Ultratech Cement Limited · NSE:ULTRACEMCO
Ultratech Cement — Q1 FY24 Earnings Presentation
33 slides from Ultratech Cement's earnings presentation, Jul 21, 2023
Slide 1: Exchange cover letter for investor presentation
21st July, 2023 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: ULT
Slide 2: UltraTech Cement Limited Results Q1 FY24
UltraTech Cement Limited Cementing growth with concrete results Results Q1 FY24 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 Update Performance 2
Slide 4: Macro and Sectoral Update
01 Macro and Sectoral Update Hirmi Cement Works, Chhatisgarh was conferred the CII National Annual Award for Environmental Best Practices in 2023. The award was given to them for their achievements in kiln productivity, efficiency improvement, and the subsequent reduction in air pollution and CO2 em
Slide 5: Macro Indicators
ADITYA BIRLA Macro Indicators The RBI should June composite PMI CPI remains below maintain status quo output index at 59.4, 5% from Apr to Jun FY24 GDP growth for this year as the eo easing from 13-year and expected to forecasted at ~6%. domestic and external highs in April and average ~5% for secto
Slide 6: Business Update
02 Business Update UltraTech is leveraging technological and digital innovation to decarbonise manufacturing and deeply committed to drive operational excellence and deliver greater value to its stakeholders. For enhancing reliability and efficiency, we are constantly exploring new ways to optimise
Slide 7: Region Volume Growth
Volume Region I C H R Key drivers Growth ✓ Infrastructure segment demand was supported by Government’s sustained thrust on Projects like Delhi-Amritsar-Katra road project, Dwarka Expressway, etc. North ✓ Commercial demand registered growth due to increased pace of work in all major centers. ✓ Housin
Slide 8: Q1 FY24 business highlights
Domestic sales volume grew 20% yoy with capacity utilization of 89%. Operating EBITDA/Mt of ₹ 1,034 vs ₹ 1,248 in Q1 LY and ₹ 1,060 in the last quarter. Commissioned cement capacity of 3.0 MTPA, taking total grey cement capacity of the Company to 129.95 MTPA in India. Blended cement at 70%, clinker
Slide 9: Ranked 28th in Interbrand's top 50 Indian Brands 2023
Ranked 28th, UltraTech is the only cement company to feature in Interbrand’s top 50 Indian Brands for 2023 As per Interbrand’s report, UltraTech has maintained its position in the Best Indian Brands list owing to its strong financial growth and continued leadership in its sub-category Cement and Val
Slide 10: Smart Manufacturing, Energy optimisation, Safer operations, Empowering partners
Smart Energy optimisation and Safer Empowering Manufacturing enhanced productivity operations partners Investment in setting up Scaling up the adoption of Adopted various advanced Our multilingual app, Eye- cloud infrastructure for algorithmic solutions aimed technologies such as to-Track, launched
Slide 11: ESG Update: ranked first among construction material companies
UltraTech ranks first among construction material companies 03 on India's Most Sustainable Companies List for 2022-23 ESG Update UltraTech has been ranked No.1 in Sustainability in the Infrastructure and Engineering sector and 13th overall in Sustain Labs Paris and BW Businessworld’s India's Most Su
Slide 12: Circular economy: cement bags using recycled polypropylene
UltraTech has further strengthened its contribution towards circular economy by developing cement packaging bags using recycled polypropylene (rPP). The new cement bags are made with 50 % of rPP. Overall, the use of rPP has helped to reduce the use of virgin plastic by 43%. This helps the cement bag
Slide 13: Biodiversity assessments, tree planting and water reuse
Biodiversity assessments completed at 13 integrated units and working to complete biodiversity assessments in all 24 integrated units by FY24 Planted 7500+ trees at the premises of its integrated units – Bela, Vikram and Gujarat Cement Works by implementing the concept of Miyawaki forests Reused, re
Slide 14: CII recognition for environment and safety
UltraTech’s determined efforts to protect environment UltraTech’s commitment to safety and error prevention recognized by Confederation of Indian Industry (CII) recognized by Confederation of Indian Industry (CII) Our integrated unit Aditya Cement Works has been awarded for Our integrated units, Sew
Slide 15: British Safety Council International Safety Awards 2023
Five of our integrated units, one grinding unit, and one bulk terminal won awards for excellence in safety at the prestigious British Safety Council’s International Safety Awards, 2023 14
Slide 16: Community education, health and water initiatives
Education reach out this quarter 22,252 students 36,000 children got benefited by the immunization Balaji Cement works helping 16,800 villagers programs conducted through providing safe drinking water 3,200 farmers benefitted from sustainable Village infrastructures were strengthened in Self Help Gr
Slide 17: Financial Performance
04 Financial Performance One more feather in our cap. UltraTech is the largest supplier of Cement, Ready-Mix Concrete and specialist Building Products for construction of the new Parliament building in Central Vista.
Slide 18: Sales volume in million tons
Volume in Million tons Growth Growth Particulars Q1 FY24 (YoY) (QoQ) Grey Cement - Domestic 28.50 20% -5% Cement Export & Clinker Sales 0.10 1% -38% White Cement 0.41 12% -13% Sales Volume - India 29.01 20% -5% Grey Cement – Overseas 1.04 11% -20% Consolidated Sales Volume* 29.96 20% -5% * After eli
Slide 19: Revenues by product
₹ Crores Growth Growth Particulars Q1 FY24 (YoY) (QoQ) Grey Cement - Domestic 15,247 17% -5% White Cement 590 18% -11% ReadyMix Concrete (RMC) 1,233 37% 8% Others 254 -16% -14% Grey Cement – Overseas 555 13% -10% Total Consolidated Revenues* 17,519 17% -5% * After elimination of inter company sales
Slide 20: EBITDA and Profit after tax
EBITDA (₹ Crores) Profit after tax (₹ Crores) +7% YoY +1% YoY 1,688 3,444 1,666 3,204 3,223 1,584 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 19
Slide 21: Domestic Grey Cement Price and Realisation vs Cost
5,506 Domestic Grey Cement Price (₹/Mt) 5,373 5,350 Realization vs Cost ➢ Realization marginally lower on QoQ basis while cost Q1FY23 Q4FY23 Q1FY24 remains flat. ➢ Impacted EBITDA/Mt by ₹ 26/Mt. Realisation v/s Total Cost 126 124 123 122 123 112 109 109 Q1 20 Q1 23 Q4 23 Q1 24 Realisation Total Cost
Slide 22: Logistics, Energy and Raw Material Cost
Logistics Cost Energy Cost Raw Material Cost % to total costs 31% 36% 14% ₹ / Mt 1,264 1,621 610 Increased 1%: YoY and Increased 3% YoY; Increased 6% YoY; QoQ Decreased 4% QoQ Increased 1% QoQ India Operations 21
Slide 23: Logistics cost
1253 1251 1264 YoY costs increase: 1% Logistics cost (₹/Mt) ➢ Impacted by resumption of busy season surcharge, partially mitigated by lead optimization and operating efficiencies. ➢ Lead reduced to 410 km from 429 km in Q1 LY. Q1FY23 Q4FY23 Q1FY24 Logistics cost v/s Diesel Price Index QoQ costs incr
Slide 24: Raw Material cost
604 610 577 YoY cost increase: 6% Raw Material cost (₹/Mt ➢ Increase in cost of raw materials: fly ash, slag and gypsum etc. ➢ Improvement in clinker conversion ratio. Q1FY23 Q4FY23 Q1FY24 Conversion Ratio and Fly ash Price Index QoQ cost increase: 1% 124 124 111 107 ➢ Improvement in clinker convers
Slide 25: Ensuring sustainability in business growth
Ensuring sustainability in business growth Clinker to cement conversion 1.44 1.42 1.40 Q1FY23 Q4FY23 Q1FY24 Continuous focus on sustainability by promoting use of sustainable products and improving clinker to cement conversion 24
Slide 26: Energy cost
Blended Fuel cost at 7500 CV: $/Mt 1697 1621 1573 194 184 15 178 Energy cost (₹/Mt) 14 14 179 170 164 Q1FY23 Q4FY23 Q1FY24 Energy cost v/s Pet coke Price Index Q1FY23 Q4FY23 Q1FY24 243 198 Receipt at Port Moisture Loss Total consumption cost 181 168 156 160 YoY cost increase: 3% and QoQ cost decreas
Slide 27: Other cost
740 683 YoY cost decrease: 8% 624 Other cost (₹/Mt) ➢ Operating leverage benefit; volume growth of 20%. Q1FY23 Q4FY23 Q1FY24 QoQ cost increase: 9% WPI Index 126 123 124 ➢ Higher maintenance ➢ Operating leverage impact Q1 20 Q1 23 Q4 23 Q1 24 India Operations 26
Slide 28: Consolidated and India Operations P&L
₹ Crores Consolidated India Operations Particulars Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 17,519 15,007 Net Sales ^ 17,007 14,543 218 157 Operating Income 218 146 174 109 Other Income 209 139 17,911 15,273 Total Income 17,434 14,828 Expenses: 2,560 1,999 Raw Materials Consumed 2,397 1,932 433 364 Purchase
Slide 29: Consolidated and India Operations: EBITDA to PAT
₹ Crores Consolidated India Operations Particulars Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 17,519 15,007 Net Sales ^ 17,007 14,543 3,223 3,204 EBITDA 3,209 3,143 211 216 Finance Costs 192 200 749 695 Depreciation and Amortization 720 667 577 711 Tax expenses 588 714 2 (2) Minority interest - - 1,688* 1,584
Slide 30: Middle East and Sri Lanka results
Amount in Mn AED Amount in Mn SLR Middle East Lanka Particulars Q1FY24 Q1FY23 Q1FY24 Q1FY23 198 186 Net Sales 4,263 5,440 0.1 0.2 Operating Income 20 7 0.3 0.3 Other Income 72 235 198 186 Total Income 4,355 5,681 55 50 Purchase/Consumption of Raw Material 3,914 3,463 0.3 -4 Changes in Inventory -366
Slide 31: Consolidated and India Operations balance sheet
₹ Crores Consolidated India Operations Particulars 30.06.2023 31.03.2023 30.06.2023 31.03.2023 66,054 64,987 Net Fixed Assets^ 63,211 62,121 1,042 1,017 Investment in Subs/Associates/JVs 3,203 3,187 (2,271) (2,669) Net Working Capital (3,692) (3,987) 64,825 63,335 Total Assets 62,721 61,321 56,091 5
Slide 32: Glossary
Glossary ➢ MNT - Million Metric Tons ➢ CPI - Consumer Price Index ➢ Realization = Selling Price less GST and Discounts ➢ LMT - Lakh Metric Tons ➢ WPI - Wholesale Price Index ➢ Blended Fuel includes imported coal and petcoke ➢ MTPA - Million Tons Per Annum ➢ IHB - Individual Housing Builder ➢ Blended
Slide 33: UltraTech Cement Limited forward-looking statements
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. Important factor