Sagar Cements Ltd · NSE:SAGCEM
Sagar Cements — Investor Presentation (August 2024)
38 slides from Sagar Cements's investor presentation, August 2024
Slide 1: Corporate Presentation August 2024
CORPORATE PRESENTATION August 2024 ©2024, Sagar Cement. All rights reserved. Privacy Policy
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”),have been prepared by Sagar Cements Limited (the “Company”), solely for information purposes and do not constitute a prospectus, offering circular or offering memorandum or an offer, or a solicitation of any offer, to purc
Slide 3: Table of Contents
Table of Contents Section 1 Sagar Cements Limited- Corporate Overview Section 2 Key Investment Highlights Section 3 Financial Performance Section 4 ESG Section 5 Certifications, Awards & Accolades ©2024, Sagar Cement. All rights reserved. Privacy Policy 3
Slide 4: Corporate Overview
CORPORATE OVERVIEW ©2024, Sagar Cement. All rights reserved. Privacy Policy 4
Slide 5: Corporate Overview
Corporate Overview Sagar Cement has created a niche in Southern markets and in making inroads into Eastern markets Established in 1985, Sagar Cements Primarily manufactures the OPC, PPC, Company has Limited (“SCL”) with its current capacity PSC, CC & SRC variety of cement from its built a strong Ful
Slide 6: Facilities at a Glance
Facilities at a Glance Sagar Cements Mattampally plant Robo Lab Sagar Cements Sagar Cements Gudipadu Plant 8.8 MW – Waste Heat Sagar Cements Recovery Power Plant Mattampally plant Sagar Cements Mattampally plant- CCR Sagar Cements Mattampally plant-Mines Sagar Cements (M) Pvt. Ltd. Jeerabad Plant Sa
Slide 7: Key Milestones
Key Milestones 1985 1993 1996 1998 2002 2008 Clinker Production (TPD) 200 600 - 900 1,600 7,000 • Plant • Expansion by installing • Added • Installation • Installation of 6 stage • Formed a JV Commissioned a separate line Calciner additional of KIDS cooler, inline Calciner with with Vicat to set wit
Slide 8: Vision & Mission
Vision & Mission MTPA to double the MTPA 2035 capacity every 10 years Through 2023 Inorganic MTPA & Organic Acquisition Growth 2022 of 1.80 MTPA MTPA Integrated Commissioned plant at 2018 the 1.00 MTPA Dachepalli, MTPA Integrated Guntur Dist., Ramp up plant at Indore, AP and 0.80 2017 production Mad
Slide 9: Strong Sales & Distribution Channel
Strong Sales & Distribution Channel Distribution Network – Focused on South Strong Brand Equity & Recall Dealers # 3,146 Sub - Dealers # 7,371 ©2024, Sagar Cement. All rights reserved. Privacy Policy 9
Slide 10: Inherent Strengths
Inherent Strengths Well positioned to accelerate growth Access to resources Advanced plants Growing market Strong financials Resources State-of-the-art plants Market Financials • Strong limestone reserves: • Fully automated 3.00 MTPA plant • Plants located in close proximity to • Net worth increased
Slide 11: Professional & Experienced Management
Professional & Experienced Management DR. S. ANAND REDDY MR. S. SREEKANTH REDDY MR. K. GANESH MR. RAJESH SINGH MR. K PRASAD J. RAJA REDDY Company Secretary, Managing Director Joint Managing Director Group President Chief Marketing Officer Chief Financial Officer Compliance Officer Has more than Has
Slide 12: Backed by a Strong Board
……Backed by a Strong Board He had been associated with Raasi Cements Limited He holds a Graduate Degree in as Executive Director from 1992 to 1995 and as Chemical Engineering from National Managing Director from 1995 to 1998. He was on Institute of Technology, Tiruchirappalli the Board of Anjani Por
Slide 13: Shareholding Structure
Shareholding Structure Share Holding Pattern (as on June 30, 2024) 31.96 Promoters % 48.31 Institutions % Non-Institutions 19.73 % Mattampally Plant Select Public Investors Capital Structure SN Shareholders % Holding Particulars Amount (₹) Authorised Share Capital 292,50,00,000 1 AVH Resources India
Slide 14: Companies associated with Promoters
Companies associated with Promoters RV Consulting Sagarsoft Sagar Power Panchvati Services Pvt. Ltd. (India) Limited Limited Polyfibers Limited Reputed Turn Key Solutions Incorporated in 1996, engaged Engaged in operating hydroelectric Incorporated in 1984, Engaged in provider (Design, Engineering i
Slide 15: Acquisition Rationale – Andhra Cements
Acquisition Rationale – Andhra Cements Integrated Operations Strategic Location Captive Power Access to raw material Integrated operations with Integrated manufacturing Captive power plant of 30 MW Established sources of raw materials, captive limestone mine for DCW facilities at DCW which is locate
Slide 16: Acquisition Rationale – Andhra Cements
Acquisition Rationale – Andhra Cements Cement Captive Power Plants (Capacity in MW) Location Clinker MTPA Cement MTPA Facility WHRS Thermal Solar Hydro Total Sagar Cements - Mattampally, 2.75 3.00 Mattampally 8.80 18.00 1.35 - 28.15 Suryapet, Telangana Sagar Cements - Gudipadu, Gudipadu - 25.00 - -
Slide 17: Acquisitions
Acquisitions Proven Track Record of Disciplined M&A since 2015 Strategic acquisitions resulted in widening regional footprint and enhanced product mix Year Cumulative Capacity (MTPA) 1.50 2.25 1.00 Year Current Capacity (MTPA) 1.25 1.50 2.60 - - Year Acquisition Capacity (MTPA) 1.00 0.18 Year Locati
Slide 18: Capex Update
Capex Update Gudipadu, Company proposes to expand the cement capacities of Gudipadu Dachepalli, A.P Plant A.P Plant & Jeerabad plants by 0.25 MnT and 0.50 MnT respectively by FY26. Company proposes to increase the green power capacities. Company proposes to Clinker Capacity from 1.85 MnT to 2.31 MnT
Slide 19: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS ©2024, Sagar Cement. All rights reserved. Privacy Policy 19
Slide 20: Strategic Expansion Plan – Robust and Well Thought-out
Strategic Expansion Plan – Robust and Well Thought-out “Rightly Timed Expansion during Down cycle” Sagar Cement with SCMPL & ACL having current capacity of 10.50 MTPA is strongly positioned to derive full benefit in the Cement Up cycle Cement Demand (MTPA) 410 431 361 390 316 347 337 331 274 294 255
Slide 21: Well Positioned to Capture South Recovery
Well Positioned to Capture South Recovery “Southern Markets to Witness Demand Revival after Years of Declining to Muted Demand Demand subdued till FY17 resulting in excess capacity Limited incremental capacity, political stability, formation Major capacity Addition Post FY07 of new state augurs well
Slide 22: Well Positioned to Capture South Recovery
Well Positioned to Capture South Recovery Gradually built Proximity to key Markets with Shorter Lead Distances” Sagar has built a strong presence across key Sagar Cements (M) Private southern markets as it diversified its base from Geographical Mix Limited (Formerly Satguru AP&T (> 8.00 MTPA) Cement
Slide 23: Financial Summary
FINANCIAL SUMMARY ©2024, Sagar Cement. All rights reserved. Privacy Policy 23
Slide 24: Financial Performance – On An Upward Trajectory
Financial Performance – On An Upward Trajectory Total Income Capacity & Capacity Utilization 2,452 2,559 62% 61% 58% 56% 58% 58% 52% 53% 54% 53% 53% 53% 1,610 1,379 1,085 1,220 1,179 753 814 559 489 545 2.8 2.8 2.8 3.8 4.3 4.3 5.3 5.75 5.75 6.14 8.25 10.5 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Slide 25: Sales Volume Performance – On An Upward Trajectory
-5,00,000 5,00,000 15,00,000 25,00,000 35,00,000 45,00,000 55,00,000 65,00,000 2,93,351 3,33,706 2,86,904 FY 10 110.30 % 4,20,867 13,34,828 3,85,973 3,08,430 3,03,143 FY 11 5.94 % 4,16,563 14,14,109 4,10,701 4,05,574 3,88,050 FY 12 15.37 % 4,27,067 16,31,392 3,98,965 3,72,272 3,52,146 FY 13 2.84 % 4
Slide 26: Performance Highlights - Consolidated Q1 FY25
Performance Highlights - Consolidated Q1 FY25 in ₹ Lakhs Particulars Q1 FY25 Q1 FY24 YoY (%) Q4 FY24 QoQ (%) Sales Volume (MT) 12,83,170 11,79,614 ▲ 9% 16,13,767 ▼ 20% Revenue from Operations 56,060 53,967 ▲ 4% 70,871 ▼ 21% Other Income 830 391 ▲ 112% 4,374 ▼ 81% Total Income 56,890 54,358 ▲ 5% 75,2
Slide 27: Consolidated Projected Debt
Consolidated Projected Debt June 30, Particulars March 31, YoY Gross Debt (₹ in Crores) 2024 (Rs. in Lakh) 2024 (%) 1,439 1,626 1,485 1,342 1,199 1,46,171 Gross Debt 1,43,904 ▲ 2% 1,248 1,334 1,193 1,050 907 1,20,290 • Long Term 1,24,754 ▼ 4% 25,881 • Working Capital 19,150 ▲35% 192 292 292 292 292
Slide 28: Summary Financial Highlights
Summary Financial Highlights Historical Financial Performance Particulars FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 S.no. Year Installed Capacity Production Equity Reserves Share Capital & Surplus Net worth Long-term Debt D/E Total Income PBID PAT Dividend Book Value Per No. Market Pric
Slide 29: Environmental, Social, and Governance (ESG)
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) ©2024, Sagar Cement. All rights reserved. Privacy Policy 29
Slide 30: ESG Performance - Environment
ESG Performance - Environment Energy Emissions Water Resources Waste management Biodiversity Specific Electricity Consumption – Gross Emission Intensity 23 Water harvesting 51.2% Blended Cements 5.22% Thermal 11,459 Saplings planted 68.20 kWh/MT Cement (Scope-1,2 and 3) 679 kg structures created 24.
Slide 31: Social
Communities Health and Safety Q1FY25 Q1FY25 58 Lakhs CSR Spent Conducted 5 safety audits by National 44,419 Lives Impacted Safety Counsel CSR Surveys and implementation to enhance 95 Near miss Mapping quality of living in Neighborhood communities FY30 FY30 Strengthen the community health center by 2
Slide 32: Planned ESG Activities FY25
Planned ESG Activities FY25 Energy efficiency Energy and Productivity Preheater modification at Dachepalli Audits to modify preheater, Cooler and WHRS Mills at Mattampally Quality of Life Installation 4 MW WHRS at Gudipadu More surveys in alignment with SDGs Solar in neighborhood villages to enhance
Slide 33: Certifications, Awards & Accolades
CERTIFICATIONS, AWARDS & ACCOLADES ©2024, Sagar Cement. All rights reserved. Privacy Policy 33
Slide 34: Certifications, Awards & Accolades
Certifications, Awards & Accolades Certifications ISO 9001 : 2015 QMS ISO 50001 : 2018EMS ISO 14001 : 2015 ISO 45001 : 2018 RMF & ICD for SOX Compliance NABL accreditation for our Mattampally and Bayyavaram Lab Awards & Accolades Best Employer State Level Best Gudipadu Unit was Mattampally Limestone
Slide 35: Certifications, Awards & Accolades
Certifications, Awards & Accolades Received 27 awards in QCFI National Cement conclave QCFI Awards Summary Plant Participated Excellent Efficient Mattampally 09 06 03 Gudipadu 08 03 05 Bayyavaram 03 03 00 Jeerabad 04 02 02 Received 27 awards in QCFI National Cement conclave Jajpur 03 02 01 16 Awards
Slide 36: Certifications, Awards & Accolades
Certifications, Awards & Accolades Gudipadu Limestone mine, Dachepalli Limestone mine and Mattampally Limestone mines have been awarded with 1st rank, 1st rank, and 2nd rank respectively during Mines Safety Week Celebrations, 2023. Gudipadu & Bayyavaram units were felicitated by Bureau of Indian sta
Slide 37: Certifications, Awards & Accolades
Certifications, Awards & Accolades The company has received Green Co Gold The Bayyavaram Plant has been awarded The Gudipadu Plant has been awarded with Certificate Award from Confederation of Indian with Green Co platinum Certificate Award Green Co gold Certificate from Confederation Industries (CI
Slide 38: Thank You
Contacts THANK For Further Information Contact YOU Sagar Cements Limited K Prasad Chief Financial Officer prasadk@sagarcements.in Rajesh Singh Chief Marketing Officer +91 40 2335 1571 / 6572 rajeshsingh@sagarcements.in J Raja Reddy CS & Chief Compliance Officer rajareddyj@sagarcements.in ©2024, Saga