Ultratech Cement Limited · NSE:ULTRACEMCO
Ultratech Cement — Ultratech Cement S/Gdr — Q3 2024 Earnings Presentation
33 slides from Ultratech Cement's earnings presentation, Jan 19, 2024
Slide 1: UltraTech Cement Limited Results Q3 FY24
UltraTech Cement Limited Taking concrete actions for a sustainable future Results Q3 FY24 Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX
Slide 2: Macro and Sectoral Update, ESG, Business Performance, Growth Plans
01 02 03 04 Macro and ESG Business Growth Sectoral Update Performance Plans Update Update
Slide 3: Macro and Sectoral Update
01 Macro and Sectoral Update Hirmi Cement Works, Chhattisgarh revived a community pond located in the proximity of the Unit.
Slide 4: Macro Indicators
Macro Indicators Overall GDP For April- CPI increased to Pre-election growth expected November 2023, 5.7% yoy in spending and at 7.3% for FY24 IIP growth stood December v/s thrust on supported by a at 6.4 % as against 5.6% yoy in infrastructure to surge in 5.6 % in the first November. The remain key
Slide 5: Sectoral Update : Q3 FY24
Sectoral Update : Q3 FY24 Zone Volume Gr I C H R Key drivers ✓ Housing segment registered de-growth in rural and urban owing to NGT ban, delayed kharif harvesting in Punjab, Haryana and Uttar Pradesh. Labour shortage on account of state elections impacted construction activities in Rajasthan. Himach
Slide 6: ESG Update
4.55x Water Positive 02 29.3 MnT* ESG Alternative Raw Update Material and Fuel Emission 24% 560 Green Power Mix [kg CO2/t cement] * For FY23
Slide 7: Holistic Decarbonization Commitment
Holistic Decarbonization Commitment FY30 FY26 85% 60% Q3 FY24 24% UltraTech will use 85% green power by 2030 Our Company also targets to meet 100% of its electricity requirement through renewable sources by 2050, as part of its RE100 commitment. As a member of EP100, our Company is committed to doub
Slide 8: Sustainability across the value chain
Sustainability across the value chain Driving in the lane of green mobility, UltraTech has successfully piloted electric trucks for clinker transportation from Dhar Cement Works, Madhya Pradesh. Demonstrates our focused efforts to drive sustainability across the value chain of operations. 8
Slide 9: CSR update
CSR update Baga Cement Works enables women’s livelihoods through micro enterprises The women were trained to become self- reliant in conducting businesses, helping them set up microenterprises based on locally available resources and community requirement. Maihar Cement Works, Madhya Pradesh Reddipa
Slide 10: Business Performance Update
03 Business Performance Update UltraTech remains the largest supplier of cement to the Regional Rapid Transit System (RRTS) under construction linking Delhi to Ghaziabad and Meerut
Slide 11: Highlights : Q3
Highlights : Q3 Domestic sales volume grew 5% yoy with capacity utilization of 77%. Operating EBITDA/Mt of ₹ 1208 for India Operations, an improvement of 34% yoy and 27% qoq. Achieved highest ever Profit after tax of Rs 1,777 Crs, improved 68% yoy and 39% qoq. Entry in Jharkhand with acquisition of
Slide 12: Sales Volume
Sales Volume Volume in Million tons Growth Growth Particulars Q3 FY24 (YoY) (QoQ) Grey Cement - Domestic 25.44 5% 1% Cement Export & Clinker Sales 0.14 30% -12% White Cement 0.48 18% 14% Sales Volume – India 26.06 5% 2% Grey Cement – Overseas 1.38 20% 17% Consolidated Sales Volume* 27.32 6% 2% * Aft
Slide 13: Revenues
Revenues ₹ Crores Growth Growth Particulars Q3 FY24 (YoY) (QoQ) Grey Cement - Domestic 13,989 7% 4% White Cement 648 13% 11% ReadyMix Concrete (RMC) 1,293 29% 11% Others 284 -20% -10% Grey Cement – Overseas 655 14% 9% Total Consolidated Revenues* 16,487 8% 5% RMC volume grew 28% yoy with 270 plants
Slide 14: Profitability
Profitability EBITDA (₹ Crores) Profit after tax (₹ Crores) +68% YoY +38% YoY 1,777 3,395 2,718 1,281 2,462 1,058 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Highest ever quarterly PAT 14
Slide 15: Domestic Grey Cement Realization (₹/Mt)
Sales Realisation (Grey Cement) Domestic Grey Cement Realization (₹/Mt) 5,499 5,388 5,349 Realisation ➢ Realization improved by 2.1% and 2.8% yoy and qoq. Q3FY23 Q2FY24 Q3FY24 ➢ Visible margins improvement. Realisation v/s Total Cost index 101 101 103 100 100 100 100 99 97 93 93 94 Q2FY23 Q3FY23 Q4F
Slide 16: Key Cost Indicators (Grey Cement): Q3 FY24
Key Cost Indicators (Grey Cement): Q3 FY24 Logistics Cost Energy Cost Raw Material Cost % to total costs 29% 33% 15% ₹ / Mt 1,221 1,477 631 Decreased 2% yoy Decreased Increased 3% yoy and qoq Flat 16% yoy and 5% qoq and qoq: Flat India Operations 16
Slide 17: Logistics Cost (Grey Cement)
Logistics Cost (Grey Cement) 1250 1219 1221 yoy costs decrease: 2% Logistics cost (₹/Mt) ➢ Lead reduced to 397 kms in Q3 FY24 vs. 413 kms in Q3 FY23. Q3FY23 Q2FY24 Q3FY24 Logistics cost v/s Diesel price index 120 120 qoq cost flat 120 110 107 ➢ Lead reduced to 397 kms in Q3 FY24 from 403 kms in 107
Slide 18: Raw Material Cost (Grey Cement)
Raw Material Cost (Grey Cement) 634 631 610 yoy cost increase: 3% Raw Material cost (₹/Mt) ➢ Increase in cost of raw materials: gypsum and slag. ➢ Clinker conversion ratio at 1.42. Q3FY23 Q2FY24 Q3FY24 Conversion Ratio and Fly ash Price index qoq cost flat 114 113 114 105 105 ➢ Increase in cost of r
Slide 19: Energy Cost (Grey Cement)
Energy Cost (Grey Cement) 1766 1555 1477 yoy cost decrease: 16% Energy cost (₹/Mt) ➢ Blended fuel consumption (CV: 7500) at ~USD 150/t compared to ~USD 200/t in Q3 FY23. ➢ Pet coke consumption at 44% vs 43% in Q3 FY23. Q3FY23 Q2FY24 Q3FY24 Fuel Consumption Cost v/s Blended fuel price index yoy cost
Slide 20: Other Costs
Other Costs 862 849 748 yoy cost increase : 14% Other cost (₹/Mt) ➢ Increase in plant maintenance cost. Q3FY23 Q2FY24 Q3FY24 qoq cost decrease: 1% WPI index 124 125 125 ➢ Benefit of Operating Leverage and one time cost in Q2 FY24. Q2 21 Q3 23 Q2 24 Q3 24 India Operations 20
Slide 21: Operational Performance
Operational Performance ₹ Crores Consolidated India Operations Particulars Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 16,487 15,299 Net Sales ^ 15,882 14,755 253 222 Operating Income 252 234 140 127 Other Income 140 95 16,880 15,648 Total Income 16,274 15,085 Expenses: 2,506 2,263 Raw Materials Consumed 2,297
Slide 22: Financial Statement
Financial Statement ₹ Crores Consolidated India Operations Particulars Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 16,487 15,299 Net Sales ^ 15,882 14,755 3,395 2,462 EBITDA 3,288 2,340 262 215 Finance Costs 237 194 783 723 Depreciation and Amortization 754 694 580 465 Tax expenses* 586 462 (2) 4 Minority inter
Slide 23: Operational Performance : Overseas
Operational Performance : Overseas Amount in Mn AED Amount in Mn SLR Middle East Lanka Particulars Q3FY24 Q3FY23 Q3FY24 Q3FY23 240 207 Net Sales 4,361 5,574 0.3 1 Operating Income 23 55 0.1 1 Other Income 45 308 240 208 Total Income 4,428 5,937 64 38 Purchase/Consumption of Raw Material 3,531 4,161
Slide 24: Financial Position
Financial Position ₹ Crores Consolidated India Operations Particulars 31.12.2023 31.03.2023 31.12.2023 31.03.2023 69,635 64,987 Net Fixed Assets^ 66,799 62,121 1,139 1,017 Investment in Subs/Associates/JVs 3,297 3,187 (829) (2,669) Net Working Capital (2,397) (3,987) 69,946 63,335 Total Assets 67,69
Slide 25: Cash Flow Statement
Cash Flow Statement ₹ Crores For 9 months ended Particulars Dec-23 EBITDA 9,336 Less : Interest & lease payments (674) Less : Tax paid (1,396) Less : Increase in working capital (1,971) Operating Cash Flow 5,296 Less : Capex spend (6,922) Free Cash Flow (1,627) 25
Slide 26: Awards and Accolades
Awards and Accolades UltraTech has been honoured with ‘India’s Top Value Creators Birla White’s CSR efforts wins the 2023’ in cement category by Golden Peacock CSR Award. Dun & Bradstreet. Newsweek magazine and Statista recognized UltraTech UltraTech bags 5 trophies at e4m as one of the most trusted
Slide 27: Growth Plans
04 Growth Plans UltraTech is the largest supplier of cement for the Rajkot International Airport, Gujarat. 27
Slide 28: UltraTech: Expansion status update
UltraTech: Expansion status update Cement Expected Location Unit Project Capacity Grey Cement Capacity in India (mtpa) Timeline (Mtpa) Capacity as at Dec-23 133.0 Ongoing Zones Dec-23 FY25 Bangalore, Karnataka BT B 1.0 Commissioned expansion Roorkee, Uttar Pradesh GU B 1.0 Q4 FY24 North 26.5 4.4 30.
Slide 29: Phase III expansion
Phase III expansion Brownfield Expansion Capacity (mtpa) Baga Nathdwara, Rajasthan 1.2 Rajpura Bathinda Bagheri Aligarh, Uttar Pradesh 2.7 Roorkee Panipat North 3.9 Jhajjar Dadri Hotgi, Maharashtra 2.7 NKT Sikandrabad Aligarh West 2.7 Tanda Kotputli Shahjahanpur APCW, Andhra Pradesh 2.7 Lucknow Pali
Slide 30: UltraTech: Growing stronger
UltraTech: Growing stronger Grey Cement Capacity in India (mtpa) Zones FY25 Phase III FY27 North 30.9 3.9 34.8 Central 35.7 - 35.7 East 33.4 6.6 40.0 West 30.7 2.7 33.4 South 26.8 8.7 35.5 All India 157.4 21.9 179.3 Grey cement capacity (Mtpa) – India Grey cement capacity of 179.3 Mtpa at 69 locatio
Slide 31: Investment Impact: Capital expenditure and return on investment
Investment Impact: Capital expenditure and return on investment ₹ 6,000/Mt To be ₹ 13,000 Crs ($ 72/Mt) IRR ~15% commissioned Capex of cement by FY27 capacity Optimal use of financial resources 1 USD = ₹ 83 31
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 ➢ NGT – National Green Tribunal ➢ Blended Fu
Slide 33: Disclaimer
Disclaimer 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. Impor
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