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Magadh Sugar & Energy Ltd.

BSE: 540650 Sector: Agri and agri inputs
NSE: MAGADSUGAR ISIN Code: INE347W01011
BSE 00:00 | 18 Apr 113.50 -1.50
(-1.30%)
OPEN

113.00

HIGH

117.00

LOW

113.00

NSE 00:00 | 18 Apr 115.45 1.00
(0.87%)
OPEN

113.10

HIGH

118.90

LOW

110.40

OPEN 113.00
PREVIOUS CLOSE 115.00
VOLUME 1899
52-Week high 168.00
52-Week low 63.10
P/E 6.59
Mkt Cap.(Rs cr) 114
Buy Price 113.50
Buy Qty 95.00
Sell Price 115.70
Sell Qty 50.00
OPEN 113.00
CLOSE 115.00
VOLUME 1899
52-Week high 168.00
52-Week low 63.10
P/E 6.59
Mkt Cap.(Rs cr) 114
Buy Price 113.50
Buy Qty 95.00
Sell Price 115.70
Sell Qty 50.00

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

Company chairman speech

Dear Shareholders

It is always a pleasure to address you all. India is rising towards constructive growthpath and I believe we at Magadh Sugar & Energy Limited will also be a part of ourgrowing economy. In spite of temporary turbulence we trust that company has a lot toachieve in coming years.

India is emerging as the fastest growing economy in the world and according to IMFIndian economy is poised for a growth of 7.4 per cent on good performance by sectors likeagriculture construction and manufacturing. We envisage that revival in rural demand andgaining traction in infrastructure spending is likely to drive India's and sugarindustry's development. Strong consumption story in rural India and improvement indomestic demand is a positive sign for Indian economy.

Industry Insight

Indian Sugar industry is the second largest agro-based industry contributingsignificantly to the socio-economic development of the nation. Sugarcane emerged as amultiple usage crop used as a basic raw material for the production of sugar ethanolpaper electricity. The ethanol requirement of the country is growing and Molasses is theonly source to manufacture Ethanol out of sugarcane.

As per ISMA domestic sugar industry experienced excess production of sugar at morethan 31.5 mln tones reaching a record high; higher productivity and increased area undersugarcane cultivation led by more than average rainfall was the most vital reason forincrease in sugar production. Uttar Pradesh continues to be the largest sugar producingstate followed by Maharashtra; and recovery is better than last year. But

the overproduction situation in domestic as well as international sugar industry led todownward correction in sugar prices and compelled the millers to destock aggressively.

Sugar prices have declined to their lowest levels due to aggressive sales by mills onaccount of oversupply of sugar. Sugar prices have declined 24.6 per cent since the currentcrushing season started in October; this situation has led to arrears to farmers.Considering higher production government of India has allowed exporting 2 MT of sugar outof 2017-18 production. Government of India has also announced Rs.55/- per ton of canecrushed by the millers to reduce the losses for exporting sugar.

Business Performance

During the year Bihar faced headwinds on account of unusual rainfall in the first halfand over production situation arises in the second half of the fiscal. However this yearhas been challenging for sugar industry worldwide. Nevertheless record recoveries with ourunits getting the highest recoveries in Bihar was achieved Sugarcane crushed during FY18stood at 215.29 lac quintals as compared to 164.75 lac quintals in the previous year. Webelieve Bihar is an emerging state with great potential going forward. The welfare of thefarming community remains one of our top priorities. We have always prioritized the needsof farmers and ensured that arrears outstanding to them are cleared on time and help withour insights for better farming practices. Our cogeneration and ethanol production was athigh 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 focus on reducing high-cost debt and strengthening our debt equityratio which would further strengthen our balance sheet. We will always be keen to maintainour machinery and upgrade whenever necessary to enhance efficiencies of our machinery. Ourfocus on increasing mix of value added products like Ethanol to enhance our profitability.Achieving better working capital management and rationalization of cost structure willalways be our key focus to maintain our cashflow efficiently. We believe "Successof company is not backed by the leader alone but due to a strong team behind it";hence we consistently invest in enhancing the capabilities of our people. Also wecontinue to build better relations with our farmers for our future growth. On behalf ofthe Board and the entire leadership team I thank all our stakeholders business partnersas well as customers for their continued guidance and support.

Thank You
Chandra Shekhar Nopany
Chairperson