EID Parry (India) Ltd (EIDPARRY) Q3 FY23 Earnings Concall Transcript

EID Parry (India) Ltd (NSE:EIDPARRY) Q3 FY23 Earnings Concall dated Feb. 15, 2023.

Corporate Participants:

S. Suresh — Managing Director

A. Sridhar — Chief Financial Officer

Muthiah Murugappan — Whole-Time Director & Chief Executive Officer

Suresh Kannan — whole-Time Director

Analysts:

Nitin Agarwal — DAM Capital Advisors — Analyst

Falguni Dutta — Jet Age Securities Private Ltd. — Analyst

Alok Vora — DRAI — Analyst

Kashyap Pujara — Broadview Research — Analyst

Rajesh Majumdar — B&K Securities — Analyst

Ritwik Sheth — One-Up Financial — Analyst

Rajakumar Vaidyanathan — — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to the Q3 FY23 Earnings Conference Call of EIG Parry, hosted by DAM Capital Advisors Limited. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Nitin Agarwal from DAM Capital Advisors. Thank you and over to you sir.

Nitin Agarwal — DAM Capital Advisors — Analyst

Yeah. Hi, a very good afternoon to all of you. We have with us today the entire management team of EID Parry to discuss Q3 results. We have with us Mr. Suresh, who is MD; Mr. Muthiah Murugappan, who is the whole Time Director and CEO; Mr. Suresh Kannan, again a whole-Time Director; A Sridhar who is the CFO; and Biswa Mohan Rath, who is the Company Secretary.

So, without further ado, I would like to hand over the call to EID Parry management for their opening remarks and — followed by which we can continue with Q&As. So, over to you, sir.

S. Suresh — Managing Director

Yeah. Thank you, Mr. Nitin. Good afternoon, everyone. It gives me great pleasure to be part of this analyst call to share and update on the global and Indian scenario and explain the Q3 performance of the Company. On the global scenario, after having touched the sentimental $0.20 per pound in December, raw sugar figures reached $0.21 per pound in February inching closer towards the six year peak of $0.218 per pound.

Pent up demand from China due to ease of COVID restrictions, expected drop in production from India almost 7% lesser than the earlier estimates, and also in Europe due to the pesticides ban and stronger resiliency discouraging exports are auguring well for the prices in the short-term.

Brazil is slated to export 28.2 million metric tons for the season ’22-’23, which is almost an 8% increase year-on year because of the increase in the gain volume. The Brazilian sugar however will touch the international markets by April-May of this year, post which the international prices are expected to be range-bound.

On the Indian scenario, after having reached a record production of 357 lakh metric tons, after considering the diversion based amount during the last sugar year, latest estimates by ISMA show a drop in volume to 340 lakh metric tons, once again, after a diversion to the ethanol based on the crop condition.

Despite drop in sugar volumes, the diversion to ethanol is build out [Phonetic] to 45 lakhs metric tons as against the 35 lakhs metric tons over the last year. While millers have already contracted the exported quantity allotted for the season, just to the tune of almost 60 lakhs metric tons, because of the estimated drop-in field, it is unlikely that the additional export quantity shall by allotted by the government.

Coming to the Q3 performance, the Company’s profitability in sugar segment has been slightly reduced in Q3 of the current year as compared to the Q3 of the previous year, mainly on accounts of increase in coal prices and reduction in distillery production, partially offset by the improved export sugar volumes and also the realizations.

The Company crushed around 17.78 lakh metric ton in the current quarter as against 16.17 lakh metric tons in the corresponding quarter of the previous year. The standalone revenue from operations for the quarter ended 31st December ’22 was INR727 crores, registering a growth of 6% as against INR686 crores in the corresponding quarter of the previous year.

Earnings before depreciation, interest and taxes EBTIDA for the quarter was INR63 crores as against INR72 crores in the corresponding quarter of the previous year. Standalone profit-after-tax for the quarter was INR16 crore as against INR18 crores in the corresponding quarter of the previous year. The standalone revenue from operations for the nine months ended 31st December 2022 was INR2,095 crores registering a growth of 33% as against INR1,574 crores in the corresponding period of the previous year.

Earnings before depreciation, interest and tax EBITDA before exceptional items for the nine months ended was INR199 crores, against INR183 crores in the corresponding period of the previous year. Standalone profit-after-tax for the nine months ended was INR114 crores as against INR58 crores in the corresponding period of the previous year.

Moving to yesterday’s Board meeting, our Board has approved a further augmentation of ethanol capacity by expanding the existing 75 KLPD distillery unit at — to 120 KLPD distillery unit with an incineration boiler at our Nellikuppam facility with an outlay of INR87 crores for production of ethanol from Syrup on B-heavy molasses. The commercial production from the expanded capacity is expected to commence from April 2024.

As Sankili, our unit in Andhra Pradesh, 120 KLPD multiple [Phonetic] unit, the project has been completed and production has been commercial in January 2023 of the syrup based distillery. The grain based distillery project is under progress and is expected to be completed by April 2023.

Once the Haliyal distillery expansion of 120 KLPD and the Nellikuppam expansion from 75 KLPD to 120 KLPD are in place, our overall distillery capacity will be at 582 kilo liters per day per annum — KLPD per annum. Both these expansions will involve a capital outlay of INR268 crores, which will be spent in the financial year ’24.

Now I request our CFO Mr. Sridhar to explain you on the segment-wise financials performance. Thank you.

A. Sridhar — Chief Financial Officer

Yeah, this is Sridhar here. Thank you, Suresh, and good afternoon to all. It is a great pleasure to be part of the analyst call and to share key information on the operational and financial performance of the Company. I would like to share with you the key operating parameters segment-wise.

Sugar operations. Crushing operations were carried out in all our sugar mills during this quarter. I would like to share the quantitative details as under. In quarter three, we crushed around 17.78 lakh metric tons when compared to corresponding quarter of previous year which was at 16.17 lakh metric tons. This is an increase of 10% over the previous year. On a year-to-date basis, we crushed around 28.85 lakh metric tons when compared to corresponding period of previous year which was at 24.23 lakh metric tons.

On the recovery. In the quarter three, recovery from all our plants were at 10.49% compared to previous year which was at 10.39%, that’s an improvement of 0.10% over previous year. On a year-to-date basis, the recovery from all our clients were at 9.91% when compared to corresponding period of previous year which was at 9.89%.

In Q3, we produced around 1.70 lakh metric tons against corresponding quarter of previous year which was at 1.50 lakh metric tons that is an increase of 0.2 lakh metric tons over previous year. On a year-to-date basis, we produced around 2.59 lakh metric tons when compared to corresponding period of previous year which was at 2.21 lakh metric tons that is an increase of 0.38 lakh metric tons.

Cane landed cost was at INR3,360 per metric ton against corresponding quarter of previous year which was at INR3,350 per metric ton. On a year-to-date basis, our team landing cost was INR3,260 per metric ton when compared to corresponding period of previous year which was at INR3,231 per metric tons. For the quarter two, we achieved a sales volume of around 1.38 lakh metric tons, of which domestic was 89,000 metric tons and exports were 49,000 metric tons. And the previous year sales volumes were at 1.31 lakhs metric tons of which domestic was 92,000 metric tons and exports were at 39,000 metric tons.

On a year-to-date basis, we achieved a sales volume of around 3.99 lakh metric tons of which domestic was 2.79 lakh metric tons and exports were at 1.20 lakh metric tons. And the previous year sales volumes were at 3.11 lakh metric tons of which domestic was 2.29 lakh metric tons and exports were at 82,000 metric tons. The average selling price of sugar for the quarter was around INR36.24 per kg compared to the previous year selling price of INR35.25 per kilogram.

On a year-to-date basis, our sugar selling price was at INR35.79 compared to the previous year price of INR34.67 per kilogram. The closing stock as of December 31 was at 1.25 lakh metric tons. The revenue from sugar operations in quarter three was at INR539 crores against the corresponding previous period of previous year which was at INR490 crores, an increase of 10% over previous year. On a year-to-date basis, the revenue from sugar segment was INR1,534 crores against corresponding period of previous year which was at INR1,145 crores, an increase of 34% over previous year. I’d like to state here that there are no cane overdues as of today and all payments have been made at the FRP rates.

On the Co-Gen operations, in quarter three, we generated a power of around 1,341 lakh units against previous year which was at 1,244 lakh units. On a year-to-date basis, we generated a power of around 2,926 lakh units as against corresponding period of previous year which was at 2,088 lakh units.

Exports; in quarter three, we exported power around 675 lakh units as against previous year which was 669 lakh units. On a year-to-date basis, the power exports were at 1,638 lakh units as against corresponding period of previous year which was at 1,106 lakh units. The average power tariff during the quarter was INR4.42 per unit as against the previous year which was at INR4.72 per unit.

On a year-to-date basis, the average power tariff for cities INR5.40 per unit as against the previous year which was at INR4.17 per unit. In quarter three, the revenue from Co-Gen operations were INR56 crores against previous year which was at INR49 crores. On a year-to-date basis, the revenue from Co-Gen operations were INR149 crores against the previous year which was at INR77 crores.

On the Distillery front, we sold around 225 lakh liters during quarter three compared to the previous year sales volume of 264 lakh liters of which ENA was 79 lakh liters. And in the previous year, the ENA sales were at 139 lakh liters. And ethanol was 140 lakh liters during the year compared to the previous year which was at 121 lakh liters. On a year-to-date basis, we sold around 669 lakh liters compared to the previous year sales volume of 568 lakh liters of which ENA was 239 lakh liters. The previous year numbers were 280 lakh liters and the ethanol was at 430 lakh liters and the corresponding previous year numbers were at 288 lakh liters.

On the price realization in quarter three the Distillery operations we realized a price of INR61.11 per liter as against the previous year realization of INR56.35 per liter. This was due to product mix and increase in ethanol prices announced by the government. On a year-to-date basis, our price realizations from distillery operations was at INR59.12 per liter against previous year realization of INR56.16 per liter. Revenues from distillery operations in quarter three was INR141 crores compared to INR151 crores during previous period. On a year-to-date basis, our revenue from distillery operations were INR407 crores against the previous year which was at INR325 crores.

In the Nutra segment, as far as the Indian operations are concerned, in quarter three, we were at around INR14 crores as against INR13 crores in the previous year. On a year-to-date basis, the turnover was INR50 crores against the previous year turnover of INR55 crores. At the consolidated level, the Nutra business turnover was INR62 crores against corresponding previous year which was at INR68 crores. On a year-to-date basis, the turnover was INR199 crores against the previous turnover INR204 crores.

On the employee benefit expenses for quarter three, we were at INR41.75 crores as against INR34.24 crores. And on a year-to-date basis, the expenses were at INR122.37 crores as against INR101.65 crores. The increase in costs are on account of annual salary increase, headcount increase due to expansion in distillery operations, and strengthening of the team for better management of the safety-related areas.

On the other expenses for quarter three, it increased by about INR31 crores, that is from — it was at INR138 crores in current year, against the previous year number of INR107 crores due to increase in production of sugar, consumption of power and fuel, repairs and maintenance mostly to do with safety related expenses, increase in advertisement expenditure on retail sales and corresponding increase in packaging, dispatch and freight cost increased due to higher exports and retail sales, and also due to increase in selling and administration expenses.

On the finance cost, we were at INR8.49 crores compared to previous year which was at INR11.48 crores. Finance cost has decreased by about INR3 crores due to better cash inflows. On a year-to-date basis, our finance cost has been at INR25.66 crores as against the previous year cost of INR35.94 crores.

The capex program continues to be kept very tight and we have spent around INR148 crores. This will include the spend incurred on Sankili 120 KLPD project which costs around INR93 crores incurred till-date. All the capex we are currently investing towards value addition, safety, environment and productivity improvements.

The stand-alone business long-term loans was at INR169 crores. In last year same period, it was INR25 — there is an increase of INR25 crores over the previous quarter and the short-term borrowings was at INR53.50 crores. That is INR50 crores increase over the previous year. This increase in long-term borrowing is towards 120 KLPD project at Sankili and the increase in short-term borrowings are on account of working capital requirements.

With reference to our refinery business, the production volume for quarter three was 2.27 lakh metric tons as against the previous year production of 1.5 lakh metric tons. The year-to-date sugar production volumes was at 5.49 lakh metric tons as against previous year production of 3.89 lakh metric tons. Refined sugar sales volume for quarter three was 2.37 lakh metric tons as against previous year sales volume of 2.29 lakh metric tons. The year-to-date sugar sales volume was 5.86 lakh metric tons as against previous year sales of 4.26 lakh metric tons.

The profit before tax for quarter three was a loss of INR53.79 crores as against the previous year loss of INR3.67 crores. The year-to-date PBT was a loss of INR208.25 crores as against the previous year loss of INR40.52 crores. The business had to incur an expense of INR105.62 crores as of December 31, 2022 on account of clearance of shipments, consequent to accidents at PSR APL factory. This INR105.62 crores includes INR60.14 crores which was incurred as of September 2022.

The long-term borrowings as of December 31, 2022 was INR200 crores. The borrowings as of March 31 also continued to remain at INR200 crores. The short-term borrowings, as of December 31, 2022 was INR760.65 crores. The borrowing as on 31 March 2022 was at INR648.41 crores.

I would now leave the floor open for taking questions and we will be in a position to answer.

Questions and Answers:

Operator

Thank you very much sir. Thank you, sir. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Falguni Dutta from Jet Age Securities Private Limited. Please go ahead.

Falguni Dutta — Jet Age Securities Private Ltd. — Analyst

Hello? Yeah, good afternoon, sir. I just wanted to know what are the margins — how are the margins in grain based ethanol and sugarcane juice-based ethanol versus B-Heavy molasses ethanol?

Operator

Sir. I would request you to unmute your line and speak please.

S. Suresh — Managing Director

Normally, the grain based will be around INR2 to INR3 relatively lower than the syrup-based ethanol. We are able to [Indecipherable] the grain production and it will happen only in the Q1 of the next financial year.

Falguni Dutta — Jet Age Securities Private Ltd. — Analyst

And sir, juice based ethanol, what is the absolute profit at EBITDA level per liter, syrup based?

S. Suresh — Managing Director

I mean — see, it varies from factory to factory. It depends on the cane price at which we procure. And at EBITDA level it will be anywhere between INR4 to INR7.

Falguni Dutta — Jet Age Securities Private Ltd. — Analyst

And this would be how much lower than B-Heavy? If you can say, how much will be B-Heavy just to get a sense.

S. Suresh — Managing Director

B-Heavy will be, I mean, just about a rupee difference.

Falguni Dutta — Jet Age Securities Private Ltd. — Analyst

Okay, a rupee higher let’s say.

S. Suresh — Managing Director

Yeah.

Falguni Dutta — Jet Age Securities Private Ltd. — Analyst

Okay.

S. Suresh — Managing Director

Yeah, it will be lower.

Falguni Dutta — Jet Age Securities Private Ltd. — Analyst

B-Heavy will be lower than the cane directly from juice.

S. Suresh — Managing Director

Yeah, yeah.

Falguni Dutta — Jet Age Securities Private Ltd. — Analyst

Okay sir, thank you. That’s all from my side.

Operator

Thank you. The next question is from the line of Alok Vora from DRAI [Phonetic]. Please go-ahead. Mr. Vora, I have unmuted your line, kindly proceed with your question.

Alok Vora — DRAI — Analyst

Good afternoon, sir. I just wanted to know the — there are news that the monsoon this year is not going to be back and the rains are not going to be that good. How your company is expected to perform in the coming monsoon. Thank you.

Muthiah Murugappan — Whole-Time Director & Chief Executive Officer

So Alok, thank you for your question. We are hearing news on El-Nino and so on and so forth. I think it might be too early to say. There are number of predictions. There are also some predictions where in the southern regions will be less impacted than the North. So, I think we’ll have to wait. Perhaps end March, April is a more reasonable time, if you look at most of the ag companies, we know. I have conversations with them. Everyone is kind of waiting till the end March-April timeframe to really get a good read on where the monsoons are going to be. So, of course, from our planning perspective, we will be planning various scenarios. But maybe it’s a little early to comment definitively on that.

Alok Vora — DRAI — Analyst

Thank you, sir.

Operator

Mr. Vora, any further questions?

Alok Vora — DRAI — Analyst

No. No, further questions. Thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Kashyap from Broadview Research. Please go-ahead.

Kashyap Pujara — Broadview Research — Analyst

Yeah, hi. I just wanted to — I missed the debt numbers, could you just share the debt at standalone levels and at Refinery, both across long-term and short-term?

A. Sridhar — Chief Financial Officer

Yeah. Hi, Kashyap, this is Sridhar here. On the standalone basis, our long-term loans have been at INR169 crores and this has more to do with the interest subvention loans what we are availed for the distillery expansions. And on the short-term loans, it is INR53.50 crores as of December. On the refinery operations, the short-term borrowings have been at INR761 crores and the long-term loans are INR200 crores, which is borrowed bi Refinery from EID Parry.

Kashyap Pujara — Broadview Research — Analyst

Okay. And that — I think the repayment is supposed to happen starting this FY24, right?

A. Sridhar — Chief Financial Officer

Out of INR400 crores which was given as loan by EID Parry, Refinery business has already repaid around INR200 crores. The next two, INR100 crores each will be repaid in the subsequent two years that is in FY24 and FY25.

Kashyap Pujara — Broadview Research — Analyst

Correct, okay. Okay sir fine. Just one suggestion in case, if you can just share the operational details on a press release, then it would basically save us 15 minutes on the call, and maybe you can go through it and be prepared with better questions.

A. Sridhar — Chief Financial Officer

Okay, we’ll combine it here.

Kashyap Pujara — Broadview Research — Analyst

Yeah, thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Rajesh Majumdar from B&K Securities, please go ahead.

Rajesh Majumdar — B&K Securities — Analyst

Yeah, hi, sir. So I had a few questions. One was, we’ve been hearing rumors on the Maharashtra crop getting impacted because of the unseasonal rains, but we’ve seen a reasonably good performance in the sugar business in the third quarter for you. What is the outlook for the balance of this sugar season? Is there going to be an impact in North Karnataka which is likely from us?

Muthiah Murugappan — Whole-Time Director & Chief Executive Officer

So, Rajesh, Muthu here. Yes, so you know that impact in Maharashtra, I think almost down by closer to 2 mills, I think. So, what [Indecipherable] then happens is lot of those mills come poaching cane and they will come across the border and port from Karnataka. Karnataka mills who are located on the border are seeing that happen. And to that extent, it will impact the cane crush of the existing mills because sugar is going — sugar cane is going away from their catchment area. We do have mills located on the border and we are seeing that. So, we are working out in terms of how best to mitigate, but it will be an impact in Q4.

Rajesh Majumdar — B&K Securities — Analyst

Okay. And sir, the other question was on the INR100 increasing the FRP which has been contacted, I believe. What is the status of that, is there any legal obligation to that? As I understand there is none [Speech Overlap].

Muthiah Murugappan — Whole-Time Director & Chief Executive Officer

No, the matter is still in court and there isn’t a final verdict out. I presume, doesn’t — there is not final verdict out. So that — there is no further discussion until there is a final verdict.

Rajesh Majumdar — B&K Securities — Analyst

Okay because UP has kept this SAT [Phonetic] intact also, so I was just like various states are reacting in various ways, so. I just was wondering whether this would be leading?

Muthiah Murugappan — Whole-Time Director & Chief Executive Officer

See, this is an election year Karnataka. So, this is a political matter. So that’s the root cause of it. I mean. We’ll have to see how the courts rule and then take things further. As of now there is no action, because we haven’t seen the official verdict.

Rajesh Majumdar — B&K Securities — Analyst

Got it. So just secondly, did you mention INR761 crores short-term loan in the Refinery business. Is that correct sir? Is the year-end figure, correct?

A. Sridhar — Chief Financial Officer

You’re right.

Rajesh Majumdar — B&K Securities — Analyst

So, what is this on account of and where are we going-in terms of this loan? Is it going to get repaid soon because I’ll tell you, finally, we have seen the best of the refining margins in the last few months and EID Parry still doesn’t seem to be benefiting from it. So, what are we really doing on this business and I keep on asking this question to you I know, but it’s been a drag from day one and really there is no strategic strength for us to continue with this business, but we simply keep on incurring losses in this. So, will you give us some color as to why are we taking more loans on account of this business and where do you see it down the line?

Suresh Kannan — whole-Time Director

Yeah, good afternoon. This is Suresh Kannan here. Thanks for your question. As far as the refining business with respect to the short-term debt is concerned, it’s basically part of the working capital requirements, plus the fact that the basic sugar prices have gone up over the last three quarters on a substantial basis. So that’s causing the increase in the short-term loans.

And, as you’ve seen even in the past, we have repaid these loans to be able to come down to a level of around INR500 crores to INR600 crores. So, the same possibility exist going-forward for the current financial year is concerned. You are right in the sense that the refining margins were good. As far as the current year is concerned.

On an operational basis, we are also — are closer to that performance. But because of the unfortunate events that we had to provide for this one-off item with respect to the delay in execution of order and that’s the reason that margin improvement is not flowing through. We are continuously working on, A, in terms of stabilizing the business without any such disruptions. And number two, with respect to increasing the value of the sugar that we are selling in terms of going ahead with the increased percentage of value-added sugar and value-added customers and continuously work, looking into, with respect to the cost because there have been substantial fuel cost escalations that have taken place. I think most of the material cost and fuel cost inflation is already dealt with. And to that extent, the oil markets have also increased their refiners. So that gives us the positive ray of hope in terms of having a better operational performance going forward.

Rajesh Majumdar — B&K Securities — Analyst

Sir, you mentioned in the 2Q call itself that — also that 3Q will be better, but still we are fending at the same problem that’s persisting is the refineries, which kind of — and refining margins can come off-again from the levels that we’ve seen. So, in that scenario will we continue to see stable margin in this business of $30, $40 which you had earlier indicated at some point of time or not?

Suresh Kannan — whole-Time Director

Let me answer this question in two parts. One is with respect to the margins. So, if you look at the white premiums, white premiums were depressed for the last two to 2.5 months, basically because of the overhang of the Indian exports and the structure of Indian exports have also changed over the last couple of years. We are moving from a raw sugar exporter to more predominantly white sugar. And then also into refined sugar.

But now that wave is off and as we have discussed earlier in the call also, there is not expectation of any major Indian exports going-forward. So, we’re already seeing the signs that white premiums are going up because that’s needed for attracting the refined sugar from other sources. So, we do expect the refining margins to come back to the levels what we were — what you have quoted as far as the discussions are concerned.

Rajesh Majumdar — B&K Securities — Analyst

Okay, thank you sir.

Suresh Kannan — whole-Time Director

Thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Ritwik Sheth from One-Up Financial. Please go ahead.

Ritwik Sheth — One-Up Financial — Analyst

Hi, good afternoon, sir and thank you for the opportunity. Sir, I have a few questions, firstly on the distillery sales, peak distillery sales could be close to INR19 crores liter once all the projects are commissioned and running at full capacity.

Muthiah Murugappan — Whole-Time Director & Chief Executive Officer

Yeah, that’s right. We will get to around INR18 crore to INR19 crore, yeah.

Ritwik Sheth — One-Up Financial — Analyst

INR18 crore to INR19 crore, okay, thank you. And you mentioned in the opening remarks that both existing projects will be come by FY24 end. Right.

Muthiah Murugappan — Whole-Time Director & Chief Executive Officer

So Haliyal will be sort of Q4 FY24 and Nellikuppam augmentation will be Q1 FY25. So, you will be on this INR18 crore, INR19 crore run-rate from Q1, Q2 FY25.

Ritwik Sheth — One-Up Financial — Analyst

Sure. Sure, thank you. My next question is on the refinery. You mentioned the operating numbers, can you please repeat it? I missed the numbers on revenue PBT and PAT, please.

A. Sridhar — Chief Financial Officer

Yeah, this is Sridhar here. The refined sugar sales volume, there are 2.37 lakh metric tons as against the previous year sales volume of 2.29 lakh metric tons. The previous year numbers — sorry, the year-to-date numbers were at 5.86 lakh metric tons as against the previous year sales of 4.26 lakh metric tons.

Ritwik Sheth — One-Up Financial — Analyst

Okay. And revenue. PBT and PAT for nine months?

A. Sridhar — Chief Financial Officer

The PBT for quarter three was a loss of about INR53.79 crores as against the previous year loss of INR3.67 crores. The year-to-date PBT was a loss of about INR208.25 crores as against the previous year loss of INR40.52 crores.

Ritwik Sheth — One-Up Financial — Analyst

Okay. And is there any exceptional item for this quarter.

A. Sridhar — Chief Financial Officer

There is an exceptional item this quarter to the extent of about INR45 crores.

Ritwik Sheth — One-Up Financial — Analyst

Okay, is it possible or what is it regarding?

A. Sridhar — Chief Financial Officer

I would explain — I mean, okay, let me read it out for you. The business had to incur an expense of INR105.62 crores as of December 31, 2022, of which it includes INR60.14 crores as of 2022 on account of clearance of shipments consequent to the accidents at PSR APLs factory.

Ritwik Sheth — One-Up Financial — Analyst

Okay, sir. Okay. So, this INR105 crores is an exceptional item in nine months of which you have reported a INR208 crores loss.

A. Sridhar — Chief Financial Officer

[Technical Issues]

Ritwik Sheth — One-Up Financial — Analyst

After the exception, okay fine. And sir, just on the debt figure on the refinery from here on, where do we expect the debt to settle at for the short-term from INR760 crores.

Suresh Kannan — whole-Time Director

Yes, Suresh Kannan here. We expect the short-term debt to be in the region of INR500 crores to INR600 crores.

Ritwik Sheth — One-Up Financial — Analyst

Okay. Okay sir, that’s it from my side. Thank you and all the best.

Operator

Thank you. [Operator Instructions] The next question is from the line of Rajakumar Vaidyanathan an Individual Investor. Please go ahead.

Rajakumar Vaidyanathan — — Analyst

Yeah. Good afternoon, sir. Thanks for the opportunity. Sir. I have two questions. So, the first question is, see if I see the operating results for sugar and Co-Gen and distillery, for the nine months we have done negative INR177 crores. And for the previous financial year, we have done about INR150 crores positive. So, I just wanted to — given that Q4 is going to be good, so will we be able to match the previous numbers or exceed that or it’s going to be lower than what you did the previous financial year?

Muthiah Murugappan — Whole-Time Director & Chief Executive Officer

I think you might be looking at consolidated numbers, right Sridhar?

A. Sridhar — Chief Financial Officer

That is correct, yeah.

Rajakumar Vaidyanathan — — Analyst

Yeah, I’m looking at the consolidated number.

Muthiah Murugappan — Whole-Time Director & Chief Executive Officer

So that includes the refineries business also.

Rajakumar Vaidyanathan — — Analyst

Yeah, so that includes this INR100 crores exceptional loss in that operating result or it’s sitting in the exceptional line?

A. Sridhar — Chief Financial Officer

No, I mean — as far as the standalone is concerned, we are definitely going to do better than what we were — what we have performed in the previous year. And on a consolidated basis, I mean, there has been exceptional issues as far as the refinery business is concerned. So, we may be in — almost in-line with the last year numbers, if we have to look at on a consolidated basis for the sugar segment.

Rajakumar Vaidyanathan — — Analyst

Okay, got it. Got it thank you. Hello? Can you hear you?

Operator

Yes sir, we can hear you. Sir, you were saying something. Any further questions from your end, Mr. Rajakumar.

Rajakumar Vaidyanathan — — Analyst

Yeah, I have just one more question. So, I think the Nutrient [Phonetic] business segment has done exceedingly well compared to the last year. So, whether Q4 will also see similar outperformance this quarter than in the first nine months?

Muthiah Murugappan — Whole-Time Director & Chief Executive Officer

Which segment. Sorry?

Rajakumar Vaidyanathan — — Analyst

The Nutrient segment.

A. Sridhar — Chief Financial Officer

Yes. So, that is obviously our — I’m assuming you’re referring to Coromandel International subsidiary company.

Rajakumar Vaidyanathan — — Analyst

That’s correct.

A. Sridhar — Chief Financial Officer

So, I think they’ve all — they’ve done an investor call already. I think that call upload should be available online. This isn’t the management which look at that. Coromandel, they have an independent management team. So, I think you should log into that call or if you can check-out transcript of the call or the recording and I think you will get some color on their business performance and what they’re looking at for the coming quarter.

Rajakumar Vaidyanathan — — Analyst

Yeah. Sure, I’ll do that. Sir, but if I look at the overall performance, most of the — I think more than 95% of your profit is coming from Coromandel Operation only and aren’t seeing any positive bottom-line coming from the EID to core business.

Muthiah Murugappan — Whole-Time Director & Chief Executive Officer

So, sorry, what’s the question?

Rajakumar Vaidyanathan — — Analyst

No, no, what I’m saying is, if I look at your consolidated results, the bottom line, 95% of your bottom-line is coming from the Coromandel business. We’re not seeing any a positive bottom line coming from the EID business per se.

A. Sridhar — Chief Financial Officer

Yeah, this is Sridhar here. See, the performance of the sugar operations will have to be looked at on an annualized basis and not for a nine months period, because the crushing season happens between November to March. So, it is not the right way to compare the sugar operations versus the Coromandel operations during — in-between the year.

Rajakumar Vaidyanathan — — Analyst

Okay, sir. Thank you.

Operator

Sir, do you have any further questions?

Rajakumar Vaidyanathan — — Analyst

No, I’m done. Thank you.

Operator

Okay, thank you. [Operator Instructions] Ladies and gentlemen, as that was the last question for today, I would now like to hand the conference over to the management for closing comments. Over to you sir.

S. Suresh — Managing Director

Yeah, thank you. Thank you everyone for taking your time out and attending this call and hoping to see you on our next call. Thank you.

Operator

[Operator Closing Remarks]