Sagar Cements Ltd · NSE:SAGCEM
Sagar Cements — Investor Presentation (November 2023)
35 slides from Sagar Cements's investor presentation, Nov 6, 2023
Slide 1: Cover letter to stock exchanges: Updated Corporate Presentation
f!t SAGAR CEMENTS LIMITED SCL:SEC:NSE:BSE:2023-24 6th November 2023 The National Stock Exchange of India Ltd., The Secretary "Exchange Plaza", 5th Floor BSE Limited Bandra - Kurla Complex P J Towers Bandra (East) Dalal Street Mumbai - 400 051 Mumbai - 400 001 Symbol: SAGCEM Scrip Code: 502090 Series
Slide 2: Sagar Cements Limited Corporate Presentation September 2023
Sagar Cements Limited Corporate Presentation September 2023 Corporate Presentation 1
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”),have been prepared by Sagar Cements Limited (the “Company”), solely for information purposes and do not constitute a prospectus, offering circular or offering memorandum or an offer, or a solicitation of any offer, to purc
Slide 4: Table of Contents
Table of Contents Section 1 Sagar Cements Limited- Corporate Overview 4 Section 2 Key Investment Highlights 16 Section 3 Financial Performance 20 Section 4 ESG 26 Section 5 Certifications, Awards & Accolades 31 Corporate Presentation 3
Slide 5: Corporate Overview
Corporate Overview Corporate Presentation 4
Slide 6: Corporate Overview
Corporate Overview Sagar Cement has created a niche in Southern markets and in making inroads into Eastern markets Established in 1985, Sagar Cements Limited (“SCL”) with its current capacity of 10.85 MTPA tones is a dominant • Fully integrated & cement player in South India automated facilities •
Slide 7: Facilities at a Glance
Facilities at a Glance Sagar Cements - 8.8 MW – Waste Heat Recovery Sagar Cements – Mattampally plant Sagar Cements – Mattampally plant - Robo Lab Power Plant Sagar Cements – 18 M.W. - CPP (Thermal) Sagar Cements – Mattampally plant - CCR Sagar Cements – Mattampally plant - Mines Sagar Cements – Gud
Slide 8: Key Milestones
Key Milestones Commissioned the 1 MTPA Integrated plant & 1.5 MTPA grinding unit. Enhanced grinding capacity to 1.5 Mn Tonnes at Bayyavaram & enhanced 2023 • Exited from Vicat JV for a WHRS to 8.8 MW consideration of INR 425 cr • Acquired BMM Cements, now 2022 Acquisition of Andhra (SCL) with
Slide 9: Vision & Mission
Vision & Mission 2035 Vision to double the Capacity every 10 years 2023 20.00 2022 MTPA 10.85 2018 8.25 MTPA 2017 MTPA 5.75 • Acquisition of • Commissioned • Through MTPA the 1.00 MTPA 1.80 MTPA Inorganic & 2015 4.3 Integrated Integrated plan at Dachepalli, Organic • Ramp up plant at Indore, Growth
Slide 10: Strong Sales & Distribution Channel
Strong Sales & Distribution Channel Distribution Network – Focused on South Strong Brand Equity & Recall Dealers # 2,909 Sub - Dealers # 5,895 Corporate Presentation 9
Slide 11: Inherent Strengths
Inherent Strengths Resources Market • Part of Nalgonda & Yerraguntla Cement Cluster • Plants located in close proximity to major markets in • Strong limestone reserves: the South and select markets in Maharashtra, Odisha • Over 398 mn tons at Mattampally and Madhya Pradesh • Over 166 mn tons at Gudi
Slide 12: Professional & Experienced Management
Professional & Experienced Management Has more than 27 years of experience. Has more than 30 years of experience. He joined Sagar Cements as its Technical Inducted on the Board in 1991, and later appointed Mr S. Sreekanth Consultant in 2002 and later was inducted in the Dr.S.Anand Reddy as a
Slide 13: Non-executive Directors: Backed by a Strong Board
……Backed by a Strong Board He had been associated with Raasi Cements Limited as Executive Director from 1992 to 1995 and as Managing Director from 1995 to 1998. He was on the Board of Anjani Portland Cement Limited as its Chairman and Managing Director from 1999 to 2014. Presently, he is on the Mr
Slide 14: Shareholding Structure
Shareholding Structure Shareholding Pattern (As on September 30, 2023) Select Public Investors SN Shareholders % Holding 1 AVH Resources India Pvt Limited 19.64 Non- 2 PI Opportunities Fund – I Scheme II 10.10 Institutions, 30.35% 3 Mutual Funds 7.16 Promoters, 48.31% Capital Structure Institutions,
Slide 15: Companies associated with Promoters
Companies associated with Promoters RV Consulting Services Pvt. Ltd. Reputed Turn Key Solutions provider (Design, Engineering & Project Management) to Cement Industry & Small Hydro Power Projects Select Customers include: Bharathi Cement Corporation Limited, Vicat Sagar Cement Private Limited,
Slide 16: Acquisition Rationale
Acquisition Rationale Further consolidation of SCL’s position in southern markets mainly Andhra Pradesh and Telangana Cement Captive Power Plants (Capacity in MW) Location Clinker MTPA Cement MTPA Facility WHRS Thermal Solar Hydro Total SCL can leverage its existing network/ brand of “SAGAR,” ma
Slide 17: Key Investment Highlights
Key Investment Highlights Corporate Presentation 16
Slide 18: Strategic Expansion Plan – Robust and Well Thought-out
Strategic Expansion Plan – Robust and Well Thought-out :“Rightly Timed Expansion during Down cycle” Sagar Cement with SCMPL, JCPL & ACL having current capacity of 10.85 MTPA is strongly positioned to derive full benefit in the Cement Up cycle Cement Demand (MTPA) 431 410 390 347 361 337 331 316 294
Slide 19: Well Positioned to Capture South Recovery: Key Growth Drivers
Well Positioned to Capture South Recovery : “Southern Markets to Witness Demand Revival after Years of Declining to Muted Demand Limited incremental capacity, political stability, formation of new state Demand subdued till FY17 resulting in excess capacity Major capacity Addition Post FY07 augurs we
Slide 20: Proximity to Key Markets with Shorter Lead Distances
Well Positioned to Capture South Recovery :“…Gradually built Proximity to key Markets with Shorter Lead Distances” MAHARASHTRA TELANGANA ORISSA Sagar Cements (M) Private Limited Sundergarh Sagar Cements – Jharsuguda (Formerly Satguru Mayurbhanj Jajpur, Orissa Nandurbar Adilabad Debagarh Kendujhar Ce
Slide 21: Financial Summary
Financial Summary Corporate Presentation 20
Slide 22: Financial Performance – On An Upward Trajectory
Financial Performance – On An Upward Trajectory Total Income Capacity & Capacity Utilization 62% 61% 58% 56% 58% 58% 52% 53% 54% 53% 53% 5.75 5.75 6.14 8.25 2.8 2.8 2.8 3.8 4.3 4.3 5.3 1,085 1,220 1,179 1,379 1,610 2,452 559 489 545 753 814 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY13
Slide 23: Sales Volume Performance – On An Upward Trajectory
-5,00,000 5,00,000 15,00,000 25,00,000 35,00,000 45,00,000 55,00,000 65,00,000 2,93,351 3,33,706 FY 10 2,86,904 13,34,828 110.30 % 4,20,867 3,85,973 3,08,430 FY 11 3,03,143 5.94 % 14,14,109 4,16,563 4,10,701 4,05,574 FY 12 3,88,050 15.37 % 16,31,392 4,27,067 3,98,965 3,72,272 FY 13 3,52,146 2.84 % 1
Slide 24: Performance Highlights - Consolidated Q2 & H1 FY24
Performance Highlights - Consolidated Q2 & H1 FY24 in Rs.Lakhs Particulars Q2 FY24 Q2 FY23 YoY (%) Q1 FY24 QoQ (%) H1FY24 H1FY23 YoY% Sales Volume (MT) 13,12,572 10,34,989 ▲ 27% 11,79,614 ▲ 11% 24,92,186 22,21,249 ▲ 12% Revenue from Operations 58,682 47,455 ▲ 24% 53,967 ▲ 9% 1,12,649 1,03,227 ▲ 9% O
Slide 25: Consolidated Projected Debt
Consolidated Projected Debt 310 in Rs.Lakhs 303 290 290 276 152 162 148 165 133 79 80 86 83 87 66 65 71 70 74 71 70 75 74 73 69 70 69 69 68 158 141 143 143 44 42 125 40 38 42 38 36 41 40 39 38 37 36 36 35 34 33 32 40 39 35 38 46 34 45 34 45 33 32 31 36 36 36 34 36 36 36 36 26 26 Q1 Q2 Q3 Q4 Total Q1
Slide 26: Summary Financial Highlights
Summary Financial Highlights Historical Financial Performance Equity Share Reserves & Long-term Total Installed Production Net worth PBID PAT Book Value Per Market Price Market Cap. S.no. Year Capital Surplus Debt D/E Ratio Income Dividend % No. of Shares Capacity in MT in MT Share (INR) per share (
Slide 27: Environmental, Social, and Governance (ESG)
Environmental, Social, and Governance (“ESG”) Corporate Presentation 26
Slide 28: Committed towards building a sustainable future
Sagar Cement: Committed towards building a sustainable future Waste Management • Strict adherence towards disposal of hazardous and non-hazardous waste as prescribed by the laws • Disposal of waste such as fly ash, slag, gypsum, oil and metal scrap in a responsible manner with zero hazardous waste s
Slide 29: Promoting shared growth
Promoting shared growth Facilitating drinking water supply by Helping educational institutions by providing RO water purifiers. We providing learning material, sports are also supporting and creating equipment, etc. irrigation facilities Distribution of garbage bags and Construction of public toilet
Slide 30: ESG Initiatives
ESG Initiatives Activities to enhance TSR% (Thermal Substitution Rate) • Initiated a pilot project for biomass cultivation as fuel for cement kiln. • Approximately 20 hectares of land allocated for biomass growth. • First harvest covered 12.3 acres, resulting in a yield of 26.72 MT of dry grass. • S
Slide 31: ESG Initiatives
ESG Initiatives Promotion of Blended Cements Peer benchmarking on ESG Formation of ESG Working Meetings held with partners and stakeholders towards promotion of use of blended / low carbon cements. Performance committees in all units Activities Completed Capacity building training program Safety aud
Slide 32: Certifications, Awards & Accolades
Certifications, Awards & Accolades Corporate Presentation 31
Slide 33: Certifications, Awards & Accolades
Certifications, Awards & Accolades Certifications ISO 9001 : 2015 QMS ISO 50001 : 2018EMS ISO 14001 : 2015 ISO 45001 : 2018 RMF & ICD for SOX Compliance NABL accreditation for our Mattampally and Bayyavaram Lab Awards & Accolades • Best Employer Award from Telangana State Government for
Slide 34: Certifications, Awards & Accolades
Certifications, Awards & Accolades The company has received Green Co Gold Certificate The Gudipadu Plant has been awarded with The Bayyavaram Plant has been awarded with Award from Confederation of Indian Industries (CII) for its Green Co gold Certificate from Confederation Green Co platinum Certifi
Slide 35: Contacts
Contacts For further information contact: Thank You ! Sagar Cements Limited K Prasad- Chief Financial Officer prasadk@sagarcements.in Rajesh Singh - Chief Marketing Officer rajeshsingh@sagarcements.in R.Soundararajan - CS & Compliance Officer soundar@sagarcements.in Tel.: +91 40 2335 1571 / 6572 Cor
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