Ultratech Cement Limited · NSE:ULTRACEMCO

Ultratech Cement — Q3 FY17 Earnings Presentation

25 slides from Ultratech Cement's earnings presentation, 2017

  1. Slide 1: UltraTech Cement Limited: Earnings Q3 FY17

    UltraTech Cement Limited INDIA’S LARGEST CEMENT COMPANY EARNINGS Q3 FY17 UltraTechStock Cement Limited Code: BSE:532538 | NSE: ULTRACEMCO Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX

  2. Slide 2: Q3 FY17 was one of the most challenging quarters

    Q3 FY17 was one of the most challenging quarters in recent years. UltraTech Cement Limited

  3. Slide 3: Difficult period

    Cement Cement purchases slowed. prices weakened. Sectoral capacity Cost started utilisation contracted hardening. to 60%. Difficult period UltraTech Cement Limited

  4. Slide 4: General Consensus

    General Consensus Q3 FY17 would be a weak quarter. UltraTech Cement Limited

  5. Slide 5: As industry leader, UltraTech resolved to outperform instead

    As industry leader, UltraTech resolved to outperform instead. By drawing into our organisational scale, dispersal, knowledge and diversity. UltraTech Cement Limited

  6. Slide 6: This is what we have to show for our 'Outperform all the time' commitment

    This is what we have to show for our ‘Outperform all the time’ commitment. DOMESTIC SALES NORMALISED VOLUME (MnT) EBITDA (RS, CRS) 11.01 1236 (-) 2% growth + 2% growth OPERATING NORMALISED MARGIN (%) PAT (RS,CRS) 21% 582 + ~100bps growth + 9% growth UltraTech Cement Limited * Note: % changes on YoY

  7. Slide 7: UltraTech's Outperformance

    UltraTech’s Outperformance INTERNAL PASSION > EXTERNAL CHALLENGES ONE TWO THREE Stronger Enhanced War on sales cash costs thrust availability UltraTech Cement Limited

  8. Slide 8: It was felt that input costs were beyond control

    It was felt that input ONE costs were beyond control… UltraTech Cement Limited

  9. Slide 9: At UltraTech, we attacked costs across-the-board

    At UltraTech, we attacked costs across-the-board. Reduced logistic costs 3% at Rs.1060/MT Controlled the impact of rising fuel prices and improved Energy Costs 5% at Rs.785/MT Raw material costs increased 4% at Rs 486/ MT Result: We moderated Operating Cost 100 bps UltraTech Cement Limited * Note: %

  10. Slide 10: At UltraTech, we responded to inflation with passion

    At UltraTech, we responded to inflation with passion. Moderated logistic costs Shrunk lead distances Enhanced new Grinding Unit capacities utilisation Restricted road freight rate increase Result: Cost reduction 3% v/s diesel price increase 17% UltraTech Cement Limited * Note: % changes on YoY basis

  11. Slide 11: Reduced energy costs

    Reduced energy costs Reduced power consumption 400 bps (YoY and QoQ) Enhanced waste heat recovery share 200 bps (YoY) Improved fuel consumption 100 bps ( YoY and QoQ) Reduction: ~ Rs 40/ MT over previous year v/s rising purchase costs UltraTech Cement Limited

  12. Slide 12: Increased low-cost fuel use

    Increased low-cost fuel use Increased pet coke consumption in kiln from 74% to 78% (YoY) Increased industrial waste use in kiln from 1% to 3% (YoY) Result: Internal efforts contributed ~ 10% in operating EBITDA per ton UltraTech Cement Limited

  13. Slide 13: Overall result: grey cement operating cost lower than last year

    OVERALL RESULT Grey cement operating cost remained lower than last year despite an increase in fuel prices UltraTech Cement Limited

  14. Slide 14: It was considered that nothing could be done to enhance offtake

    It was considered that nothing could TWO be done to enhance offtake… UltraTech Cement Limited

  15. Slide 15: At UltraTech, we…

    At UltraTech, we… Increased UBS outlets ~ 60 over Q2 Added ~ 400 dealers and ~1000 retailers Increased rural offtake 30 bps (YoY) Enhanced institutional sales Result: Volumes grew 4% over Q2 FY17 UltraTech Cement Limited

  16. Slide 16: There was a general feeling that liquidity would dry out

    There was a general feeling that THREE liquidity would dry out… UltraTech Cement Limited

  17. Slide 17: At UltraTech, we…

    At UltraTech, we… Controlled capital expenditure Reduced working capital ~ 14% over Mar-16 Reduced Net Debt > Rs. 2400 Crs over Mar-16 Result: Consolidated Net Debt / EBITDA at 0.19 ( 0.66, FY16) UltraTech Cement Limited

  18. Slide 18: UltraTech Performance = Moderated costs + Enhanced sales + Higher liquidity

    UltraTech Performance = Moderated costs + Enhanced sales + Higher liquidity 12% 13% ROCE , FY 16! ROCE , FY 17 (9M)! Passion, Outperformance and UltraTech When the going gets tough, THE TOUGH get going UltraTech Cement Limited

  19. Slide 19: Income statement

    Income statement Rs. Crs Q3 9M Particulars CY LY % CY LY % 5540 5652 (2) Revenues (net of excise duty) 17116 17108 - 97 89 9 Other Income 420 340 23 1210 1204 1 EBITDA* 4111 3590 14 22% 21% 1 Margin (%) 24% 21% 3 563 528 7 PAT 1939 1589 22 20.5 19.2 7 EPS (`) 70.7 57.9 22 * Includes Rs 25 crs notion

  20. Slide 20: Financial Position

    Financial Position Rs. Crs Consolidated Standalone Particulars 31.12.16 31.03.16 31.12.16 31.03.16 35565 35008 Total Capital Employed 32699 32313 1101 3523 Net Debt (1288) 1181 (26) 72 Net Working Capital (652) (574) Key Ratios: 0.05 0.16 Net Debt : Equity (0.06) 0.05 0.19 0.66 Net Debt : EBITDA (0.

  21. Slide 21: Greenfield expansion (South West MP)

    Greenfield expansion (South West MP) Cement capacity: 3.5 mtpa Total cost US$: ~ 110/t Commissioning by Q4 FY19 Attractive markets; Logistics advantage Consolidated Capacity to augment at 95 mtpa in FY19 UltraTech Cement Limited

  22. Slide 22: Challenging outlook. Cautious optimism.

    CHALLENGING OUTLOOK. CAUTIOUS OPTIMISM. UltraTech Cement Limited

  23. Slide 23: Weak

    WEAK Slow demand recovery Weak demand from Housing & Commercial segments Rural housing to improve with normalisation of cash circulation Urban housing (ex Tier-I cities) sluggishness Volatile cement prices Rising costs UltraTech Cement Limited

  24. Slide 24: Encouraging

    ENCOURAGING Increase in Government spending on infrastructure & low cost housing AP and Telangana development Interest rate drop & subsidies for housing UltraTech Cement Limited

  25. Slide 25: 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. Import

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