Slide 1: Exchange filing cover letter
Secretarial Division ACC Limited Registered Office Cement House 121, Maharshi Karve Road July 20, 2020 Mumbai - 400 020, India CIN: L26940MH1936PLC002515 National Stock Exchange BSE Limited of India Limited Corporate Relations Phone: +91 22 3302 4321 Exchange Plaza, 5th Floor Department Fax: +91 22
Slide 2: Investor Presentation: Q2CY20 Results
Investor Presentation: Q2CY20 Results Jul 20, 2020 © ACC Limited Stock code: BSE: 500410 | NSE: ACC | Reuters: ACC.NS | Bloomberg: ACC:IN
Slide 3: Contents
Contents Economy & Industry Update Performance Highlights Performance Analysis Leadership In Sustainability © ACC Limited 2
Slide 4: Economy & Industry Update
1.2: ee Economy y | ioe & Industry Update
Slide 5: Macro Economy & Industry Update
Macro Economy & Industry Update Macro-Economic Update COVID-19 has been a black swan event leading to super VUCA* situation o Uncertainty on peak and rate of spread of Covid o Lockdowns have disproportionate impact on economy and life Economy was already under stress when COVID-19 struck, with r
Slide 6: Performance Highlights
Performance Highlights 5 5
Slide 7: Performance highlights – Q2'20 (consolidated)
Performance highlights – Q2’20 (consolidated) Cement Volume RMX Volume Net Sales 4.8 mt 0.15 Mio m3 Rs 2,520 Cr - 34% YoY - 83% YoY - 38% YoY Op. EBITDA PBT PAT Rs 525 Cr Rs 403 Cr Rs 271 Cr - 33% YoY - 40% YoY - 41% YoY Nationwide lockdown impacted volume, revenue and profitability Greater impa
Slide 8: Financial Results – Consolidated
Financial Results – Consolidated Change Particulars (all amt in Rs. Crs) Q2'19 Q2’20 (YoY) Net Sales 4,059 2,520 - 38% Op. EBITDA 783 525 -33% EBITDA Margin (%) 19.3 20.8 1.6pp Profit Before Tax (PBT) 673 403 - 40% Tax Expenses 217 132 - 39% Profit After Tax (PAT) 456 271 - 41% EPS (Rs/share) 24.3 1
Slide 9: Performance Analysis
Performance Analysis Performance Analysis 8 8
Slide 10: Income Statement: Cement
Income Statement :Cement Rs/ton Particulars Q2'19 Q2'20 Change YoY Sales Revenue 5,007 5,048 41 Other Operating Income 119 164 44 Total Operating Income 5,127 5,212 85 Expenses Raw Material Consumed 535 397 -138 Power & Fuel Cost 1,083 931 -151 Logistics Cost 1,341 1,220 -122 Employee Cost 247 326 7
Slide 11: Sales Volume
Sales Volume Cement Volume (Mio ton) RMX Volume (Mio m3) -34% -83% 7.2 0.85 4.8 0.15 Q2'19 Q2'20 Q2'19 Q2'20 Q2 YoY Volumes impacted due to COVID-19 which resulted in shutdown of operating activities under governments’ directive © ACC Limited 10
Slide 12: Net Selling Price
Net Selling Price Rs/ton 1% 5,048 5,007 Q2'19 Q2'20 Q2 YoY Realisation in line with the market trend and regional dynamics © ACC Limited 11
Slide 13: Cost of Materials Consumed
Cost of Materials Consumed Rs/ton -26% 535 397 Q2'19 Q2'20 Q2 YoY Decline in raw material cost due to source mix optimization, better negotiation and supply chain management © ACC Limited 12
Slide 14: Power & Fuel
Power & Fuel Rs/ton -14% 1,083 931 Q2'19 Q2'20 Q2 YoY Power & Fuel cost decreased due better fuel mix with higher proportion of low cost coal and improvement in thermal energy efficiency © ACC Limited 13
Slide 15: Freight & Forwarding
Freight & Forwarding Rs/ton -9% 1,341 1,220 Q2'19 Q2'20 Q2 YoY ‘ Reduction in primary rail freight through better planning Secondary freight & warehousing cost rationalisation Lower sales volume negatively impacted freight & forwarding cost © ACC Limited 14
Slide 16: Employee Cost
Employee Cost Rs/ton 32% 326 247 Q2'19 Q2'20 Q2 YoY Margin decline in employee cost on absolute basis however per ton cost increased due to lower volumes © ACC Limited 15
Slide 17: Other Expenses
Other Expenses Rs/ton -20% 795 636 Q2'19 Q2'20 Q2 YoY Despite negative leverage there is substantial reduction in fixed cost : o Stricter cost control in discretionary fixed cost o Negotiation led saving o Rationalisation of various cost items © ACC Limited 16
Slide 18: Leadership in Sustainability: Awards & Accolades
Leadership in Sustainability Awards & Accolades 17 17
Slide 19: Covid 19 – Communities - ACC Trust
Covid 19 – Communities - ACC Trust Working round-the-clock to aid half a million people across 125 villages & 14 Municipalities in 11 states; facilitating 2000+ SHG leaders Sanitisation: Disinfecting & sanitizing village areas using tankers modified to spray disinfectant. Provided 7 ventilators to G
Slide 20: CSR initiatives – Q2 2020
CSR initiatives – Q2 2020 • 125 students supported with scholarships for higher & technical studies at Kymore • 170 farmers supported with paddy seeds & demonstration of modern cultivation technique at Kymore • 223 youth provided livelihood through placement linked employability programs • Leveraged
Slide 21: Awards
Awards ACC has achieved the highest recognition of ‘Outstanding Accomplishment’ in Corporate Excellence at the CII-ITC Sustainability Awards 2019 The award has been given in recognition of the comprehensive efforts made by ACC in excelling at sustainable business practices, integrating them into cor
Slide 22: Thank You
ACC THANK YOU © ACC Limited
Slide 23: Disclaimer
Disclaimer Cautionary statement regarding forward looking statements This presentation may contain certain forward-looking statements relating to the Company’s future business, developments and economic performance Such statements may be subject to a number of risks, uncertainties and other importan