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Magadh Sugar & Energy Ltd.

BSE: 540650 Sector: Agri and agri inputs
NSE: MAGADSUGAR ISIN Code: INE347W01011
BSE 00:00 | 03 Aug 129.20 6.15
(5.00%)
OPEN

125.00

HIGH

129.20

LOW

125.00

NSE 00:00 | 03 Aug 129.15 5.90
(4.79%)
OPEN

125.00

HIGH

129.40

LOW

124.05

OPEN 125.00
PREVIOUS CLOSE 123.05
VOLUME 5460
52-Week high 150.00
52-Week low 54.00
P/E 2.57
Mkt Cap.(Rs cr) 182
Buy Price 129.20
Buy Qty 308.00
Sell Price 129.20
Sell Qty 20.00
OPEN 125.00
CLOSE 123.05
VOLUME 5460
52-Week high 150.00
52-Week low 54.00
P/E 2.57
Mkt Cap.(Rs cr) 182
Buy Price 129.20
Buy Qty 308.00
Sell Price 129.20
Sell Qty 20.00

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

Company chairman speech

Dear Shareholders

On behalf of the Magadh Sugar and Energy's Board of Directors it's my pieasure toaddress you on the close of the Financial Year 2018 -19 of your company I would like tothank you for your continued support and goodwill that is important to the success of ourcompany.

According to the International Monetary Fund (iMF) india's GDP growth for 2019- 20 isprojected to grow at 7.3% in 2019 (2019-20) and 7.5% in 2020. This growth is reinforced byrecovery of investment and robust consumption among a more expansionary stance of monetarypolicy and some expected impetus from fiscal policy. The shifting focus of central bankfrom inflationary concerns to sustaining the growth momentum; RBi had effected twoback-to-back rate cuts of 25 basis points each to boost growth. Strengthening the goodsand services tax compliance and further reducing subsidies would lead to bringing downindia's elevated public debt. Going forward enhancing governance of public sector banksand reforms to hiring and dismissal regulations would incentivize job creation and boostthe consumption in india. Strong consumption story in rural india and improvement indomestic demand is a positive sign for the indian economy.

Our company's performance during the fiscal illustrates the opportunities andchallenges arising in the sugar industry. Headwinds in terms of persistent over supplysituation in the sugar market for which Government of India proactively implementedvarious measures like export quotas increasing the Sugar MSP etc. Government of India'sfocus on increasing ethanol blending and encouraging sugar millers for expansion ofdistillery capacities will have buoyant results on reducing India's dependability on oilimports and provide aid towards reducing glut in the sugar production. Outlook of lowerproduction output for SS 2019-20 would be constructive for the industry and would enhancethe company's performance in years to come.

Industry Insight

India stood as the world's largest sugar producer for the second consecutive seasonwith sugar production to hit 21.9 mln tons as on February 2019 as against 20.4 mln tonsmanufactured in 2018. According to Indian Sugar Mills Association (ISMA's) estimatessugar production in SS 201920 is expected to fall by around 5.5% YoY to 30.7 mln tons. Thedownward revision in estimates was mainly due to anticipated lower plantation in some ofthe States

Business Performance

During the year the business faced challenges due to oversupply and lower prices ofsugar. The imposition of the release mechanism and establishment of the Minimum SugarPrice helped to correct and stabilize sugar prices to more reasonable levels in the secondhalf of the fiscal year. Improved Ethanol realization coupled with lower price ofmolasses helped the bottom line. The operational performance of the Company was excellentand we crushed 242.26 lac quintals as compared to 198.69 lac quintals in the previousyear. We believe Bihar is an emerging state with great potential going forward. Thewelfare of the farming community remains one of our top priorities. Our co-generation andethanol production was at high levels this fiscal due to higher sugar crushing.

Way Forward

We continue to march towards the path of growth with positive attitude despite oftemporary headwinds. We are always well equipped to capitalize on the opportunitiesarising on account of changing market dynamics. Our focus on cane development has paidresults propelling our units to achieve the highest recoveries in Bihar. Government'ssupport to expand the capacities to enhance the ethanol production appears lucrative andwe are continuously evaluating on the same. Maintaining financial discipline will alwaysbe our main focus on path of growing ahead for which we are focusing on reducing high-costdebt and strengthening our debt equity ratio which would further strengthen our balancesheet.

"Support and patience are the two most crucial requirements to achieve success andwe are thankful to our all the stakeholders for always being with us" Thank You

Chandra Shekhar Nopany

Chairperson