Heidelbergcement India Limited. · NSE:HEIDELBERG
Heidelbergcement India — FY2022 Earnings Presentation
23 slides from Heidelbergcement India's earnings presentation, May 23, 2022
Slide 1: Presentation for Conference Call – Regulation 30(6)
HeidelbergCement India Limited CIN: L26942HR1958FLC042301 Registered Office 2nd Floor, Plot No. 68, Sector-44, Gurugram, Haryana 122002, India Phone +91-124-4503700 Fax +91-124-4147698 Website: www.mycemco.com HCIL: SECTL:SE:2022-23 23 May 2022 BSE Ltd. National Stock Exchange of India Ltd Listing D
Slide 2: Investor Presentation Mar'22Q and FY22
HeidelbergCement India Limited Investor Presentation Mar’22Q and FY22 23 May 2022
Slide 3: FY22 Key messages
FY22 Key messages Environmental, Social and Governance Operational and financial performance Awards and recognitions Outlook
Slide 4: FY22 Key messages
FY22 Key messages ✓ ESG Projects – Alternate fuels project and Solar power plant commissioned ✓ Cement Capacity utilization increased to c. 76% ✓ Continue to produce 100% blended cement ✓ Share of green power increased to 23% ✓ EBITDA of ₹ 910 per tonne ✓ Repaid 3rd and final tranche of Non Converti
Slide 5: ESG Overview
ENVIRONMENTAL, SOCIAL AND GOVERNANCE ESG Overview Water CSR Green Power Clinker Factor CO2 Footprint Positivity Index 61.4% 511 Kg/t cement 4.4X 35000+ 23% Lives Improved 4 HeidelbergCement India Limited | Mar’22Q IR Presentation | 23 May 2022 INDIA
Slide 6: Increasing ESG footprint – AFR and Solar Project commissioned
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Increasing ESG footprint – AFR and Solar Project commissioned AFR Project 5.5 MW Solar Project Target to reach ≤ 500 Kgs/t CO2 emission by 2025 5 HeidelbergCement India Limited | Mar’22Q IR Presentation | 23 May 2022 INDIA
Slide 7: New renewable energy projects will further increase green power share
ENVIRONMENTAL, SOCIAL AND GOVERNANCE New renewable energy projects will further increase green power share Jhansi – Solar Power supply started Green power % of total power under long term Solar agreement for c. 22 Gigawatt hours p.a. 35 – 40 22 22 22 23 20 17 Narsingarh - consistently operating on c
Slide 8: www.hcfriendsofearth.com
ENVIRONMENTAL, SOCIAL AND GOVERNANCE www.hcfriendsofearth.com who contributed to achieve this milestone! 7 HeidelbergCement India Limited | Mar’22Q IR Presentation | 23 May 2022 INDIA
Slide 9: Annual Sales Volumes and Capacity Utilization Trend
OPERATIONAL AND FINANCIAL PERFORMANCE Annual Sales Volumes and Capacity Utilization Trend Capacity utilization % (RHS) Cement sales volume (Mn T) Vol (Mn T) +5.3% -3.9% +6.5% Cap Utz % -4.7% 5 4.90 4.71 4.78 95 4.65 4.49 4 90 91 87 3 86 85 2 80 76 1 75 72 0 0 FY17-18 FY18-19 FY19-20 FY20-21 FY21-22
Slide 10: c. 7% volume growth in trailing twelve months
OPERATIONAL AND FINANCIAL PERFORMANCE c. 7% volume growth in trailing twelve months -11% 11% -1% 1.27 1.25 38% 1.23 1.23 1.18 1.13 1.11 0.86 Million tonnes Jun’20Q Jun’21Q Sep’20Q Sep’21Q Dec’20Q Dec’21Q Mar’21Q Mar’22Q Note: Lower volume in Jun’20Q due to nationwide COVID-19 lockdown. 9 HeidelbergC
Slide 11: Decrease in profitability due to increase in input costs
OPERATIONAL AND FINANCIAL PERFORMANCE Decrease in profitability due to increase in input costs Mio ₹ Quarter ended Fiscal year ended Particulars Change Change 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 Total income (net of taxes) 6,200 6,000 3.3% 22,970 21,167 8.5% Operating Expenses 5,015 4,478 12.0%
Slide 12: Mar'22Q: Increase in price was off-set by increase in input prices
OPERATIONAL AND FINANCIAL PERFORMANCE Mar’22Q: Increase in price was off-set by increase in input prices -21% 1,215 111 103 391 961 113 16 ₹ per tonne Mar’21Q Price Raw Material Power & Fuel Freight Others* Mar’22Q Note: Change in inventory has been apportioned in the ratio of 30:70 between Raw Mate
Slide 13: Apr'21 – Mar'22 EBITDA decreased due to raw material and power and fuel costs
OPERATIONAL AND FINANCIAL PERFORMANCE Apr’21 – Mar’22 EBITDA decreased due to raw material and power and fuel costs -19% 1,129 29 105 219 910 75 1 ₹ per tonne FY21 Price Raw Material Power & Fuel Freight Others* FY22 Note: Change in inventory has been apportioned 30:70 between Raw Material and Power
Slide 14: Continue to operate on negative working capital
BALANCE SHEET Continue to operate on negative working capital 31 Mar 2022 31 Mar 2021 31 Mar 2022 31 Mar 2021 Particulars Particulars Mio ₹ Mio ₹ Mio ₹ Mio ₹ Equity Assets a) Equity share capital 2,266.2 2,266.2 Non-current assets b) Other equity 13,386.2 12,672.7 a) Property, plant and equipment 15
Slide 15: Cash and Bank balances exceed borrowings
DEBT REPAYMENT Cash and Bank balances exceed borrowings 687 2,346 694 3,690 2,346 629 Mio ₹ 1,344 336 Bank balance Debt# Net cash FY23 FY24 FY25 FY26 Total 31-Mar-22* *Bank balance excluding loan of ₹ 1,500 Million to be received back from Zuari Cement Limited during FY23. #Debt represents actual am
Slide 16: Increase in dividend driven by consistent Cash flow from Operations
DIVIDEND HISTORY Increase in dividend driven by consistent Cash flow from Operations 90 Dividend % 80 75 40 25 20 FY17 FY18 FY19 FY20 FY21 FY22 Proposed Face value = ₹ 10 per share 15 HeidelbergCement India Limited | Mar’22Q IR Presentation | 23 May 2022 INDIA
Slide 17: Apr'21 – Mar'22 share of volume
SHARE OF VOLUME Apr’21 – Mar’22 share of volume 46% road 62% coal, volume, +1606bps -154 bps y/y y/y 21% of trade 80% trade volume, sales, +250bps y/y -296 bps y/y Continuously increasing premiumization and optimizing towards the appropriate mix 16 HeidelbergCement India Limited | Mar’22Q IR Present
Slide 18: Corporate Social Responsibility Awards
AWARDS AND RECOGNITIONS Corporate Social Responsibility Awards 4th ICC Social Impact Awards 2022 Global CSR Awards 2022 Transformation in Rural Education Integrated Community Development Project 17 HeidelbergCement India Limited | Mar’22Q IR Presentation | 23 May 2022 INDIA
Slide 19: Patharia Mines - Amrit Puraskar Award by Indian Bureau of Mines
AWARDS AND RECOGNITIONS Patharia Mines - “Amrit Puraskar” Award by Indian Bureau of Mines 18 HeidelbergCement India Limited | Mar’22Q IR Presentation | 23 May 2022 INDIA
Slide 20: Demand Situation likely to improve, input costs to be on higher side
OUTLOOK Demand Situation likely to improve, input costs to be on higher side ▪ Pandemic to have minimal effect; ~75% of India’s population has been vaccinated. ▪ Russia-Ukraine conflict – Supply chain disruption and skyrocketing fuel prices, likely to remain range-bound in the near term. ▪ Fuel avai
Slide 21: Contact information
Contact information Amit Angra, Vice President – Finance HeidelbergCement India, 2nd Floor, Plot No. 68, Sector - 44, Gurugram, Haryana 122002, India Note: With effect from 1-Apr-21, our Corporate cum Registered office has been relocated to above-mentioned address. +91-124-4503-700 amit.angra@heidel
Slide 22: Safety is our foremost priority
Safety is our foremost priority 21 HeidelbergCement India Limited | Mar’22Q IR Presentation | 23 May 2022 INDIA
Slide 23: Disclaimer
Disclaimer ▪ Statements in this presentation, which describe the finished goods prices, raw materials cost and Company’s objectives, projections, estimates, availability, cyclical demand and pricing in the expectations or predictions, may be “forward-looking Company’s principal markets, changes in G
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