Ambuja Cements Limited · NSE:AMBUJACEM
Ambuja Cements — Q1 CY2022 Earnings Presentation
34 slides from Ambuja Cements's earnings presentation, Apr 28, 2022
Slide 1: Ambuja Cement
Ambuja Cement 28th Apri l, 2022 BSE Limited, National Stock Exchange of India Ltd., Phiroz Jeejeebhoy Towers, Plot No.Cjl 'G' Block Dalal Street, Mumbai - 400 023 Bandra - Kurla Complex corp. relations@bsei nd ia. com Bandra East, Mumbai 400 051 cmlist@nse.co.in Deutsche Bank Societe de la Bourse de
Slide 2: Investor Presentation Q1CY22
INVESTOR PRESENTATION Q1CY22 © Ambuja Cements Stock Ltd. 2022code-BSE:500425 | NSE:AMBUJACEM | Reuters: 1 ABUJ.NS| Bloomberg: ACEM
Slide 3: Safe-Harbour Statement
Safe-Harbour Statement This presentation may contain certain forward-looking statements relating to Ambuja Cements Ltd. (“Ambuja” or “Company”) and its future business development and economic performance. These statements include descriptions regarding the intent, belief or current expectations of
Slide 4: Index
Index 04 07 Company Economy and Overview Sector Update 10 25 Strategic Performance Priorities Review
Slide 5: Company Overview
COMPANY OVERVIEW
Slide 6: Ambuja Cement at a Glance
Ambuja Cement at a Glance 31.45 MTPA 16% 89% Vision Cement Capacity Share of premium products* Share of To be the most blended cement sustainable and competitive company in our industry 62% 8x ~7% Clinker Factor Water positive Thermal Substitution rate Mission To create value for all ▪ Delighted cus
Slide 7: Awards and Recognition
Awards and Recognition ` ` ` Ambuja Cements ranked as India’s Ambuja Cements ranked #1 in Ambuja Cement Foundation, has been Most Trusted Cement Brand in 2022 Construction and infrastructure sector of felicitated with three awards at the 4th Social by TRA Research Business Today’s “Best Companies To
Slide 8: Economy and Sector Update
= ECONOMY AND SECTOR UPDATE =
Slide 9: Economy Highlights
Economy Highlights Growth outlook Accommodative stance Government thrust India’s fiscal 2022-23 GDP is Repo rate unchanged at 4% for the PLI scheme to help drive private forecasted between 7.2% to 7.8% eleventh consecutive time by RBI investment activities Green Focus Budgetary support Risk factor F
Slide 10: Favourable Sectoral Growth Drivers
Favourable Sectoral Growth Drivers Housing Infrastructure Industrial / Commercial ▪ Focus on Pradhan Mantri Awas Yojana ▪ Target to construct 25,000 kilometer ▪ Implementation of PLI scheme to boost (PMAY Urban & Rural) to continue with : of highways and roads in FY 2022-23 domestic demand • ~ 3.8 m
Slide 11: Strategic Priorities Driving Sustainable Growth
Strategic Priorities Driving Sustainable Growth Read more Read more Read more Accelerating GROWTH 11 Delivering SUPERIOR PERFORMANCE 14 Leading in SUSTAINABILITY 18 10
Slide 12: Accelerating Growth
ACCELERATING GROWTH
Slide 13: Accelerating Our Growth Journey
Accelerating Our Growth Journey Integrated cement plants ▪ Brownfield expansion of 1.5 MTPA cement grinding at 1. Ambujanagar, Gujarat 4. Rabriyawas, Rajasthan existing plant in Ropar, Punjab 2. Darlaghat, 5. Bhatapara, Himachal Pradesh Chhattisgarh Darlaghat ▪ Integrated facility with 7.0 Ropar 3.
Slide 14: Expanding Solutions and Products
Expanding Solutions and Products The most sustainable, environment friendly wall solutions National footprint Towards sustainable solution ▪ 50% less Carbon emission Existing footprint 18 nos • Use of Primary raw material as fly ash Additional proposed 2022 : 11 nos Bharatgarh Pinjore Nalagarh • Zer
Slide 15: Delivering Superior Performance
DELIVERING SUPERIOR PERFORMANCE
Slide 16: Enhancing Efficiency
Enhancing Efficiency Cost Efficient Green Energy New Age Digitalisation ▪ Next phase of Waste Heat Recovery System ▪ “Plants of Tomorrow” for implementing (WHRS) projects approved for plants at automation technologies, robotics, artificial Ambujanagar and Maratha intelligence and predictive maintena
Slide 17: Capturing the Share of Mind
Capturing the Share of Mind Republic day campaign ▪ Film on Republic Day to engage with stakeholders ▪ Total 8 Mn + Views & 3k+ Engagements (YouTube & Partnership with BCCI Facebook) ▪ Heavy on-ground presence through branding on perimeter boards, rope, ▪ Trending as No.1 on Twitter India with over
Slide 18: Branding & Promotions
Branding & Promotions Channel support through digital initiatives – Google My Business (GMB) ▪ Google My Business – An industry ▪ Individual interactive Google first one-of-a-kind ` initiative (Pilot) listings for each` of them, enabling for about 500 channel partners Ambuja’s hyperlocal presence 17
Slide 19: Leading in Sustainability
LEADING IN SUSTAINABILITY
Slide 20: Sustainability Targets and Achievements
Sustainability Targets and Achievements Sustainable Development Plan 2030 Climate and Circular Water and People and Energy Economy Nature Communities CO2 Reduced WASTE WATER Saved VALUE Lead metrics (kg CO2/ton of Re-used (Fresh water consumption: Shared cementitious material) (Million tons) Litre/t
Slide 21: Leading in Sustainability
Leading in Sustainability Optimising Resource Climate and Energy Circular Economy Water Utilisation ▪ Increasing clean and green ▪ Introduced complex waste and ▪ Higher use of recycled water ▪ One of the best clinker factor energy with focus on Waste Low Flash Point waste and rainwater harvesting wi
Slide 22: Corporate Sustainability Campaign
Corporate Sustainability Campaign # ▪ The sustainability campaign is about efforts at cleaning the river Yamuna through the non- invasive technology called ‘Bubble Barrier’ - to remove 93.3 14 41.5 32 70+ ~2,400 tons of plastic waste from Million Million Million Million Media Agra’s Mantola canal be
Slide 23: Contributing to Making India Cleaner
Contributing to Making India Cleaner Geocycle Bubble Barrier Community clean up ▪ Successful demonstration at Yamuna river (Agra) ▪ Project #Bhoomi initiated in Bhatapara and Ambujanagar in coordination with Ambuja Cement Foundation ▪ The second bubble barrier will be commissioned in ▪ Project aims
Slide 24: Contributing to the Community through Ambuja Cement Foundation (ACF)
Contributing to the Community through Ambuja Cement Foundation (ACF) 250 women in Darlaghat participated in a Jal Yatra on Smart Class – Varanasi HRDP Launch of the Marwari Spice Brand World Water Day ▪ 261 Individual RRWHS constructed ▪ At Marwar, promoted a Farmer Producer ▪ 36,738 people benefitt
Slide 25: Recognised for our Community Development Efforts
Recognised for our Community Development Efforts ▪ Sankrail won the ICC Social ▪ SEDI Jaitaran and Agoocha Impact Awards 2022 for appreciated at the district Women Empowerment level for work on skilling ▪ Farakka won the ICC Social youth Impact Awards 2022 for ▪ Best Implementation Agency Water Reso
Slide 26: Performance Review
PERFORMANCE REVIEW
Slide 27: Performance Highlights – Q1CY 2022 (Standalone)
Performance Highlights – Q1CY 2022 (Standalone) 7.5 mn tons INR 3,855 cr INR 790 cr Sales Volume* (3.4% YoY) Net Sales (7.7% YoY) Op. EBITDA (-19% YoY) INR 639 cr INR 654 cr INR 495 cr Op. EBIT (-25% YoY) PBT (-26% YoY) Profit After Tax (-26% YoY) cr: crore *Cement and Clinker 26
Slide 28: Financial Results – Standalone
Financial Results – Standalone Quarter Ended March (All amounts in ₹ Crore) 2021 2022 Change % Net Sales 3,579 3,855 7.7% EBITDA 977 790 -19.1% EBITDA (%) 27.3% 20.5% -6.8pp Operating EBIT 851 639 -24.9% Operating EBIT Margin (%) 23.8% 16.6% -7.2pp Profit Before Tax 886 654 -26.2% Tax Expenses 222 1
Slide 29: Performance Analysis: Sales Volume & Realisation
Performance Analysis Sales Volume & Realisation Sales volume – Cement + Clinker Realisation (million tons) (₹/ton) 5,149 4,945 7.5 7.2 Q1CY21 Q1CY22 Q1CY21 Q1CY22 ▪ Swift ramp up of recently commissioned Marwar plant at ▪ In line with market trends, supported by increase in volumes of Rajasthan, aid
Slide 30: Performance Analysis: EBITDA
Performance Analysis EBITDA EBITDA EBITDA (₹/crore) (₹/ton) 977 1,350 790 1,056 Q1CY21 Q1CY22 Q1CY21 Q1CY22 ▪ EBITDA declined by 19% vs previous year due to significant rise in ▪ EBITDA/ton during the quarter dropped by 22% on account of rising fuel prices which was partly mitigated by strong delive
Slide 31: Performance Analysis: Cost Elements
Performance Analysis Cost Elements Power and Fuel Cost Freight and Forwarding Cost Raw Material Cost (₹/ton) (₹/ton) (₹/ton) 1,377 1,216 1,016 1,160 423 416 Q1CY21 Q1CY22 Q1CY21 Q1CY22 Q1CY21 Q1CY22 ▪ Power and Fuel Cost impacted significantly on ▪ Freight Cost per ton declined by ~5% year on ▪ Raw
Slide 32: Performance Analysis: Cost Elements
Performance Analysis Cost Elements Other Expenses Total Cost (₹/ton) (₹/ton) 4,187 3,654 737 714 Q1CY21 Q1CY22 Q1CY21 Q1CY22 ▪ Other Expense per ton increased by 3% largely in line with ▪ Total Cost /ton increased by 15% year on year impacted by current inflationary trends significant increase in fu
Slide 33: Financial Results – Consolidated
Financial Results – Consolidated Quarter Ended March (All amounts in ₹ Crore) 2021 2022 Change % Net Sales 7,617 7,754 1.8% EBITDA 1,838 1,424 -22.5% EBITDA (%) 24.1% 18.4% -5.7 pp Operating EBIT 1,570 1,119 -28.7% Operating EBIT Margin (%) 20.6% 14.4% -6.2 pp Profit Before Tax 1,642 1,183 -27.9% Ta
Slide 34: Thank you
Thank you REGISTERED OFFICE CORPORATE OFFICE PO Ambujanagar Elegant Business Park Taluka Kodinar MIDC Cross Road B Gir Somnath district Off Andheri -Kurla Road Gujarat – 362 715 Andheri (E) Mumbai – 400 059