Ultratech Cement Limited · NSE:ULTRACEMCO
Ultratech Cement — Q3 FY25 Earnings Presentation
41 slides from Ultratech Cement's earnings presentation, Jan 23, 2025
Slide 1: Exchange filing cover letter for investor presentation
23rd January, 2025 BSE Limited The Manager Corporate Relationship Department Listing Department Phiroze Jeejeebhoy Towers, The National Stock Exchange of India Limited Dalal Street, “Exchange Plaza”, Bandra-Kurla Complex, Mumbai 400 001. Bandra (East), Mumbai 400 051. Scrip Code: 532538 Scrip Code:
Slide 2: UltraTech Cement Limited Results Q3 FY25
UltraTech Cement Limited A FORCE FOR GOOD Results Q3 FY25 Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX
Slide 3: Macro and Sectoral Update, Business Update, ESG Update, Financial Performance
01 02 03 04 Macro and Business ESG Financial Sectoral Update Update Performance Update
Slide 4: Macro and Sectoral Update
01 Macro and Sectoral Update Andhra Pradesh Cement Works
Slide 5: Macro Indicators
Macro Indicators NSO estimates real India’s CPI inflation Private consumption Repo rate remains GDP growth at 6.4% eased to 5.22% in is expected to emerge unchanged at 6.5% for FY25, growth to December vs. 5.48% as the primary driver for eleventh pick up in H2, in November. of growth (7.3% yoy in co
Slide 6: Sectoral Update Q3 FY25
Sectoral Update Q3 FY25 Zone I C H R Key drivers ✓ Housing segment registered growth in both rural and urban areas. ✓ Infrastructure segment registered degrowth on account of pollution control measures taken in Delhi and surrounding regions, North projects on hold due to farmers agitation in Punjab
Slide 7: Business Update
02 Business Update UltraTech is the largest supplier of cement for the Ahmedabad-Gandhinagar Metro (Phase II).
Slide 8: Highlights : Q3
Highlights : Q3 Domestic sales volume grew 10.5% yoy and 9% qoq. Trade volume grew 12.5% yoy and rural sales volume grew 13% yoy. Domestic operating EBITDA/Mt of ₹ 964, higher by ₹ 232/Mt qoq. The India Cements Limited (ICEM) has become a subsidiary of the Company with effect from 24th Dec, 2024. IC
Slide 9: ReadyMix Concrete (RMC): Q3 FY25
ReadyMix Concrete (RMC): Q3 FY25 UltraTech’s RMC 348 140 Plants Network 78 YoY 15 YoY Number of Plants Number of Cities 3.17 1,469 14% YoY 14% YoY Volume (Mn m3) Revenue (₹ Crores) 40% ROCE% 8
Slide 10: Sales Performance Overview : Q3 FY25
Sales Performance Overview : Q3 FY25 34.6% 18.1% 74% 24% 58.9% 41.1% 81.9% 65.4% 2% Trade % Non Trade % Bag Sales % Bulk Sales % Road Rail Sea Direct Sales Depot Sales 9
Slide 11: Organic growth plans on track
Organic growth plans on track Cement Cement Particulars Unit Project Capacity Timelines Particulars Unit Project Capacity (Mtpa) (Mtpa) To be commissioned in FY26 Capacity as at Mar-24 140.8 Patratu, Jharkhand GU B 2.5 Karur, Tamil Nadu GU G 2.7 Commissioned Shahjahanpur, Uttar Pradesh GU G 1.8 Kuku
Slide 12: UltraTech: marching ahead
UltraTech: marching ahead Grey cement capacity (Mtpa) – India Grey Cement Capacity in India (mtpa) Added till Further 209.3 Zones FY24 Kesoram* FY26 FY27 Total Dec’24 Plan FY25 194.6 182.8 North 33.3 1.5 3.0 2.7 40.5 140.8 Central 28.4 4.5 32.9 East 27.6 3.7 1.2 2.5 6.6 41.6 West 31.1 1.1 3.0 35.2 S
Slide 13: Inorganic growth: M&A Update
M&A Update • Image will be placed Inorganic growth 12
Slide 14: India Cements Limited - Cement Business Overview
India Cements Limited - Cement Business Overview Clinker Cement S No Plants State (Mtpa) (Mtpa) 1 Sankari Tamil Nadu 0.50 0.86 2 Sankarnagar Tamil Nadu 1.40 2.05 3 Dalavoi Tamil Nadu 1.20 1.85 4 Chennai Tamil Nadu - 1.10 5 Vishnupuram Telangana 2.86 2.50 6 Malkapur Telangana 2.24 2.40 7 Chilamkur An
Slide 15: Transaction update: India Cements Limited
Transaction update : India Cements Limited Cement Enterprise Valuation ₹ Crs Enterprise Capacity Value Equity Value as on 24th December, 2024 11,198 Add: Net Debt 877 14.45 Mtpa 100% Enterprise Value (EV) 12,075 $ 98 / Mt EV will be adjusted down further after completion of divestment of non core as
Slide 16: Transaction update: Kesoram
Transaction update: Kesoram • Awaiting mines transfer approval from state authorities of Telangana and Karnataka. • Financials of Kesoram Cement will be consolidated with UltraTech with retrospective effect from 1st April, 2024 - appointed date of merger as per the NCLT approved scheme of arrangemen
Slide 17: UltraTech's Capacity in southern states post acquisitions
UltraTech’s Capacity in southern states post acquisitions Grey Cement Capacity (Mtpa) in Southern States Existing India Total States Kesoram* Capacity Cements Capacity Tamil Nadu 6.40 5.86 12.26 Andhra Pradesh 12.40 2.19 14.59 Telangana 4.90 1.75 6.65 Karnataka 7.35 9.0 16.35 South 26.15 12.95 10.75
Slide 18: Transaction update: Star Cement Limited
Transaction update: Star Cement Limited Acquired non-controlling financial stake equivalent to 8.42% of equity share capital of Star Cement Limited at a total cost of ₹ 776 Crs 17
Slide 19: ESG Update
02 ESG Update During the quarter, the Company helped 50,000+ people, meet their essential water needs in Andhra Pradesh.
Slide 20: ESG : Key trends
ESG : Key trends 69.2% 70.1% 69.6% 1.46 1.44 63.0% 1.41 1.30 FY14 FY23 FY24 9M FY25 FY14 FY23 FY24 9M FY25 Blended Cement Mix Clinker to Cement Conversion Factor 759 632 556 551* 462 FY06 FY17 FY24 9M FY25 FY32 Target Scope 1 Net CO2 Emission [kg CO2/t cement] *Unaudited 19
Slide 21: ESG : Green Power Roadmap
ESG : Green Power Roadmap 60% 25% Waste Heat Recovery System 24% Renewable Power 38% 21% 26% 19% 20% 16% 13% 2 13% 468 500 1.6 GW 7% 6% 358 1% 1 GW 278 324 752 612 GW 85 10 MW MW FY19 FY24 Dec'24 FY25 FY26 FY27 FY30 FY19 FY24 Dec'24 FY25 FY26 FY27 FY30 RE Power RE Power % WHRS (MW) WHRS % 20
Slide 22: ESG : UltraTech's Sustainability Goals
ESG : UltraTech’s Sustainability Goals Decarbonization EP 100 initiative Net Zero emissions by UltraTech has doubled its energy productivity 2050 from base year of 2010, way ahead of its target year 2035 Water Stewardship Biodiversity and Land use 5 times water positive ‘No net loss’ approach RE 100
Slide 23: Consistent efforts towards sustainability
Consistent efforts towards sustainability UltraTech leverages inland waterways To deploy 100 + EV trucks in logistics operations UltraTech conducted a pilot project to transport mineral gypsum using UltraTech has signed a contract to deploy around 100 electric trucks for inland waterways through the
Slide 24: CSR in Action
CSR in Action Rajpura Cement Works Kukurdih Cement Works Education out-reach this quarter 21,739 students 32,730 children benefitted from the immunization program conducted Andhra Pradesh Cement Works Nathdwara Cement Works 7,689 people gained skills at various plant locations; Village infrastructur
Slide 25: Financial Performance
ADITYA BIRLA 04 Financial Performance,
Slide 26: Sales Volume
Sales Volume Volume in Million tons Growth Growth Particulars Q3 FY25 (YoY) (QoQ) Grey Cement - Domestic 28.10 10.5% 9% Cement Export 0.20 41% -9% White Cement 0.51 6% 12% Sales Volume - India 28.81 10.6% 9% Overseas 1.78 29% 8% Consolidated Sales Volume* 30.37 11% 9% ReadyMix Concrete (348 plants)
Slide 27: Revenues
Revenues ₹ Crores Growth Growth Particulars Q3 FY25 (YoY) (QoQ) Grey Cement - Domestic 13,969 -0.1% 11% Cement Export 76 37% -8% White Cement 641 -1% 22% ReadyMix Concrete (RMC) 1,469 14% 5% Building Products 231 26% 8% Overseas 884 35% 6% Total Consolidated Revenues* 16,971 3% 11% * After eliminati
Slide 28: Profitability
Profitability EBITDA (₹ Crores) PAT (₹ Crores) -8% YoY -17% YoY 1,777 3,395 3,131 1,470 2,239 820 Q3FY24 Q2FY25 Q3FY25 Q3FY24 Q2FY25 Q3FY25 Including 7 days performance of India Cements Limited 27
Slide 29: Sales Realisation (Grey Cement)
Sales Realisation (Grey Cement) 5,499 Realisation Domestic Grey Cement 4,901 4,970 Realisation (₹/Mt) ➢ Realisation declined 9.6% yoy and improved 1.4% qoq. Q3FY24 Q2FY25 Q3FY25 Realisation = Selling Price less GST and Discounts 28
Slide 30: Key Cost Indicators (Grey Cement): Q3 FY25
Key Cost Indicators (Grey Cement): Q3 FY25 Logistics Fuel Power Raw Materials % of total costs 29% 21% 10% 15% ₹ / Mt 1,161 883 402 633 5% decline yoy 16% decline yoy 5% decline yoy Flat yoy and 1% and 2% qoq and 6% qoq and flat qoq decline qoq Domestic Operations excluding India Cements 29
Slide 31: Logistics Cost (Grey Cement)
Logistics Cost (Grey Cement) 1,221 1,191 1,161 yoy costs decrease: 5% Logistics cost (₹/Mt) ➢ Lead distance reduced to 377 kms in Q3FY25 vs. 397 kms in Q3FY24. Q3FY24 Q2FY25 Q3FY25 Logistics cost v/s Diesel price index qoq costs decrease: 2% 99 97 97 100 99 97 95 ➢ Benefit on account of improved ope
Slide 32: Fuel Cost (Grey Cement)
Fuel Cost (Grey Cement) 2.05 2.03 2.00 1,052 938 Fuel Rate : ₹ /Kcal * Fuel cost (₹/Mt) 883 1.84 1.76 Q3 24 Q2 25 Q3 25 Q3FY24 Q2FY25 Q3FY25 58% qoq cost decrease: 6% and yoy cost decrease: 16% Petcoke Consumption Mix % 54% 44% ➢ Blended imported fuel consumption (CV: 7500) at 36% 37% $ 125/t; 6% lo
Slide 33: Power Cost (Grey Cement)
Power Cost (Grey Cement) 424 400 402 yoy cost decrease: 5% Power cost (₹/Mt) ➢ Green Power Mix has increased to 33.4% vs. 24.1% in Q3FY24. ➢ Efficiency improvement. Q3FY24 Q2FY25 Q3FY25 Green Power Mix (%) 32.0% 33.4% qoq cost : flat 24.1% ➢ Green Power Mix increased to 33.4% vs. 32.0% in 15.6% Q2FY
Slide 34: Raw Material Cost (Grey Cement)
Raw Material Cost (Grey Cement) 640 633 631 Raw Material cost (₹/Mt) qoq cost decrease: 1% and yoy flat Q3FY24 Q2FY25 Q3FY25 Raw Material Cost index ➢ Clinker conversion ratio at 1.45 vs. 1.43 in Q3FY24 112 113 113 103 108 105 102 100 101 100 Q3 22 Q3 24 Q2 25 Q3 25 Fly ash Limestone Raising Gypsum
Slide 35: Other Costs
Other Costs 849 858 784 Other cost (₹/Mt) Cost decrease: 9% qoq, 8% yoy Q3FY24 Q2FY25 Q3FY25 ➢ Operating leverage benefit. ➢ Higher plant maintenance in Q2FY25. WPI index 110 108 109 100 Q3 22 Q3 24 Q2 25 Q3 25 Domestic Operations excluding India Cements 34
Slide 36: Operational Performance: Q3 FY25
Operational Performance: Q3 FY25 ₹ Crores Q3FY24 Q3FY25 Particulars Standalone Consolidated* Standalone Consolidated* 15,882 16,487 Net Sales 16,102 16,971 252 253 Operating Income 226 223 140 140 Other Income 206 244 16,275 16,880 Total Income 16,535 17,438 Expenses: 2,297 2,506 Raw Materials Consu
Slide 37: Financial Statement: Q3 FY25
Financial Statement: Q3 FY25 ₹ Crores Q3FY24 Q3FY25 Particulars Standalone Consolidated* Standalone Consolidated* 15,882 16,487 Net Sales 16,102 16,971 3,289 3,395 EBITDA 2,984 3,131 237 262 Finance Costs 342 382 754 783 Depreciation and Amortization 857 917 580 580 Tax expenses 352 358 - 6 Share of
Slide 38: Financial Position
Financial Position ₹ Crores Standalone Particulars Mar-24 Dec-24 Net Fixed Assets^ 68,458 72,601 Non-Current Investments (Includes funds earmarked for 2,221 12,842 open offer of ICEM) Net Working Capital (4,588) (1,780) Total Assets 66,091 83,663 Shareholders Fund (Incl. Minority Interest) 59,095 61
Slide 39: Branding Excellence
Branding Excellence UltraTech named Brand of the Year at ET UltraTech takes the podium at the Afaqs! Brand Equity DigiPlus Awards 2024 Foxglove Awards 2024 ➢ UltraTech bagged four gold and six trophies across three ➢ Competing at the national level with 100+ brands across campaigns, including two sp
Slide 40: Revolutionizing Retail and earning Industry Honors
Revolutionizing Retail and earning Industry Honors UltraTech felicitated at the Breaking old records, creating new: UBS redefines e4m Pitch Top 50 Brands 2024 retail expansion UltraTech was announced as a winner in the ‘Evergreen’ category, focusing on UBS created a record of opening 150 stores in a
Slide 41: Disclaimer
Disclaimer Statements in this ‘presentation’ describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Impor