Ultratech Cement Limited · NSE:ULTRACEMCO
Ultratech Cement — Q2 FY24 Earnings Presentation
31 slides from Ultratech Cement's earnings presentation, Oct 19, 2023
Slide 1: Exchange filing cover letter
19th October, 2023 BSE Limited The Manager Corporate Relationship Department Listing Department Phiroze Jeejeebhoy Towers, The National Stock Exchange of India Limited Dalal Street, “Exchange Plaza”, Bandra-Kurla Complex, Mumbai 400 001. Bandra (East), Mumbai 400 051. Scrip Code: 532538 Scrip Code:
Slide 2: UltraTech Cement Limited - Results Q2 FY24
UltraTech Cement Limited Taking concrete actions for a sustainable future Results Q2 FY24 Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX
Slide 3: Macro and Sectoral Update, Business Update, ESG Update, Financial Performance
01 02 03 04 Macro and Business ESG Financial Sectoral Update Update Performance Update
Slide 4: Macro and Sectoral Update
01 Macro and Sectoral Update The Government of Rajasthan conferred ‘Shiksha Bhushan’ award to Kotputli Cement Works, for contribution to the upliftment of education in Government schools in the Jaipur district, Rajasthan.
Slide 5: Macro Indicators
Macro Indicators GDP growth at IIP grew by 10.3% Continuing the Due to significant 7.8% in Q1 FY24 YoY in August trend of the past growth in rural with substantial compared to 6% few quarters, housing and urban contribution from in July, driven by a cement demand real estate, the the construction lo
Slide 6: Sectoral Update : Q2 FY24
Sectoral Update : Q2 FY24 Zone Volume Gr I C H R Key drivers ✓ Housing segment registered growth in rural and urban segments, except Uttarakhand, Haryana and Delhi which were affected due to heavy rains. North ✓ Commercial segment growth sustained by industrial and commercial activity across regions
Slide 7: Business Update
02 Business Update UltraTech’s diversity journey has achieved another milestone. Women constitute 80% of the operating team at Pune Bulk Terminal leading from the front and managing core functions viz., Mechanical, Electrical, Instrumentation, Safety and Security. This initiative is a cornerstone in
Slide 8: Highlights : Q2
Highlights : Q2 Domestic sales volume grew 15% yoy with capacity utilization of 75%. Operating EBITDA/Mt of ₹ 955 an improvement of 17.6% yoy Commissioned cement capacity of 2.5 MTPA, taking total grey cement capacity of the Company to 132.45 MTPA in India. Commissioned 30 MW of WHRS capacity and 83
Slide 9: Powering our Brand
Powering our Brand UltraTech’s creative digital marketing campaigns strike gold for We celebrated Engineer’s Day and appreciated their efforts and “Most creative banners” and “Best Digital Innovation” at Indian work towards the society. Digital Marketing Awards 2023. Our Engineers are tirelessly wor
Slide 10: ESG Update
“To actively contribute to the social and economic development of the 03 communities in which we operate. In so doing, in sync with the United Nations Sustainable Development Goals build a better, sustainable way of life for the ESG weaker sections of society and raise the country’s human developmen
Slide 11: Pioneering Sustainability
Pioneering Sustainability Climate and Circular Environment Green Energy Economy Energy ESG Metric CO2 Emission Alternative Water Green Power [kg CO2/t cement] Raw Material Positive Mix and Fuel [Times] [% to total power] [MnT] H1FY24 560 +0.5% ^ 18 +23% 4.55x +9% 22% +13% Performance* ^ Increase in
Slide 12: Building a greener value chain through circular economy
Building a greener value chain through circular economy UltraTech signed a long-term agreement with Steel Authority of India to procure 2.4 LMT blast furnace slag per annum, reiterating its commitment to driving circularity of materials. Star Cement, a wholly owned subsidiary, has signed a cooperati
Slide 13: Health Care Reached out to more than 45,000 beneficiaries
Health Care Reached out to more than 45,000 beneficiaries We are committed to provide better health services to the common man. 8,600 37,000 Beneficiaries Children benefited benefited during the through the quarter immunization programs Organized at UltraTech plant locations: Sewagram, Gujarat, Vikr
Slide 14: Social Infrastructure
Social Infrastructure Reached out to more than 31,000 beneficiaries We are continuously developing need-based infrastructure near all our plants, strengthening village infrastructure for addressing the basic needs and Reddipalayam Cement Works, Tamil Nadu Kukurdih Cement Works, Chhatishgarh aspirati
Slide 15: UltraTech joins India's 1st zero-emissions road freight initiative
04 Financial Performance UltraTech joins India’s 1ˢᵗ zero-emissions road freight initiative We have partnered with World Economic Forum's (WEF) “Moving India” initiative which was launched by WEF at the G20 Energy Ministers' meeting. As the largest cement manufacturing company in India and as an ind
Slide 16: Sales Volume
Sales Volume Volume in Million tons Growth Growth Particulars Q2 FY24 (YoY) (QoQ) Grey Cement - Domestic 25.08 15% -12% Cement Export & Clinker Sales 0.16 59% 58% White Cement 0.42 11% 2% Sales Volume - India 25.66 15% -12% Grey Cement – Overseas 1.18 22% 13% Consolidated Sales Volume* 26.69 16% -11
Slide 17: Revenue
Revenue ₹ Crores Growth Growth Particulars Q2 FY24 (YoY) (QoQ) Grey Cement - Domestic 13,412 15% -12% White Cement 587 9% -1% ReadyMix Concrete (RMC) 1,161 31% -6% Others 315 -3% 24% Grey Cement – Overseas 600 30% 8% Total Consolidated Revenues* 15,735 16% -10% * After elimination of inter company s
Slide 18: Profitability
Profitability EBITDA (₹ Crores) Profit after tax (₹ Crores) +70% YoY +35% YoY 1,688 3,223 1,281 2,718 2,013 756 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 EBITDA margin improved 200bps yoy 17
Slide 19: Domestic Grey Cement Realization
Sales Realisation (Grey Cement) Domestic Grey Cement Realization (₹/Mt) 5,342 5,350 5,349 Realization v/s Cost Q2FY23 Q1FY24 Q2FY24 ➢ Realization remains flat on QoQ as well as YoY basis, while cost increased on QoQ basis mainly on account of Realisation v/s Total Cost index maintenance and employee
Slide 20: Key Cost Indicators (Grey Cement): Q2 FY24
Key Cost Indicators (Grey Cement): Q2 FY24 Logistics Cost Energy Cost Raw Material Cost % to total costs 28% 35% 14% ₹ / Mt 1,219 1,555 634 Decreased Decreased Increased 4% 2% YoY and 4% QoQ 10% YoY and 4% QoQ YoY and QoQ India Operations 19
Slide 21: Logistics Cost (Grey Cement)
Logistics Cost (Grey Cement) 1239 1264 1219 YoY costs decrease: 2% Logistics cost (₹/Mt) ➢ Benefit on account of lead optimization and improved operating efficiency. ➢ Lead reduced to 403 km in Q2 FY24 from 428 km in Q2 FY23. Q2FY23 Q1FY24 Q2FY24 Logistics cost v/s Diesel price index 120 120 QoQ cos
Slide 22: Raw Material Cost (Grey Cement)
Raw Material Cost (Grey Cement) 610 610 634 YoY cost increase: 4% Raw Material cost (₹/Mt) ➢ Increase in cost of raw materials: fly ash, slag etc. ➢ Improvement in clinker conversion ratio to 1.44 vs 1.41 in Q2 FY23. Q2FY23 Q1FY24 Q2FY24 Conversion Ratio and Fly ash Price index QoQ cost increase: 4%
Slide 23: Energy Cost (Grey Cement)
Energy Cost (Grey Cement) 1731 1621 1555 YoY cost decrease: 10% Energy cost (₹/Mt) ➢ Blended fuel consumption (CV: 7500) at ~USD 162/t compared to ~USD 200/t in Q2 FY23. ➢ Pet coke consumption at 39% vs 40% in Q2 FY23. Q2FY23 Q1FY24 Q2FY24 Fuel cost v/s Blended fuel price index QoQ cost decrease: 4%
Slide 24: Other Costs
Other Costs 859 862 683 YoY cost : Flat Other cost (₹/Mt) ➢ Operating leverage benefits in the quarter offset by increase in maintenance cost and manpower cost. Q2FY23 Q1FY24 Q2FY24 QoQ cost increase: 26% WPI index 126 ➢ Negative operating leverage due to lower volume in 123 125 monsoon period. ➢ Hi
Slide 25: Operational Performance
Operational Performance ₹ Crores Consolidated India Operations Particulars Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 15,735 13,596 Net Sales ^ 15,195 13,176 277 297 Operating Income 281 271 167 146 Other Income 158 119 16,179 14,039 Total Income 15,634 13,565 Expenses: 2,348 2,004 Raw Materials Consumed 2,187
Slide 26: Financial Statement
Financial Statement ₹ Crores Consolidated India Operations Particulars Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 15,735 13,596 Net Sales ^ 15,195 13,176 2,718 2,013 EBITDA 2,608 1,926 234 200 Finance Costs 211 187 798 708 Depreciation and Amortization 768 679 409 344 Tax expenses* 415 333 (1) 3 Minority inter
Slide 27: Operational Performance : Overseas
Operational Performance : Overseas Amount in Mn AED Amount in Mn SLR Middle East Lanka Particulars Q2FY24 Q2FY23 Q2FY24 Q2FY23 215 172 Net Sales 4,531 3,973 0.1 11 Operating Income 21 85 0.0 0.2 Other Income 89 365 215 183 Total Income 4,641 4,423 59 24 Purchase/Consumption of Raw Material 4,735 3,4
Slide 28: Financial Position
Financial Position ₹ Crores Consolidated India Operations Particulars 30.09.2023 31.03.2023 30.09.2023 31.03.2023 67,846 64,987 Net Fixed Assets^ 64,994 62,121 1,059 1,017 Investment in Subs/Associates/JVs 3,228 3,187 (1,500) (2,669) Net Working Capital (3,048) (3,987) 67,404 63,335 Total Assets 65,
Slide 29: Cash Flow Statement: H1 FY24
Cash Flow Statement: H1 FY24 ₹ Crores Particulars India operations Consolidated EBITDA 5,817 5,941 Less : Interest & lease payments (389) (442) Less : Tax paid (706) (711) Less : Increase in working capital (1313) (1454) Operating Cash Flow 3,410 3,334 Less : Capex spend (4,328) (4,341) Free Cash Fl
Slide 30: Glossary
Glossary ➢ MNT - Million Metric Tons ➢ CPI - Consumer Price Index ➢ Realization = Selling Price less GST and Discounts ➢ LMT - Lakh Metric Tons ➢ WPI - Wholesale Price Index ➢ Blended Fuel includes imported coal and petcoke ➢ MTPA - Million Tons Per Annum ➢ IHB - Individual Housing Builder ➢ Blended
Slide 31: Disclaimer
Disclaimer Statements in this ‘presentation’ describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Impor