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Magadh Sugar & Energy Ltd.

BSE: 540650 Sector: Agri and agri inputs
NSE: MAGADSUGAR ISIN Code: INE347W01011
BSE 00:00 | 05 Dec 311.60 3.55
(1.15%)
OPEN

296.00

HIGH

314.50

LOW

296.00

NSE 00:00 | 05 Dec 311.00 1.10
(0.35%)
OPEN

312.00

HIGH

314.80

LOW

308.00

OPEN 296.00
PREVIOUS CLOSE 308.05
VOLUME 122
52-Week high 455.95
52-Week low 230.15
P/E 9.47
Mkt Cap.(Rs cr) 439
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 296.00
CLOSE 308.05
VOLUME 122
52-Week high 455.95
52-Week low 230.15
P/E 9.47
Mkt Cap.(Rs cr) 439
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Magadh Sugar & Energy Ltd. (MAGADSUGAR) - Chairman Speech

Company chairman speech

Dear Shareholders

My greetings and good wishes to you on the 7th anniversary of theformation of Magadh Sugar & Energy Limited. I take this platform to express my sinceregratitude to all our stakeholders for their partnership in this journey. Your company hasalways focussed towards disciplined and sustainable growth and with your unconditionalsupport we are in the midst of reaching the next leg of our growth.

During the fiscal the world economies boosted the mass vaccinationcampaign to contain from the material impact of Covid-19 pandemic. The world economies arebeginning to witness gradual recovery but the emergence of numerous leadingmacroeconomics indicators create a sight of concern. According to IMF the World economyis expected to grow at around 4.4% in 2022 and 3.8% in 2023.

India is standing out as a strong emerging economy in the world.Government of India's support for growth has enabled the economy to portray itsstrength. The Union Budget 2022-23 boosted the sentiments as the Government of Indiafocussed towards growth of the economy. As the world economy is moving towards "Chinaplus one" strategy it opens the gates of tremendous export opportunity for Indianplayers. In addition the Reserve Bank of India with its accommodative policy givesfurther thrust to the growth sentiment. Although rising inflation and global macro eventscan have an adverse marginal impact the Indian GDP is expected to witness a growth ofover 9% in 2022 and around 5.4% in 2023.

INDUSTRY INSIGHT

The Indian sugar economy is at the midst of a positive structuralchange. During the fiscal the Indian sugar industry had a healthy crop which enabledIndian sugar millers to participate in export demand. The deficit in production of sugarin Brazil created a global supply deficit which resulted in higher realizations for India.In addition the forthcoming sugar season is also expected to see a higher production inIndia. The expected production is around 360 lakh tonnes for the upcoming sugar season.During the season Maharashtra surpassed Uttar Pradesh in sugar production. Government ofIndia's thrust for ethanol production will enable the sugar millers to divert surplussugar towards ethanol manufacturing thus reducing the cyclicality in sugar business. Asper "Niti Ayog" by 2025 the ethanol blending is targetted to reach 20% whichenvisions the ethanol requirement to Rs.1500 crore litres. Also with the roll out ofFlex-fuel vehicles on 100 percent Bio Ethanol the demand for ethanol is expected to jumpby 4-5 times.

BUSINESS PERFORMANCE

Your Company delivered encouraging results on account of improvedperformance across segments due to better realization of sugar. Additionally a greenfielddistillery was set up at Sidhwalia during the current fiscal which expanded yourcompany‘s ethanol capacity from 80 KLPD to 150 KLPD.

During the Fiscal 2022 our revenue stood at Rs. 997.88 Crores againstRs. 954.20 Crores in Fiscal 2021; Profit before Tax stood at Rs. 66.45 Crores in FY2022 asagainst Rs. 42.31 Crores and Profit After Tax was at Rs. 46.02 Crores in Fiscal 2022 asagainst Rs. 27.08 Crores in the same period last year.

WAY FORWARD

A stable Government policy and favourable sugar market dynamics willaid towards improving sugar profitability. The huge potential in ethanol manufacturingwill enable your company to deliver strong growth in the years to come.

"Discipline and Persistence is the key for the sustainablefuture"

Thank You

Chandra Shekhar Nopany

Chairperson

.