Slide 1: Cover letter to stock exchanges
Ambuja Cement ACL:SEC: April 30, 2019 BSE Limited, National Stock Exchange of India Ltd., Phiroz Jeejeebhoy Towers, Plot No.C/1 'G' Block Dalal Street, Mumbai - 400 023 Sandra - Kurla Complex corp.relations@bseindia.com Sandra East, Mumbai 400 051 cmlist@nse.co.in Deutsche Bank Societe de Ia Bourse
Slide 2: Investor Presentation
Individual House, Surat Private Bungalow, Surat VS Hospital New Building with Helipad, Ahmedabad Kochi Metro - Alccofine Investor Presentation 30th April, 2019
Slide 3: Disclaimer / Safe Harbour
Disclaimer / Safe Harbour Cautionary statement regarding forward-looking statements 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 descri
Slide 4: Ambuja Cement (ACL): Leading cement company in India
Ambuja Cement (ACL): Leading cement company in India Current structure Pan India footprint with consolidated cement capacity of 63 mn tonnes. LafargeHolcim Attractive geographical positioning. 63.11% Market leading brands with large network of dealers/retailers (trade sales >80% of total volum
Slide 5: … with a strong independent standalone footprint & robust strategies …
… with a strong independent standalone footprint & robust strategies … Darlaghat / Rauri Physical infrastructure Ropar Integrated Plants 5 Bathinda R Nalagarh Batop Roorkee Kilns 9 Marwar Mundwa* hin ar da Dadri Clinkerisation Capacity 17.7 (MTPA) P Ti La Farraka Grinding Units 8 Rabriyawas a ka kh
Slide 6: Infrastructure & Housing program drove cement demand to 9.1% in 2018
Infrastructure & Housing program drove cement demand to 9.1% in 2018; projected to grow by 7.0%- 8.0% in 2019 Demand (MT) In Jan-Mar’ 2019 demand is expected to remain firm YoY Growth (%) 7.3% 9.1% between 7.5% to 8.5% due to accelerated pre-election spending & faster execution of government spons
Slide 7: Brand Architecture
Brand Architecture Solutions & Base Premium services *IMP & MCS Share of Premium products expected to increase sharply *IMP – Instant Mix Proportion, MCS – Modular Curing Solution, AKC - Ambuja Knowledge Centre 6
Slide 8: Performance Indicators – Q1’19 vs Q1’18
Performance Indicators – Q1’19 vs Q1’18 Capacity Cement Volumes Net Sales PAT Utilization Up Up YoY growth Growth 1.6 pp 2.4% 3.0% 57.1% Q1 19 : 86.6% Q1 19 : 6.37 mn t Q1 19 : ₹ 2847 cr Q1 19 : ₹ 427 cr Q1 18 : 85.0% Q1 18 : 6.22 mn t Q1 18 : ₹ 2763 cr Q1 18 : ₹ 272 cr Highest ever Cement Sales i
Slide 9: Cement Sales Volumes
Cement Sales Volumes (Mn Tonnes) +2% 6.22 6.37 Q1’18 Q1’19 Highest ever volume at 6.37 mn tonnes in Q1 series, growth of +2.4% y-o-y (PY 6.22 mn tonnes) Higher Capacity utilisation (from 85% to 86.6%) Premium products sales see a rising trend 8
Slide 10: Net Sales
Net Sales (Rs. Crore) +3% 2,763 2,847 Q1’18 Q1’19 Sales growth of premium products such as ‘Roof Special’, ‘Cool Walls’ and ‘Pura Sand’ launched recently have seen a double digit growth in January – March 19 over the previous quarter. Premium Cement growth in Q1, 2019 ~14% y-o-y basis. 9
Slide 11: Raw Material Cost
Raw Material Cost (Rs. / Tonne) -10% 434 389 Q1’18 Q1’19 Ambuja sees a reduction in RM cost/t on a y-o-y basis due to : Maximization of Fly ash at nearly 33% Increased usage of low cost wet Fly ash Manufacture of Compocem– Improvement in clinker factor due to utilization of Slag Consumptio
Slide 12: Power & Fuel Cost
Power & Fuel Cost (Rs. / Tonne) +9% 1,111 1,019 Q1’18 Q1’19 The quarter saw a significant increase in power and fuel costs year on year, however continued focus on the use of alternative fuels helped to partly mitigate this impact. Impact of huge increase in energy prices was also partially miti
Slide 13: Freight & Forwarding Cost
Freight & Forwarding Cost (Rs. / Tonne) -2% 1,330 1,309 Q1’18 Q1’19 Freight and Forwarding costs were lower y-o-y basis due to successful implementation of cost mitigation initiatives (outbound) i.e. renegotiation of contracts and network optimization. Renegotiation of clinker transport contract
Slide 14: Other Expenses Cost
Other Expenses Cost (Rs. / Tonne) -6% 819 773 Q1’18 Q1’19 Other expenses lower due to lower Selling General and Administrative expenses (SG&A) on a year on year basis. 13
Slide 15: Ind AS Result – Standalone – ₹ crore
Ind AS Result – Standalone – ₹ crore Particulars Standalone UOM Q1 '18 Q1'19 + / - PY Net Sales ₹ Cr 2,763 2,847 3% Operating EBITDA ₹ Cr 507 463 -9% Op. EBITDA margin % 18.3% 16.3% -200 bps Depreciation ₹ Cr 139 131 -6% Other Income ₹ Cr 51 240 371% Finance Cost ₹ Cr 26 17 -35% Profit Before Tax (P
Slide 16: Ind AS Result – Consolidated – ₹ crore
Ind AS Result – Consolidated – ₹ crore Particulars Consolidated UOM Q1 '18 Q1'19 + / - PY Net Sales ₹ Cr 6,314 6,694 6% Operating EBITDA ₹ Cr 1,002 997 0.5% Op. EBITDA margin % 15.9% 14.9% -100 bps Depreciation ₹ Cr 288 280 -3% Other Income ₹ Cr 85 263 209% Finance Cost ₹ Cr 44 38 -13% Share of prof
Slide 17: Other key highlights for the Quarter
Other key highlights for the Quarter Launched Ambuja Cool Walls in 5 Launched Ambuja PuraSand in Thane Signed first Onsite Solar Power Markets in 4 states (Nagpur, Thane, and Pune Markets Purchase Agreement 7.14 MW for North Rajashthan, Alver, Karnal) Rabriyawas Ambuja’s innovative curing technique
Slide 18: Ambuja Branding Activities
Ambuja Branding Activities ATL Engagement: TV Commercial ASTON Bands L Bands BTL Engagement: Market: Rajasthan & Haryana Mobile Van Key Highlights 1400+ Promotion activities touching 3+ lakh IHBs 440 Mason Meets covering 11,000+ Masons 2500+ leads through site visits 150+ day visibility 50
Slide 19: Create value for all stakeholders
Create value for all stakeholders 18
Slide 20: Sustainability a way of life
Sustainability a way of life Ambuja Cement aspires to be the most competitive and sustainable company in the cement manufacturing industry. Acting in a sustainable manner is not only a business imperative but also provides the company with a competitive advantage 19
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