Nuvoco Vistas Corporation Limited · NSE:NUVOCO
Nuvoco Vistas — Q3 FY2022 Earnings Presentation
34 slides from Nuvoco Vistas's earnings presentation, Feb 9, 2022
Slide 1: Cover letter to stock exchanges
~ ® NUVOCO VISTAS CORP. LTD. N Uv OCO Shaping a new world ~ Ref. No.: Sec/160/2021-22 February 9, 2022 BSE Limited National Stock Exchange of India Phiroze Jeejeebhoy Towers , Dalal Street, Limited Fort, Mumbai - 400 001 Exchange Plaza, C-1 , Block G, Scrip Code: 543334 Sandra Kurla Complex, Sandra
Slide 2: Investor Presentation
Investor Presentation Third quarter and nine months ended December 31, 2021 February 09, 2022 1
Slide 3: Safe harbour clause
Safe harbour clause Statements in this ‘presentation’ describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements”. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the Company’s
Slide 4: Key Performance Highlights
01 Key Performance Highlights Nazrul Tirtha, Kolkata 3
Slide 5: Resilient performance
Resilient performance Cement sales volumes Premium product share Project SPRINT on track increased 10% QoQ increased on YoY basis Higher incentive from Improvement in Alternate Regaining growth in RMC Jojobera expansion Fuel rate by 200 bps and MBM businesses RMC: Ready-Mix Concrete; MBM: Modern Bui
Slide 6: Company Overview
02 Company Overview Lodha World One, Mumbai 5
Slide 7: Nuvoco at a glance
Nuvoco at a glance… ▪ Major player in the building materials industry with diverse product portfolio Fastest growing cement company ▪ 5th largest1 in India with strategic presence in East and in terms of capacity addition North India Market leading brands ▪ Installed cement capacity of 23.82 MTPA wi
Slide 8: A distinguished player in the market
A distinguished player in the market 75% ▪ Strong and steady retail presence despite Highest ever sales of trade ratio difficult market conditions Concreto in Dec’21 32% 1 ▪ Maintained a healthy premium products share in premium share Q3 FY22 200+ ▪ Continuously expanding the channel network new dea
Slide 9: Economy & Industry
03 Economy & Industry Amritsar Gate, Amritsar 8
Slide 10: Indian economy witnessing a continuous improvement
Indian economy witnessing a continuous improvement Economy Industry ▪ Continued economic recovery in Q3 FY22 amidst improving ▪ Cement demand remained a challenge in Q3 FY22; all India sentiment with moderating Covid-19 cases demand estimated to shrunk 4% on YoY basis ▪ As per RBI estimates, Q3 FY22
Slide 11: East was impacted by unprecedented extraneous factors
East was impacted by unprecedented extraneous factors ▪ East was specifically impacted by the unexpected extraneous factors during Q3 FY22, estimated to drive down the cement demand by ~16%YoY ▪ Late recovery of cement demand (post mid-Dec’21) did not allow us the opportunity to take price hikes dur
Slide 12: Housing & Infrastructure to drive cement demand
Housing & Infrastructure to drive cement demand Housing Infrastructure Industrial & Commercial ▪ Affordable Housing – a ▪ 35% increase in government ▪ Gradual ramp up with pick up major demand driver capex announced for FY23 of deferred capex ▪ Recovery in urban housing ▪ Metro, NHAI, PMGSY and ▪ PL
Slide 13: Key Focus Areas
04 Key Focus Areas Aquatic Gallery, Ahmedabad 12
Slide 14: Constantly working on internal levers
Constantly working on internal levers On track to generate incremental Price Acceleration Program EBITDA of Rs.250 per ton by FY23 ▪ Continuous focus on premiumisation, value added products and innovation through internal levers ▪ Improving trade share and geo-mix optimization Incremental EBITDA/t (
Slide 15: Unlocking value through Project SPRINT
Unlocking value through Project SPRINT Logistics synergy Reduction in lead distance Risda to Arasmeta rerouting has also been Clinker rerouting activated Project Built Concreto manufacturing capability across SPRINT Manufacturing synergy 3 plants – Jojobera, Jajpur and Panagarh Sourcing efficiency i
Slide 16: Our key growth and sustainability investments
Our key growth and sustainability investments ▪ Comprehensive planning and ▪ Sustainability projects with ▪ Expansion announced at execution to augment cement focus on reduction in carbon Gulbarga, targeting volumes availability by ~2.4 MTPA footprints Maharashtra markets ▪ Debottlenecking projects
Slide 17: Demonstrating strength in organic expansions
Demonstrating strength in organic expansions Clinker debottlenecking ▪ Capability established at Risda clinker capacity at 11,500 TPD ▪ Nimbol’s clinker capacity enhancement by 1,000 TPD through debottlenecking is on track Debottlenecking project - Nimbol Cement Plant Captive Power Plants ▪ Increase
Slide 18: RMC and MBM businesses are on track
RMC and MBM businesses are on track Ready-Mix Concrete (RMC) ▪ 54 operational plants; new plants set up at Numaligarh, Assam; Miyapur, Telangana and Vapi, Gujarat ▪ Healthy sales volume; Q3 FY22 sales volumes grew 34%YoY ▪ Noida plant received GreenPro certification from CII RMC plant – Miyapur, Tel
Slide 19: Creating a difference with premium offerings
Creating a difference with premium offerings Launched Concreto Endura – a specialised piling concrete for a durable foundation Nuvoco Concreto Endura protects piles against With Nuvoco Concreto Endura, better packing chloride and sulphate penetration density of concrete results in low porosity 18
Slide 20: Actively participating in India's growth story
Actively participating in India’s growth story Ready-Mix Concrete plants in Gujarat to cater the requirement for India’s upcoming High-Speed Railway 19
Slide 21: Actively participating in India's growth story
Actively participating in India’s growth story Reconstruction on the existing structure of Marathon Futurex, a landmark property in Mumbai, by adding additional floors was made possible by Nuvoco’s Concreto Xlite which provides desired tensile & elastic properties along with higher strength at lower
Slide 22: Sustainability & CSR
05 Sustainability & CSR Sharda University, Delhi 21
Slide 23: Sustainability – a key thrust areas
Sustainability – a key thrust areas Key projects Q3 FY22 Key achievements ▪ PCC volumes increased more than 8 WHR Ramp Up Thrust on Composite Cement times on QoQ basis ▪ Alternate Fuel rate (AFR) improved to Green Concrete in RMX 6%; Chittor Cement Plant achieved one Tree Plantation of the highest A
Slide 24: CSR activities in Q3 FY22
CSR activities in Q3 FY 22 ▪ Installed solar plants in 26 govt schools in Arasmeta and Bhiwani to foster better learning Shikshit environment for 4,000+ students while reducing the carbon footprints Bharat ▪ Extending continuous support for education of 100+ children from tribal families in Jojobera
Slide 25: Recognition of our efforts towards sustainability
Recognition of our efforts towards sustainability Gulbarga Mines bagged 8 awards by Sonadih Mines awarded a 5 Star rating Won the Gold prize at OHSSAI Mines Environment and Mineral by Shri Pralhad Joshi, Minister of Conclave 2021 in the category of Conservation Association for various Mines, Governm
Slide 26: Key Financials
06 Key Financials Khodhaldham Temple, Ahmedabad 25
Slide 27: Fundamentals improving for Q4 FY22
Fundamentals improving for Q4 FY22 Market Prices Cost Extraneous factors continued to impact performance in Q3 FY22 ▪ East region remains the most ▪ Price hikes had to be rolled back in ▪ Benefit from internal levers impacted during the quarter Nov’21 on weak demand ▪ Fuel prices continued at histor
Slide 28: Consolidated key financial indicators
Consolidated key financial indicators Q3 FY22 9M FY22 4.23 2,165 242 a 12.31 6,388 1,102 a Sales Volume Total Revenue Total EBITDA Sales Volume Total Revenue Total EBITDA (mn tons) (Rs. crores) (Rs. crores) (mn tons) (Rs. crores) (Rs. crores) a. EBITDA includes remeasurement gain of post-employment
Slide 29: Movement in 9M FY22 EBITDA/t on YoY basis
Movement in 9M FY22 EBITDA/t on YoY basis 167 210 65 919 895 466 EBITDA/t Price movement Internal levers Cost changes Others EBITDA/t 9M FY21* 9M FY22 *9M FY21 figures include Nu Vista financials since 1st April 2020 for like to like comparison 28
Slide 30: Key cement cost elements in Q3 FY22
Key cement cost elements in Q3 FY22 Raw Material cost Power & Fuel cost Distribution cost 602 1,285 1,371 (Rs./t) (Rs./t) (Rs./t) Increased by 8% YoY Increased by 50% YoY Increased by 11% YoY ▪ Raw material cost was well ▪ Impacted primarily from higher ▪ Primarily due to increase in managed with pr
Slide 31: Balance sheet improvement continues to be a priority
Balance sheet improvement continues to be a priority Net debt (Rs. Crores) 7,260 Key Updates 6,730 ▪ Net debt reduced by Rs.1,235 5,495 crores since Mar’21 Dec'20 end Mar'21 end Dec'21 end ▪ Balance IPO proceeds of more than Rs.700 crores is intended for Interest rate trending lower (%) debt repayme
Slide 32: Consolidated income statement
Consolidated income statement (All amount in Rs. crores) Q3 FY21 Q3 FY22 9M FY211 9M FY22 Revenue from Operations 2,231 2,165 5,471 6,388 EBITDA2 461 242 1,072 1,102 EBITDA Margin 21% 11% 20% 17% Finance costs 184 141 604 438 Depreciation and Amortisation expense 230 231 549 674 Profit/(Loss) before
Slide 33: Summary
Summary ✓ Strong foothold in East markets with healthy trade ratio and higher share of premium products ✓ Internal levers will continue to support profitability ✓ Substantial reduction in net debt ✓ Multiple projects for a sustainable growth with an aspiration to diversify market base and reduce the
Slide 34: Contact
Contact Nuvoco Vistas Corporation Limited Corporate Identity Number: L26940MH1999PLC118229 Registered and Corporate Office: Equinox Business Park, Tower 3, East Wing, 4th Floor, LBS Marg, Kurla (West), Mumbai - 400 070, Maharashtra, India Website: www.nuvoco.com ; E-mail: investor.relations@nuvoco.c