Ramco Cements Limited · NSE:RAMCOCEM
Ramco Cements — The Ramco Cements — Q2 FY2024 Earnings Presentation
31 slides from Ramco Cements's earnings presentation, Nov 9, 2023
Slide 1: Investor Update cover letter to stock exchanges
Corporate Office: Auras Corporate Centre, V Floor, 98-A, Dr. Radhakrishnan Salai, Mylapore, £H Chennai - 600 004, India. m Tel: +91 44 2847 8666 Fax: +91 44 2847 8676 Website: www.ramcocements.in |r4mco| the ramco cements limited Corporate Identity Number: L26941TN1957PLC003566 9 November 2023 Natio
Slide 2: Investor Update for 2QFY24
INNOVATE FOR A DIFFERENTIATE BETTER SUSTAINABLE TOMORROW Investor Update for 2QFY24 The Ramco Cements Limited
Slide 3: Contents
Contents 01 Overview 02 TRCL’s Market update 03 Sales & Capacity Utilization 04 Key Performance 05 Financial Analysis & Key Ratios 06 Capex & Borrowings update 07 ESG Update 08 Awards & Accolades The Ramco Cements Limited Investor Update 2QFY24
Slide 4: Overview
Overview Aggregate demand conditions exhibited buoyancy with gross domestic product (GDP) posting a growth of 7.8 per cent (y-o-y) in Q1FY24 Repo Rate remain unchanged at 6.5% and RBI remains firmly committed to aligning inflation with the target going forward. Indian Rupee breached 83-level a
Slide 5: TRCL's Market update for 2QFY24
TRCL’s Market update for 2QFY24 South East Volume from B2C & B2B picked up Volume from B2C grown marginally & B2B remained flat Share of premium products in 2QFY24: 30%;2QFY23: 28% Weak prices prevailed in all the markets Margins were under pressure due to weak prices Sales affected due to heavy rai
Slide 6: Sales & Capacity utilization for H1FY24
Sales & Capacity utilization for H1FY24 Cement Capacity Utilization % 68% 80% Utilization Utilization H1FY23 H1FY24 H1FY23: OPC 26%; B2B 31% H1FY24: OPC 31%; B2B 34% Cement Sales (Lac Tons) Dry Mortar Sales (Lac Tons) +32% +115% 87.66 1.44 66.21 0.67 H1FY23 H1FY24 H1FY23 H1FY24 The Ramco Cements Lim
Slide 7: Sales & Capacity utilization for 2QFY24
Sales & Capacity utilization for 2QFY24 Cement Capacity Utilization % 66% 82% 79% Utilization Utilization Utilization 2QFY23 2QFY24 1QFY24 2QFY23: OPC 26%; B2B 31% 2QFY24: OPC 31%; B2B 33% 1QFY24: OPC 32%; B2B 35% Cement Sales (Lac Tons) Dry Mortar Sales (Lac Tons) +37% +7% +108% +15% 45.33 42.33 0.
Slide 8: Key Performance for H1FY24
Key Performance for H1FY24 ` in Crores Revenue Cash Profit +29% 4,592 +39% 538 3,573 388 H1FY23 H1FY24 H1FY23 H1FY24 Cash profit = PBT + Depreciation – Current Tax Profit Before Tax Profit After Tax +45% +46% 180 246 124 170 H1FY23 H1FY24 H1FY23 H1FY24 Company registered a total sale volume of 8.91
Slide 9: Key Performance for 2QFY24
Key Performance for 2QFY24 ` in Crores Revenue Cash profit +31% +4% +98% +15% 2,343 2,249 287 1,793 250 145 2QFY23 2QFY24 1QFY24 2QFY23 2QFY24 1QFY24 Cash profit = PBT + Depreciation – Current Tax Profit Before Tax Profit After Tax +762% +28% +783% +28% 138 101 108 79 16 11 2QFY23 2QFY24 1QFY24 2QFY
Slide 10: EBITDA
EBITDA ` in Crores +114% +18% +52% 761 500 800 412 700 400 349 600 500 500 300 400 193 200 300 200 100 100 - 0 2QFY23 2QFY24 1QFY24 H1FY23 H1FY24 EBITDA / Ton ` 575 / T ` 894 / T ` 812 / T ` 748 / T ` 855 / T During 2QFY24, the sale volume is higher by 38% YoY & by 7% compared to Rupee depreciation
Slide 11: Interest
Interest ` in Crores +112% +25% +105% 140 16.00% 16.00% 250 120 117 14.00% 210 14.00% 200 12.00% 12.00% 100 93 10.00% 10.00% 80 150 8.00% 8.00% 60 55 7.95% 103 7.80% 7.80% 100 6.00% 6.00% 40 6.16% 5.79% 4.00% 4.00% 50 20 2.00% 2.00% - 0.00% - 0.00% 2QFY23 2QFY24 1QFY24 H1FY23 H1FY24 Finance cost inc
Slide 12: Depreciation
Depreciation ` in Crores +29% +6% +34% 180 157 305 160 148 140 122 228 120 100 80 60 40 20 - 2QFY23 2QFY24 1QFY24 H1FY23 H1FY24 Depreciation increased due to commissioning of units in Kolimigundla, R R Nagar Line III and 2 Dry Mortar Plants The Ramco Cements Limited Investor Update 2QFY24
Slide 13: Income Statement for H1FY24
Income Statement for H1FY24 ` in Crores Standalone Consolidated Particulars H1FY24 H1FY23 Variance % H1FY24 H1FY23 Variance % 4,591.77 3,572.59 29% Revenue 4,606.04 3,586.25 28% 3,830.34 3,072.38 25% Less: Operating Expenses 3,838.19 3,082.32 25% 761.43 500.21 52% EBITDA 767.85 503.93 52% 209.91 102
Slide 14: Income Statement for 2QFY24
Income Statement for 2QFY24 ` in Crores Standalone Consolidated Particulars 2QFY24 2QFY23 Variance % 2QFY24 2QFY23 Variance % 2,342.79 1,793.20 31% Revenue 2,352.09 1,800.61 31% 1,930.71 1,600.55 21% Less: Operating Expenses 1,934.99 1,606.02 20% 412.08 192.65 114% EBITDA 417.10 194.59 114% 116.52 5
Slide 15: Cost of raw materials per ton
Cost of raw materials per ton In ` +7% - 2% +7% 897 911 904 836 846 2QFY23 2QFY24 1QFY24 H1FY23 H1FY24 Decrease in Diesel price by 2% in H1FY24 YoY Levy of Busy season surcharge by railways upto July 2023 impacted the cost of inward material movements Inflationary impact on cost of other raw materia
Slide 16: Logistics cost per ton
Logistics cost per ton In ` - 1% -4% -1% 1,064 1,058 6% 1,039 1,044 1,025 2QFY23 2QFY24 1QFY24 H1FY23 H1FY24 Rail Co-efficient for cement despatches H1FY24 is 7% vs. 11% in H1FY23 Rail Co-efficient for cement despatches 2QFY24 is 7% vs. 9% in 2QFY23 & 7% in 1QFY24 Avg. lead distance for H1FY24 is 26
Slide 17: Power and Fuel Cost per ton
Power and Fuel Cost per ton In ` -32% -23% -13% 1,989 1,758 1,780 1,551 6% -15% 1,358 2QFY23 2QFY24 1QFY24 H1FY23 H1FY24 Blended Fuel consumption (incl. TPP) per T of material: 2QFY24: $ 148; 2QFY23: $ 199; 1QFY24: $ 170; H1FY24: $ 158; H1FY23: $ 181 Blended Fuel cost per Kcal: 2QFY24: ` 1.75; 2QFY2
Slide 18: Power Mix
Power Mix 19% 22% 27% 40% 44% 2QFY23 2QFY24 1QFY24 59% 22% 38% 29% Grid power Green Power Thermal Power Share of Green Power is expected to reach 40% in FY24 & 45% in FY25 17% 25% 42% H1FY23 H1FY24 21% 62% 33% The Ramco Cements Limited Investor Update 2QFY24
Slide 19: Fuel Mix
Fuel Mix 34% 40% 40% 2QFY23 53% 2QFY24 52% 1QFY24 54% 12% 7% 8% Coal Alternate Fuel Pet coke Optimal usage of fuel based on Cost per CV 32% 40% H1FY23 54% 53% H1FY24 14% 7% The Ramco Cements Limited Investor Update 2QFY24
Slide 20: Employee Cost per ton
Employee Cost per ton In ` -11% +2% -13% 338 343 300 294 297 2QFY23 2QFY24 1QFY24 H1FY23 H1FY24 Better absorption of employee cost is due to improved operating leverage The Ramco Cements Limited Investor Update 2QFY24
Slide 21: Other Expenditure per ton
Other Expenditure per ton In ` -10% +1% -11% 6% 607 613 546 541 544 2QFY23 2QFY24 1QFY24 H1FY23 H1FY24 Better absorption of fixed expenses is due to improved operating leverage The Ramco Cements Limited Investor Update 2QFY24
Slide 22: Summarized Financial Position
Summarized Financial Position ` in Crores Standalone Consolidated Particulars 30-09-2023 31-03-2023 30-09-2023 31-03-2023 13,045.50 12,161.61 Fixed Assets including CWIP 13,058.46 12,181.86 216.33 202.31 Investments 316.96 272.70 638.58 637.08 Loans and Advances 625.94 621.14 1,057.47 882.34 Invento
Slide 23: Summarized Cash flow
Summarized Cash flow ` in Crores Particulars 30-09-2023 30-09-2022 Operating cash flow improved due Operating Profit 761.43 500.21 to increase in operating leverage Changes in working capital 52.38 (-) 409.39 and softened fuel price; Release of working capital Direct Tax paid (-) 9.14 (-) 28.98 Othe
Slide 24: Key Ratios
Key Ratios Particulars UOM 2QFY24 2QFY23 1QFY24 H1FY24 H1FY23 EBITDA Ratio % 18% 11% 16% 17% 14% PBT Ratio % 6% 1% 5% 5% 5% PAT Ratio % 4% 1% 4% 4% 3% EPS, Not Annualized ` 4 - 3 7 5 RoE, Annualized % 6% 1% 5% 6% 4% RoCE (Post-tax), % 8% 2% 6% 7% 4% Annualized Debt-Equity Ratio Multiples 0.73 0.73 0
Slide 25: Capex update & Borrowings
Capex update & Borrowings Borrowings as on 30-09-2023 Capex update for the half-year ended 30-9-2023 Particulars ` in Crores Interest-bearing Borrowings Acquired Limestone bearing lands in the states of Andhra Pradesh - Long Term Debt 4,550.62 and Karnataka for long term augmentation of mining reser
Slide 26: ESG Update
ESG Update CO2 Emission Blended Cement Water Positive Green energy CSR 590 Kg / T of Cement 69% 3.8x 38% 80,000 + Beneficiaries Based on 2QFY24 figures Firm and Focussed for a sustainable future The Ramco Cements Limited Investor Update 2QFY24
Slide 27: Awards & Accolades
Awards & Accolades Ariyalur, R R Nagar and Jayanthipuram plants bagged ‘Excellent Energy Efficient Unit Award’ at the 24th National Award for Excellence in Energy Management conducted by Confederation of Indian Industry in Hyderabad The Ramco Cements Limited Investor Update 2QFY24
Slide 28: Awards & Accolades
Awards & Accolades R R Nagar unit won the first prize in the Overall Performance in A - Ariyalur unit bagged an award in CII-SR Industrial Water / Waste Class mines Category and Second prize in B-Class mines Category in Management Competition conducted by Confederation of Indian the 63rd Mines Safet
Slide 29: Awards & Accolades
Awards & Accolades Ariyalur Unit & Salem Unit bagged Gold award in various categories at the Coimbatore Chapter Quality Circle Convention, conducted by Quality Circle Forum of India, Coimbatore Chapter at Kodaikkanal The Ramco Cements Limited Investor Update 2QFY24
Slide 30: Awards & Accolades
Awards & Accolades Wind Farm Division received ‘Best Performing Wind Farm Awards’ from IWPA for the year 2022-23 The Ramco Cements Limited Investor Update 2QFY24
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