Ambuja Cements Limited · NSE:AMBUJACEM

Ambuja Cements — Q3 2018 Earnings Presentation

22 slides from Ambuja Cements's earnings presentation, Oct 23, 2018

  1. Slide 1: Ambuja Cement

    Ambuja Cement ACL:SEC: October 23, 2018 BSE Limited, National Stock Exchange of India Ltd., Phiroz Jeejeebhoy Towers, Plot No.C/1 'G' Block Dalal Street, Mumbai — 400 023 Bandra — Kurla Complex corp.relations@bseindia.com Bandra East, Mumbai 400 051 cmlist@nse.co.in Deutsche Bank Societe de la Bours

  2. Slide 2: Investor Presentation

    Continuous Strong Fast establishing in slag Growth ‘Beyond Cement’ AFR Initiative Growth Preferred market Topped ‘Social Best CSR and Safety First Globally 5th Rank in DJSI Contributors’ in Pitch Top Sustainability Awards 2018 50 Brands Awards 2018 2018 Investor Presentation 23rd October, 2018

  3. 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

  4. 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

  5. Slide 5: 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

  6. Slide 6: GDP growth maintained its upward trend

    GDP growth maintained its upward trend  GDP growth : Jumped to a high of 8.2% in Q1 2018-19 (highest in last 9 quarters)  Retail inflation : 3.8% in Sep’18 (led by sharp drop in food inflation)  Repo rate : Unchanged at 6.50% (RBI’s bi-monthly monetary policy)  Construction GDP : Sharp rise of 8

  7. Slide 7: Brand Architecture

    Brand Architecture Solutions & Base Premium services *IMP & MCS Sales of premium products has grown strongly and outperforms the normal growth trend *IMP – Instant Mix Proportion, MCS – Modular Curing Solution, AKC - Ambuja Knowledge Centre 6

  8. Slide 8: Performance highlights – Jul-Sep'18 vs Jul-Sep'17

    Performance highlights – Jul-Sep’18 vs Jul-Sep’17 Capacity Cement Volumes Net Sales Utilization Up Up YoY growth 6 pp 9% 10% Q3 18 : 74% Q3 18 : 5.46 mn t Q3 18 : ₹ 2,522 cr Q3 17 : 68% Q2 17 : 5.02 mn t Q3 17 : ₹ 2,284 cr EBITDA PAT *L-F-L Growth Growth 1% 6% Q3 18 : ₹ 358 cr Q3 18 : ₹ 179 cr Q3 17

  9. Slide 9: Performance highlights – Jan-Sep'18 vs Jan-Sep'17

    Performance highlights – Jan-Sep’18 vs Jan-Sep’17 Capacity Cement Volumes Net Sales Utilization Up Up YoY growth 5 pp ~6% 8% YTD18 : 82% YTD 18 : 18.05 mn t YTD 18 : ₹ 8,212 cr YTD 17 : 77% YTD 17 : 17.09 mn t YTD 17 : ₹ 7,638 cr EBITDA PAT Growth Growth 6% 4% YTD 18 : ₹ 1488 cr YTD 18 : ₹ 950 cr YT

  10. Slide 10: Cement Sales Volumes and Capacity Utilization

    Cement Sales Volumes and Capacity Utilization (Mn Tonnes) +9% 6pp 5.46 74 5.02 68 Q3’17 Q3’18 Q3 17 Q3 18 Sales Volumes Capacity Utilisation  Improved growth in premium product volumes y-o-y basis, premium products sales led by Compocem, Roof Special and Cool Walls continues to see growth.  Cement

  11. Slide 11: Cement Sales Volumes and Capacity Utilization

    Cement Sales Volumes and Capacity Utilization (Mn Tonnes) +6% 5pp 18.05 82 17.09 77 YTD’17 YTD’18 YTD 17 YTD 18 Sales Volumes Capacity Utilisation  Improved growth in premium product volumes y-o-y basis, premium products sales led by Compocem, Roof Special and Cool Walls continues to see growth. 

  12. Slide 12: Net Sales

    Net Sales (INR Crore) +10% +8% 2,522 8,212 2,284 7,638 Q3’17 Q3’18 YTD’17 YTD’18 Quarterly performance  Net Sales saw good growth in the Jul-Sep’18 quarter backed by : Improved demand Focus on value added portfolio of products Selling more in our core markets Q3 – Jul-Sep 18 vs Jul-Sep 17 YTD - Jan

  13. Slide 13: EBITDA

    EBITDA (INR Crore) +1% +6% 354 358 1,488 1,400 Q3’17 Q3’18 YTD’17 YTD’18 Quarterly performance  Operating EBITDA for the quarter was ₹ 358 crore against ₹ 354 crore in the corresponding quarter of the previous year. There were pressures on account of rising costs especially for power & fuel, diesel

  14. Slide 14: Raw Material Cost

    Raw Material Cost (INR / Tonne) -13% +9% 450 427 390 393 Q3’17 Q3’18 YTD’17 YTD’18 Quarterly performance  Raw Material cost sees improvement y-o-y basis i.e. Q3’18 vs Q3’17 due to various initiatives undertaken. Optimization of additives / correctives in Raw Mix. 13 Q3 – Jul-Sep 18 vs Jul-Sep 17 YT

  15. Slide 15: Power & Fuel Cost

    Power & Fuel Cost (INR / Tonne) +4% +9% 1,002 1,015 967 929 Q3’17 Q3’18 YTD’17 YTD’18 Quarterly performance  Power & Fuel cost saw a rise due to increase in fuel cost mainly pet coke and coal price increase, however the focus on improving our efficiency parameters along with various initiatives hel

  16. Slide 16: Freight & Forwarding Cost

    Freight & Forwarding Cost (INR / Tonne) +9% +10% 1,332 1,345 1,218 1,221 Q3’17 Q3’18 YTD’17 YTD’18 Quarterly performance  Freight cost is higher y-o-y basis due to increase in diesel prices (impacted by increase in crude prices), however the cost increase was restricted with help of internal initia

  17. Slide 17: Other Expenses Cost

    Other Expenses Cost (INR / Tonne) +5% -2% 917 834 821 871 Q3’17 Q3’18 YTD’17 YTD’18 Quarterly performance  Other expenses sees an increase y-o-y basis due increase in packing bags and annual maintenance, however SG&A was contained due to various cost saving measures. Q3 – Jul-Sep 18 vs Jul-Sep 17 Y

  18. Slide 18: Ind AS Result – Standalone – ₹ crore

    Ind AS Result – Standalone – ₹ crore Net Sales up 8% PBT up 9% PAT up 4% Particulars Standalone YTD UOM Q3'17 Q3'18 + / - PY '17 YTD '18 + / - PY Sales (net of excise duty ) ₹ Cr 2,284 2,522 10% 7,638 8,212 8% Op. EBITDA ₹ Cr 354 358 1% 1,400 1,488 6% Op. EBITDA margin % 15.5% 14.2% -130 bps 18.3% 1

  19. Slide 19: Ind AS Result – Consolidated – ₹ crore - YTD

    Ind AS Result – Consolidated – ₹ crore - YTD Particulars Consolidated UOM Q3'17 Q3'18 + / - PY YTD '17 YTD '18 + / - PY Sales (net of excise duty ) ₹ Cr 5,328 5,877 10% 17,105 18,874 10% Op. EBITDA ₹ Cr 773 803 4% 2,872 3,055 6% -60 Op. EBITDA margin % 14.5% 13.7% -80 bps 16.80% 16.20% bps Depreciat

  20. Slide 20: Other key highlights for the Quarter

    Other key highlights for the Quarter Globally Ranked 5th in Construction Top Brand in “SOCIAL ACF won ‘Best CSR and Sustainability Material Sector by DJSI 2018 CONTRIBUTORS” category for the Practices 2017’ award coveted Pitch Top 50 Brands 2018 Achieved “Zero Harm” for more than Ms Sapna Devendra,

  21. Slide 21: Create value for all stakeholders

    Create value for all stakeholders 20

  22. Slide 22: Slide 22

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