Ramco Cements Limited · NSE:RAMCOCEM
Ramco Cements — The Ramco Cements — Q4 FY2022 Earnings Presentation
31 slides from Ramco Cements's earnings presentation, May 23, 2022
Slide 1: Cover letter to stock exchanges: Investor Presentation
Corporate Office: Auras Corporate Centre, V Floor, 98-A, Dr. Radhakrishnan Salai, Mylapore, Chennai - 600 004, India. Tel: +91 44 2847 8666 Fax: +91 44 2847 8676 Website: www.ramcocements.in THE RAMCO CEMENTS LIMITED Corporate Identity Number: L26941TN1957PLC003566 23 May 2022 National Stock Exchang
Slide 2: The Ramco Cements Limited Investor Update Q4 2021-22
Vizag Grinding Unit, Gobburupalam village, Andhra Pradesh The Ramco Cements Limited Investor Update Firm and Focused. Future progressive Q4 2021-22
Slide 3: Contents
Contents 01 Overview 06 Financial position & Cash flow 02 Market update 07 Debt leverage 03 Sales 08 Capex update 04 Key Performance 09 ESG update 05 Income Statement & Financial Analysis 10 CSR update The Ramco Cements Limited Investor Update Q4FY22
Slide 4: Overview of Economy
Overview Overview of Economy • India's GDP growth for FY23 is projected at 7.4%, with risks tilted to the downside • Effect of rising energy prices is a spike in inflation in the near term • Economy growth is 1.8% above the pre-pandemic level (fiscal 2020) in the current fiscal • Repo Rate increased
Slide 5: Market update for FY22
Market update for FY22 South East Individual housing and Infra demand picked up Individual housing witnessed de-growth CoVID lock downs during Q1 & heavy rains due to Demand from Infra / Commercial segment have grown extended monsoon in Q3 affected demand for the year Heavy rains and cyclo
Slide 6: Sales
Sales Cement Sales (Lac Tons) 32.13 31.92 -1% 110.48 99.77 +11% Q4FY21 Q4FY22 FY21 FY22 Share of Premium products stands at 22% for the current year Sales Volume could have been better but for the impacts due to CoVID lock down in May / June 2021 in South and heavy rains in Q3 in South / East ma
Slide 7: Right product for right application
Right product for right application Ramco Supercrete Ramco Supergrade OPC 43 Infra OPC 53 Infra OPC 43 Grade OPC 53 Grade High strength cement with For producing durable concrete For high strength & high slump For all infrastructure projects For high strength concrete, For high strength low heat of
Slide 8: Key Performance for Q4FY22
Key Performance for Q4FY22 ` in Crores Revenue EBITDA 1,719 459 1,640 +5% -34% 305 Q4FY21 Q4FY22 Q4FY21 Q4FY22 Profit Before Tax Profit After Tax 348 214 -53% -42% 124 164 Q4FY21 Q4FY22 Q4FY21 Q4FY22 Sales volume growth were flat during the quarter Cement price increase was insufficient to cover
Slide 9: Key Performance for FY22
Key Performance for FY22 ` in Crores Revenue EBITDA 6,011 1,583 -17% 1,314 5,303 +13% FY21 FY22 FY21 FY22 Profit Before Tax Profit After Tax 893 1,140 761 +17% -30% 801 FY21 FY22 FY21 FY22 Fixed expenses for FY22 were comparable with pre-CoVID levels Revenue surpassed ` 6000+ Crores in FY22 with
Slide 10: Income Statement for Q4FY22
Income Statement for Q4FY22 ` in Crores Standalone Consolidated Particulars Q4FY22 Q4FY21 Variance % Q4FY22 Q4FY21 Variance % 1,719.04 1,640.45 5% Revenue 1,722.68 1,641.53 5% 1,413.98 1,181.56 20% Less: Operating Expenses 1,418.50 1,184.76 20% 305.06 458.89 34% EBITDA 304.18 456.77 33% 33.42 15.18
Slide 11: Income Statement for FY22
Income Statement for FY22 ` in Crores Standalone Consolidated Particulars FY22 FY21 Variance % FY22 FY21 Variance % 6,010.62 5,303.08 13% Revenue 6,031.69 5,321.37 13% 4,696.14 3,720.48 26% Less: Operating Expenses 4,713.62 3,733.69 26% 1,314.48 1,582.60 17% EBITDA 1,318.07 1,587.68 17% 112.40 87.62
Slide 12: Income Statement of Subsidiaries
Income Statement of Subsidiaries ` in Crores Q4FY22 Ramco Windfarms Limited Ramco Industrial & Technology Services Ltd Particulars Q4FY22 Q4FY21 Variance % Q4FY22 Q4FY21 Variance % 1.29 1.35 4% Revenue 11.64 10.01 16% -0.25 -0.04 - EBITDA -0.01 -0.06 - FY22 Ramco Windfarms Limited Ramco Industrial &
Slide 13: Opted for New Income Tax Regime in current FY
Opted for New Income Tax Regime in current FY Highlights of new tax regime U/s.115BAA Company’s Option from FY 2021-22 Tax rates for domestic companies were changed by the Tax Rate is reduced from 34.94% to 25.17% from FY 2021-22 Government through an ordinance on 20-9-2019. Option can be exer
Slide 14: EBITDA
EBITDA EBITDA in Crores EBITDA per Ton 450 459 1700 1583 2500 450 2500 2300 403 402 1500 400 1314 2100 369 1300 2000 1900 350 1100 2035 305 1700 300 271 900 1500 1728 1500 1586 238 1300 250 1543 1484 700 1394 1428 1100 200 500 1000 1190 900 150 956 300 700 790 100 100 500 500 Q1FY21 Q2FY21 Q3FY21 Q4
Slide 15: Cost of raw materials
Cost of raw materials In ` per Ton 931 -9% 6% 844 821 812 -1% Q4FY21 Q4FY22 FY21 FY22 Overall RM cost remain flat in spite of diesel price increase Due to usage of purchased clinker in the previous year Due to usage of purchased clinker in the previous year The Ramco Cements Limited Investor Upd
Slide 16: Logistics cost
Logistics cost In ` per Ton 1,097 1,099 1,073 +2% +7% 6% 1,028 Q4FY21 Q4FY22 FY21 FY22 Increase in diesel price pushed the cost of logistics cost Increase in diesel price pushed the cost of logistics cost Rail Co-efficient for the current quarter is 15% vs 12% YoY Rail Co-efficient for the c
Slide 17: Power and Fuel Cost
Power and Fuel Cost In ` per Ton Blended Fuel consumption per T of material: 1,462 Q4FY22 is $ 199 / T 1,257 FY22 is $ 143 / T +90% CIF Pet coke price peaked to $ 248 / T in Mar’22 +58% 6% 771 797 -15% Current CIF spot pet coke price is ~ $ 240 / T Emphasis on increased usage of alternat
Slide 18: Power Mix
Power Mix 16% 18% 11% Q4FY22 Q4FY21 16% 66% 73% Grid power Green Power Thermal Power Grid power Green Power Thermal Power Focus on Green Power 14% 16% 9% FY21 FY22 15% 69% 77% Grid power Green Power Thermal Power Grid power Green Power Thermal Power The Ramco Cements Limited Investor Update Q4FY22
Slide 19: Fuel Mix
Fuel Mix 23% 33% Q4FY21 52% Q4FY22 57% 20% 15% Coal Alternate Fuel Pet coke Coal Alternate Fuel Pet coke Optimum usage of fuels based on cost per CV 41% 40% 40% FY21 48% FY22 11% 20% Coal Alternate Fuel Pet coke Coal Alternate Fuel Pet coke The Ramco Cements Limited Investor Update Q4FY22
Slide 20: Employee Cost
Employee Cost In ` per Ton 403 -7% 375 295 295 Flat Q4FY21 Q4FY22 FY21 FY22 Increase in volume has led to better absorption of employee cost The Ramco Cements Limited Investor Update Q4FY22
Slide 21: Other Expenditure
Other Expenditure In ` per Ton 730 713 +21% +12% 634 6% 604 Q4FY21 Q4FY22 FY21 FY22 Increase in Packing cost / ton of cement by 25% for FY22 and 14% for Q4FY22 due to increase in polymer price Due to CoVID 19 related restrictions, previous year figure was comparatively low with respect to Advt.
Slide 22: Wind power
Wind power Particulars Q4FY22 Q4FY21 Variance Generation of Wind power (In Crore Units) 1.83 1.60 14% Revenue from Wind power ( ` in Crores) 2.77 2.54 9% Less: Operating Expenses ( ` in Crores) 5.27 8.37 37% EBITDA from Wind power ( ` in Crores) -2.50 -5.83 - Particulars FY22 FY21 Variance Generatio
Slide 23: Key Ratios
Key Ratios Particulars UOM Q4FY22 Q4FY21 FY22 FY21 EBTIDA Ratio % 18% 28% 22% 30% PBT Ratio % 10% 21% 13% 21% PAT Ratio % 7% 13% 15% 14% EPS, Not Annualized ` 6 9 38 32 RoE % 8% 16% 15% 14% RoCE (Post-tax) % 6% 11% 10% 10% Debt-Equity Ratio Multiples 0.60 0.55 0.60 0.55 Debt Service Cover Ratio Mult
Slide 24: Summarized Financial Position
Summarized Financial Position ` in Crores Standalone Consolidated Particulars 31-03-2022 31-03-2021 31-03-2022 31-03-2021 10,785.59 9,311.78 Fixed Assets including CWIP 10,806.79 9,333.53 201.27 200.92 Investments 297.09 306.97 709.51 718.12 Loans and Advances 690.99 695.33 833.33 597.90 Inventories
Slide 25: Summarized Cash flow
Summarized Cash flow ` in Crores Particulars 31-03-2022 31-03-2021 Operating Profit 1,314.48 1,582.60 Changes in working capital (17.05) 507.60 Operating Profit decreased mainly Direct Tax paid (157.47) (207.73) due to increase in price of fuel Others (10.91) 2.33 Net cash flow from Operating Activi
Slide 26: Debt Leverage
Debt Leverage ` in Crores 4000 Net Debt Net Debt / EBITDA 6.00 Borrowings as on 31-03-2022 3500 5.00 Particulars ` in Crores 3000 Interest-bearing Borrowings 4.00 2500 4.45 - Long Term Debt 3,206 2.88 2000 2.52 3.00 - Short Term Debt 505 3.32 1500 1.76 1.89 1.47 2.00 Interest Free / Soft Loans 219 1
Slide 27: Capex update
Capex update Trial production of clinker commenced in Kurnool in May 2022 Cement grinding in Kurnool will be commissioned in June 2022 WHRS capacity of 6 MW in Kurnool will be commissioned in July 2022; Balance 6.15 MW will be commissioned in March 2023 TPP capacity of 18 MW in Kurnool will
Slide 28: ESG Update
ESG Update Towards Net Zero Carbon emission Key Metrics Particulars FY2022 FY2021 Carbon Emission Kg CO2 / T cement 742 761 Water positive (Times) 1.3x 1x 71% of electrical Focus on Green power consumption (WHRS + Wind power) % 15% 9% energy required increased usage for clinker of green power Renewa
Slide 29: ESG Update
ESG Update Rehabilitation of mined out land at Pandalgudi, TN by way of afforestation Proposed area coverage for this eco-park is 800 acres Aim is to create natural self-sustaining eco-system that supports local bio- diversity of flora and fauna Planted over 5 lakhs saplings of various indig
Slide 30: CSR Update
CSR Update CoVID Relief Education & Skilling Rural Development Green Belt Development Provided Oxygen Generator Infrastructure support to schools Enhancing the vocational skills of Conservation of tropical dry Plants to Government women for empowerment evergreen forest Hospitals Multifunct
Slide 31: 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