BCL Industries Ltd (NSE: BCLIND) Q3 2025 Earnings Call dated Feb. 14, 2025
Corporate Participants:
Kushal Mittal — Joint Managing Director
Analysts:
Priya Sen — Analyst
Deepesh Sancheti — Analyst
Narendra Khuthia — Analyst
Bala Murali Krishna — Analyst
Saket Kapoor — Analyst
Shravan Niranjan — Analyst
Rajesh Agrawal — Analyst
Shashank Agrawal — Individual Investor
Bhavesh — Individual Investor
Niraj Choksi — Analyst
Manish Gupta — Individual Investor
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Q3 and Nine Months FY ’25 Earnings Conference Call of BCL Industries Limited, hosted by Go India Advisors. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Ms Priya from Go India Advisors. Thank you, and over to you, ma’am.
Priya Sen — Analyst
Thank you, Sajal. Good afternoon, everybody, and welcome to BCL Industries Limited Earnings Conference Call to discuss the Q3 and nine months FY ’25 results. We have on the call Mr Kushal Mittal, Joint Managing Director. We must remind you that the discussion on today’s call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces.
May I now request Mr Kushal Mittal to take us through the company’s business outlook and performance subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.
Kushal Mittal — Joint Managing Director
Thank you. Good evening, everyone. Thank you, Priya. And welcome and I would like to welcome everyone to the Q3 and nine months FY ’25 earnings conference call of DCL Industries Limited. The financial results and investor presentation have been made available on the exchanges, and I hope you’ve had the opportunity to review them.
BCL Industries enters its 50th year of incorporation, a milestone that reflects decades of strategic evolution and growth. As we celebrate this achievement, we extend our heartfelt gratitude to all our stakeholders for their unwavering support. We are committed to creating long-term value for our shareholders. Over the years, BCL has consistently invested in world-class assets and strengthened its grain processing expertise.
This foundation has enabled us to emerge as one of India’s leading producers of ethanol and ENA. By adapting to changing market dynamics, we have reinforced our position in the industry while contributing to the nation’s energy security. Today, BCL plays a vital role in reducing fuel import dependency and is recognized as a key player in green energy, driven by a legacy of innovation and sustainable growth.
The company currently operates a total distillery capacity of 700 KLPD across Bathinda and Karakpur. To further strengthen its presence, BCL recently-acquired Goyal Distri Private Limited in, which has the necessary land and approvals for setting up a 250 KLPD grain-based ethanol plant. Initial groundwork is progressing well and necessary works are expected to begin in the coming months.
The company is also moving forward with establishment of 150 KLPD distillery in. All the necessary approvals have been obtained and the construction has commenced. This project is scheduled for commissioning within 12 months along with. Along with this expansion, we’re also installing another paddy straw-based boiler to help decrease our fuel cost in the future as well.
The total capital expenditure for this project is approximately INR116 crores. In-line with its commitment to green energy, BCL is in the process of setting up 20 metric ton per day bio-CNG plant utilizing approximately 300 tons of straw per day. This initiative will not only mitigate the issue of stuble burning in North India, India to also enhance farmers income from agriculture waste.
The company is also currently setting up a 75 KLPD biodiesel plant in Bathinda, which will support complete vertical integration in ethanol production. This we expect to be commissioned in the next three to four months. The estimated capex for the project of biodiesel is around INR120 crores. Additionally, BCL has received the approval to establish another 75 KLPD biodiesel plant in its distillery, reinforcing its long-term commitment to green energy. Further updates regarding the 75 KLPD biodiesel plant in will be given in the coming quarters.
BCL is undergoing a key transition with a phased exit from the edible Oil segment to enhance profitability and operational focus. The exit is expected to be completed by Q1 FY ’26, freeing up INR90 crores in working capital and significantly reducing the debt on the company. This will also significantly bring down the operational and overhead costs the company continues to bear in low-margin business of edible oils.
The company is also continuing the gradual divestment in its real-estate inventory with proceeds allocated towards further debt reduction. The recent allowance of SCI rice for ethanol at price INR22.50 per kg is a positive opportunity for the industry. This measure is expected to enhance supply-chain efficiency, manage surplus stocks and support the industry viability.
BCL, with its capability to process both maize and rice is well-positioned to benefit from this development. Additionally, raw-material prices are expected to reduce, positively impacting our margins. The PML segment delivered strong results, supported by seasonal demand with approximately 13 lakhs 21,223 cases of liquor sold. This momentum is expected to continue in the coming quarters.
As BCL progresses across multiple initiatives, its focus remains steadfast on leveraging its expertise in grain procurement and processing to drive sustainable margin and long-term shareholder value.
Moving on to the financial performance for quarter three to FY ’25. In Q3, BCL reported total revenue of INR763 crores, reflecting an 18.1% year-on-year increase. EBITDA stood at INR48 crores with a 6% margin, down 15.7% year-on-year, while PAT reached at INR21 crores, down from INR33 crores in the previous financial year. Marking a 36.3% decline with a 3% margin.
This quarter, we experienced a significant rise in our raw-material prices impacting our margins. However, the company expects price correction with the arrival of FCI rice for ethanol, which will also help reduce the dependence on maze for the entire industry. The distillery segment demonstrated robust growth with ethanol volumes rising by 26.9% to 48,845 KL.
Revenue from the ethanol segment reached INR350 crores with a steady 37.8% increase year-on-year, while the distillery segment EBITDA stood at INR42 crores, reflecting a 14.2% decrease year-on-year.
This now concludes my presentation. And we will now open the floor for questions. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may test star un on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.
Ladies and gentlemen, we will wait for a moment while the question queue assembles. The. The first question is from the line of Dipesh Sanchit from Manya Finance. Please go-ahead.
Deepesh Sancheti
Hello,. Am I audible?
Operator
Yes, sir.
Deepesh Sancheti
Okay. Hello,. Firstly, just wanted to understand because of which raw-material, mainly because of maize is what the impact was there on the financials?
Kushal Mittal
Yes, both maize and rice.
Deepesh Sancheti
Okay. I believe that FCI rice had already come into the market, right?
Kushal Mittal
No, it’s yet to come into the market.
Deepesh Sancheti
Okay. So is it expected to come into the market maybe in this quarter as and since you have already halfway in this quarter, has it come into the market or still to come?
Kushal Mittal
It is still to come. I think we are awaiting the allocation which we are expecting to receive in a day or two from the OMCs. But just the news of FCI rice being available for the industry has cooled down the grain market.
Deepesh Sancheti
Yeah. Okay, even the maize prices. So what are the maize prices in last quarter and in right now? If you can just —
Kushal Mittal
Last quarter, they were hovering around INR27.5 per kg and this quarter, they’re somewhere around INR25.5 to INR25.
Deepesh Sancheti
Okay. So this quarter has already the prices have corrected. So I mean, we can take this as a one-off quarter — December quarter, right? Is that assessment okay?
Kushal Mittal
Yeah. I mean, just like any other business, there will be fluctuations, you know with the raw-material prices and that is not in the control of the company. So it’s not — I cannot make a comment that whether that was a one-off quarter or not, I can say that yes, with the FCI rise coming in for the next year or so, the company expects raw-material prices to stay-in control? And yeah, that’s the statement which I can make.
Deepesh Sancheti
No, because we have always outperformed every other company because of our power cost, because of our expertise in procurement. So INR25 of as well as if the FCRI is also coming in, that will definitely up our margins from what it was in the….
Kushal Mittal
Help our margins. And yes, we continue to innovate to stay ahead of competition, whether that is through Paddy straw and with the establishment of the biodiesel unit and once that comes into commission, when that comes into production, I think we will really majorly differentiate ourselves from our competitors.
Deepesh Sancheti
Right. Okay, can you — can you provide some insights on your bio-CNG industry? I mean this is something which newly we have understood. So including the total addressable market and what are the expected margins because your biodiesel margins are, I mean, amazing because of your — the entire raw-material coming in from your. Also, if I can add-in that since if you move to this FCI rice, how will it impact your biodiesel?
Kushal Mittal
FC SCI rise will be a certain amount that we’ll move to an SCR ice is a temporary measure by the government to help the industry. In the long-run, maze will be the best raw-material for the industry. And up until then, as the crop increases, the government also had a problem of too much rice and the industry also had a problem of not enough maize. So I think it was a win-win situation for both. But this is a temporary measure. And in the long-term, maze is the raw-material for the ethanol industry. So we don’t see much of an impact from there.
And the answering your CNG question, I think to — I will wait to give in any margins forecast as of now because CNG prices are fluctuating on a daily basis. Is not something like ethanol where the prices remain stable for an entire year. So we’re still studying the technology, evaluating which technology to opt for. And once everything is final only then will I make any comment on that.
Deepesh Sancheti
But have we received anything from the OMCs because they will be the major —
Kushal Mittal
No, there is demand for bioCNG in the country. That’s — the demand is not an issue.
Deepesh Sancheti
So already people are doing bioCNG. I mean the companies buying BioCNG?
Kushal Mittal
Yes, of course. BioCNG is being bought by whether that’s the gas companies or the OMCs.
Deepesh Sancheti
So if you can just tell us what is the total addressable market, that will also be okay. Because margins, I’m sure,,,
Kushal Mittal
That addressable market very accurate figures as of now. But yes, there are many others. Their reliance is venturing in Reliance has already commissioned one project and they’re setting up more. And the demand of bio-CNG is not an issue.
Deepesh Sancheti
Okay. Okay. And I wanted to say that the margins are always better with BCL. So that’s the reason. Sir, what is the expected timeline of the planned 20 MTP — MTP AD biogas plant?
Kushal Mittal
See that plant will be commissioned along with the 250 KLPD plant in and so we are seeing a timeline of about 18 months for the 250 KLPD ethanol plant in at least two years for the bioCNG plant.
Deepesh Sancheti
Bio-CNG plant — and so for the ethanol plant, when did you give — I mean what timeline did you give?
Kushal Mittal
At least 18 months from now.
Deepesh Sancheti
18 months.
Kushal Mittal
150 KLPD. We’ve already begun work for the 150 KLPD at our capacity expansion. So that we are hoping to commission within 12 months.
Deepesh Sancheti
Right, because in your presentation also in Slide 21, you mentioned that from 700 KLPD or FY ’26, it will become 850 KLPD. Now apart from this 850 KLPD in FY ’26, even our biodiesel 75 KLPD as well as Swaksha, we were planning some biodiesel plant, right? So what will be the biodiesel capacity?
Kushal Mittal
Biodiesel capacity would be 75 KLPD only. For Suksha, we’ve only received the necessary clearances as of yet. We haven’t begun any work or any machinery order. We haven’t done that. We’ll wait for our 75 KLPD plant at to be commissioned successfully before we make any orders there.
Deepesh Sancheti
Right. And so what is the debt situation right now? How much of it is long-term and how much of it is a working capital?
Kushal Mittal
See for BCL, the current working capital is around INR200 crores and which will be further reduced by another INR60 crores. We’ve already reduced INR30 crores as we’re slowly shutting out our edible oil business. For long-term debt in BCL, there is a the one loan that is under interest abension with Canara Bank, which has about INR107 crores outstanding.
For Swaksha Distillery, we have a working capital of about INR55 crores and two term loans, one for the 200 KLPD, which has about INR39 crores outstanding and another for the ethanol expansion, which is under interest about INR65 crores. And the rest the company has taken to LRDs for commercial buildings and besides that, there is no other debt.
Deepesh Sancheti
Okay. So — and we are planning another expansion of about 100 and you mentioned about INR140 crores, right? Total capex?
Kushal Mittal
Yes, so with the with biodiesel being around 120 and ethanol 150 KLPD was, I think it was INR116 crores.
Deepesh Sancheti
INR16 crores. So this will be additional.
Kushal Mittal
Yes.
Deepesh Sancheti
This will be additional, right? Okay. Okay. And so understanding your — since you are moving out-of-the entire edible oil business, how much estimate of real-estate value can you actually the company generate because I’m sure that we are sitting on very prime land in. So once all — you’re done with all the edible oil units being wound out, how much of expected real-estate value you expect to generate?
Kushal Mittal
I think it’s too early for me to comment on that. But let’s wait out to see how the real-estate market is once the business is shut and we’ve removed our machinery. It will — it will be at least next two years. So I think it’s a little early for me to comment on that.
Deepesh Sancheti
Okay. Okay. And about the IMIL, how much — I mean, we have given very interesting projections in your — so does the Punjab? Does the current Punjab government helping out in IMIL sales.
Kushal Mittal
The Punjab policy which allows free-trade and hence we are doing well in the trade. So we’ll continue on that front.
Deepesh Sancheti
Okay. And if you could just mention how much was in this quarter, how much was ENA sales and how much was the ethanol sales?
Kushal Mittal
I think that should be mentioned on the presentation. If I do not, I can get back to you. I don’t have the exact figure with me right now.
Deepesh Sancheti
Fine. I’ll get into the queue and I’ll just check again if there is something. Thank you so much. And all the very best. Thank you.
Kushal Mittal
Thank you.
Operator
Thank you. The next question is from the line of Narendra from RoboCapital. Please go-ahead.
Narendra Khuthia
Hi, hi. Thanks for the opportunity. Am I audible?
Kushal Mittal
Yes.
Operator
Yes, sir.
Narendra Khuthia
You. So my first question is that given that the FCI rice will be available from I guess, full effect next quarter. So as things stand, what is more profitable? Is it the rice or the mace?
Kushal Mittal
Are you talking about FCI rice or damaged rice?
Narendra Khuthia
FCI rush.
Kushal Mittal
They’re about the same.
Narendra Khuthia
Okay, okay. So I mean the margins would go up, are we expecting given that the prices have corrected and the FCI rices to come in, do we expect the margins to go back to previous quarters 7%, 8%.
Kushal Mittal
Yeah we expect margins to increase and I think once the edible oil business shut, so the cumulative margin of the companies will increase significantly. So when talking about EBITDA margin, we expect the EBITDA margin to increase with the correction in raw-material prices and we have good crops forecasted in states like Assam and Bihar, which will also help the industry. So yeah, we’re quite hopeful on that front.
Narendra Khuthia
Okay. So what kind of margins are we looking at? Is it 8%, 10%?
Kushal Mittal
I think you were — the company will go back around 10% to at least 10%, 11% of EBITDA margin from the distillery segment.
Narendra Khuthia
Okay, okay. That’s great. That’s great, sir. And second question is regarding ethanol pricing. So the ethanol price from, are we seeing any — are we expecting any increase in that from the government?
Kushal Mittal
No, I don’t think there will be an increase and in the price of ethanol from.
Narendra Khuthia
Okay, okay. So given there is this new this biodiesel plant coming in, right? So and given there would be no price increase and we are already a functioning at 100% capacity. So next year, our revenue should be around 2,500, INR2,600. Is that a correct guess?
Kushal Mittal
See the distillery should give us about INR1,750 to 1,800 and the biodiesel once working at 100% capacity utilization should give us anywhere close to INR250 crores of revenue. But for the first year, we’re not taking 100% capacity utilization because there will be somewhat of a learning curve as we’re entering a new industry.
And with the Bengal unit working at 100% capacity utilization, which should give us a revenue of at least around INR750 crores to INR800 crores. So, yeah, your figures are broadly correct.
Narendra Khuthia
Okay. Okay, sir. Okay. Thank you so much. I’ll get back into.
Kushal Mittal
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Balamur Li Krishnan from Onim Investments Advisors. Please go-ahead.
Bala Murali Krishna
Hi, Vishal. Yeah. So regarding this SCR ice policies, I think it’s even though its government relaxed price a little bit, but I think it’s valid till the June-end only. So earlier one and a half year before we are using for making ethanol. So at that time, what was the procurement price and the margins were getting the fair ice?
Kushal Mittal
So see, firstly, the FCI rice policy, I believe, has come on now till the end of this sugar year. So I think the industry will have SCR ice until September end at least. When SCR ice was available in the past, it was available at INR20 a kg, which is now at INR22.5 a kg. So that is the one big difference from the past to now, otherwise, I think the policy overall remains the same.
Bala Murali Krishna
Yeah, okay. So the earlier when we are using at that time, the EBIT margins of the distillery was around 16% 17% when you see. So with this INR2 difference, maybe we can expect around 15% EBIT margins.
Kushal Mittal
No, I think let’s see, because I think it is safer to say, as I mentioned in the lower double-digit range. And — but once the biodiesel kicks-in, I think we will be again moving towards the previous EBITDA margins as biodiesel will have very minimal raw-material cost and mostly processing costs.
Bala Murali Krishna
Okay, fine. So in the current quarter, this is price is around 25.5, right?
Kushal Mittal
Yeah, as of today.
Bala Murali Krishna
Okay. So — and one more thing regarding — so in this — in this year, we are expecting only biodiesel to get commissioned. So maybe this 150 KLPD will come on-stream by the end-of-the year, right?
Kushal Mittal
So only the additional revenue would be from the biodiesel plant only and we’ll lose that edible oil revenue, maybe around INR800 crores in this fiscal right next fiscal.
Bala Murali Krishna
Yeah, okay, that’s all thank you.
Operator
Thank you.
Kushal Mittal
Hello?
Operator
Ladies good morning. Ladies and gentlemen, the next question is from the line of Saket Kapoor from Kapoor; Company. Please go-ahead.
Saket Kapoor
Yes. Am I audible, sir?
Operator
Yes–
Kushal Mittal
Yeah.
Saket Kapoor
And thank you for the opportunity. Sir, firstly, just after Goyal distillery Visha may mentioned. So what are we investing in the same and how have we planned it in terms of the output and the feedstock?
Kushal Mittal
May Goyal distillery by Hamara 250 KLPD ethanol plant. In this case, Sathi Hamara plan BioCNG Purali. So feedstock, of course, Hamara plants flexible feedstock design. So we’ll continue to do the same there. And our power plant again since we’ve had good success with the main fuel and also being a rice belt. So we’ll go again with the Paddy straw-based boiler there.
Saket Kapoor
Okay, also what will be the capex?
Kushal Mittal
See, we are still finalising the machinery orders, so my, I, you know I can’t I can only give you a ballpark figure. As we finalize, we’ll have more clarity. But I think including the bio-CNG, the Paddy straw-based power plant and the distillery, I think we’re looking at around INR370 crores of capex in total.
Saket Kapoor
Okay. Okay. And sir, you have alluded to a number of capacities in terms of additional capacities. So I have one request, sir. If in the presentation, we could provide what are we eyeing in terms of capacity addition, greenfield and brownfield, so that would summarize and also give us an update on where are we in terms of commercialization of the same. I think so parts will capacity addition. So that — if that could be summarized in a single page in the presentation, included in the presentation, that would suffice a lot of questions for us?
Kushal Mittal
No to be next slide at. Yeah.
Saket Kapoor
Sir, are we on a net-debt cash, sir or yield on capex funding go on cash address can match I think my debt-equity racking?
Kushal Mittal
You mean debt Avitayal Tha, about INR107 crores in BCL is the — is the long-term debt, which is under interest abnsion. So the applicable interest-rate is 4.5% on the same. The working capital in BCL as of today is around INR200 crores, INR60 crores or come in the next coming quarters, next two quarters because we’re shutting down the edible oil business. For Svakshad distillery, about INR105 crores in long-term debt, just INR65 crores again is under interest to applicable interest ratehave or around 4.7% he had. And working capital of INR55 crores at Suksha. Besides this, company Commercial buildings where they have taken LRD and no other debt besides some small vehicle loans in the company.
Saket Kapoor
Sir, when we look at the IMIL business or the ENA part of the story, I think so the feedstock broken rice to yield better. Is that understanding correct or if you could give a time?
Kushal Mittal
You correct.
Saket Kapoor
So sir,, IMIL gave aspects, say your E&H aspects say output with feedstock to fair broken rice pig concentrate?
Kushal Mittal
So a market is fluctuating. Broken rice care availability in Ethi make milling milling chili to rice Huay. So now we’re using rice. But yes, many times we use rice for ENA.
Saket Kapoor
And sir, ENA dynamics product visitive how is the ENA markets are currently shaping up in the — in the states where we operate? And I think duty protection, Johanji states may operate per duty structure say ENA producers co protection with that?
Kushal Mittal
Yeah., you are right, ENA market one is doing very well, because you know the sector is growing at about, I think 10% to 12% year-on-year. And plants, RF, country May, I think I know of just one small ENA plant being added in the country as of now because the licenses have become extremely difficult to get along with the environmental clearance. So it is a business that has very-high barriers-to-entry and we’re seeing very little competition coming in at the moment. And with the excise policy where the excise policy is concerned, Punjab free policy, policy import-export is other duty in a year it allows for a free-trade whereas Bengal has now added about I think 6 liter on import into Bengal. So that is beneficial to the distilities stationed in Bengal.
Saket Kapoor
Yeah, okay. So sir, that has given — we are even playing — yes, was the advantage of get earlier problem how this is–
Kushal Mittal
Take a competitive problem Biharma since ENA can’t sell since the liquor prohibition, now they can’t sell their ENA in Bihar. So what system export cut is. So with the import duty coming into Bengal, it’s given us a level-playing field.
Saket Kapoor
Okay, sir. After presentation, the realization 69 something mentioned, probably E&A realization upwards of 70 says 60, 69K levels fair.
Kushal Mittal
I think around 70 69 there around that, stable around that.
Saket Kapoor
Or Bengal baby, sir, you see trend 8 trend you per year.
Kushal Mittal
Yeahi trend hai.
Saket Kapoor
Okay, sir. Raw-material cost of mix egg, which Jakura outlined KI. So going ahead, Amari flexibility to some may, we are broken with dependent and we can — as per the availability also, that is what the thought process is behind setting up the distilleries with multiple feedstock?
Kushal Mittal
Correct.
Saket Kapoor
Okay. Okay. But sir, when we look at the long-term policy for — from the government and sir, have you — you people are there for a very long-time. So have you — are you — people getting the sense that is the government able to address this feedstock issue because the way people have come up with the distilleries and even your one in the annual, the feedstock issue has not been addressed in that–
Kushal Mittal
Feedstock issue will be resolved in the coming times. I think the government — government are focused ahead sector, FCI, the ICI, government very wants key — it’s blending 20% so Inca focus here and Hatara who key is the future. And is an industrial crop. Maize SR crop hair, Joe, direct consumer co-impact me cut by the Appreciation RTA. And now you’re seeing farmers getting MSP and above MSP from the industry. See, it has many, many benefits for the entire nation.
One, your water level is not going down as opposed to growing paddy. Secondly, Paddy has now become a crop Joe government Kulini Pathi at MSP, which is way above the market price in, Khara,, right? So now the government does not want to intervene. And third, it’s a more profitable crop for the farmer as opposed to paddy. Other farmer co-MSP,,, they will earn about 20% more as opposed to paddy and in states like Bihar, where the yields are as per the global standard, the farmers are benefiting greatly from this policy. So there one, it saves the nation’s water. Two, it does not involve the government getting involved in the procurement sector — sector procurement procedure of the crop, which is a complete waste of taxpayer money and three, it directly impacts the farmers income.
And just farmer income Bharegi to PM. Maharashtram is 50% up, Biharma, 35% up there. So with time if there is demand, there will be a supplier. We no longer need the rice we are growing. You know Punjab and Haryana really desperately need to make a shift towards crops like maize if you want to have a sustainable future for our children. So I’m not worried. I think with time of the cropping pattern in the nation will change. It is changing. We’re seeing it change and maze will become the crop, the preferred crop for ethanol. And you will see that BCL will continue to differentiate itself from our peers. We’re not worried about the competition. We’re always looking to be bulletproof with — that’s what we did with the paddy, that’s what we’re doing with biodiesel and we’ll continue to innovate on this front. Okay, sir. Because again, aspect. In that case,, Joe, EMH is your quality the suit, and all kind of is a rice, feedstock submission. May this fine. Both are on of fine. Okay, sir. And it’s that you may stock calorific, same coke,, Joe Avi, right. Otherwise OMCs will not buy. They have their specification which we have to adhere to. And only then see any extracting alcohol out of starch, any starch-bearing material can be used to extract alcohol.
Saket Kapoor
Okay. And lastly, sir, pricing front, how was the price trends for maize being for this quarter and even for nine months average in the comparative number?
Kushal Mittal
See this quarter, as I mentioned, we’ve seen a correction from the previous quarter and we’re expecting to see more correction in the — hopefully — we’re hoping for more correction in the coming quarters with the new harvest coming in and the FCI rice being allowed for ethanol.
Saket Kapoor
So in pricing terms, in percentage terms, can you give some color in what has been the trend, price reduction which we are witnessing in the — in the procurement prices for the RM raw materials?
Kushal Mittal
Let me satisfy sir, who are BK AK author. This is for the FCI the price trends get. The thing with our own and.
Saket Kapoor
Okay. So prices have been reduced from 27.5% and rice are equally at price at the same level?
Kushal Mittal
Mo, rice is priced always rice is more expensive and rice is priced differently in — there is a major difference in the prices of rice in Bengal and Punjab since milling has started in Punjab. So Punjab price is now around 25.5%, whereas in Bengal, it’s still around 27, 27.5.
Saket Kapoor
Join the queue again. Thank you.
Operator
Thank you. The next question is from the line of Shravan Niranjan from Analyze India. Please go-ahead.
Shravan Niranjan
Hi, good evening. So our question is–
Operator
I would request you to please use your handset.
Shravan Niranjan
Yeah. Is this better?
Operator
Yes, sir.
Shravan Niranjan
Yeah. So with respect to the distillery segment, sir, you had mentioned that we could see maybe around INR750 crores to INR1,800 crore INR1,900 crore revenue. So this would be with the — with the 700 KLPD plus 150, if I’m not mistaken?
Kushal Mittal
No, no, this is — sorry, no, this is not including the 150. So this is just with the 700 KLPD.
Shravan Niranjan
Yeah. And sir, assuming we have we reached that 1,100 mark, maybe two, three years down the line, how much would 1,100 KLPD, how much would it set us in terms of revenue as a rough number as possible, 11 11, 50?
Kushal Mittal
11, 50 would be, I think, around it depends on the methanol price in the future, but motor, I think it should be around INR2,800 crores.
Shravan Niranjan
All right. Okay. Sir, then the — so the biodiesel, just to again clarify here, so the plant there’s work is going on, which will take another couple of months and, as of now, there has been no work. We’ve only got the permissions or clearances required. Is that correct?
Kushal Mittal
Correct.
Shravan Niranjan
And in terms of — not very specific, but again, a 75 KLPD in terms of biodiesel, what would that fetch us in terms of revenue and like would you be able to give an idea of the margins I may get on that EBITDA margin?
Kushal Mittal
See, the revenue is around — working at 100% capacity utilization. We expect the revenue to be close to INR50 crores. And margins, I don’t want to give any specific figures. As of now, we are waiting to commission. But margins, of course, will be very good considering the fact that most of the raw-material you know that we will be using to produce the biodiesel will be in-house with the — with very little cost, only processing cost involved. So we expect very, very good margins from that sector of the business.
Shravan Niranjan
So just one. With respect to the — there was a slide in the presentation about this — the different players in the industry and now we are about six as of FY ’24, say sevens in fact, in the industry. So this is both molasses and with the grain-based. If you could give us a number, only grain-based distillery, if I was to consider that. Where would we be standing?
Kushal Mittal
I think in the grain-based we would be top three. I don’t know. I think the top three are quite close by in terms of capacity. So it’s tough for me to comment.
Shravan Niranjan
And otherwise, if I want to make a switch from mole acids to grain-based, is it a sort of expensive procedure like would — is there a lot of — in terms of my plants and machinery, is there a big difference or can — is it roughly the same?
Kushal Mittal
That few sections that are exclusive to grain-based ethanol production and there’s few sections that are exclusive to ethanol production. So if an ethanol plant — if a molysis plant wants to set-up a grain-based plant, yeah, the capex is significant. But we’re seeing some of the big players establishing some grain capacity for off-season. But yeah, the capex is significant. Yes, you’re right.
Shravan Niranjan
Sir, and just lastly, sir, you’ve been mentioned at a couple of places that we use wet meals, we procure wet meals. Is there a difference between wet maize and dry maize in terms of either availability or pricing or anything of that?
Kushal Mittal
See, see, wet maize is a crop that very few buyers are there in the market because mostly it’s infected. Once the maize has been wet for a couple of days, it tends to catch an infection but what we’ve done is we’ve installed our own dryers to, you know, help dry out the maize very quickly and so the benefits of that are, there are very few buyers in the market for the maize. Yes, the quality is inferior to properly dried out maize, but the price more than makes up for it. And we can blend it with good-quality maze, so that doesn’t impact our process whatsoever. So we definitely do take advantage of that.
Shravan Niranjan
Okay. All right, sir. Thank you so much.
Operator
Thank you. Thank you. The next question is from the line of Rajesh Agrawal from Proprietary Advisors. Please go-ahead.
Rajesh Agrawal
Am I audible?
Operator
Yes–
Kushal Mittal
Yes.
Rajesh Agrawal
Thank you for the opportunity and congratulations on the Gold Jubilee year. ou. I hope. Yeah. I hope some physical involvement with the shareholders will be there in some form or the other during the course of the year. Now my question is, at what price since FCI rice price is fixed INR22, now at what price the margins are same with maize because maj is a fluctuating price. You know, last quarter it was 27.50. Right now it is 25. So at price the rice and the, they result in similar margins?
Kushal Mittal
So for that, one major factor is the price of DDGS just price of DDGS is also highly fluctuated. And currently what we are experiencing is that the acceptability of maize DDGS has increased significantly in the country and we’re getting a good price for maize DDGS. So the — you know considering the current prices of DDGS of both rice and maize, if they are to remain the same, then once maize is around INR24, I think the profitability will be the same in both the sectors. But the price of DDGS tends to fluctuate a lot, so it all depends on that.
Rajesh Agrawal
Okay. Gosh. Such gold distillery plant, I think it is approved for interconventional scheme?
Kushal Mittal
The gold distillery will not be under interest. Although it was approved for inters, the deadline for commissioning has passed. So that will not fall under interest abnsion.
Rajesh Agrawal
Okay. Okay. No issue. And can I — can I take it like this that last quarter average price was INR27 and now it is INR25 rupees?
Kushal Mittal
No, not INR25 because it has — there has been a steady decline. So currently, it’s around 25.5. So I think it would be safe to say for now, the average is around 25.7.8 have another 45 days.
Rajesh Agrawal
We have — but last quarter it was 2750, around that, yes. Yeah. And when can we expect our — the 75 KLPD biodigel plant to be commissioned at Bathinda?
Kushal Mittal
I think it will take another three months from — from today at least. We’re trying to do it less than that.
Rajesh Agrawal
Yes. Okay, maybe around May, May, maybe just safe, safe month-to say. Yes. So second thing, what is the — any idea what is the current biodiesel price at which it is supply?
Kushal Mittal
I think it’s around INR104 rupees liter.
Rajesh Agrawal
INR104 liter. Okay. Okay. Okay. And what — our corn oil, what percentage of the raw-material it will constitute?
Kushal Mittal
For a complete 75 KLPD plant, around 50%,
Rajesh Agrawal
50%. That’s very good. That’s very good. And the rest of the raw-material we will be able to procure from the market?
Kushal Mittal
Yes. See, we are setting up an oil extraction unit in our distillery as well. So the oil — we’re not setting up — we have taken the permission for biodiesel, but we’re waiting to set that up. But oil extraction unit, we have started the work. So even the oil that we are extracting there, we can easily transport it and bring to Bathinda.
And there are other various raw materials available also. We are no acid oil is available, some quantity of used cooking oil is available. Fatty oils are a fatty acid is available. So we’ll be using that.
Rajesh Agrawal
Wonderful, wonderful. I must appreciate. It’s a very good forward-looking planning. Thank you. I mean, yeah, yeah. Thank you. Thank you, Kushal.
Kushal Mittal
Thank you.
Operator
Thank you. The next question is from the line of Shashank Agrawal, who is an Individual Investor. Please go-ahead.
Shashank Agrawal
Hello?
Operator
.Yes, go on–
Shashank Agrawal
Hello. Audible. Good evening, sir. So I have a couple of questions. Sir, the biodiesel plant, you have a capacity of. Sir, why only KLPD? You see a raw-material being an issue?
Kushal Mittal
Of course, we could have added a bigger plant, but raw-material is an issue. As I just mentioned, 50% of raw-material will be in-house and the rest we have confidence that we’ll be able to procure from th3e market, but we didn’t foresee key will be able to procure too much raw-material in one place. Because India as of now does not have a used cooking oil supply-chain. You know, major raw-material for biodiesel globally is used cooking oil, but we don’t have a formal supply-chain in our country. What we see is, you know whether that’s the Hawai’s or the caterers, they continue to reuse this same oil. So there’s no formal supply-chain for that.
And secondly, for biodiesel, the oil should be indigenous. India does not have enough indigenous oil in the country. So for that, we set-up a 75 KLPD biodiesel plant.
Shashank Agrawal
Sir, one more question related to this, like some of the listed players like Kotak, everything, sir, they are having the capacity, but they are not able to sell it because OMCs are not lifting that much. So problem for this company also, yeah, for biodiesel.?
Kushal Mittal
Me, from my knowledge, the tender that was out, it was not– that tender — so the entire quantity volume of the tender is very small, like what I have studied the sector so-far. See, but the capacity is also very small. There is still a gap between the tendered amount and the offered capacity. So we don’t foresee that being a major issue.
Shashank Agrawal
So Kotak has a capacity of 1,500 KLPD. It is not — it is still not able to sell. It is only using 10%. So there is a problem with the sector. That’s what I’m trying to tell you. That’s what I’m trying to confirm.
Kushal Mittal
From the people we have spoken to, we haven’t heard of anything. I can — I’m not sure about the specific company you are mentioning. Even we’ve spoken to two, three manufacturers, yes, there is a major problem on the raw-material front. But this is the first time I’m hearing that you’re saying that there is a problem from the procurement front, which I don’t foresee.
Yes, there is a problem industry-wide when it comes to raw-material availability. But we have our own raw-material to suffice for 50% capacity. So we’re not too worried on that front.
Operator
Thank you. The next question is from the line of Bhavesh, who is an Individual Investor. Please go-ahead.
Bhavesh
Good evening, sir. Congratulations on our golden Jubilee year. My first question is with respect to the show cost notice issued by SEBI. I forgot to ask you this on the previous call. So can you throw some light on this? What exactly is this?
Kushal Mittal
A good evening. So I think the show-cause notice from SEBI, I think it’s it was regarding entity which they said should be considered as promoter, which we would not declare, which was not declared as promoter entity. And but I think the case has been adjudicated and will come up with the resolution soon. So no penalty and nothing right or you are you going for insettlement we are we have applied for settlement and let’s see what we’re hoping to hear back soon.
Bhavesh
Okay. Perfect. Secondly, so now you’re going to shut-down the edible oil business and you’re going to start the biodiesel plant in few months. So can the biodiesel and your 150 KLPD compensate for the loss of business due to the shutting down or it will still–
Kushal Mittal
Are you talking about this revenue?
Bhavesh
Yeah, I’m talking about the revenue.
Kushal Mittal
See, just these two capacities will not make-up for the revenue loss from the edible oil pickup. But let me be you know, let me clarify, I don’t — I don’t know why we should just look at the revenue. With the closing down of the edible oil business, we’re freeing up our working capital, reducing our overheads. So many costs involved in running this edible oil unit, which has such low-margin and such high volatility in the market. So I think all the ratios of the company, the working of the company will see a major, major improvement once this edible oil business is shut. So, so I don’t think we should just look at the revenue. I think the revenue loss will be a compensated by a mile by the increase in efficiency and the overall profitability of the company.
Operator
Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants, please limit your question to two per participant. If you have a follow-up question, I would request you to rejoin the queue. The next follow-up question is from the line of Deepesh Sancheti from Manya Finance. Please go-ahead.
Deepesh Sancheti
Hi,. Congratulations on BCL completing 50 years. And just the question was regarding the rice prices. Now since you mentioned that BCL will also go in for some rice. The rice prices of ethanol is around INR58.5. So isn’t it better to go for only ENA with rice and rest will on how to manufacture ENA from FCI rice. Okay. So fine. So how much — are we planning to use rice as a raw-material?
Kushal Mittal
See, we have filled in the tender. I cannot comment on that until the tender results are out. We are waiting on the reallocation. And once the allocation is received, so we have filled in about 15% to 17% of our quantity to be from FCI rice and on an average throughout the year. So let’s see what the tender results are.
Deepesh Sancheti
Okay. When are we expecting this tender?
Kushal Mittal
I think in a day or two.
Deepesh Sancheti
Okay, in a day. That’s early. Okay. Now just to understand what the maize prices for every INR1 fluctuation maize prices, how much is the margins differentiating?
Kushal Mittal
About INR2.6 rupees a liter.
Deepesh Sancheti
INR2.6 rupees a liter. Okay. Okay. And this INR116 crore capex which you mentioned, that was for mainly for the 150 KL for the Batinda plant, right?
Kushal Mittal
Yes.
Deepesh Sancheti
So for the 150 KLPD, right?
Kushal Mittal
Yes.
Deepesh Sancheti
Okay. Okay. And this goal distillery will be only ethanol or it will be a mix of ethanol and ENA?
Kushal Mittal
No, just ethanol.
Deepesh Sancheti
Just ethanol. Okay. Is there any PLI scheme from the government?
Kushal Mittal
No.
Deepesh Sancheti
Nothing. Great, great. Thank you so much and all the very best.
Operator
Thank you. The next question is from the line of Niraj from NJ Investments. Please go-ahead.
Niraj Choksi
Hello. Thank you for the opportunity. Most of my questions have been answered. Just one question I have. Can you please share what was the DDGS price for the last quarter that has just gone by? And what is the current DDGS price for both rice and maize?
Kushal Mittal
See for last quarter, DDJS was priced, I think, think around about — I think the average for DDGS, I think would be around INR12 to INR13 rupees. And in the current quarter, currently, I think it’s — for Mays is around INR15 rupees and for rice is around INR16 rupees.
Niraj Choksi
Okay. Thank you. That’s it from my end.
Operator
Thank you. Thank you. The next follow-up question is from the line of Saket Kapoor from Kapoor; Company. Please go-ahead.
Saket Kapoor
Thank you, sir. Slide number 30, you have mentioned about how the debt repayment schedule is going to be. So sir, peak debt, Amara and when we will be — I think those are purchase may peak debt because our repayment cycle 25 25% you have mapped it in your presentation?
Kushal Mittal
See that depends on our future expansion plans. This year being closure new. So otherwise, though with the current debt, I think we’re already on the peak now depending on how we choose to finance our future projects, I think by 25 debt I give.
Saket Kapoor
Okay. Because sir, Usime mentioned term loans at 77 and working capital at 100. So this is taking into account the refinery also expansion could be at is excluding that?
Kushal Mittal
Excluding.
Saket Kapoor
Yeah. Okay. And there we will be requiring INR60 crore, I think you mentioned?
Kushal Mittal
No, I didn’t — I didn’t mention he used to make it not debt risk curring. We were yet to decide. I had mentioned that a total project cost of 250 KLPD ethanol and 20 tonnes bio-CNG plant would be around INR370 crores.
Saket Kapoor
Okay. Okay. And sir, Omni project KI, this is what we are replacing with the — the and he business that we are exiting and as you, finally we have purchased LCLT route or how have this shaped up?
Kushal Mittal
No, there was a direct share transfer.
Saket Kapoor
Okay, Enterprise value pay KSF, share purchase agreement?
Kushal Mittal
We haven’t disclosed that.
Saket Kapoor
Okay. But everything has been done, cash has been withdrawn. I mean we have paid completed.
Kushal Mittal
Everything has been done.
Saket Kapoor
Okay. Okay. So this is through the company only that BCL has direct ownership of the shares of 100%.
Kushal Mittal
Yes, yes. Goyal Distri is a wholly-owned subsidiary of BCL Industries.
Saket Kapoor
Okay. So your debt number behind is subsumed is transition to Lake are here?
Kushal Mittal
Haha. It wasn’t a significant — it wasn’t a huge amount to change or have a significant dent on our balance sheet.
Saket Kapoor
Okay, because land give the value we’re getting. So that is a land plant and machinery–
Kushal Mittal
I think that.
Saket Kapoor
Sir, lastly, sir, your oil and segment there, sir, and you said to is business curvey for this segment and, yes. So marketplace definitely I can understand that the return ratios will change significantly and all. But how will — why have we not hyped it off and sold it in some way or the other by the brand, which we have created over a period of time or why is it that we are cutting it down? Yeah.
Kushal Mittal
See, a brand was created, but with time, it’s become increasingly difficult to compete with giants like Fortune and others. So we thought it was the best to shut it down.
Secondly, the unit being in the heart of the city, we were not going to get a environmental clearance for much longer. We would have had to shift the unit anyways and we vision that shifting the unit would be too expensive as shifting would mean that we’d have to set-up a band — set pretty much a new unit. Current have a coffee outdated OEI. So the capex would be too high and there is no return on that. So that’s why we decided to exit.
Saket Kapoor
Okay. Or the land as a — that is leased or owned by the company, mostly owned or some part is leased. Okay. Then we will look to diverse that. So that should be the thought process going ahead since it’s a — you are to — okay. And sir, one circulated evaluation aspects we like just to get what kind of to come those are lugging age transaction buyer I buyer. So I think we should wait and we’ll have more clarity in the future.
Kushal Mittal
Tell you will take at an opportune time, but since it’s the heart of the city, I would just like to understand key — where to date-certain plant.
Saket Kapoor
Okay. Thank you. Whenever sir after and all the best and congratulation for the 50th year, sir. Thank you so much.
Operator
Thank you. The next follow-up question is from the line of Shravan Niranjan from Analyze India. Please go-ahead. Ladies and gentlemen, we have lost the connection of the current participant. We will move on to the next participant. The next question is from the line of Rajesh Agrawal. Please go-ahead.
Rajesh Agrawal
Yeah. Anyway, congratulations for stock being categorized in breaveries and distillery segment. I think many of the shareholders may not be knowing. Both the BSE and MSC have categorized instead of edible IL, it is now under and distilleries. See, my additional question is, right now, we are going with the capex on 75 KLPD, which is in the last leg, no doubt and 150 KLPD ethanol expansion, that is something around INR130 crore and INR115 crores. I believe it is all coming out of internal accruals or any amount of debt is involved?
Kushal Mittal
Okay for now it is coming out of internal accrual, but I think the company will look to raise about get about INR60 crores to INR70 crores in debt for these two projects.
Rajesh Agrawal
Total?
Kushal Mittal
Total. That will be the total — total lifting.
Rajesh Agrawal
Okay. Thank you.
Operator
Thank you. Ladies and gentlemen, you may press star and one to ask a question a reminder to all the participants that you may press star to ask a question. The next follow-up question is from the line of Bhavesh, who is an Individual Investor. Please go-ahead.
Bhavesh
Or thank you, sir. Just a quick follow-up. So since you’re going to going to raise some debt in the next one to two years, would — would your interest payments go up like or–
Kushal Mittal
Maybe even go up because we are reducing our working capital by INR98 crores. So okay, even if you are to raise the debt of INR70 crores, our overlay — overall debt will go down only.
Bhavesh
So that will be raised from banks and not from the investors because as I can see, the promoter shareholding has gone down to 57.77%. So like are promoters planning to sell and put in the capital?
Kushal Mittal
We’re raising — we’re raising debt, of course from Banking Batika government.
Bhavesh
Okay. So no further selling of shares.
Kushal Mittal
No.
Bhavesh
Perfect, perfect. That’s it from my side. Thank you and all the best.
Operator
Thank you. Thank you. The next question is from the line of Manish Gupta, who is an Individual Investor. Please go-ahead.
Manish Gupta
Hi,. Am I audible?
Kushal Mittal
Yes.
Manish Gupta
By Project regarding. So what was pricing in that? I’m sorry. Last year project. So what was pricing in that?
Kushal Mittal
Pricing to hair including all of transportation. Hey second just let me look at that including transportation and duty Vagala hair to this we got INR77 a liter. So–
Manish Gupta
Aur this may — up escalation raw-material come pricing come fixed-cost?
Kushal Mittal
Fixed-price.
Manish Gupta
That is great,.
Kushal Mittal
But Bank bank guarantee we are Jima Karani payment RPA, so there is some finance cost also involved. Okay. But even besides that also it is a good price.
Manish Gupta
Currently, Michael said your damage grain rice car rate would be up or come over\\
Kushal Mittal
So that should add to a margin for this would and.
Manish Gupta
Okay, great. That’s all from my side.
Operator
Thank you. Thank you. Thank you. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.
Kushal Mittal
Thank you. Thank you. Thank you, you everyone for joining and I wish you all a great evening. Thank you. Thank you again.
Operator
On behalf of Go India Advisors, that concludes this conference. Thank you for joining us and you may now disconnect your lines