Sagar Cements Ltd · NSE:SAGCEM

Sagar Cements — Q3 FY2017 Earnings Presentation

19 slides from Sagar Cements's earnings presentation, February 2017

  1. Slide 1: Sagar Cements Q3 & 9M FY17 Results Presentation

    Sagar Cements Limited Q3&9MFY17 Results Presentation

  2. Slide 2: Industry Overview

    Industry Overview Perspective on Cement Prices West  Contrasting situation prevailed in the region with Gujarat witnessing declining prices whereas Maharashtra experienced rising prices during the period  Heightened competitive intensity  Volumes remained relatively stable despite resulting in so

  3. Slide 3: Sagar Cements - Business overview

    Sagar Cements - Business overview YOY volume growth - limited impact of de-monetization in our primary market areas Prices remained steady on the back of stable volumes and institutional demand Rising input costs resulted in contraction of operational profitability Expect demand to improve gradually

  4. Slide 4: Sagar Cements – Operational Results

    Sagar Cements – Operational Results Sagar Cements Limited l Q3 & 9M FY17 Investor / Analyst Presentation 4

  5. Slide 5: Performance Highlights

    Performance Highlights Sagar BMM Q3 FY17 9M FY17 Revenue 22,125 14,155 8,731 ` 43,759 24,837 67,065 Rs. lakh 1,569 ` 4,162 EBITDA 2,948 8,437 1,379 4,275 178 886 PAT (54) (75) (190) (838) 43 48 Plant Capacity (%) 49 52 64 66 Sagar Cements Limited l Q3 & 9M FY17 Investor / Analyst Presentation 5

  6. Slide 6: Q3 & 9M FY17 Performance Review - Consolidated

    Q3 & 9M FY17 Performance Review - Consolidated Rs. lakh Net Income 8,731 24,837  Net Income from operations for Q3 FY17 stood at Rs. 14,155 lacs as against Rs. 13,038 lakh in Q3 FY16 13,038 14,155 52,942 43,759  Q3 FY17 EBITDA stood at Rs. 1,569 lacs as compared to Rs.1,386 lacs generated during Q

  7. Slide 7: Key Developments

    Key Developments Issue of Pref. Shares Acquisition of grinding unit • Allotted 611,986 shares at an issue price of Rs. 800 per share in Bayyavaram – on a preferential basis • Completed acquisition of • Allotment Details – grinding unit located at o Promoters : 50%; Bayyavram in Anakapally, o Other t

  8. Slide 8: Executive Director’s Comment

    Executive Director’s Comment Commenting on the performance, Mr. Sreekanth Reddy, Executive Director of the Company said, “We have reported a steady set of numbers for the quarter, as highlighted by the revenue and profitability growth. Presence in areas marginally impacted by the Government’s demone

  9. Slide 9: State wise Realization & Utilization

    State wise Realization & Utilization Mattampally Plant BMM - Gudipadu Plant Gross Realisations (Rs. / tonne) Gross Realisations (Rs. / tonne) Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Overall Average 5,259 5,409 4,927 4,670 Overall Average - 4,697 5,250 5,191 AP 6,049 5,812 5,5

  10. Slide 10: Coal Prices

    Coal Prices Q1 FY16 Q4 FY16  Domestic : International coal mix was 14:86  Domestic : International coal mix was 25:75  Singareni Coal: Nominal quantity sourced Q2 FY16 Q1 FY17  Domestic : International coal mix was 2:98  Domestic : International coal mix was 4:96 Q3 FY16 Q2 FY17  Domestic : In

  11. Slide 11: Operations Overview (Consolidated)

    Operations Overview (Consolidated) Production October November December Total (MT) Clinker 1,60,181 1,90,603 59,078 4,09,862 Cement 1,68,858 1,64,767 1,51,965 4,85,590 Cement Sales Value Rs. Lakh Net Realization Description ('000'MT) (net of excise & VAT) Rs./Mt Q3 FY17 472 18,879 4,002 Q3 FY16 422

  12. Slide 12: Cost Overview

    Cost Overview Average Fuel Cost Per Tonne 865 753 936 740 Rs. / Tonne  Increase in price of imported coal has resulted in increase 757 819 in average fuel cost per tonne of clinker produced. Q3 FY16 Q3 FY17 Freight Cost per Tonne 826 630 929 Rs. / Tonne 725  Freight per ton increased due to increa

  13. Slide 13: Cost Overview

    Cost Overview Employee Cost 1,105 994 181 136 Rs. lakh 858 924  Employee costs in Q3 FY 17 is Rs. 1,105 lakhs on consolidated basis when compared to Rs. 994 lakhs during Q3 FY16. Q3 FY16 Q3 FY17 Raw Material Cost 2,405 2,270 1013 751 Rs. lakh  Raw Material cost has come down due to lower productio

  14. Slide 14: Plant Highlights - Consolidated

    Plant Highlights - Consolidated Sales (4,71,681Mts.) Others –4%  During Q3 FY17, the plants operated at reasonable Orissa –6% utilization levels producing Maharashtra – 11% 4,09,862 tons of clinker and Tamil Nadu - 16% 4,85,589 tons of cement Karnataka - 19%  Approximately 56% of cement dispatches

  15. Slide 15: Sales in Q3 FY17

    Sales in Q3 FY17 Sagar Cements BMM Cements Consolidated Quantity % of Total Quantity % of Total Quantity % of Total Markets Sales (in Tonnes) Sales (in Tonnes) Sales (in Tonnes) Andhra Pradesh & Telangana 1,81,680 57.8 25,920 16.5 2,07,600 44.0 Karnataka 11,564 3.7 78,501 50.0 90,065 19.1 Tamil Nadu

  16. Slide 16: Dispatches by Road & Rake

    Dispatches by Road & Rake Dispatch Details TPT Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 TOTAL BY ROAD 478,345 424,880 301,840 4,48,182 1653,247 BY RAKE - - - 5,506 5,506 TOTAL 478,345 424,880 301,840 4,53,688 1658,753 Consolidated TPT Q1 FY17 Q2 FY17 Q3 FY17 BY ROAD 5,72,527 4,89,731 4,66,045 BY RAKE 5,310 2

  17. Slide 17: Key Balance Sheet Items

    Key Balance Sheet Items Rs. In Lakh Sagar Cements BMM Cements Consolidated Gross Debt 21,924 26,353 48,277 - Long Term 16,464 23,045 39,509 - Working Capital 5,460 3,308 8,768 Cash & Bank Balance 402 256 658 Debt Equity Ratio (%) 0.27 - 0.66 Net Worth 61,187 -142 59,755 Investments 25,422 - 2.65 As

  18. Slide 18: Sales Outside AP & TG

    Sales Outside AP & TG Historical trend cement sales OAP & TG Q3 FY17 Q2 FY17 Q1 FY17 OAP & TG Sales 56% 63% 55% (Consolidated) Q4 FY16 Q3 FY16 Q2 FY16 Q1 FY16 OAP & TG Sales 48% 55% 64% 67% Q4 FY15 Q3 FY15 Q2 FY15 Q1 FY15 OAP & TG Sales 71% 63% 64% 47% Q4 FY14 Q3 FY14 Q2 FY14 Q1 FY14 OAP & TG Sales

  19. Slide 19: Contacts

    Contacts For further information contact: Sagar Cements Limited CDR India K Prasad- (Chief Financial Officer) Gavin Desa prasadk@sagarcements.in gavin@cdr-india.com PS Prasad - (President Marketing) Suraj Digawalekar prasadps@sagarcements.in suraj@cdr-india.com Company Secretary &Compliance Officer:

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