Ramco Cements Limited · NSE:RAMCOCEM
Ramco Cements — The Ramco Cements — Q1 FY2023 Earnings Presentation
19 slides from Ramco Cements's earnings presentation, Aug 1, 2022
Slide 1: Covering letter to stock exchanges
Corporate Office: Auras Corporate Centre, V Floor, 98-A, Dr. Radhakrishnan Salai, Mylapore, I Chennai - 600 004, India. j Tel: +91 44 2847 8666 Fax: +91 44 2847 8676· Website: www.ramcocements.in THE RAN/CO CEMENTS LIMITED Corporate Identity Number: L26941TN1957PLC003566 1 August 2022 National Stock
Slide 2: The Ramco Cements Limited Investor Update - Firm & Focussed Q1FY23
The Ramco Cements Limited Investor Update Firm & Focussed Q1FY23
Slide 3: Contents
Contents 01 Overview 05 Income Statement & Analysis 02 Market update 06 Key Ratios 03 Sales & Capacity Utilization 07 Capex update 04 Key Performance 08 ESG update The Ramco Cements Limited Investor Update Q1FY23
Slide 4: Overview of Economy
Overview Overview of Economy • India's GDP growth for FY23 is projected at 7.4%, with risks tilted to the downside • Repo Rate increased by 90 bps in the preceding two months; However, it remains below pandemic level • Rupee depreciated by 8% against USD since Jan 2022 Positives • Robust demand from
Slide 5: Market update for Q1FY23
Market update for Q1FY23 South East Demand from Individual housing & Infra picked up Demand from Individual housing remained flat Weak prices prevailed during the quarter Demand from Infra / Commercial segment have grown Price increase to cover cost push could not sustain Demand subdued
Slide 6: Cement Sales & Capacity utilization
Cement Sales & Capacity utilization Cement Sales (Lac Tons) 33.10 44% +55% 68% Utilization Utilization 21.41 Q1FY23 Q1FY22 Q1FY22 Q1FY23 Share of Premium products stands at 24% for Q1FY23 Sales Volume was lower in Q1FY22 on account of CoVID related lock downs The Ramco Cements Limited Investor U
Slide 7: Continued focus on Right product for right application
Continued focus on Right product for right application Ramco Supercrete Ramco Supergrade OPC 43 Infra OPC 53 Infra OPC 43 Grade OPC 53 Grade High early strength with high High durability with high High early strength concrete For infra projects like tunnels, For high early strength For high early st
Slide 8: Key Performance for Q1FY23
Key Performance for Q1FY23 ` in Crores Revenue EBITDA 1,779 370 -17% 308 1,235 +44% Q1FY22 Q1FY23 Q1FY22 Q1FY23 Profit Before Tax Profit After Tax 250 169 -39% -34% 112 154 Q1FY22 Q1FY23 Q1FY22 Q1FY23 Variable Cost have gone up due to sharp fuel price increase Delivered strong volume growth duri
Slide 9: Income Statement for Q1FY23
Income Statement for Q1FY23 ` in Crores Standalone Consolidated Particulars Q1FY23 Q1FY22 Variance % Q1FY23 Q1FY22 Variance % 1,779.39 1,234.67 44% Revenue 1,785.64 1,239.99 44% 1,471.83 864.66 70% Less: Operating Expenses 1,476.30 868.22 70% 307.56 370.01 17% EBITDA 309.34 371.77 17% 47.48 24.30 95
Slide 10: EBITDA
EBITDA EBITDA in Crores EBITDA per Ton 450 2500 402 400 370 350 2000 305 308 300 1728 1500 250 238 1484 200 1000 150 956 929 790 100 500 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Pet coke and coal prices have increased. Weak prices prevailed during the quarter Consequently, power & fuel cost has increa
Slide 11: Raw materials and Logistics cost
Raw materials and Logistics cost Raw materials cost In ` per Ton Logistics cost In ` per Ton 1,087 865 1,073 6% +1% 828 +4% Q1FY22 Q1FY23 Q1FY22 Q1FY23 Increase in diesel price pushed the cost of logistics cost Increase in diesel price pushed the cost of inbound materials Rail Co-efficient for
Slide 12: Power and Fuel Cost
Power and Fuel Cost In ` per Ton 1,584 Blended Fuel consumption per T of material for Q1FY23 is $ 178 / T +54% 1,031 CIF Pet coke price peaked to $ 242 / T in May’22 6% -15% Emphasis on increased usage of green energy Q1FY22 Q1FY23 WHRS operations in JPM helped to manage power cost better Tr
Slide 13: Power & Fuel Mix
Power & Fuel Mix Power Mix 19% 17% Q1FY22 Focus on Green Power Q1FY23 14% 19% 64% 67% Grid power Green Power Thermal Power Grid power Green Power Thermal Power Fuel Mix 33% 30% Q1FY22 43% Optimum usage of fuels 54% Q1FY23 based on cost per CV 24% 16% Coal Alternate Fuel Pet coke Coal Alternate Fuel
Slide 14: Employee cost and Other expense
Employee cost and Other expense Employee cost In ` per Ton Other Expenses In ` per Ton 490 748 -13% -33% 650 327 Q1FY22 Q1FY23 Q1FY22 Q1FY23 Due to better operating leverage The Ramco Cements Limited Investor Update Q1FY23
Slide 15: Wind power
Wind power Particulars Q1FY23 Q1FY22 Variance Generation of Wind power (In Crore Units) 7.71 7.01 10% Revenue from Wind power ( ` in Crores) 18.77 19.39 3% Less: Operating Expenses ( ` in Crores) 5.24 5.61 7% EBITDA from Wind power ( ` in Crores) 13.53 13.78 2% Presently, power from windfarms are
Slide 16: Key Ratios
Key Ratios Particulars UOM Q1FY23 Q1FY22 EBTIDA Ratio % 17% 30% PBT Ratio % 9% 20% PAT Ratio % 6% 14% EPS, Not Annualized ` 5 7 RoE, Annualized % 7% 12% RoCE (Post-tax), Annualized % 6% 8% Debt-Equity Ratio Multiples 0.64 0.65 Debt Service Cover Ratio, Annualized Multiples 1.76 1.38 Interest Service
Slide 17: Capex update
Capex update Trial production of Clinker in Kurnool is successful and plant Modernization of RRN Plant will be commissioned in Mar 2023 operation is very smooth Expansion of Dry Mortar Plant: 2 units will be commissioned in Cement grinding in Kurnool will be commissioned in Aug 2022 2022-23
Slide 18: ESG Update
ESG Update CO2 Emission Blended Cement Water Positive Green energy CSR 587 Kg / T of Cement 74% 2x 19% 1,20,000 + Beneficiaries Firm and Focussed belief for a sustainable future The Ramco Cements Limited Investor Update Q1FY23
Slide 19: Disclaimer
Disclaimer This communication, except for the historical information, may contain statements which reflect the Management’s current views and estimates and could be construed as forward looking statements. The future involves certain risks and uncertainties that could cause actual results to differ