Heidelbergcement India Limited. · NSE:HEIDELBERG
Heidelbergcement India — FY2020 Earnings Presentation
19 slides from Heidelbergcement India's earnings presentation, Jun 4, 2020
Slide 1: Cover letter to stock exchanges for conference call presentation
HeidelbergCement India Limited CIN: L26942HR1958FLC042301 Registered Office 9th Floor, Infinity Tower “C”, DLF Cyber City, Phase-II, Gurugram, Haryana 122002, India Phone +91-124-4503700 Fax +91-124-4147698 Website: www.mycemco.com HCIL:SECTL:SE:2020-21 4th June 2020 BSE Ltd. National Stock Exchange
Slide 2: Investor Presentation Q4FY20 and FY20 results
Investor Presentation Q4FY20 and FY20 results June 2020
Slide 3: Agenda
1. Indian Cement Industry 2. Financial and operational highlights 3. Volume and capacity utilization trend 4. Capacity increase in Central India 5. Income statement and EBITDA per tonne bridge 6. Share of volume 7. Balance sheet 8. Debt repayment and credit rating 9. COVID19 Activities and Outlook
Slide 4: Indian cement industry operated at 2/3rd capacity utilization
INDIAN CEMENT INDUSTRY Indian cement industry operated at 2/3rd capacity utilization ❑ All India installed cement capacity estimated to be c. 500 Mn T. ❑ During fiscal year 2019-20, cement Industry reported production volume decrease of c. 1%. FY19 FY20 +5% +8% -25% +2% +5% +3% -2% +8% -8% +4% 33 -5
Slide 5: FY20 Financial and operational highlights
FY20 Financial and operational highlights ▪ Capacity utilization of c. 87% ▪ 100% blended cement ▪ Dependence on grid power reduced to 66% ▪ EBITDA of ₹ 1,122 per tonne, up 14% y/y ▪ Repaid first tranche of NCD ₹ 1.25 bio ▪ Bank balances almost equal to borrowings ▪ Paid interim dividend of ₹ 1.5 pe
Slide 6: FY20 volume decrease mainly due to nationwide lockdown and no clinker sale
ANNUAL VOLUMES AND UTILIZATION TREND FY20 volume decrease mainly due to nationwide lockdown and no clinker sale Capacity utilization % (RHS) Cement sales volume (Mn T) Vol (Mn T) Cap Utz % +5.3% -3.9% 5.0 +3.8% 10,500 4.5 4.0 91% 86% 87% 3.5 83% 7,000 3.0 2.5 4.90 4.71 4.48 4.65 2.0 1.5 3,500 1.0 0.
Slide 7: Central India plants were running at > 95% capacity utilization
CAPACITY INCREASE IN CENTRAL INDIA Central India plants were running at > 95% capacity utilization Caption Imlai Plant (M.P.) Jhansi Plant (U.P.) FY19 Capacity utilisation 94.5% 99.6% Previous Capacity 2.00 Mio Tonnes 2.70 Mio Tonnes Capacity increase through de-bottlenecking 0.50 Mio Tonnes 0.55 Mi
Slide 8: Strong performance despite decrease in volumes
INCOME STATEMENT AND EBITDA PER TONNE BRIDGE Strong performance despite decrease in volumes Mio ₹ Quarter ended Fiscal year ended Particulars Change Change Mar'20Q Mar'19Q Mar'20 Mar'19 Total Income (net of taxes) 5,098 5,434 -6% 21,696 21,334 2% Operating expenses 3,824 4,185 -9% 16,418 16,500 0% E
Slide 9: FY20 – Increase in EBITDA mainly driven by increase in realization
INCOME STATEMENT AND EBITDA PER TONNE BRIDGE FY20 – Increase in EBITDA mainly driven by increase in realization +14% 26 14 17 148 1,122 277 987 INR per t FY19 GSR Raw Material Power & Fuel Freight Others* FY20 Note: Change in inventory has been apportioned 50% each in Raw Material and Power and Fuel
Slide 10: FY20 Share of volume: Continuously optimize the favorable mix
SHARE OF VOLUME FY20 Share of volume : Continuously optimize the favorable mix 46% road 39% coal, volume, -655 bps -2% y/y y/y 13% of trade 85% trade vol., sales, +38% y/y +36 bps y/y 9 HeidelbergCement India Limited | Q4FY20 and FY20 IR Presentation | June 2020 INDIA
Slide 11: Continue to operate on negative net operating working capital
BALANCE SHEET Continue to operate on negative net operating working capital 31 Mar 2020 31 Mar 2019 31 Mar 2020 31 Mar 2019 Particulars Particulars MINR MINR MINR MINR Equity Assets a) Equity share capital 2,266 2,266 Non-current assets b) Other equity 10,880 9,446 a) Property, plant and equipment 1
Slide 12: Bank balances almost equal to borrowings
DEBT REPAYMENT AND CREDIT RATING Bank balances almost equal to borrowings 2,346 Debt Repayments (Mio ₹) 1,250 1,200 FY21 FY22 beyond FY22 11 HeidelbergCement India Limited | Q4FY20 and FY20 IR Presentation | June 2020 INDIA
Slide 13: Stable outlook
DEBT REPAYMENT AND CREDIT RATING Stable outlook 12 HeidelbergCement India Limited | Q4FY20 and FY20 IR Presentation | June 2020 INDIA
Slide 14: Digital media campaign during lockdown 1.0
COVID19 ACTIVITIES AND OUTLOOK Digital media campaign during lockdown 1.0 13 HeidelbergCement India Limited | Q4FY20 and FY20 IR Presentation | June 2020 INDIA
Slide 15: Catering to societal needs
COVID19 ACTIVITIES AND OUTLOOK Catering to societal needs Mask & Sanitization Food Packets Sanitizer of NGH Distribution Distribution Police near Jhansi near Jhansi Station, Plant Plant Damoh Sanitization Sanitizer Sanitization in near by dispenser at in nearby villages with Medical villages fire te
Slide 16: “annam” – Serving the society
COVID19 ACTIVITIES AND OUTLOOK “annam” – Serving the society 15 HeidelbergCement India Limited | Q4FY20 and FY20 IR Presentation | June 2020 INDIA
Slide 17: FY21 outlook uncertain due to COVID-19
COVID19 ACTIVITIES AND OUTLOOK FY21 outlook uncertain due to COVID-19 ▪ Demand reduction in urban areas due to labour exodus and rural demand showing improvement ▪ Working capital - Liquidity crunch in the channel network ▪ Reduced availability of truck drivers impacting inward and outward logistics
Slide 18: Contact information
Contact information For additional information, please contact: Amit Angra amit.angra@heidelbergcement.in +91-124-4503-700 (B) HeidelbergCement India, 9th Floor, Infinity Tower C, DLF Cyber City, Phase 2, Gurugram, Haryana 122002, India Website: www.mycemco.com Please click the following icons to fo
Slide 19: Disclaimer
Disclaimer ▪ Statements in this presentation, which describe the political, economic and demand-supply conditions, Company’s objectives, projections, estimates, finished goods prices, raw materials cost and availability, expectations or predictions, may be considered to be cyclical demand and pricin
HeidelbergCement India — FY2020 Earnings Presentation on 6ix