Star Cement Ltd. · NSE:STARCEMENT
Star Cement — Q3 FY20 Earnings Presentation
20 slides from Star Cement's earnings presentation, Feb 11, 2020
Slide 1: Stock exchange filing cover letter
Date:- 11.02.2020 The Listing Department, National Stock Exchange of India Limited Exchange Plaza, C-1, Block-G Bandra Kurla complex, Bandra-East Mumbai-400 051 Stock code: STARCEMENT BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai-400 001 Stock code: 540575 Dear Sir, Subject: Investor Pre
Slide 2: Star Cement Limited Investor Presentation Q3 FY20 Results
Star Cement Limited (SCL) Investor Presentation-Q3’ FY 20 Results Cementing growth. Branding success. BSE Scrip code: 540575 NSE Scrip code: STARCEMENT FEB 2020
Slide 3: Disclaimer
Disclaimer The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation that all information relating to the context
Slide 4: Contents
Contents Industry Update Performance Highlights Performance Anatomy Awards & Accolades Key Developments 02
Slide 5: Industry Update
Industry Update Cement dealers foresee increase in Macro- prices in Q4 once Economic infrastructure-related Update construction gains momentum Lack of adequate Sector is expected Good monsoons and investment in to add capacity of expected healthy infrastructure has 23 mn Rabi crop should aid also be
Slide 6: Industry Update
Industry Update Analysts and sector experts believe that there is basis for improvement in demand given the sustained long-term investments in infrastructure by the government, which plans to invest Rs 102 lakh crore in the five years ending FY25. So far, 7,000 kilometres (km) of roads have been con
Slide 7: Performance Highlights-Q3
Performance Highlights-Q3 EPS INR 1.71/share Net Sales 7.52 Lac as against INR Ton as against 6.55 1.99/share YOY Lac Ton YOY PAT INR 71 cr. as Net Revenue INR against INR 82 cr. 458 cr. as against YOY INR 417 cr. YOY PBT INR 73 cr. EBITDA INR 100 cr. as as against INR 94 cr. against INR 123 cr. YOY
Slide 8: Performance Highlights-Star Edge
Performance Highlights-Star Edge Largest cement manufacturer in North East India with a capacity market share of nearly 24% Cement and Clinker sales in the region amount to 15.37 Lac ton till Dec’19, a 7% increase Y-O-Y Focus on Trade sales which constitutes 83% of the total sales Being a Br
Slide 9: Performance Anatomy Sales Volume
Performance Anatomy Sales Volume Lac Ton +3% +15% 7.52 20.18 20.82 6.55 Q3 FY 19 Q3 FY 20 YTD Dec FY 19 YTD Dec FY 20 • Net Sales showed sharp improvement in the quarter due to better demand from market outside North East and higher export sales of clinker • Demand was bullish in the third quarter b
Slide 10: Performance Anatomy Net Revenue
Performance Anatomy Net Revenue ₹ Cr. +1% +10% 458 1299 1316 417 Q3 FY 19 Q3 FY 20 YTD Dec FY 19 YTD Dec FY 20 • There was no proportionate increase in revenue vis-à-vis Volume growth due to decrease in prices 06 08
Slide 11: Performance Anatomy PAT
Performance Anatomy PAT ₹ Cr. -4% -13% 82 209 200 71 Q3 FY 19 Q3 FY 20 YTD Dec FY 19 YTD Dec FY 20 • Reduction in PAT was due to increase in fuel cost and lower realisations 09
Slide 12: Performance Anatomy Cost of Goods Sold
Performance Anatomy Cost of Goods Sold ₹/t +2% +6% 4747 4828 4917 4499 Q3 FY 19 Q3 FY 20 YTD Dec FY 19 YTD Dec FY 20 • Increase in cost has been mainly on account of Power & Fuel cost 10
Slide 13: Performance Anatomy Power & Fuel cost analysis
Performance Anatomy Power & Fuel cost analysis ₹/t +42% +25% 1244 1295 996 912 Q3 FY 19 Q3 FY 20 YTD Dec FY 19 YTD Dec FY 20 • Increase in fuel cost has been due to higher usage of outside coal • Alternative fuels utilization enhanced in Q3 • Although prices have increased Y-O-Y, but there has been
Slide 14: Performance Anatomy Freight & Forwarding Cost
Performance Anatomy Freight & Forwarding Cost ₹/t -8% -2% 1279 1178 1188 1170 Q3 FY 19 Q3 FY 20 YTD Dec FY 19 YTD Dec FY 20 • Freight Cost has been optimized due to improvement in road condition and lower clinker dispatches to Nepal in the current year 12
Slide 15: Financial numbers-Consolidated
Financial numbers-Consolidated Income Statement : ₹ Cr. Particulars Q3FY19 Q3FY20 % YTD Dec YTD Dec % change FY 19 FY 20 change Net Operating Revenue 416 451 8% 1297 1294 -0.2% EBITDA 123 100 -18% 324 292 -10% EBITDA margin% 29.61% 22.32% -7.3pp 25.08% 22.60% -2.5pp PAT 82 71 -13% 209 200 -4% PAT ma
Slide 16: Corporate Action/Highlight-Q3
Corporate Action/Highlight-Q3 Commencement of Buyback Offer : 22nd October,2019 Closure of Buyback Offer : 05th November,2019 Total of 68,00,000 ( 68 lakh) equity shares of Face value ₹1 each at an average price of ₹150 per share were extinguished Buyback represented 1.62% of pre-buyback equ
Slide 17: Awards & Accolades-Q3
Awards & Accolades-Q3 Star Cement Limited won the coveted Supply Chain & Logistics Excellence (SCALE) Award 2019- Cement Industry Category held by the prestigious Confederation of Indian Industry (CII) Institute of Logistics. It is the first ever award series by an industry apex body to recognize Su
Slide 18: Key Developments-CSR
Key Developments-CSR • A free health Check-up Camp and 3 diabetes check up camps were organized at Jalpaiguri covering 900 people Health • Organized Special Eye camp at Lumshnong village where 300 eye patients were treated • Initiated two livelihood project-Spice cultivation and Weaving cluster Deve
Slide 19: Key Developments-CSR-Through Our Eyes
Key Developments-CSR-Through Our Eyes Media Coverage: MOU signing and Road Safety 17
Slide 20: Thank You
Thank You Mr. Sanjay Kr. Gupta investors@starcement.co.in www.starcement.co.in