India: Exports and ethanol boost to sweeten sugar mill margins, says CRISIL

게시됨 2021년 6월 9일

Tridge 요약

CRISIL Ratings predicts a 75-100 basis point increase in the operating profitability of integrated sugar mills this fiscal, reaching 13-14%, due to high sugar exports and increased ethanol supplies for petrol blending. The government's decision to advance the ethanol-petrol blending target to 20% by 2023 also contributes to this improvement. Additionally, sugar closing stocks are expected to hit their lowest levels in four seasons, contributing to lower working capital borrowings. However, non-integrated mills are expected to have a stable credit outlook. The report also highlights the need for an increase in ethanol capacity in the country over the next two years due to the advanced blending target.

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원본 콘텐츠

High sugar exports for the second sugar season in a row, coupled with increased supplies of ethanol – and at remunerative prices – for blending with petrol, will improve the operating profitability of integrated sugar mills by 75-100 basis points (bps) to 13-14% this fiscal, a CRISIL Ratings analysis shows. Also, the recent announcement by the government to advance the ethanol-petrol blending target of 20% by two years to 2023, could help sustain this momentum over the medium term. Additionally, sugar closing stocks are expected to decline to their lowest levels in the past four SSs to 9-9.5 million tonne (MT) in SS 2020-21, resulting in lower working capital borrowings. The improvement in profitability and controlled debt levels will, in turn, bolster the credit profiles of CRISIL-rated integrated mills this fiscal. The credit outlook on non-integrated ones, at the other end, will remain largely stable. “The improvement in profitability of integrated sugar mills will be supported ...

출처: Indoasiancommodities