Ultratech Cement Limited · NSE:ULTRACEMCO
Ultratech Cement — Ultratech Cement S/Gdr — Q1 FY25 Earnings Presentation
33 slides from Ultratech Cement's earnings presentation, Jul 29, 2024
Slide 1: Exchange filing cover letter for investor presentation
19th July, 2024 BSE Limited The Manager Corporate Relationship Department Listing Department Phiroze Jeejeebhoy Towers, The National Stock Exchange of India Limited Dalal Street, “Exchange Plaza”, Bandra-Kurla Complex, Mumbai 400 001. Bandra (East), Mumbai 400 051. Scrip Code: 532538 Scrip Code: ULT
Slide 2: UltraTech Cement Limited Results Q1 FY25
UltraTech Cement Limited Building a sustainable future Results Q1 FY25 Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX
Slide 3: Macro and Sectoral Update, Business Update, ESG, Financial Performance
01 02 03 04 Macro and Business ESG Financial Sectoral Update Update Performance Update
Slide 4: Macro and Sectoral Update
01 Macro and Sectoral Update Awarpur Cement Works, Maharashtra
Slide 5: Macro Indicators
Macro Indicators Real GDP rose 8.2% for Jun CPI inflation at Continued focus on The government’s FY24. RBI revised GDP 5.08% is higher than infrastructure focus on rural growth up by 20 basis market expectations development such as schemes to be a points to 7.2% for driven entirely by food roads, ra
Slide 6: Sectoral Update Q1FY25
Sectoral Update Q1FY25 Zone Volume Gr I C H R Key drivers ✓ Housing registered growth across all regions due to improvement in labour availability, except Punjab. ✓ Infrastructure growth was muted as projects like Dwaraka Expressway, RRTS etc. are nearing completion and certain North parts of Delhi-
Slide 7: Business Update
02 Business Update UltraTech is the largest supplier of cement for the Mumbai Coastal Motorway, Maharashtra.
Slide 8: Highlights: Q1
Highlights : Q1 Domestic sales grew 6% yoy with capacity utilization of 85%. Domestic operating EBITDA/Mt of ₹ 965, lower by ₹ 69/Mt yoy Profit after Tax of ₹ 1,697 Crs, flat yoy Grey cement capacity expanded by 8.7 MTPA, taking total grey cement capacity of the company to 149.5 MTPA in India. Green
Slide 9: Domestic growth plans on track
Domestic growth plans on track Cement Cement Particulars Unit Project Capacity Timelines Particulars Unit Project Capacity (Mtpa) (Mtpa) To be commissioned in FY26 Capacity as at Mar-24 140.8 Patratu, Jharkhand GU B 2.5 Karur, Tamil Nadu GU G 2.7 Commissioned Shahjahanpur, Uttar Pradesh GU G 1.8 Q1
Slide 10: UltraTech: marching ahead
UltraTech: marching ahead Grey cement capacity (Mtpa) – India 183.5^ Grey Cement Capacity (Mtpa) 168.8 Added in Further 157.0 Zones FY24 FY26 FY27 Total 140.8 Q1 FY25 Plan FY25 North 33.3 3.0 2.7 39.0 Central 28.4 4.5 32.9 East 27.6 3.1 1.2 2.5 6.6 41.0 West 31.1 1.1 3.0 0.0 35.2 South 20.5 4.5 1.8
Slide 11: ReadyMix Concrete (RMC)
ReadyMix Concrete (RMC) UltraTech’s RMC 316 139 Plants Network 36% YoY 31 Nos. YoY Number of Plants Number of Cities 3.25 1,485 22% YoY 20% YoY Volume (Mn m3) Revenue (₹ Crores) 39% 2% YoY ROCE% 10
Slide 12: ESG
ADITYA BIRLA
Slide 13: Accelerating our Green Power Transition
Accelerating our Green Power Transition 650 612 278 301 345 210 Q4FY24 FY30 Target 25.7% Q1FY25 85% 29.4% FY23 FY24 Q1FY25 WHRS (MW) RE (MW) Green Power Mix In the current quarter we have achieved 29.4% green power mix, an improvement of 15% qoq and 34% yoy 12
Slide 14: Improving Clinker Factor and Promoting Sustainable Products
Improving Clinker Factor and Promoting Sustainable Products 69.7% 69.5% 68.3% Q1FY24 Q4FY24 Q1FY25 Clinker to cement conversion Reducing Clinker intensity 13
Slide 15: Reducing Carbon Intensity: Tracking Achievements and Meeting Targets
Reducing Carbon Intensity: Tracking Achievements and Meeting Targets 168.2 632 583 556 116.6 462 FY17 FY24 FY24 FY32 FY17 FY24 Base Target Actual Target Scope 1 Net CO2 Emission tCO2 /Net Sales (INR Mln) [CO2/t cement] 14
Slide 16: Enabling Local Communities
Enabling Local Communities UltraTech’s Urban Lung Space Project revitalises a community Through innovation, determination, and a shared commitment to environmental conservation, Jaggayyapet's Uracheruvu Lake is a testament to the transformative potential of community-driven initiatives. This project
Slide 17: CSR at the grass root level of the community
CSR at the grass root level of the community Baga Cement Works, Himachal Pradesh Gujarat Cement Works, Gujarat Improved rural infrastructures , most especially roads, is key to rural development. It is crucial pathway for poverty alleviation as it provides Baga Cement Works donated textbooks to five
Slide 18: UltraTech accomplishes its EP100 commitment way ahead of target year
04 Financial Performance UltraTech accomplishes its EP100 commitment way ahead of target year 2035 Harnessing the power of green energy for sustainable growth, UltraTech has achieved its EP100 commitment way ahead of the target year of 2035, by successfully doubling energy productivity from the base
Slide 19: Sales Volume
Sales Volume Volume in Million tons Growth Growth Particulars Q1 FY25 (YoY) (QoQ) Grey Cement - Domestic 30.29 6% -9% Cement Export 0.17 69% 6% White Cement 0.43 4% -19% Sales Volume - India 30.90 6% -9% Grey Cement – Overseas 1.21 16% -8% Consolidated Sales Volume* 31.95 7% -9% ReadyMix Concrete (3
Slide 20: Revenues
Revenues ₹ Crores Growth Growth Particulars Q1 FY25 (YoY) (QoQ) Grey Cement - Domestic 15,284 0.2% -11% White Cement 586 -1% -18% ReadyMix Concrete (RMC) 1,485 20% -5% Grey Cement – Overseas 601 8% -11% Others 323 27% -13% Total Consolidated Revenues* 17,879 2% -11% * After elimination of inter-comp
Slide 21: Profitability
Profitability EBITDA (₹ Crores) PAT (₹ Crores) -1% YoY +0.5% YoY 4,250 2,258 3,223 3,205 1,688 1,697 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 20
Slide 22: Sales Realisation (Grey Cement)
Sales Realisation (Grey Cement) 5,350 5,170 Realisation Domestic Grey Cement 5,045 Realisation (₹/Mt) ➢ Realisation declined by 5.7% and 2.4% yoy and qoq respectively. Q1FY24 Q4FY24 Q1FY25 Realisation = Selling Price less GST and Discount 21
Slide 23: Key Cost Indicators (Grey Cement): Q1 FY25
Key Cost Indicators (Grey Cement): Q1 FY25 Logistics Fuel Power Raw Materials % to total costs 30% 24% 9% 15% ₹ / Mt 1,198 1,003 383 619 5% decline yoy 17% decline yoy 7% decline yoy 1% surge yoy and 2% qoq and 2% qoq and 3% qoq and 3% qoq Domestic Operations 22
Slide 24: Logistics Cost (Grey Cement)
Logistics Cost (Grey Cement) 1264 1226 1198 yoy costs decrease: 5% Logistics cost (₹/Mt) ➢ Lead distance reduced to 385 kms in Q1FY25 vs 409 kms in Q1FY24. Q1FY24 Q4FY24 Q1FY25 Logistics cost v/s Diesel price index qoq costs decrease: 2% 106 106 104 107 103 101 100 ➢ Lead distance reduced to 385 kms
Slide 25: Fuel Cost (Grey Cement)
Fuel Cost (Grey Cement) 1208 Fuel Rate : ₹ /Kcal 1025 1003 Fuel cost (₹/Mt) 2.35 2.03 2.00 1.34 Q1 22 Q1 24 Q4 24 Q1 25 Q1FY24 Q4FY24 Q1FY25 Fuel Consumption Cost v/s Blended fuel price index qoq cost decrease: 2% and yoy cost decrease: 17% 150 147 176 149 ➢ Blended fuel consumption (CV: 7500) at $
Slide 26: Power Cost (Grey Cement)
Power Cost (Grey Cement) 413 yoy cost decrease: 7% 395 Power cost (₹/Mt) 383 ➢ Green Power Mix has increased to 29.4% vs 22.0% in Q1FY24. ➢ Efficiency improvement. Q1FY24 Q4FY24 Q1FY25 Green Power Mix (%) 29.4% qoq cost decrease: 3% 25.7% 22.0% 15.5% ➢ Green Power Mix stepped up to 29.4% vs 25.7% in
Slide 27: Raw Material Cost (Grey Cement)
Raw Material Cost (Grey Cement) 610 601 619 Raw Material cost (₹/Mt) qoq cost increase: 3% and yoy cost increase: 1% Q1FY24 Q4FY24 Q1FY25 ➢ Clinker conversion ratio at 1.46 vs 1.44 in Q1FY24 and Raw Material Cost index Q4FY24. 117 124 125 112 110 114 104 100 99 101 Q1 22 Q1 24 Q4 24 Q1 25 Fly ash Li
Slide 28: Other Costs
Other Costs 755 683 649 Other cost (₹/Mt) qoq cost increase: 17% and yoy cost increase: 11% Q1FY24 Q4FY24 Q1FY25 ➢ Operating leverage impact and one time brand building expenses. WPI index 115 112 114 100 Q1 22 Q1 24 Q4 24 Q1 25 Domestic Operations 27
Slide 29: Operational Performance: Q1FY25
Operational Performance: Q1FY25 ₹ Crores Q1FY24 Q1FY25 Particulars Domestic Overseas Consolidated* Domestic Overseas Consolidated* 17,007 555 17,519 Net Sales 17,334 601 17,879 218 0.7 218 Operating Income 198 1 190 209 3 174 Other Income 179 1 166 17,434 559 17,911 Total Income 17,711 603 18,235 Ex
Slide 30: Financial Statement: Q1FY25
Financial Statement: Q1FY25 ₹ Crores Q1FY24 Q1FY25 Particulars Domestic Overseas Consolidated* Domestic Overseas Consolidated* 17,007 555 17,519 Net Sales 17,334 601 17,879 3,209 54 3,223 EBITDA 3,160 59 3,205 192 20 211 Finance Costs 220 35 256 720 29 749 Depreciation and Amortization 814 28 843 -
Slide 31: Operational Performance: Q1FY25 (Overseas)
Operational Performance : Q1FY25 (Overseas) Amount in Mn AED Amount in Mn SLR Middle East Sri Lanka Particulars Q1FY24 Q1FY25 Q1FY24 Q1FY25 198 210 Net Sales 4,263 4,443 0.1 0.3 Operating Income 20 12 0.3 0.1 Other Income 72 22 198 211 Total Income 4,355 4,477 55 66 Purchase/Consumption of Raw Mater
Slide 32: Financial Position
Financial Position ₹ Crores Consolidated Domestic Particulars Mar-24 Jun-24 Mar-24 Jun-24 71,269 72,708 Net Fixed Assets^ 68,445 69,904 1,231 3,316 Non-Current Investments 2,221 4,306 -2,995 -1,882 Net Working Capital -4,575 -3,444 69,506 74,142 Total Assets 66,091 70,766 60,283 62,121 Shareholders
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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