Ramco Cements Limited · NSE:RAMCOCEM
Ramco Cements — The Ramco Cements — Q4 FY2024 Earnings Presentation
31 slides from Ramco Cements's earnings presentation, May 22, 2024
Slide 1: Cover letter to stock exchanges: Investor Update
Corporate Office: Auras Corporate Centre, V Floor, 98-A, Dr. Radhakrishnan Salai, Mylapore, Chennai - 600 004, India. Tel: +91 44 2847 8666 Fax: +9144 2847 8676 Website: www.ramcocements.in THE RAMCO CEMENTS LIMITED Corporate Identity Number: L26941TN1957PLC003566 22 May 2024 National Stock Exchange
Slide 2: Investor Update for FY24 / QFY24
INNOVATE FOR A DIFFERENTIATE BETTER SUSTAINABLE TOMORROW The Ramco Cements Limited Investor Update for FY24 / QFY24
Slide 3: Contents
Contents 01 Overview 02 TRCL’s Market update 03 Sales & Capacity Utilization 04 Key Performance 05 Financial Analysis & Key Ratios 06 Capex & Borrowings update 07 ESG Update Ariyalur Integrated Plant 08 Awards & Accolades Investor Update for FY24 / 4QFY24
Slide 4: Overview
Overview India has emerged as the fastest growing major economy of the world in 2023-24 and is growing at a robust pace with an average annual growth of 8 per cent during the last three years and projected GDP of 7% for FY25 Repo Rate remains unchanged at 6.5%, reflecting a cautious stance drive
Slide 5: TRCL's Market update for 4QFY24
TRCL’s Market update for 4QFY24 South East Volume from B2C & B2B have grown YoY Volume from B2C & B2B have grown YoY Share of premium products in 4QFY24: 29%; 4QFY23: 28% Share of premium products in 4QFY24: 20%; 4QFY23:16% Margins were under pressure due to weak prices in all markets Ma
Slide 6: Sales & Capacity utilization for FY24
Sales & Capacity utilization for FY24 Cement Capacity Utilization % 73% 83% Utilization Utilization FY23 FY24 Cement Sales (Lac Tons) Dry Mortar Sales (Lac Tons) 180.89 3.07 148.21 2.03 FY23 FY24 FY23 FY24 Investor Update for FY24 / 4QFY24
Slide 7: Sales & Capacity utilization for 4QFY24
Sales & Capacity utilization for 4QFY24 Cement Capacity Utilization % 85% 96% 74% Utilization Utilization Utilization 4QFY23 4QFY24 3QFY24 Cement Sales (Lac Tons) Dry Mortar Sales (Lac Tons) 54.06 0.85 0.72 0.78 46.28 39.17 4QFY23 4QFY24 3QFY24 4QFY23 4QFY24 3QFY24 Investor Update for FY24 / 4QFY24
Slide 8: Key Performance for FY24
Key Performance for FY24 ` in Crores Revenue Cash Profit 9,392 1,137 8,172 954 FY23 FY24 FY23 FY24 Cash profit = PBT + Depreciation – Current Tax Profit Before Tax Profit After Tax 395 543 344 474 FY23 FY24 FY23 FY24 Company registered a total sale volume of 18.4 MnT in FY24 with a industry Marginal
Slide 9: Key Performance for 4QFY24
Key Performance for 4QFY24 ` in Crores Revenue Cash profit 2,581 2,687 323 312 287 2,113 4QFY23 4QFY24 3QFY24 4QFY23 4QFY24 3QFY24 Cash profit = PBT + Depreciation – Current Tax Profit Before Tax Profit After Tax 207 152 162 121 135 93 4QFY23 4QFY24 3QFY24 4QFY23 4QFY24 3QFY24 Company registered a t
Slide 10: EBITDA
EBITDA ` in Crores 1,595 1600 500 424 431 1400 402 1219 400 1200 1000 300 800 200 600 400 100 200 - 0 4QFY23 4QFY24 3QFY24 FY23 FY24 EBITDA / Ton ` 903 / T ` 785 / T ` 1,007 / T ` 811 / T ` 867 / T During 4QFY24, total sale volume is higher by 17% YoY & 37% compared to 3QFY24 Rupee depreciation by 3
Slide 11: Interest
Interest ` in Crores 416 140 16.00% 16.00% 400 14.00% 14.00% 120 350 104 102 12.00% 12.00% 100 300 77 10.00% 250 241 10.00% 80 8.00% 8.00% 200 60 7.85% 7.76% 6.00% 7.70% 6.00% 7.01% 150 6.35% 40 4.00% 100 4.00% 20 2.00% 50 2.00% - 0.00% - 0.00% 4QFY23 4QFY24 3QFY24 FY23 FY24 Finance cost increased d
Slide 12: Depreciation
Depreciation ` in Crores 180 165 166 636 160 141 504 140 120 100 80 60 40 20 - 4QFY23 4QFY24 3QFY24 FY23 FY24 Depreciation increased due to commissioning of units in Kolimigundla, R R Nagar Line III and 2 Dry Mortar Plants Investor Update for FY24 / 4QFY24
Slide 13: Income Statement for FY24
Income Statement for FY24 ` in Crores Standalone Consolidated Particulars FY24 FY23 Variance % FY24 FY23 Variance % 9,392.17 8,171.97 15% Revenue 9,415.27 8,190.19 15% 7,797.30 6,953.32 12% Less: Operating Expenses 7,811.77 6,971.71 12% 1,594.87 1,218.65 31% EBITDA 1,603.50 1,218.48 32% 415.53 240.5
Slide 14: Income Statement for 4QFY24
Income Statement for 4QFY24 ` in Crores Standalone Consolidated Particulars 4QFY24 4QFY23 Variance % 4QFY24 4QFY23 Variance % 2,687.30 2,581.29 4% Revenue 2,691.84 2,583.57 4% 2,256.21 2,156.82 5% Less: Operating Expenses 2,259.23 2,160.87 5% 431.09 424.47 2% EBITDA 432.61 422.70 2% 103.76 77.15 34%
Slide 15: Cost of raw materials per ton
Cost of raw materials per ton In ` 1,004 952 970 948 903 4QFY23 4QFY24 3QFY24 FY23 FY24 Decrease in Diesel price by 1% in FY24 YoY; Remain Neutral for 4QFY24 YoY Levy of Busy season surcharge by railways impacted the cost of inward material movements Inflationary impact on cost of other raw material
Slide 16: Logistics cost per ton
Logistics cost per ton In ` 1,063 1,081 1,075 1,067 1,062 4QFY23 4QFY24 3QFY24 FY23 FY24 Rail Co-efficient for cement despatches FY24 is 8% vs. 11% in FY23 Rail Co-efficient for cement despatches 4QFY24 is 11% vs. 12% in 4QFY23 & 9% in 3QFY24 Avg. lead distance for FY24 is 280 KMs vs 298 KMs in FY23
Slide 17: Power and Fuel Cost per ton
Power and Fuel Cost per ton In ` 1,771 1,635 1,386 1,389 1,127 4QFY23 4QFY24 3QFY24 FY23 FY24 Blended Fuel consumption (incl. TPP) per T of material: 4QFY24: $ 141; 4QFY23: $ 178; 3QFY24: $ 138; FY24: $ 149; FY23: $ 177 Blended Fuel cost per Kcal: 4QFY24: ` 1.65; 4QFY23: ` 2.21; 3QFY24: ` 1.64; FY24
Slide 18: Power Mix
Power Mix 23% 22% 27% 41% 42% 4QFY23 4QFY24 3QFY24 50% 23% 36% 36% Grid power Green Power Thermal Power Share of Green Power is expected to reach 42% on an annualized basis in FY25 # 22% 24% 42% FY24 FY23 56% 22% 34% # Based on current production levels Investor Update for FY24 / 4QFY24
Slide 19: Fuel Mix
Fuel Mix 31% 43% 4QFY23 51% 4QFY24 47% 51% 3QFY24 56% 13% 2% 6% Coal Alternate Fuel Pet coke Optimal usage of fuel based on Cost per CV 32% FY23 42% 52% FY24 55% 13% 6% Investor Update for FY24 / 4QFY24
Slide 20: Employee Cost per ton
Employee Cost per ton In ` 342 306 286 241 226 4QFY23 4QFY24 3QFY24 FY23 FY24 Better absorption of cost per ton is due to improved operating leverage Investor Update for FY24 / 4QFY24
Slide 21: Other Expenditure per ton
Other Expenditure per ton In ` 658 589 567 521 541 4QFY23 4QFY24 3QFY24 FY23 FY24 Better absorption of cost per ton is due to improved operating leverage Investor Update for FY24 / 4QFY24
Slide 22: Summarized Financial Position
Summarized Financial Position ` in Crores Standalone Consolidated Particulars 31-03-2024 31-03-2023 31-03-2024 31-03-2023 13,421.70 12,161.61 Fixed Assets including CWIP 13,431.64 12,181.86 223.12 202.31 Investments 319.04 272.70 553.90 637.08 Loans and Advances 545.96 621.14 982.30 882.34 Inventori
Slide 23: Summarized Cash flow
Summarized Cash flow ` in Crores Particulars 31-03-2024 31-03-2023 Operating Profit 1,594.87 1,218.65 Changes in working capital 366.02 247.12 Direct Tax paid (-) 41.91 (-) 31.64 Others (-) 24.45 (-) 29.13 Net cash flow from Operating Activities 1,894.53 1,405.00 Capital Expenditure (-) 1,922.38 (-)
Slide 24: Key Ratios
Key Ratios Particulars UOM 4QFY24 4QFY23 3QFY24 FY24 FY23 EBITDA Ratio % 16% 16% 19% 17% 15% PBT Ratio % 6% 8% 6% 6% 6% PAT Ratio % 5% 6% 4% 4% 4% EPS, Not Annualized ` 5 6 4 17 15 RoE, Annualized % 7% 9% 5% 6% 5% RoCE (Post-tax), Annualized % 7% 8% 7% 7% 5% Debt-Equity Ratio Multiples 0.69 0.66 0.7
Slide 25: Capex update & Borrowings
Capex update & Borrowings Borrowings as on 31-03-2024 Capex incurred during FY24: ` 1,922 Crores; Q4FY24: ` 312 Crores Particulars ` in Crores Interest-bearing Borrowings In Kolimigundala, TPP of 18 MW will be commissioned during June 2024 and railway siding will be commissioned during Sep 2024 - Lo
Slide 26: ESG Update
ESG Update CO2 Emission Blended Cement Water Positive Green energy CSR 590 Kg / T of Cement 68% 4.5x 36% 3.5 lac + Beneficiaries Based on FY24 figures Firm and Focussed for a sustainable future Investor Update for FY24 / 4QFY24
Slide 27: Awards & Accolades
Awards & Accolades Ramco Cement Tech Team has been awarded 9th Innovative CIO Awards 2024 by CIO Axis for implementing IT solutions, policy and technologies in an innovative way Investor Update for FY24 / 4QFY24
Slide 28: Awards & Accolades
Awards & Accolades Jayanthipuram Unit had been presented with Industrial Safety Alathiyur Unit had been awarded “Environment Excellence Award” Leadership Award in the Awards Ceremony of CII Andhra Pradesh by Quality Circle Forum of India, Hyderabad Chapter at its 3rd Industrial Safety Excellence Awa
Slide 29: Awards & Accolades
Awards & Accolades Chengalpattu Grinding unit had been awarded “Commitment to Alathiyur unit had been awarded “Zero Quality Failure for Three Quality” award from Bureau of Indian Standards at its 77th Years” by Bureau of Indian Standards at its 77th Foundation Day Foundation Day Celebrations for its
Slide 30: Awards & Accolades
Awards & Accolades Ariyalur & Jayanthipuram unit has won various awards in the Mines Environment and Mineral Conservation Week – 2024 celebrations conducted by Mines Environment and Mineral Conservation Council, Chennai & Hyderabad Region Investor Update for FY24 / 4QFY24
Slide 31: 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