Ultratech Cement Limited · NSE:ULTRACEMCO
Ultratech Cement — Q4 FY21 Earnings Presentation
40 slides from Ultratech Cement's earnings presentation, May 7, 2021
Slide 1: Exchange filing cover letter: Investor Presentation
7th May, 2021 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. Tel.: 22721233/4 Tel.: 26598236 Fax:
Slide 2: India's Largest Cement Company
India’s Largest Cement Company EARNINGS: Q4 FY21 7th May 2021 Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX
Slide 3: Contents
Contents 03 ESG at Key 01 updates and UltraTech highlights Macro and Industry Performance 04 updates 02 GLOSSARY: MNT – Million Metric Tons, LMT – Lakh Metric Tons, MTPA – Million Tons Per Annum, MW – Mega Watts, Q1 – April- June, Q2 – July-September, Q3 – October-December, Q4 – January-March, CY –
Slide 4: ESG at UltraTech
ESG at UltraTech Key facts at UltraTech: • UltraTech is certified to be more than 3.9* times water positive. • More than 71* million m3 of water has been harvested, recharged, recycled and reused across our manufacturing locations in FY21. • All our Units have zero water discharge policy. • Recycles
Slide 5: ESG at UltraTech: SBTi targets validated
ESG at UltraTech: SBTi targets validated Data analysis to Letter submitted finalize base year SBTi targeting Press release on to SBTi 11th March method and tool March to August to December to July 2020 August 2020 November 2020 March 2021 June 2020 January 2021 UltraTech joined the growing lis
Slide 6: ESG at UltraTech: Path to meet SBTi targets
ESG at UltraTech: Path to meet SBTi targets Use of decision o Use of internal carbon price making tools o Adoption of TCFD framework o Low clinker cement Reduce carbon Product mix intensity by o Product that reduces usage of other resources ~27% by 2032 as compared to o Alternative fuel and clean en
Slide 7: ESG at UltraTech: Continuous Improvement
ESG at UltraTech: Continuous Improvement Zero Carbon Green Energy Project Jal Biodiversity (Water Positive) 21.5%* 13% * 3.90* 8* 19.10% 2.80 11% 2.60 18.50% 5 10% 2.50 17.60% 3 7% 1 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Target: Target: Target: Target: Reduc
Slide 8: ESG at UltraTech
ESG at UltraTech People benefited: 1.6 million Education Child Education Education for: Women Empowerment 0.1 million children Social Pro-active engagement with local Change Healthcare CSR at Rural Health Camps for: communities and other UltraTech 0.2 million people stakeholders Awareness ab
Slide 9: ESG at UltraTech: Diversity
ESG at UltraTech : Diversity The ‘Central Control Room’ is the UltraTech partners with 840 self We are proud of women Skill-building is key to livelihood engine driving seamless help-help groups (SHG) colleagues in our sales force who enhancement. UltraTech’s various production processes. Proud of e
Slide 10: ESG: Child Education and Sustainable Livelihood
ESG: Child Education and Sustainable Livelihood Gyan Dhara Centre Bravery Recognition Education Sustainable Livelihood Online education centre in • On 20th February 2021 a 22 Company run schools with Uniform Making Project was villages public transport bus 60% students from nearby started in Bela Ce
Slide 11: ESG: Rural Development
ESG: Rural Development Suposhan Project Water shed Project Infrastructure Development Addressing malnutrition At Malkhed (Karnataka), Dhar Village connecting roads, repair post covid pandemic, (Madhya Pradesh) of roads, bus stands, culverts, through Nutrition rich food Ayyavaripalli & Petnikota comm
Slide 12: ESG: Healthcare
ESG: Healthcare Helped in set up of better medical facilities Free health check up camp Seeds distribution to farmers 11
Slide 13: Macro and Industry updates
Nagpur Metro is a critical infrastructure that reduces environment impact by reducing congestion. The project will benefit the Macro and society by reduction of ~ 1.1* million tons of CO2 Industry emissions over its life. updates Disclaimer: UltraTech is one of the key building material supplier and
Slide 14: Macro and Industry updates
Macro and Industry updates Cement consumption CPI inflation at ~6.2% in remains resilient on the Rising risks from second FY21; food and fuel back of strong rural Covid 19 wave resulting inflation to remain demand and pick-up in in a temporary elevated in H1 FY22 infrastructure activities slowdown G
Slide 15: Sectoral Update Q4 FY21
Sectoral Update Q4 FY21 State/Region wise performance State/Region Vol. Gr. I R H C Key drivers • IHB witnessed an increase in demand North • Urban Real Estate also improved • IHB demand continued to be robust Central • Infrastructure segment across Eastern UP registered strong growth • IHB demand l
Slide 16: Key updates and highlights
Durgam Cheruvu Cable Bridge in the city of Hyderabad is a critical infrastructure that reduces environment impact by reducing congestion. The project will benefit the society by reduction of ~4.38* million tons of CO2 emission over its life. Key updates and highlights Disclaimer: UltraTech is one of
Slide 17: Key Performance Drivers: Q4 FY21
Key Performance Drivers: Q4 FY21 Capacity Volume Realization RMC Number of Utilization: 93% Growth UBS outlets up 30% YoY up Volume up 2518 13% YoY 17% QoQ 1% QoQ 31% QoQ 16
Slide 18: Sales Performance: Q4 FY21
Sales Performance: Q4 FY21 Grey White Export and India RMC Overseas Consolidated Cement Cement Others Operations Volumes (Mnt) 25.95 132 0.42 0.22 26.59 1.41 27.78 No of RMC plants Growth 30% 23 31% -19% 30% -3% 28% No of RMC plants Revenues (Rs Crs) 12,251 671 558 277 13,757 532 14,232 Growth 36% 3
Slide 19: Sales Performance: FY21
Sales Performance: FY21 Grey White Export and India Overseas Consolidated Cement Cement Others Operations Volumes (Mnt) 80.18 1.32 1.07 82.56 4.90 86.42 Growth 5% 1% 0.2% 5% -8% 4% Revenues (Rs Crs) 38,090 1,779 2,710 42,578 1,954 44,239 Growth 8% 3% 4% 7% -9% 6% 18
Slide 20: Performance at a glance Q4FY21
Performance at a glance Q4FY21 Consolidated Rs. 14,232 Cr Rs. 3,751 Cr Rs. 2,676 Cr Rs. 1,814 Cr Particulars Revenues EBITDA PBT ^ PAT ^ Growth - YoY 33% 42% 83% 61% Margin% 26% 19% 13% Margin Increase – YoY 2% 5% 2% Earnings per share (Rs.) (Trailing 12 months) 192 Rising quarterly EBITDA ^Before o
Slide 21: Performance at a glance FY21
Performance at a glance FY21 Consolidated Rs. 44,239 Cr Rs. 12,302 Cr Rs. 8,116 Cr Rs. 5,530 Cr Particulars Revenues EBITDA PBT ^ PAT ^ Growth - YoY 6% 24% 57% 52% Margin% 28% 18% 12% Margin Increase – YoY 4% 6% 4% Earnings per share (Rs.) 192 EPS growth: 52% ^Before one-time exceptional item 20
Slide 22: UltraTech: Financial Strength
UltraTech: Financial Strength 18,000 16,981 2.00 16,000 14,651 1.80 14,000 1.72 1.60 12,132 12,000 1.60 1.40 Consolidated Net Debt 9,436 1.20 10,000 1.22 1.00 8,000 6,717 • Reduction of Rs 10,264 Crs 0.80 6,000 0.84 • Net Debt / EBITDA : 0.55 x 0.60 4,000 0.55 0.40 • Net Debt / Equity : 0.15 x 2,000
Slide 23: Leading new launches and brand collaborations to amplify reach
Brand Strength: Leading new launches and brand collaborations to amplify reach Be wise, protect strength from KBC Integration : Driving the ‘Chance Strategic use of Mobile OBD media to dampness : The film reframes Na Lo’ on KBC with Contextual deliver brand’s CVP in TV dark rural dampness & seepage
Slide 24: Value Added Products
ADITYA BIRLA Value Added Produ by, 4 Uitratech BE WISE, PROTECT NOT JUST YOUR HOME, STRENGTH FROM DAMPNESS BUILD YOUR IDENTITY = f= <a | Coe Me NT The Engineer's Choice The Engineer's Choice WEATHER PLUS | SUPER fal) India’s No.1 Cement 23
Slide 25: Value Added Products
ADITYA BIRLA Value Added Products by 4 Uitratech NIRMAAN MAJBOOT, SAALON TAK ATOOT POTHOLE FREE ROADS FOR 20 YEARS IN JUST 2 WEEKS 24
Slide 26: Awards and Recognition
Awards and Recognition Award: Awarpur Cement Works wins National Energy Conservation Award organized by the Ministry of Power, Award: Panipat and Jhajjar unit wins at Apex India Award: Mahatma Award for sustainable CSR Government of India, in association with Bureau of Energy Green Leaf Awards Categ
Slide 27: Financial Performance
Baga Cement Works in Himachal Pradesh. The elevation of the site is 947 to 1522 meters above sea level Financial Performance
Slide 28: Key Cost Indicators: Q4 FY21
Key Cost Indicators: Q4 FY21 LOGISTICS COST ENERGY COST RAW MATERIAL COST 14% 33% 27% Increased 2% YoY to Rs. 1176/t Increased 7% YoY to Rs. 978/t Increased 4% YoY to Rs. 520/t • Diesel Price Hike – 22% YoY • Higher fuel prices • Diesel price hike impact on • Change in Market Mix • Increase in Green
Slide 29: Logistics Cost Trend
Logistics Cost Trend 1176 YoY cost increased: 2% Logistics cost (Rs./mt) 1149 27 • Diesel price higher by ~22% 56 • Due to change in market mix Q4FY20 Q4FY21 Logistics cost v/s Diesel Price Index) 141 129 116 107 123 QoQ cost remained flat 100 107 102 89 • Rail freight discount • Road freight saving
Slide 30: Energy Cost Trend
Energy Cost Trend 978 YoY cost increased: 7% Energy cost (Rs./mt) 914 64 • Green power share in power mix raised 56 to 12.3% (LY: 11.5%) • Reduced power consumption by 2% • Increase in Petcoke / Coal prices Q4FY20 Q4FY21 Energy cost v/s Pet coke Price Index 133 QoQ cost increased: 3% 105 100 109 112
Slide 31: Raw Material Cost Trend
Raw Material Cost Trend Raw Material cost (Rs./mt) YoY cost increased: 4% 520 497 23 • Diesel price hike impacted inbound 56 transportation • Improved clinker to cement conversion ratio Q4FY20 Q4FY21 Conversion ratio and Fly ash Prices (Index) Trends 109 QoQ cost increased: 4% 108 106 100 102 • Incr
Slide 32: Other Cost Trend
Other Cost Trend Other Cost (Rs./t) 659 31 628 YoY cost decreased: 5% • Lower Fixed Cost – 2 % YoY 56 • Higher Volumes ~30% Q4FY20 Q4FY21 WPI (Index) Trend QoQ cost decreased: 2% 108 100 110 113 • Higher Volumes ~17% • Increase in packing cost Q1 Q4 Q3 Q4 18 20 21 21 FY21: Fixed cost reduction of ~R
Slide 33: Q4 FY21 Financial Performance
Q4 FY21 Financial Performance Rs Crs UTCL Standalone India Operations Particulars CY LY % CY LY % Revenues (Net of Taxes) 13,784 10,237 35 13,757 ^ 10,200 ^ 35 Operating Income 181 123 47 190 167 14 Other Income 84 224 (62) 82 212 (61) Total Income 14,050 10,584 33 14,029 10,578 33 Expenses : Raw Ma
Slide 34: Income Statement: Q4 FY21
Income Statement : Q4 FY21 Rs Crs Consolidated India Operations Particulars CY LY % CY LY % 14232 10689 33 Revenues (net of taxes)^ 13757 10200 35 3751 2645 42 EBITDA 3687 2592 42 26% 25% 2 Margin (%) 27% 25% 1 377 506 25 Finance costs 367 485 24 698 678 (3) Depreciation and Amortization 670 646 (
Slide 35: FY21 Financial Performance
FY21 Financial Performance Rs Crs UTCL Standalone India Operations Particulars CY LY % CY LY % Revenues (Net of Taxes) 42,677 40,033 7 42,578 ^ 39,923 ^ 7 Operating Income 511 616 (17) 537 696 (23) Other Income 789 727 9 746 646 16 Total Income 43,977 41,376 6 43,860 41,265 6 Expenses : Raw Material
Slide 36: EBITDA Margin increased to 28%
Income Statement : FY21 Rs Crs Consolidated India Operations Particulars CY LY % CY LY % 44239 41781 6 Revenues (net of taxes)^ 42578 39923 7 12302 9898 24 EBITDA 12055 9724 24 28% 24% 4 Margin (%) 28% 24% 4 1486 1992 25 Finance costs 1443 1926 25 2700 2723 1 Depreciation and Amortization 2573 259
Slide 37: Financial Position
Financial Position Rs Crs Consolidated India Operations Particulars Mar-20 Mar-21 Mar-20 Mar-21 60724 64482 Capital Employed* 59287 64432 12.0% 15.3% ROCE* 12.2% 15.3% 12.1% 15.6% ROE* 11.9% 15.1% * Excluding Goodwill Value creation for Shareholders 36
Slide 38: Dividend
Dividend 1,300 21% 37.0 19% 1,100 20% 17% 900 15% 13% 13% 700 11% 500 Rs / Share 9% 10.5 7% 300 5% 100 3% -100 FY18 FY19 FY20 FY21 Proposed 1% Dividend (Excl DDT) We grow together 37
Slide 39: Welcome aboard
Welcome aboard
Slide 40: 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