Star Cement Ltd. · NSE:STARCEMENT
Star Cement — Q1 FY2024 Earnings Presentation
36 slides from Star Cement's earnings presentation, Sep 22, 2023
Slide 1: Letter to stock exchanges on Q1 investor presentation
Date: 22nd September, 2023 To To The Listing Department, The Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block-G Phiroze Jeejeebhoy Towers Bandra Kurla complex, Bandra-East Dalal Street Mumbai-400 051 Mumbai-400 001 Stock code: STARCEMENT Stock code:
Slide 2: Star Cement Limited: An Integrated Cement Company
CREATING A BETTER TOMORROW STAR CEMENT LIMITED STAR CEMENT LIMITED AN INTEGRATED An Integrated Cement Company CEMENT COMPANY NSE Ticker: STARCEMENT | BSE Ticker: 540575 | Bloomberg Ticker: STRCEM:IN Q1 Presentation | JUNE 2023
Slide 3: Safe Harbour
SAFE HARBOUR This quarterly investor presentation has been prepared by Star Cement Limited (‘Star Cement’) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered o
Slide 4: Index
INDEX KNOW US BETTER: CORPORATE OVERVIEW BETTER PROSPECTS & POSSIBILITIES: INDIAN CEMENT INDUSTRY WHAT MAKES US BETTER: STRENGTHS & STRATEGIES GIVING BACK TO SOCIETY: OUR CSR INITIATIVES PROMISING A BETTER TOMORROW: ENVIRONMENT, SOCIAL AND GOVERNANCE LEADING FROM THE FRONT: OUR MANAGEMENT TEAM NUMBE
Slide 5: Know Us Better: Corporate Overview
KNOW US BETTER CORPORATE OVERVIEW
Slide 6: At a Glance
AT A GLANCE Star Cement Limited is one of the leading names among eastern India's cement manufacturers. The organisation has created a strong brand recall with its endeavor to maintain superior quality product, comprehensive supply chain eco- system, and unmatched efforts to uplift the community as
Slide 7: Our Footprint
OUR FOOTPRINT LUMSHNONG, MEGHALAYA 2.8 MTPA CLINKER UNIT 1.67 MTPA GRINDING UNIT 51 MW THERMAL POWER PLANT 12.3 MW WASTE HEAT RECOVERY PLANT SONAPUR, GUWAHATI, ASSAM 2.0 MTPA GRINDING UNIT MOHITNAGAR, SILIGURI, WEST BENGAL 2.0 MTPA GRINDING UNIT Map is used only for representation purpos
Slide 8: Our Star Products
OUR STAR PRODUCTS ORDINARY PORTLAND PORTLAND POZZOLANA ANTI RUST CEMENT CEMENT (OPC) CEMENT (PPC) (ARC) OPC 43: PPC: ARC: Suitable for construction where the Ideal for: A highlight of Star Cement’s grade of concrete is upto M-30. innovative product line and a robust Mass concreting works OPC 53: R
Slide 9: A Journey That Speaks of Expansion
A JOURNEY THAT SPEAKS OF EXPANSION FY 2004 – 05 FY 2010 – 11 FY 2016 – 17 FY 2020 – 21 FY 2023 – 24 First plant set up at Capacity of total Capacity of cement New cement plant at New Cement unit to be commercialised Lumshnong with cement production at plant at commercialised at at Sonapur
Slide 10: Better Prospects and Possibilities: Indian Cement Industry
BETTER PROSPECTS AND POSSIBILITIES INDIAN CEMENT INDUSTRY
Slide 11: Industry Scenario
INDUSTRY SCENARIO According to the estimate of the National Council for Cement and Building Materials (NCCBM), India’s cement industry is expected to add ~80 million tons capacity by 2025. The market size of the India's cement industry was 3,644.5 million tons in 2022. The industry hopes to reach
Slide 12: Installed Capacity and Utilisation
INSTALLED CAPACITY AND UTILISATION Being the second largest cement producer in the world after China, India contributes over 8 per cent to the global installed capacity in cement production. India has potentially rich deposits of limestones in different regions of the country essentially required fo
Slide 13: Production and Consumption
PRODUCTION AND CONSUMPTION The production of cement stood at ~375 million tons in FY2023, up from 351 million tons in FY2022. PRODUCTION The domestic production with 7 per cent y-o-y growth has surpassed the pre-covid levels India’s total cement consumption was ~370 million tons in FY2023. CON
Slide 14: Key Government Infrastructure Initiatives
KEY GOVERNMENT INFRASTRUCTURE INITIATIVES The Ministry of Railways in a recent announcement is planning to develop dedicated corridors in different parts of the country to meet the requirements of the cement sector. These corridors will be created specifically in areas, where the concentration of
Slide 15: What Makes Us Stronger: Strengths and Strategies
WHAT MAKES US STRONGER STRENGTHS AND STRATEGIES
Slide 16: Production Strength
PRODUCTION STRENGTH 2.0 MTPA Grinding unit at 5.7 MTPA 2.8 MTPA Siliguri, West Bengal CEMENT PRODUCTION CLINKER PRODUCTION CAPACITY CAPACITY 2.0 MTPA Grinding unit at 51 MW 12.3 MW Guwahati, Assam THERMAL POWER WASTE HEAT Setting up a 2.0 MTPA CAPACITY RECOVERY SYSTEM Grinding unit in Guwahati, Assa
Slide 17: Endorsing a Better Future
ENDORSING A BETTER FUTURE ANNUAL ADVERTISING & BRAND PROMOTION AKSHAY KUMAR, AS OUR BRAND AMBASSADOR, INVESTMENT (INR CR) BOOSTED OUR BRAND VISIBILITY 32.89 33.53 29.67 26.20 21.28 8.82 FY19 FY20 FY21 FY22 FY23 FY 24 Q1 Invested in branding and 8.82 advertisement in the Q1 FY 23-24 (INR Cr) In Q1 we
Slide 18: Advancing with Technology
ADVANCING WITH TECHNOLOGY STAR LINK APP (4000+ BUSINESS WHATSAPP: USERS): Star Cement official business WhatsApp Facilitating loyalty program for Masons number is a medium where all queries who use Star Cement in their various faced by customers, channel partners etc. projects to earn Reward points
Slide 19: Reaching Far and Wide
REACHING FAR AND WIDE STRONG SUPPLY CHAIN & DISTRIBUTION NETWORK We emphasize on strengthening being among the first one to identify the disparity in demand and supply forces, through a strong supply chain & distribution network: EASY AVAILABILITY OF RAW MATERIAL: Easy access and proximate location
Slide 20: The Star Shining Bright and Strong
THE STAR SHINING BRIGHT AND STRONG Enjoys a leadership position in the North East with market share of more than 23% Gradually increasing share in the Eastern region through concerted efforts DISTRIBUTION Strong dealer and distributor network built over the years, steering year-on-year NETWORK
Slide 21: Giving Back to the Society: Our CSR Initiatives
GIVING BACK TO THE SOCIETY OUR CSR INITIATIVES
Slide 22: Sharing the Responsibility Towards the Community
SHARING THE RESPONSIBILITY TOWARDS THE COMMUNITY • Organized free health Check-up camps at Sonapur where more than 150 patients were examined & free medicine were distributed. • Set up a system to ensure regular collection of garbage from Lumshnong and Umsahi village. • Bore-wells were constructed i
Slide 23: Sharing the Responsibility Towards the Community
SHARING THE RESPONSIBILITY TOWARDS THE COMMUNITY • 65 students from Waizher, Tongseng, Sonapyrdi and Brichrnyot and Lumshnong village have been enrolled in Star Public School. • Regular School bus service is benefiting around 104 students of Lumshnong, Waizer, Cheruphi, Pandare, Brichrnyot and Tongs
Slide 24: Promising a Better Tomorrow: Environment, Social and Governance
PROMISING A BETTER TOMORROW ENVIRONMENT, SOCIAL AND GOVERNANACE
Slide 25: Star Cement ESG Update
STAR CEMENT ESG UPDATE STAR CEMENT LIMITED HAS ENGAGED EY FOR ESG DECODING ESG TRANSFORMATION FOR 3 YEARS. THE ENGAGEMENT STATUS AS ON YEAR 1 IS AS FOLLOWS – STEPS COMPLETED ENVIRONMENT SOCIAL GOVERNANCE ESG BRSR REPORT ESG TARGETS SUBMITTED ESG ROADMAP MATERIALITY AND GOALS ESG REPORT DEVELOPMENT R
Slide 26: ESG Goals and Targets
ESG GOALS AND TARGETS ESG TARGETS ESG GOALS EXPECTED CURRENT STATUS Reducing COMPLETION Clinker factor in Cement Enhancing co- 2X Water Positive 1.37x 2025 processing of waste 4% Thermal substitution Rate 0.1% 2025 Increase use of green power Optimizing logistics and 15% Green energy portfolio NIL 2
Slide 27: Leading from the Front: Our Management Team
LEADING FROM THE FRONT OUR MANAGEMENT TEAM
Slide 28: Our Promoters Team
GOOD GOVERNANCE PROMISING A BETTER TOMORROW OUR PROMOTERS TEAM Mr. Sajjan Bhajanka Mr. Rajendra Chamaria Mr. Sanjay Agarwal Chairman & Managing Vice Chairman & Managing Managing Director Director Director Experience: 36 years’ Experience: 50 years’ Experience: 36 years’ industry experience experienc
Slide 29: Our Management Team
GOOD GOVERNANCE PROMISING A BETTER TOMORROW OUR MANAGEMENT TEAM Mr. Vineet Mr. Manoj Mr. Pankaj Mr. Pradeep Mr. Sundaram Mr. Samar Mr. Kanak Tiwari Agarwal Kejriwal Purohit Srinivasan Banerjee Kumar Chief Executive Chief Financial Executive Director Chief Operating Chief Chief Human Chhangani Office
Slide 30: Numbers That Speak for Us: Financial Highlights
NUMBERS THAT SPEAK FOR US FINANCIAL HIGHLIGHTS
Slide 31: Operational and Financial Updates
OPERATIONAL AND FINANCIAL UPDATES Production in Q1 FY24 was 11.8 lakhs MT vs 9.9 lakhs MT in Q1 FY23, a YoY growth of 19%. OPERATIONAL Plant optimization has helped reduce power consumption per MT of Cement. Purchase of conditioned fly-ash through rakes is helping reduce flyash cost. Cement sales in
Slide 32: Quarterly Highlights That Matter
QUARTERLY HIGHLIGHTS THAT MATTER SALES VOLUME - CEMENT REVENUE FROM CEMENT SALES EBITDA PAT (MILLION TONS) (INR CR) (INR CR) (INR CR) 11.65 93 755 627 138 138 68 9.80 Qtr ending Qtr ending Qtr ending Qtr ending Qtr ending Qtr ending Qtr ending Qtr ending June 2022 June 2023 June 2022 June 2023 June
Slide 33: Appendix
APPENDIX
Slide 34: Standalone Financial Highlights
STANDALONE FINANCIAL HIGHLIGHTS PARTICULARS Q1 FY24 Q1 FY23 FY23 Equity Share Capital INR Cr 40 40 40 Reserves & Surplus INR Cr 1,477 1340 1,423 Net Worth INR Cr 1,518 1,380 1,464 Revenue INR Cr 778 658 2,731 EBIDTA INR Cr 99 86 339 PBT INR Cr 77 64 249 Tax Expenses INR Cr 23 23 85 PAT INR Cr 54 41
Slide 35: Consolidated Financial Highlights
CONSOLIDATED FINANCIAL HIGHLIGHTS PARTICULARS Q1 FY24 Q1 FY23 FY23 Equity Share Capital INR Cr 40 40 40 Reserves & Surplus INR Cr 2,469 2196 2,376 Net Worth INR Cr 2,509 2236 2,416 Revenue INR Cr 769 680 2,757 EBIDTA INR Cr 138 138 520 PBT INR Cr 104 105 380 Tax Expenses INR Cr 11 38 132 PAT INR Cr
Slide 36: Thank You
THANK YOU MR. MANOJ AGARWAL CORPORATE OFFICE investors@starcement.co.in ‘Century House’, 2nd Floor www.starcement.co.in P-15/1, Taratala Rd, 2nd Floor, CPT Colony Taratala, Kolkata, West Bengal 700 088 35