BCL Industries Ltd (BOM:524332) Q4 2025 Earnings Call Highlights: Revenue Surge and Strategic Shifts
Release Date: May 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
BCL Industries Ltd (BOM:524332) reported a 21% year-on-year increase in total revenue for Q4 FY25, reaching 747 crores.
The company achieved a significant 32% year-on-year growth in total revenue for FY25, amounting to 2,910 crores.
BCL Industries Ltd is expanding its distillery capacity with a 150 KLPD expansion at Bathinda, expected to be commissioned by December 2025.
The company is progressing with the installation of a 60-ton per hour paddy straw boiler, aimed at reducing fuel costs and improving operational efficiency.
BCL Industries Ltd is executing a phased exit from the edible oil business, which is expected to improve overall margins and reduce debt.
The company is facing challenges with the edible oil business, which has been a low-margin segment and is being phased out.
There is uncertainty regarding the exact margin improvements from the biodiesel plant, as it is a new segment for the company.
BCL Industries Ltd has experienced fluctuations in raw material prices, particularly maize, which have impacted margins.
The company is still in the process of liquidating inventory from the edible oil business, which may affect short-term financials.
There are concerns about the impact of government policies on raw material sourcing and pricing, which could affect future profitability.
Warning! GuruFocus has detected 2 Warning Sign with BOM:524332.
Q: Can you provide a roadmap for the 75 KLPD biodiesel plant, including CapEx, timelines, and revenue potential? How will this contribute to offsetting the decline in the edible oil segment? A: Most of the CapEx for the biodiesel plant has been incurred, with a total project cost of around 140 crore INR. We expect to commission it by July 2025. At full capacity, it should generate 200-225 crore INR in revenue. We are focusing on higher-margin businesses like biodiesel and ethanol to replace the low-margin edible oil segment, which utilized significant working capital.
Q: What are the expected volumes and revenue from the distillery segment for the coming year, and what is the CapEx plan? A: We expect similar revenue figures from the distillery segment next year, with the addition of the 150 KLPD plant. The CapEx for the 75 KLPD biodiesel plant is around 140 crore INR, with most already incurred. The 150 KLPD ethanol plant has a total CapEx of 110 crore INR, with about 30 crore INR spent so far.
Q: How did the 700 KLPD capacity perform this year, and what were the average maize prices? A: The 100 KLPD Karakpur expansion started in June 2024, and we faced some challenges with the paddy straw boiler in Bathinda. However, for the past two quarters, we've been operating at 100% capacity. The average maize price for the last quarter was around 25.5 INR, and we expect it to remain around this level for the year.
Q: How do you see the margins evolving with the phase-out of the edible oil business and the focus on distillery and biodiesel? A: We expect margins to improve as raw material prices soften and the edible oil business phases out. The distillery and biodiesel segments will be the primary revenue contributors, leading to higher cumulative margins. We aim to complete the edible oil phase-out by June.
Q: What is the company's stance on the potential import of maize and ethanol, and how does it affect the domestic market? A: We believe the Indian government will not allow the import of maize or ethanol, as the biofuels policy aims to increase farmers' income and promote crop diversification. The ethanol industry is crucial for creating domestic demand for agricultural produce, ensuring farmers receive fair prices.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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