India's sugar exports are expected to fall nearly 25% to ~8.5 million tonne this sugar season from the all-time high of 11.2 million tonne last season, but higher domestic sales, including of ethanol, will support revenue growth of the industry over the medium term.
While operating profitability may feel the heat from higher cane prices and lower volume of high-margin exports, the rising contribution from sale of ethanol should provide some relief, besides keeping the carryover stock of sugar under control.
This milieu raises some questions: What will be the impact on the financial profiles of sugar mills, both integrated and non-integrated? Will capacity expansions continue, given the need to meet the government's ethanol blending target?
For answers, we invite you to a webinar on January 27, 2023, where our experts will discuss:
Demand-supply dynamics in the global and domestic sugar markets
Outlook on revenue and profitability of sugar mills
Trajectory of capital expenditure and working capital cycle
Overall credit outlook
The webinar will be followed by a panel discussion with industry leaders and a Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
