UltraTech Cement Limited · NSE:ULTRACEMCO
UltraTech Cement — Q3 FY2016 Earnings Presentation
29 slides from UltraTech Cement's earnings presentation, 2016
Slide 1: India's Largest Cement Company Earnings Q3 FY 2015/16
INDIA'S LARGEST EARNINGS CEMENT Q3:FY 2015/16 COMPANY Stock code: BSE: 532538 NSE: ULTRACEMCO Reuters: UTCL.NS Bloomberg: UTCEM IS / UTCEM LX
Slide 2: Contents
Contents MACRO AND KEY HIGHLIGHTS OPERATIONAL SECTOR SECTOR FOR THE AND FINANCIAL GUIDANCE UPDATE QUARTER PERFORMANCE GLOSSARY Mnt – Million Metric tons Lmt – Lakhs Metric tons MTPA – Million Tons Per Annum Q2 – July-September Q3 – October-December 9M – April-December LY – Corresponding Period last
Slide 3: Economy Update
Economy Update Macro Performance Industrial Production YTD Nov’15: 3.9% (2.5% in LY) CAD up from 1.2% in Q1 to 1.6% in Q2 WPI inflation decline 2.2% over LY Crude oil prices declined 70% since Jan’14 Sector Performance Estimated Growth ~ 4.5% Capacity utilisation ~ 65% Weak cement pric
Slide 4: Sector - Regional Update
Sector- Regional Update Zone / Region Volume Infra Comm. Housing Rural North Infrastructure growth, particularly roads sector across regions Early signs of demand from Uttar Pradesh Rural housing – suppressed East Low cost housing demand continues Positive demand from IHB segment Governm
Slide 5: Sector - Regional Update
Sector- Regional Update Zone / Region Volume Infra Comm. Housing Rural West Maharashtra – Started infrastructure activities, particularly highways & rural roads, Housing segment remained average Gujarat – Festive seasons and lack of Government infra work impacted demand South Tamil Nadu rains
Slide 6: Key Highlights for the Quarter
Key Highlights for the Quarter
Slide 7: Company Update
Company Update The Competition Appellate Tribunal set aside the CCI order and given CCI case timelines of three months to CCI for fresh order. Deposit refunded Construction work for grinding in Bihar and Maharashtra on track Projects Update Commissioning by Mar’16 (Capacity: 1.6 mtpa each) WHRS
Slide 8: Q3 – Encouraging performance
Q3 – Encouraging performance YoY Change Domestic Cement Sales Volume 11.26 Mnt + 7% Average Realisation (Indian Operations) ` 4,866/t (-) 4% Petcoke Consumption 74% + 23% (-) 17% Energy Cost ` 824/t Efficiency Gain – 5% 8
Slide 9: Q3 – Encouraging performance
Q3 – Encouraging performance Adjusted Consolidated EBIDTA* ` 1308 Crs + 24% EBIDTA Margin* 21% + 300 bps Profit after tax** ` 601 Crs + 50% ` 4,254 Crs Net Debt (-) ` 1000 Cr as on 31.12.15 * EBIDTA and Operating Margin before the impact of Bonus Act and MMDR Act ** Before the onetime impact
Slide 10: Operational and Financial Performance
Operational and Financial Performance
Slide 11: Sales performance
Sales performance Grey Cement Sales UTCL Consolidated Performance Particulars CY LY % Industry UTCL Domestic Sales Capacity (mtpa) 67.7 63.2 7 7.1% Cap utilisation 72% 72% - Grey Cement Sales (Mnt): 5.4% 5.0% Q3 12.4 11.8 5 4.5% * 9M 36.8 35.4 4 1.6% White Cement & Putty Sales (Lmt): 0.9% Q3 3.4 3.
Slide 12: Operational Performance
Operational Performance Cost composition (Grey Cement) Logistics Cost Q3 16 Q3 15 19% Energy Cost 17% 34% 32% 3% 3% 4% 5% Raw Materials 14% 14% Packing 26% 29% Maintenance & Others Overheads Logistics cost remained range bound: ` 1089/t Benefits of softening oil prices partially arrested with incr
Slide 13: Logistics cost trends
Logistics cost trends (Indian Operations) Logistics Cost `/t 1093 1089 4% 1089 QoQ Like-for-like Logistics cost declined 4% 46 Railway Busy Lead distance improved (` 31/t) Season Surcharge Advantage of optimization of plant and 1043 market mix (` 15/t) YoY movements Q3 15 Q2 16 Q3 16 Reduction
Slide 14: Energy cost trends
Energy cost trends (Indian Operations) Improved Energy Cost: 17% YoY and Energy Cost `/t Sequentially: 9% 994 909 Saving in power costs: 17% 824 Increase usage of WHRS power to 5% Saving in power consumption 2% Increased petcoke usage in TPP Q3 15 Q2 16 Q3 16 and declined fuel prices Fuel Pric
Slide 15: Raw Materials cost trends
Raw Materials cost trends (Indian Operations) Raw Materials Cost `/t YoY: Like-for-like Raw Material costs 493 improved 5% 49 DMF Levy 466 Softening prices of additives and 459 28 raw mix optimisation DMF Levy 5% 444 438 Sequentially cost improved 5% Last quarter included prior period impact
Slide 16: Financial Performance Indicators
Financial Performance Indicators (Consolidated) Net Sales (` crs) Operating EBIDTA* (` crs) Q3 15 Q3 16 9M 15 9M 16 Q3 15 Q3 16 9M 15 9M 16 18430 1192 6108 +16% +13% 3451 +5% +5% 5832 1024 17539 3043 * Excluding Other Incomes Indian operations capacity utilisation at 70% on a higher base UAE opera
Slide 17: Income statement (Standalone)
Income statement (Standalone) ` crs Q3 9M Particulars CY LY % CY LY % 11.26 10.51 7 Domestic Cement Sales Volume 33.73 31.87 6 5747 5488 5 Revenue 17405 16514 5 53 33 62 Other Income 197 320 (38) 1176 990 19 EBIDTA 3461 3205 8 20% 18% 2 Margin (%) 20% 19% - 126 154 18 Finance Costs 394 398 1 324 2
Slide 18: Operating and Total EBIDTA per tonne
Operating and Total EBIDTA ` pmt (Indian Operations) 1121 14% 1056 42 992 1009 996 973 931 46 178 893 81 81 77 876 39 1079 69 29 928 950 896 878 911 892 824 847 FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 FY15 Q1FY16 Q2FY16 Q3FY16 Operating Profit Other Income Total EBIDTA YoY Total EBIDTA pmt improved 14% ; S
Slide 19: Income statement (Consolidated)
Income statement (Consolidated) ` crs Q3 9M Particulars CY LY % CY LY % 6108 5832 5 Revenue 18430 17539 5 53 34 57 Other Income 180 298 (40) 1245 1058 18 EBIDTA 3631 3341 9 20% 18% 2 Margin (%) 20% 19% 1 139 164 15 Finance Costs 433 427 (1) 339 296 (14) Depreciation 992 897 (11) 767 598 28 PBT 220
Slide 20: Financial Position
Financial Position ` Crs Standalone Consolidated Particulars 31.12.15 31.03.15 31.12.15 31.03.15 20364 18858 Shareholders Funds 20642 19041 - - Minority Interest 15 18 6110 7414 Loans (Incl. Current Maturities) 8526 9829 3140 2792 Deferred Tax Liabilities 3133 2786 29614 29064 Sources of Fund 32316
Slide 21: Financial Indicators
Financial Indicators Standalone Consolidated Indicators 31.12.15 31.03.15 31.12.15 31.03.15 Shareholders fund (` crs ) 20364 18858 20642 19041 Borrowings (` crs ) 6110 7414 8526 9829 Cash Equivalents (` crs ) 4272 4479 4272 4634 Financial Indicators Net Debt: Equity 0.09 0.16 0.21 0.27 Net Debt / EB
Slide 22: Sector Guidance
Sector Guidance
Slide 23: Sector guidance: Cautiously Optimistic
Sector guidance: Cautiously Optimistic Concerns: Suppressed rural incomes Slow execution of Government projects Andhra Pradesh development – yet to kick-off Delay in Government reforms agenda Expectations: FY17 GDP growth forecast: 7.8% (source: World Bank) Government thrust on infra
Slide 24: Ultratech — The Engineer's Choice
Ultratech — C F&F Mm E WN T The Engineer's Choice
Slide 25: Annexures
Annexures
Slide 26: Income statement (Standalone) US$ Mn
Income statement (Standalone) US$ Mn Q3 9M Particulars CY LY % CY LY % 871 831 5 Revenue 2637 2502 5 8 5 62 Other Income 30 48 (38) 178 150 19 EBIDTA 524 486 8 20% 18% 2 Margin (%) 20% 19% - 19 23 18 Finance Costs 60 60 1 49 42 (16) Depreciation 142 128 (11) 110 85 30 PBT 322 297 8 33 29 (13) Tax
Slide 27: Income statement (Consolidated) US$ Mn
Income statement (Consolidated) US$ Mn Q3 9M Particulars CY LY % CY LY % 926 884 5 Revenue 2792 2657 5 8 5 57 Other Income 27 45 (40) 189 160 18 EBIDTA 550 506 9 20% 18% 2 Margin (%) 20% 19% 1 21 25 15 Finance Costs 66 65 (1) 51 45 (14) Depreciation 150 136 (11) 116 91 28 PBT 334 306 9 33 30 (12)
Slide 28: Financial Position US$ Mn
Financial Position US$ Mn Standalone Consolidated Particulars 31.12.15 31.03.15 31.12.15 31.03.15 3085 2857 Shareholders Funds 3128 2885 0 0 Minority Interest 2 3 926 1123 Loans (Incl. Current Maturities) 1292 1489 476 423 Deferred Tax Liabilities 475 422 4487 4404 Sources of Fund 4896 4799 3684 358
Slide 29: 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