Nuvoco Vistas Corporation Limited · NSE:NUVOCO
Nuvoco Vistas — Q3 FY24 Earnings Presentation
27 slides from Nuvoco Vistas's earnings presentation, Jan 29, 2024
Slide 1: Exchange filing cover letter: investor presentation intimation
NUVOCO VISTAS CORP. LTD. NUvOCO �® Shaping a new world Ref. N o.: Sec/145/2023-24 January 29, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Fort, Mumbai - 400 001 Sandra Kurla Complex, Sandra (East), Scrip Code: 54333
Slide 2: Investor Presentation: Third quarter and nine months ended December 31, 2023
Investor Presentation Third quarter and nine months ended December 31, 2023 January 29, 2024 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: Company overview
Company overview 3
Slide 5: Nuvoco – A major player in building materials space
Nuvoco – A major player in building materials space ✓ 5th largest cement group in India ✓ Market leading brands with significant and leading player in East India market share, reputation and brand recall ✓ Installed cement capacity of ✓ Focused on retail with major revenue 25 MMT1 and 562 Ready-Mix
Slide 6: Q3 FY24 consolidated performance at a glance
Q3 FY24 consolidated performance at a glance Robust improvement in EBITDA YoY driven by growth in realisation and cost efficiency ₹ 2,421 Cr. 7% YoY ₹ 421 Cr. 55% YoY ₹ 4,533 Cr. ₹ 632 Cr. YoY Financial Revenue EBITDA Net debt 4.0 MMT1 10% YoY 73% 2% YoY 14% 5% YoY Operational Cement sales volume Tr
Slide 7: Economy and Industry
Economy and Industry 6
Slide 8: Macro indicators indicate positive outlook
Macro indicators indicate positive outlook Manufacturing PMI at 54.9 CPI inflation at ~5.7% in GDP growth in Dec’23. Continues to Dec’23 and projected to projections for FY24 raised remain >50 consecutively remain at 5.4% for FY24 from 6.5% to 7% for 30 months, indicating expansion in the sector Imp
Slide 9: Demand drivers remain intact
Demand drivers remain intact Civil contracts Capex plan of over ~20,000 kms of ~84 lakh houses awarded for 508 ₹ 98,000 Cr. roads under under PMAY kms Mumbai- 330 kms of Western including ₹ 25,000 Bharatmala schemes yet to be Ahmedabad Dedicated Freight Cr. by AAI during Pariyojana Phase 1 construct
Slide 10: Business update
Business update 9
Slide 11: Status of growth projects
Status of growth projects Haryana 1.2 MMT1 Cement expansion at Haryana ✓ Cement mill commissioned taking overall cement capacity to 25 MMT1 ✓ New capacity will enable the Company to cater to the demand in the Northern region Sonadih Odisha Railway sidings at Sonadih and Odisha ✓ Track laying activit
Slide 12: RMX and MBM businesses provide additional levers for growth
RMX and MBM businesses provide additional levers for growth Ready-Mix Concrete (RMX) New RMX plant at Navi Mumbai ✓ Commissioned 5 RMX plants in 9M FY24. Currently, 56 plants across India ✓ Continuous thrust on premiumisation. Value added product mix at ~29% of total sales volume in Q3 FY24 Modern B
Slide 13: Awards and recognitions showcasing our achievements
Awards and recognitions showcasing our achievements ”Environmental “23rd Annual “Best-in-class Usage “Golden Peacock “HR Innovation Of The Excellence Award” to Greentech of GPS Technology in Award 2023” to Year” award at the Risda plant in the Environment the Cement Industry” Chittorgarh plant for I
Slide 14: Sustainability and CSR
Sustainability and CSR 13
Slide 15: Focus on sustainability parameters
Focus on sustainability parameters Sustainability agenda One of the lowest carbon footprint in the industry with carbon PROTECT OUR PLANET emission at 4621 kg CO2 per ton of cementitious materials Cement to clinker ratio4 (x) 1.60 1.72 2,00,000+ ton of waste utilized as fuel in plants under circular
Slide 16: Social initiatives
Social initiatives ✓ Equipped 16 schools with digital smart classrooms; initiative benefitting > 10,000 students ✓ 1,100+ girls benefitted from “Sanitary Napkin Pad Bank” initiative ✓ 150+ masons trained under “Nuvo-Mason” - a masonry skill development program ✓ 3,980+ meter concrete road constructe
Slide 17: Key financials
Key financials 16
Slide 18: Prices expected to remain stable on positive demand outlook
Prices expected to remain stable on positive demand outlook Market Prices Cost ✓ Cement demand in East a mixed ✓ East cement prices improved by ✓ Raw material cost declined bag. West Bengal, Bihar, 0.8% QoQ1 and fuel cost reduced due to Q3 FY24 Jharkhand and Chattisgarh ✓ Pan-India prices increased
Slide 19: Key consolidated financial indicators
Key consolidated financial indicators Cement volumes Revenue EBITDA (MMT1) (₹ Cr.) (₹ Cr.) Q3 FY24 4.0 2,421 421 (-10% YoY) (-7% YoY) (+55% YoY) 9M FY24 13.5 7,799 1,159 (-1% YoY) (+2% YoY) (+38% YoY) Priority on value over volume and focus on cost efficiency driving EBITDA growth Note: 1. MMT - Mil
Slide 20: Uptick in realisation and cost control driving EBITDA
Uptick in realisation and cost control driving EBITDA EBITDA growth EBITDA/t growth ₹ Cr. ₹/t 421 1,048 336 752 272 608 Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 ✓ EBITDA improved 55% YoY primarily driven by realisation and decline in power and fuel cost ✓ EBITDA/t at ₹ 1,048 - highest in the
Slide 21: Key cement cost elements
Key cement cost elements Raw material cost1 Power Powerand & fuel cost1 1 fuelcost Distribution cost1 (₹/t) (₹/t) (₹/t) 699 714 1,611 1,495 624 1,219 1,479 1,132 1,450 Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 ✓ Reduced QoQ due to decline in ✓ Reduced QoQ due to increas
Slide 22: Launching new look for Nuvoco range of products
Launching new look for Nuvoco range of products New design highlights stronger bond between the mother brand and sub-brands 21
Slide 23: Enhancing brand visibility
Enhancing brand visibility ✓ Campaign exclusively designed to promote ✓ "Sabse Khaas Sarpanch" is entire range of Duraguard aimed at elevating brand products visibility for Duraguard Cement by building ✓ Campaign launched in key relationship and markets of Rajasthan, fostering community Haryana, Guj
Slide 24: Deleveraging remains a top priority
Deleveraging remains a top priority Net debt (₹ Cr.) Nuvoco’s interest rate vs. repo rate1 160 8.5% 8.5% 9.0 % 8.0% 8.1% 8.0 % 140 7.1% 6.9% 7.0 % 6.5% 6.5% 120 6.0 % 6,730 6.3% 5,495 5.0 % 5,064 5,165 100 Repo rate 4,414 4,533 4.0 % 4.0% 4.0% 4.0% Interest rates (%) 80 3.0 % Mar'21 Mar'22 Mar'23 De
Slide 25: Consolidated income statement
Consolidated income statement (₹ Cr.) Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Total Income 2,609 2,579 2,432 7,668 7,826 Cost of materials consumed 469 441 370 1,322 1,298 Purchase of stock in trade 11 11 57 33 79 Changes in inventories (110) 18 16 (211) (10) Power and fuel 801 537 449 2,181 1,609 F
Slide 26: Summary
Summary ✓ Cement demand to be driven by Nimbol Cement Plant ▪ Infrastructure led spending by the government ▪ Pick up in housing. ~84 lakh units pending for completion under PMAY. ~30 lakh houses in East1 and majority of which is in West Bengal ✓ Haryana Cement mill commissioned taking overall cemen
Slide 27: Thank you
Thank you Nuvoco Vistas Corporation Ltd. 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 Company Contacts Madhumita Basu; Emai