Ramco Cements Limited · NSE:RAMCOCEM
Ramco Cements — The Ramco Cements — Q1 FY2025 Earnings Presentation
26 slides from Ramco Cements's earnings presentation, Jul 25, 2024
Slide 1: Investor Update filing letter to stock exchanges
Corporate Office: Auras Corporate Centre, V Floor, 98-A, Dr. Radhakrishnan Salai, Mylapore, Chennai – 600 004, India. Phone: +91-44 28478666, Fax: +91-44 28478676 Web Site: www.ramcocements.in THE RAMCO CEMENTS LIMITED Corporate Identity Number: L26941TN1957PLC003566 25 July 2024 National Stock Exch
Slide 2: Investor Update for 1QFY25
Embracing Opportunities. Enhancing Strengths. The Ramco Cements Limited Investor Update for 1QFY25
Slide 3: Contents
Contents 01 Overview 02 TRCL’s Market update 03 Sales & Capacity Utilization 04 Key Performance 05 Financial Analysis & Key Ratios 06 Capex & Borrowings update 07 ESG Update Ariyalur Integrated Plant 08 Awards & Accolades
Slide 4: Overview
Overview The Reserve Bank of India (RBI) raised the GDP growth forecast to 7.2% from 7% for FY25 due to improved rural and urban demand, bolstered by monsoon prediction Repo Rate unchanged at 6.5% due to high food inflation; Rupee strengthens in July on the back of strong capital inflows despite
Slide 5: TRCL's Market update for 1QFY25
TRCL’s Market update for 1QFY25 South East Volume from B2C remained flat; B2B volume have de-grown YoY Volume from B2C & B2B have grown YoY in Odisha Demand affected due to elections & monsoon Volume from B2C is flat; B2B has grown YoY in WB Demand outlook is positive in AP State in view o
Slide 6: Sales & Capacity utilization for 1QFY25
Sales & Capacity utilization for 1QFY25 Cement Capacity Utilization % 79% 77% 96% Utilization Utilization Utilization 1QFY24 1QFY25 4QFY24 Cement Sales (Lac Tons) Building product Sales (Lac Tons) 54.06 0.85 42.33 42.91 0.67 0.67 1QFY24 1QFY25 4QFY24 1QFY24 1QFY25 4QFY24
Slide 7: Key Performance for 1QFY25
Key Performance for 1QFY25 ` in Crores Revenue Cash profit 2,687 312 2,249 250 2,097 211 1QFY24 1QFY25 4QFY24 1QFY24 1QFY25 4QFY24 Cash profit = PBT + Depreciation – Current Tax Profit Before Tax Profit After Tax 162 121 108 79 48 36 1QFY24 1QFY25 4QFY24 1QFY24 1QFY25 4QFY24 The Company is not entit
Slide 8: EBITDA
EBITDA ` in Crores 500 431 400 349 328 300 200 100 - 1QFY24 1QFY25 4QFY24 EBITDA / Ton ` 812 / T ` 752 / T ` 785 / T During 1QFY25, total sale volume is higher by 1% YoY & down by 21% compared to Rupee depreciation by 2% during 1QFY25 impacted the fuel cost 4QFY24 Fixed cost absorption was almost fl
Slide 9: Interest
Interest ` in Crores 140 16.00% 120 113 14.00% 104 12.00% 100 93 10.00% 80 8.00% 60 7.95% 7.92% 7.76% 6.00% 40 4.00% 20 2.00% - 0.00% 1QFY24 1QFY25 4QFY24 Finance cost increased due to commissioning of Odisha Line II & Building products Plant at Jayanthipuram Effective rate of interest remained almo
Slide 10: Depreciation
Depreciation ` in Crores 180 167 165 160 148 140 120 100 80 60 40 20 - 1QFY24 1QFY25 4QFY24 Depreciation increased due to commissioning of Odisha Line II & Building products Plant at Jayanthipuram
Slide 11: Income Statement for 1QFY25
Income Statement for 1QFY25 ` in Crores Standalone Consolidated Particulars 1QFY25 1QFY24 Variance % 1QFY25 1QFY24 Variance % 2,096.87 2,248.98 7% Revenue 2,101.65 2,253.95 7% 1,768.95 1,899.63 7% Less: Operating Expenses 1,773.38 1,903.20 7% 327.92 349.35 6% EBITDA 328.27 350.75 6% 113.05 93.39 21%
Slide 12: Cost of raw materials per ton
Cost of raw materials per ton In ` 990 1,004 911 1QFY24 1QFY25 4QFY24 Decrease in Diesel price by 2% in 1QFY25 YoY Inflationary impact on cost of other raw materials viz. Fly ash, Slag & Gypsum
Slide 13: Logistics cost per ton
Logistics cost per ton In ` 1,064 1,064 1,081 1QFY24 1QFY25 4QFY24 Rail Co-efficient for cement despatches 1QFY25 is 8% vs. 7% in 1QFY24 & Avg. lead distance for 1QFY25 is 273 KMs vs 274 KMs in 1QFY24 & 294 KMs 11% in 4QFY24 in 4QFY24
Slide 14: Power and Fuel Cost per ton
Power and Fuel Cost per ton In ` 1,758 1,300 1,127 1QFY24 1QFY25 4QFY24 Blended Fuel consumption (incl. TPP) per T of material: 1QFY25: $ 137; 1QFY24: Blended Fuel cost per Kcal: 1QFY25: ` 1.49; 1QFY24: ` 2.03; 4QFY24: ` 1.65 $ 170; : 4QFY24: $ 141 Lower cement sale volume by 21% in 1QFY25 vs. 4QFY2
Slide 15: Power Mix
Power Mix 25% 23% 27% 42% 41% 44% 1QFY25 4QFY24 1QFY24 29% 33% 36% Grid power Green Power Thermal Power Share of Green Power is expected to reach 42% on an annualized basis in FY25 # | Optimal usage of fuel based on Cost per CV 40% 41% 52% 1QFY24 58% 1QFY25 51% 4QFY24 47% 8% 1% 2% Coal Alternate Fue
Slide 16: Employee Cost per ton
Employee Cost per ton In ` 314 294 226 1QFY24 1QFY25 4QFY24 Cost per ton is higher in 1QFY25 compared to 4QFY24 in view of lower sale volume
Slide 17: Other Expenditure per ton
Other Expenditure per ton In ` 541 546 541 1QFY24 1QFY25 4QFY24 Cost per ton marginally increased in view of inflationary impact in fixed expenses
Slide 18: New product launched under Building products
New product launched under Building products New Product Existing Building Products portfolio Revenue from Building Products business expects to cross ` 500 crores p.a in next 2 years • First plant established near Chennai with the capacity of ~ 1 lac tons in 2002 • Two plants with the capacity of 1
Slide 19: Key Ratios
Key Ratios Particulars UOM 1QFY25 1QFY24 4QFY24 FY24 EBITDA Ratio % 16% 16% 16% 17% PBT Ratio % 2% 5% 6% 6% PAT Ratio % 2% 4% 5% 4% EPS, Not Annualized ` 2 3 5 17 RoE, Annualized % 2% 5% 7% 6% RoCE (Post-tax), Annualized % 5% 6% 7% 7% Debt-Equity Ratio Multiples 0.70 0.65 0.69 0.69 Debt Service Cove
Slide 20: Capex update & Borrowings
Capex update & Borrowings Capex incurred during 1QFY25: ` 281 Crores Borrowings as on 30-06-2024 Particulars ` in Crores By Mar-26, the company is on track to achieve cement capacity of 30 MTPA by commissioning of 2nd line in Kolimigundla along with de-bottlenecking of existing Interest-bearing Borr
Slide 21: ESG Update
ESG Update CO2 Emission Blended Cement Water Positive Green energy CSR 588 Kg / T of Cement 69% 4.5x 33% 5k + Beneficiaries Based on 1QFY25 figures Firm and Focussed for a sustainable future
Slide 22: Awards & Accolades
Awards & Accolades Ariyalur Unit had been certified Greenco Silver Rating by the RR Nagar Unit have won par excellence award in the 10th National Greenco-Green company rating system of CII – Sohrabji Godrej Conclave on 5S organized by The Quality Circle Forum of India Green Business Centre, Confeder
Slide 23: Awards & Accolades
Awards & Accolades Alathiyur & RR Nagar Unit have won Best Performance Award in the First International Conclave on Cement Industry organized by The Quality Circle Forum of India during May 2024
Slide 24: Awards & Accolades
Awards & Accolades Ramco Corporate Tech Team has been awarded ‘Aspiring CXOs Award 2024’ by CXO Junction for the outstanding achievements and contributions made to the organization in driving down costs, increasing capacity, improving agility & security by enabling dynamic application routing to opt
Slide 25: Awards & Accolades
Awards & Accolades Ramco Corporate Tech Team has been awarded with “CSO100 Awards : The Rising Star” award from Foundry (an IDG Inc. company) and IDC for the cybersecurity project implemented at our office
Slide 26: Disclaimer
Disclaimer This communication, except for the historical information, may contain statements which reflect the Management’s current views and estimates and could be construed as forward looking statements. The future involves certain risks and uncertainties that could cause actual results to differ