Ramco Cements Limited · NSE:RAMCOCEM
Ramco Cements — The Ramco Cements — Q3 FY2023 Earnings Presentation
25 slides from Ramco Cements's earnings presentation, Feb 7, 2023
Slide 1: Investor Update cover letter to stock exchanges
Corporate Office: Auras Corporate Centre, V Floor, 98-A, Dr. Radhakrishnan Salai, Mylapore, Chennai - 600 004, India. Tel: +91 44 2847 8666 Fax: +91 44 2847 8676 Website: www.ramcocements.in THE RAMC° CEMENTS LIMITED Corporate Identity Number: L26941TN1957PLC003566 7 February 2023 National Stock Exc
Slide 2: Investor Update 3QFY23
Investor Update 3QFY23
Slide 3: Contents
Contents 01 Overview 02 Market update 03 Sales & Capacity Utilization 04 Key Performance 05 Financial Analysis & Key Ratios 06 Capex update 07 ESG update 08 Awards & Accolades The Ramco Cements Limited Investor Update 3QFY23
Slide 4: Overview of Economy
Overview 1 Overview of Economy • India's GDP growth for FY23 is projected at 6.1% from an earlier estimate of 7.5% on account of extended geopolitical tensions and aggressive monetary policy tightening globally • Repo Rate increased by 225 bps during last nine months and tops pre-pandemic levels • T
Slide 5: Market update for 3QFY23
Market update for 3QFY23 South East Demand from Individual housing & Infra particularly in Demand from: road projects, picked up Individual housing remained flat; Infra / Commercial segment have grown Prices dropped (except in KL) despite increase in cost Overall demand remain subdued in east
Slide 6: Cement Sales & Capacity utilization
Cement Sales & Capacity utilization Cement Sales (Lac Tons) 35.72 30.07 +19% 61% 70% Utilization Utilization 3QFY22 3QFY23 3QFY22 3QFY23 Share of Premium products increased by 3% and stood at 25% for 9MFY23 101.93 78.56 +30% 54% 69% Utilization Utilization 9MFY22 9MFY23 9MFY22 9MFY23 Pro-rated capac
Slide 7: Key Performance for 3QFY23
Key Performance for 3QFY23 ` in Crores Revenue EBITDA 2,018 294 1,556 +30% 238 +24% 3QFY22 3QFY23 3QFY22 3QFY23 Profit Before Tax Profit After Tax 113 83 -14% 97 67 -18% 3QFY22 3QFY23 3QFY22 3QFY23 Revenue surpassed ` 2,000+ Crores in 3QFY23 with volume growth of 19%. Variable Cost in Kolimigundla w
Slide 8: Key Performance for 9MFY23
Key Performance for 9MFY23 ` in Crores Revenue EBITDA 5,591 1,009 794 4,292 +30% -21% 9MFY22 9MFY23 9MFY22 9MFY23 Profit Before Tax Profit After Tax 637 769 -58% -75% 267 191 9MFY22 9MFY23 9MFY22 9MFY23 Delivered Strong Volume growth of 30% Finance cost & Depreciation increased due to commissioning
Slide 9: Income Statement for 3QFY23
Income Statement for 3QFY23 ` in Crores Standalone Consolidated Particulars 3QFY23 3QFY22 Variance % 3QFY23 3QFY22 Variance % 2,018.09 1,555.88 30% Revenue 2,020.37 1,558.69 30% 1,724.12 1,318.21 31% Less: Operating Expenses 1,728.52 1,323.58 31% 293.97 237.67 24% EBITDA 291.85 235.11 24% 60.84 25.2
Slide 10: Income Statement for 9MFY23
Income Statement for 9MFY23 ` in Crores Standalone Consolidated Particulars 9MFY23 9MFY22 Variance % 9MFY23 9MFY22 Variance % 5,590.68 4,291.58 30% Revenue 5,606.62 4,309.01 30% 4,796.50 3,282.16 46% Less: Operating Expenses 4,810.84 3,295.12 46% 794.18 1,009.42 21% EBITDA 795.78 1,013.89 22% 163.37
Slide 11: EBITDA
EBITDA EBITDA in Crores EBITDA per Ton 1009 450 1000 2300 402 2300 900 2100 400 370 794 1900 800 350 1700 1800 700 305 307 294 1500 300 1728 600 1285 1300 250 1484 237 500 1300 1100 200 193 400 900 300 800 956 929 700 150 790 823 200 779 500 582 100 100 300 300 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QF
Slide 12: Cost of raw materials
Cost of raw materials In ` per Ton 962 893 +18% +12% 6% 818 799 3QFY22 3QFY23 9MFY22 9MFY23 Additional Freight incidence on usage of clinker in TN units from AP units 3QFY23: ` 42 / T; 9MFY23: ` 35 / T Impact of increase in diesel price: 3QFY23: Flat; 9MFY23: 4% YoY Busy season surcharge of 15% re-i
Slide 13: Logistics cost
Logistics cost In ` per Ton 1,111 1,108 1,100 Flat 1,083 -2% 6% 3QFY22 3QFY23 9MFY22 9MFY23 Rail Co-efficient for 3Q is 10% vs 15% YoY Rail Co-efficient in 9M is 11% vs 13% YoY Average lead distance is 299 KMs; Down by 8% Average lead distance in 9M is 293 KMs; Down by 10% Impact of increase in dies
Slide 14: Power and Fuel Cost
Power and Fuel Cost In ` per Ton 1,966 1,857 +42% 6% 1,380 -15% +58% 1,174 3QFY22 3QFY23 9MFY22 9MFY23 Blended Fuel consumption per T of material: 3QFY23: $ 191 / T 9MFY23: $ 179 / T Blended Fuel cost per Kcal: 3QFY23: ` 2.43; 9MFY23: ` 2.35 Usage of pet coke: 59% in 3QFY23 & 55% in 9MFY23 Improved
Slide 15: Power Mix
Power Mix 14% 25% 15% 3QFY23 3QFY22 55% 71% 20% Grid power Green Power Thermal Power Grid power Green Power Thermal Power Focus on Green Power 14% 20% 15% 9MFY23 9MFY22 58% 22% 71% Grid power Green Power Thermal Power Grid power Green Power Thermal Power The Ramco Cements Limited Investor Update 3QF
Slide 16: Fuel Mix
Fuel Mix 32% 37% 3QFY22 46% 3QFY23 59% 9% 17% Coal Alternate Fuel Pet coke Coal Alternate Fuel Pet coke Optimum usage of fuels based on cost per CV 35% 32% 43% 9MFY22 55% 9MFY23 13% 22% Coal Alternate Fuel Pet coke Coal Alternate Fuel Pet coke The Ramco Cements Limited Investor Update 3QFY23
Slide 17: Employee Cost
Employee Cost In ` per Ton 408 351 -20% 327 -10% 316 3QFY22 3QFY23 9MFY22 9MFY23 Increase in volume has led to better absorption of employee cost The Ramco Cements Limited Investor Update 3QFY23
Slide 18: Other Expenditure
Other Expenditure In ` per Ton 707 684 -4% 658 -9% 642 6% 3QFY22 3QFY23 9MFY22 9MFY23 Increase in volume has led to better absorption of fixed expense The Ramco Cements Limited Investor Update 3QFY23
Slide 19: Wind power
Wind power Particulars 3QFY23 3QFY22 Variance Revenue from Wind power ( ` in Crores) 1.47 3.95 63% Less: Operating Expenses ( ` in Crores) 5.15 5.81 11% EBITDA from Wind power ( ` in Crores) -3.68 -1.86 - Particulars 9MFY23 9MFY22 Variance Revenue from Wind power ( ` in Crores) 46.47 56.77 18% Less:
Slide 20: Key Ratios
Key Ratios Particulars UOM 3QFY23 3QFY22 9MFY23 9MFY22 EBITDA Ratio % 15% 15% 14% 24% PBT Ratio % 5% 7% 5% 15% PAT Ratio % 3% 5% 3% 18% EPS, Not Annualized ` 3 3 8 32 RoE, Annualized % 4% 5% 4% 17% RoCE (Post-tax), Annualized % 5% 5% 4% 12% Debt-Equity Ratio Multiples 0.70 0.60 0.70 0.60 Debt Servic
Slide 21: Capex update
Capex update Capex spent during 3QFY23: ` 390 Crores; 9MFY23: ` 1,376 Crores. Kurnool Integrated Unit commenced commercial production from 23rd September 2022 and achieved clinker capacity utilization ~ 54% in 3QFY23. WHRS capacity of 5 MW in Kurnool was commissioned in Nov 2022; Another 3 MW expect
Slide 22: ESG Update
ESG Update CO2 Emission Blended Cement Water Positive Green energy CSR 591 Kg / T of Cement 72% 2x 22% 1,20,000 + Beneficiaries Based on 9M figures Firm and Focussed for a sustainable future The Ramco Cements Limited Investor Update 3QFY23
Slide 23: Awards & Accolades
Awards & Accolades The Ariyalur Plant had been adjudged as Winner in the Category of Water, Sanitation and Hygiene (WASH) for its project, 'Accessible and Sustainable Sanitation Facilities (SMART Toilets) for prevention of open defecation'. The project was implemented with the support of Gramalaya,
Slide 24: Awards & Accolades
Awards & Accolades Award for our CSR initiatives under the category - 'Involvement Our Kolaghat Grinding Unit received Award for in Communities and Protection of the Environment' at the Tamil recognition of Excellence in Energy Nadu Leadership Awards 2022, hosted by World CSR Day Conservation, CII E
Slide 25: 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