. Due to which margin expansion can be in FY24**.**
For E20 program a balance of 400-450cr litre capacity of 1G Ethanol is yet to be created of which the addressable market for Praj will be around 6k-7kcr
Order book composition likely to change going forward to move away from being concentrated in 1G ethanol.
Servicing revenue – bio-syrup looking interesting, maintenance in 1G ethanol
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To curb evils of plastic menace and to support government of India’s single use ban on plastic Praj has developed technology to produce bioplastics i.e. Polylactic Acid (PLA) as part of its Bio-PrismTM portfolio. To accelerate commercialization of bioplastics, Praj is setting up a first of its kind demo plant for Polylactic Acid (PLA) at Jejuri in Pune district of Maharashtra. This pilot facility will be used for scaled production of Food Grade Lactic Acid and Polylactic Acid.
In this context lets recall that Praj signed a MOU with Lygos Inc. to co-develop Lygos’s proprietary yeast for the production of lactic acid in June 2020.
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With export Ban on Sugar, lower sugar production and lower Crude prices , will Govt prefer to route excess sugarcane to Ethanol…
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Revenue grew by 79% (on-year) in fiscal 2022, driven by growth of above 80% in the bioenergy business (both 1G and 2G) and engineering segments due to huge demand pertaining to sustainable fuel option and increasing ethanol blending initiatives. Topline increased by 67% during the first nine months of fiscal 2023, compared to the previous corresponding period. Order backlog stood at Rs 3,380 crore as on December 31, 2022, as against Rs 2,605 crore a year back, reflecting healthy revenue visibility over the medium term. Operating margin moderated to around 8.1% during the first nine months of fiscal 2023 from 8.8% in fiscal 2022 due to increase in material prices and is expected to improve over the medium term.
- CRISIL
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Very interesting and innovative ! So it says that by 2025, if we target to blend 1% SAF blending in Jet fuel, India would require around 14 crore litres of SAF/annum. More ambitiously, if we target for 5% SAF blend, India requires around 70 crore litre of SAF/ annum. How would that translate to business for Praj?
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Praj JVC with IOCL (50:50) for production of biofuels as well as the selling of CBG, ethanol, SAF, and other byproducts and intermediates
Praj collaborates with AirAsia to operate the first commercial aircraft in India to blend indigenous sustainable aviation fuel.(SAF)
Ethanol plant market leader with domestic market share up from 60% to 66%
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Yes sir, congratulations for great set of numbers. So, just wanted to ask my first question with respect to your JV with IOC, just wanted to understand what would be your capital allocation policy for the same? What kind of IRRs would you be expecting in this project and what kind of
rate on can you expect?
Sachin Raole: If you are asking what are the plans of the JV with Indian oil. To give the answer, currently we have both the boards have accorded in principle approval for this joint venture to go forward. When the joint ventures between public and private sector, there is a whole process that needs to be put in place that needs to be going through and therefore, we expect it to be become functional only towards the end of this financial year and as per the agreement, the joint venture will then obviously make out its business plans as it is not to go forward as I mentioned
the purpose is to propagate the cause of bioenergy in the country, and they will we are expecting that the they will start out on a SAF project to begin with and as the development and the business model evolves, we will know what kind of investments will be called for, what role they will play in the SAF facility etcetera, **
but it is probably too early for me to make comments on internal rate of return for that joint venture that is little out in future.
**
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Praj & IOC MoU signed-6th July
Various biofuels covered under this MoU include Sustainable Aviation Fuel (SAF), Ethanol, Compressed Bio-Gas (CBG), Biodiesel and Bio-bitumen among others
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Q1 FY 24 Highlights
| Q1 FY 24 | Q1 FY 23 | |
|---|---|---|
| Revenue | 736.7 cr | 732 cr |
| EBITDA Margin | 10.2% | 7.6% |
| PAT Margin | 7.9% | 5.6% |
| Order Backlog | 3778 cr | 3241 cr |
Segmental Revenue
Bio Energy - 80% ( 4.1% Up YoY)
Engineering - 14% (20.9% Down YoY)
HiPurity - 7% (18.6% Up YoY0
Domestic - 83%
Export 17%
Segmental Order Backlog
Bio Energy - 78%
Engineering - 17%
HiPurity - 5%
Share of International order book 35%
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Strong Q1 orderbook with momentum in Export orders from USA, Engineering segment
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Pune-based Praj Industries claims to have received confirmation for setting up five projects for compressed biogas (CBG) from a business conglomerate. It is expected to be completed in 15–18 months, the company said on Wednesday. The company did not reveal the name of the customer.
Source - Autocar Professional
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