Nuvoco Vistas Corporation Limited · NSE:NUVOCO
Nuvoco Vistas — Q2 FY23 Earnings Presentation
27 slides from Nuvoco Vistas's earnings presentation, Nov 9, 2022
Slide 1: Exchange intimation letter for investor presentation
NUVOCO VISTAS CORP. LTD. Shaping a n.ew world Ref. No.: Sec/115/2022-23 November 9, 2022 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Fort, Mumbai - 400 001 Sandra Kurla Complex, Sandra (East}, Scrip Code: 543334 Mumbai -
Slide 2: Investor Presentation: Second quarter and first half ended September 30, 2022
Nu oco® Shaping Q neUJ UJOTld Investor Presentation Second quarter and first half ended September 30, 2022 November 09, 2022 1
Slide 3: Safe harbour clause
Safe harbour clause ~ N Uv OCO ® Shaping new WOTld Q ~ Statements in this ‘presentation’ describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements”. Actual results could differ materially from those expressed or implied. Important factors that cou
Slide 4: Company Overview
~ NU" OCO® Sl\aping a new woTld ~ 01 Company Overview 3
Slide 5: Nuvoco – A major player in building materials space
Nuvoco – A major player in building materials space ✓ 5th largest cement group in India ✓ Market leading brands with significant and leading player in East India market share, reputation and brand recall ✓ Installed cement capacity of 23.8 ✓ Focused on retail with major revenue MMTPA and 50+ ready-m
Slide 6: Performance snapshot for the quarter
~ Performance snapshot for the quarter NU" OCO® Sl\aping a new woTld ~ Cement sales volume Revenue from operations improved by 15% YoY increased by 19% YoY Premium share of products Increase in composite cement increased to 38% of trade sales volume on YoY basis volumes Ready-Mix Concrete and Altern
Slide 7: Economy & Industry
~ NU" OCO® Sl\aping a new woTld ~ 02 Economy & Industry 6
Slide 8: India remains one of the fastest growing economy
~ India remains one of the fastest growing economy NU" OCO® Sl\aping a new woTld ~ ▪ Urban consumption improved by discretionary Indian economy is projected to grow at 7% spending ahead of the festive season while rural in FY23 despite global headwinds demand is gradually improving 10% --- - - -.:>
Slide 9: Healthy demand drivers
Healthy demand drivers N U/ oco ~ ® Sl\aping a new WOTld ~ Housing ▪ 80 lakh houses targeted to be completed under PMAY (Urban and Rural) in FY23; ~93% of the allocated funds have been utilized ▪ Residential housing demand has bounced back despite rise in interest rates and property prices – housing
Slide 10: Business update
03 Business update 9
Slide 11: Consistent focus on internal levers
Consistent focus on internal levers N ~U a Onew o· Sl\aping WOTld ~ ---------\ ( I Project SPRINT 01 000 I I o0,o °'oo Price Acceleration Program I I I } \. _____ _ ./ ( \ Procurement synergy I I I\. 02 _____ _ Operational efficiency through CPP and WHR I I I } ----------\ ( Successful Integration o
Slide 12: Launched 'Duraguard Xtra F2F' in Bihar market
Launched ‘Duraguard Xtra F2F’ in Bihar market ~ N Uv OCO ® Shaping a new world ~ ▪ Launched ‘Duraguard Xtra F2F’ in Bihar - a premium composite cement that improves workability, provides a superior finish and strengthen the construction from foundation to finish (F2F) PREMIUM COMPOSITE CEMENT CONCRE
Slide 13: Launched 'Concreto Glyde' - a Ready-Mix Concrete solution
Launched ‘Concreto Glyde’ - a Ready-Mix Concrete solution N ~ Uv OCO ® Sl\aping a new woTld One-stop solution for amazing FLOORS and robust ROOF OVERLAYS ~ ▪ Concreto Glyde is a premium quality effective solution designed for interior and exterior flooring underlay with early drying time ▪ Variants
Slide 14: Growth & Sustainability projects
~ Growth & Sustainability projects f'I V"oco® !\aping a new woTld ~ Growth projects ▪ Clinker capacity enhancement project through debottlenecking at Nimbol and Risda ▪ 1.2 MTPA cement expansion at Bhiwani plant Additive conveyor for cement mill, Nimbol debottlenecking project Sustainability project
Slide 15: RMC and MBM businesses on a growth trajectory
~ RMC and MBM businesses on a growth trajectory Nl)" OCO® Sl\aping a new WOTld ~ Ready-Mix Concrete (RMC) ▪ 52 operational plants across India ® Modern Building Materials (MBM) ▪ Improvement in business with expansion into non-cement channels ▪ Continuous thrust to improve premiumisation; value adde
Slide 16: Awards & recognitions showcasing our achievements
~ Awards & recognitions showcasing our achievements NU" OCO® Sl\aping a new woTld ~ Concreto Cement has been awarded No. 1 Premium Cement Brand under the ‘Excellence in Infrastructure Development’ category at Jagran Achievers Awards 2022 ---._ CONCRETO __--- 1s THE NO. 1 PREMIUM CEMENT! Nu oco d u.t
Slide 17: Sustainability & CSR
~ ® N Uv OCO Sl\aping a new woTld ~ 04 Sustainability & CSR 16
Slide 18: Sustainability – a key thrust area
Sustainability – a key thrust area One of the lowest carbon footprint in cement industry with net carbon Cement to Clinker ratio (x) emission at 478 kg CO2 per ton cementitious materials in FY22 1.8 1.5 1.3 One of the largest producer of blended cement Demonstrating leadership in alternate fuel usag
Slide 19: Touching lives of communities through our CSR activities
~ Touching lives of communities through our CSR activities ~u"oco® ping a new world ~ Shikshit Set up a digital classroom solution and a SMART class in nearby Bharat school and university of Panagarh and Chittor respectively Swastha Organized eye, blood pressure & sugar check up and treatment Bharat
Slide 20: Key Financials
~ NU" OCO® Sl\aping a new woTld ~ 05 Key Financials 19
Slide 21: Lingering high-cost continues to pressure margins
~ Lingering high-cost continues to pressure margins NU" OCO® Sl\aping a new woTld ~ Market Prices Cost Q2 FY23 ▪ Cement demand in East improved ▪ Prices softened in early part of ▪ Cost pressure continued during by high double digit while North this seasonally weak quarter the quarter; increase in w
Slide 22: Key consolidated financial indicators
~ Key consolidated financial indicators NU" OCO® Sl\aping a new woTld ~ Cement Volumes Total Revenue Total EBITDA (MMT) (Rs. crores) (Rs. crores) Q2 FY23 4.4 2,401 194 H1 FY23 9.1 5,053 568 21
Slide 23: Key cement cost elements in Q2 FY23
~ Key cement cost elements in Q2 FY23 NU" OCO® Sl\aping a new woTld ~ Raw Material cost Power & Fuel cost Distribution cost 692 1,554 1,376 (Rs./t) (Rs./t) (Rs./t) Increased by 24% YoY Increased by 60% YoY Increased by 8% YoY Increase in slag prices and Significant increase in fuel costs Impact of h
Slide 24: Focus on balance sheet improvement
~ Focus on balance sheet improvement NU" OCO® Sl\aping a new woTld ~ Net debt as at month end (Rs. Crores) 6,730 6,885 - ▪ Reduction in net debt from Jun’22 5,718 - 5,495 5,064 5,347 5,283 end ▪ Despite 190 bps repo rate hike by the RBI since Mar’22, Nuvoco’s Mar'21 Jun'21 Sept'21 Dec'21 Mar'22 Jun'
Slide 25: Consolidated quarterly income statement
~ Consolidated quarterly income statement NU" OCO® Sl\aping a new woTld ~ (All amount in Rs. crores) Q2 FY22 Q2 FY23 H1 FY22 H1 FY23 Total Income 2,027 2,403 4,235 5060 Cost of materials consumed 334 418 672 854 Purchase of stock in trade 10 10 16 23 Changes in inventories (65) 31 (156) (101) Power
Slide 26: Summary
~ Summary NU" OCO® Sl\aping a new woTld ~ ✓ Strong foothold in East markets with healthy trade ratio and higher share of premium products ✓ Elevated costs continue to weigh margins; internal levers to support performance ✓ Persistent focus on product innovation ✓ Initiatives for sustainable growth w
Slide 27: Contact
Contact Nuvoco Vistas Corporation Limited Corporate Identity Number: L26940MH1999PLC118229 Registered and Corporate Office: Equinox Business Park, Tower 3, East Wing, 4th Floor, LBS Marg, Kurla (West), Mumbai - 400 070, Maharashtra, India; Website: www.nuvoco.com CDR India Gavin Desa: +91 98206 3764