Ramco Cements Limited · NSE:RAMCOCEM
Ramco Cements — The Ramco Cements — Q3 FY2024 Earnings Presentation
30 slides from Ramco Cements's earnings presentation, Feb 8, 2024
Slide 1: Cover letter to stock exchanges: Investor Update
Corporate Office: Auras Corporate Centre, V Floor, 98-A, Dr. Radhakrishnan Salai, Mylapore, % Chennai-600 004, India. Tel: +9144 2847 8666 Fax: +9144 2847 8676 s Website: www.ramcocements.in l^col THE RAMCO CEMENTS LIMITED Corporate Identity Number: L26941TN1957PLC003566 8 February 2024 National Sto
Slide 2: The Ramco Cements Limited Investor Update for 3QFY24
INNOVATE FOR A DIFFERENTIATE BETTER SUSTAINABLE TOMORROW The Ramco Cements Limited Investor Update for 3QFY24
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 Ariyalur Integrated Plant 08 Awards & Accolades Ramco Cements Investor Update 3QFY24
Slide 4: Overview
Overview Indian economy is expected to grow by a robust 7.3% in FY24 over and above the growth rate of 7.2% during the last financial year. Repo Rate remain unchanged at 6.5%; Manufacturing PMI Index softened in Dec 2023, but remains well above its long term average Indian Rupee exhibited lowe
Slide 5: TRCL's Market update for 3QFY24
TRCL’s Market update for 3QFY24 South East Volume from B2C & B2B have grown YoY Volume from B2C grown marginally & B2B remained flat YoY Share of premium products in 3QFY24: 29%; 3QFY23: 30% Share of premium products in 3QFY24: 20%; 3QFY23:16% Demand affected by extreme heavy rainfall in T
Slide 6: Sales & Capacity utilization for 9MFY24
Sales & Capacity utilization for 9MFY24 Cement Capacity Utilization % 69% 78% Utilization Utilization 9MFY23 9MFY24 Cement Sales (Lac Tons) Dry Mortar Sales (Lac Tons) 126.83 2.22 101.93 1.31 9MFY23 9MFY24 9MFY23 9MFY24 Ramco Cements Investor Update 3QFY24
Slide 7: Sales & Capacity utilization for 3QFY24
Sales & Capacity utilization for 3QFY24 Cement Capacity Utilization % 70% 74% 82% Utilization Utilization Utilization 3QFY23 3QFY24 2QFY24 Cement Sales (Lac Tons) Dry Mortar Sales (Lac Tons) 45.33 0.78 0.77 35.72 39.17 0.64 3QFY23 3QFY24 2QFY24 3QFY23 3QFY24 2QFY24 Ramco Cements Investor Update 3QFY
Slide 8: Key Performance for 9MFY24
Key Performance for 9MFY24 ` in Crores Revenue Cash Profit 6,705 824 5,591 631 9MFY23 9MFY24 9MFY23 9MFY24 Cash profit = PBT + Depreciation – Current Tax Profit Before Tax Profit After Tax 274 381 267 191 9MFY23 9MFY24 9MFY23 9MFY24 Company registered a total sale volume of 12.91 MnT in 9MFY24 with
Slide 9: Key Performance for 3QFY24
Key Performance for 3QFY24 ` in Crores Revenue Cash profit 2,343 2,113 287 287 2,018 243 3QFY23 3QFY24 2QFY24 3QFY23 3QFY24 2QFY24 Cash profit = PBT + Depreciation – Current Tax Profit Before Tax Profit After Tax 135 138 93 101 97 67 3QFY23 3QFY24 2QFY24 3QFY23 3QFY24 2QFY24 Company registered a tot
Slide 10: EBITDA
EBITDA ` in Crores 1200 1,164 500 402 412 1000 400 794 800 294 300 600 200 400 100 200 - 0 3QFY23 3QFY24 2QFY24 9MFY23 9MFY24 EBITDA / Ton ` 808 / T ` 1,007 / T ` 894 / T ` 769 / T ` 902 / T During 3QFY24, total sale volume is higher by 10% YoY & down by 13% compared Rupee depreciation by 4% during
Slide 11: Interest
Interest ` in Crores 140 16.00% 312 16.00% 300 120 117 14.00% 14.00% 102 12.00% 250 12.00% 100 10.00% 200 10.00% 80 163 61 8.00% 150 8.00% 60 7.85% 7.80% 7.82% 6.00% 6.00% 6.79% 40 100 6.16% 4.00% 4.00% 20 50 2.00% 2.00% - 0.00% - 0.00% 3QFY23 3QFY24 2QFY24 9MFY23 9MFY24 Finance cost increased due t
Slide 12: Depreciation
Depreciation ` in Crores 180 166 471 160 157 140 136 364 120 100 80 60 40 20 - 3QFY23 3QFY24 2QFY24 9MFY23 9MFY24 Depreciation increased due to commissioning of units in Kolimigundla, R R Nagar Line III and 2 Dry Mortar Plants Ramco Cements Investor Update 3QFY24
Slide 13: Income Statement for 9MFY24
Income Statement for 9MFY24 ` in Crores Standalone Consolidated Particulars 9MFY24 9MFY23 Variance % 9MFY24 9MFY23 Variance % 6,704.87 5,590.68 20% Revenue 6,723.43 5,606.62 20% 5,541.09 4,796.50 16% Less: Operating Expenses 5,552.54 4,810.84 15% 1,163.78 794.18 47% EBITDA 1,170.89 795.78 47% 311.77
Slide 14: Income Statement for 3QFY24
Income Statement for 3QFY24 ` in Crores Standalone Consolidated Particulars 3QFY24 3QFY23 Variance % 3QFY24 3QFY23 Variance % 2,113.10 2,018.09 5% Revenue 2,117.39 2,020.37 5% 1,710.75 1,724.12 1% Less: Operating Expenses 1,714.35 1,728.52 1% 402.35 293.97 37% EBITDA 403.04 291.85 38% 101.86 60.84 6
Slide 15: Cost of raw materials per ton
Cost of raw materials per ton In ` 970 944 925 897 881 3QFY23 3QFY24 2QFY24 9MFY23 9MFY24 Decrease in Diesel price by 1% in 9MFY24 YoY; Remain Neutral for 3QFY24 YoY Levy of Busy season surcharge by railways impacted the cost of inward material movements Inflationary impact on cost of other raw mate
Slide 16: Logistics cost per ton
Logistics cost per ton In ` 1,087 1,075 1,068 1,025 1,053 3QFY23 3QFY24 2QFY24 9MFY23 9MFY24 Rail Co-efficient for cement despatches 9MFY24 is 8% vs. 11% in 9MFY23 Rail Co-efficient for cement despatches 3QFY24 is 9% vs. 10% in 3QFY23 & 7% in 2QFY24 Avg. lead distance for 9MFY24 is 271 KMs vs 293 KM
Slide 17: Power and Fuel Cost per ton
Power and Fuel Cost per ton In ` 1,929 1,833 1,500 1,386 1,358 3QFY23 3QFY24 2QFY24 9MFY23 9MFY24 Blended Fuel consumption (incl. TPP) per T of material: 3QFY24: $ 138; 3QFY23: $ 191; 2QFY24: $ 148; 9MFY24: $ 152; 9MFY23: $ 179 Blended Fuel cost per Kcal: 3QFY24: ` 1.64; 3QFY23: ` 2.43; 2QFY24: ` 1.
Slide 18: Power Mix
Power Mix 22% 22% 25% 42% 40% 3QFY23 3QFY24 2QFY24 55% 20% 36% 38% Grid power Green Power Thermal Power Share of Green Power is expected to reach 42% on an annualized basis in FY25 # 20% 24% 42% 9MFY23 9MFY24 58% 22% 34% # Based on current production levels Ramco Cements Investor Update 3QFY24
Slide 19: Fuel Mix
Fuel Mix 32% 40% 43% 3QFY23 51% 3QFY24 53% 2QFY24 59% 9% 6% 7% Coal Alternate Fuel Pet coke Optimal usage of fuel based on Cost per CV 32% 41% 9MFY23 55% 52% 9MFY24 13% 7% Ramco Cements Investor Update 3QFY24
Slide 20: Employee Cost per ton
Employee Cost per ton In ` 342 336 323 311 300 3QFY23 3QFY24 2QFY24 9MFY23 9MFY24 Better absorption of cost per ton is due to improved operating leverage for 9MFY24; For 3QFY24, the cost per ton is higher due to lower sale volume compared with 2QFY24 Ramco Cements Investor Update 3QFY24
Slide 21: Other Expenditure per ton
Other Expenditure per ton In ` 658 633 620 579 546 3QFY23 3QFY24 2QFY24 9MFY23 9MFY24 Better absorption of cost per ton is due to improved operating leverage for 9MFY24; For 3QFY24, the cost per ton is higher due to lower sale volume compared with 2QFY24 Ramco Cements Investor Update 3QFY24
Slide 22: Key Ratios
Key Ratios Particulars UOM 3QFY24 3QFY23 2QFY24 9MFY24 9MFY23 EBITDA Ratio % 19% 15% 18% 17% 14% PBT Ratio % 6% 5% 6% 6% 5% PAT Ratio % 4% 3% 4% 4% 3% EPS, Not Annualized ` 4 3 4 12 8 RoE, Annualized % 5% 4% 6% 5% 4% RoCE (Post-tax), Annualized % 7% 5% 8% 7% 4% Debt-Equity Ratio Multiples 0.72 0.70
Slide 23: Capex update & Borrowings
Capex update & Borrowings Capex incurred during 9MFY24: ` 1,610 Crores; Q3FY24: ` 385 Crores Borrowings as on 31-12-2023 Particulars ` in Crores In Kolimigundala, TPP of 18 MW will be commissioned during March 2024 and railway siding will be commissioned during June 2024 Interest-bearing Borrowings
Slide 24: Capacity by FY26
Capacity by FY26 Clinker Cement Dry Mortar Thermal Power 19 MTPA 26 MTPA 5 Lac T 193 MW Capacity as at Expansion scheduled Capacity by Particulars UOM FY26 Q3FY24 Q4FY24 FY25 FY26 Clinker MTPA 16 - - 3 19 Cement MTPA 22 1 1* 2 26 Dry Mortar Lac Tons 3 2 - - 5 Thermal Power Plant MW 175 18 - - 193 Wa
Slide 25: ESG Update
ESG Update CO2 Emission Blended Cement Water Positive Green energy CSR 595 Kg / T of Cement 67% 3.8x 36% 1.5 lac + Beneficiaries Based on 3QFY24 figures Firm and Focussed for a sustainable future Ramco Cements Investor Update 3QFY24
Slide 26: Awards & Accolades
Awards & Accolades Ramco Cements Tech team have bagged Silver at exchange4media #e4mIDMA Awards 2023 in the Category - Best Use of Mobile – Customer Engagement Ramco Cements Investor Update 3QFY24
Slide 27: Awards & Accolades
Awards & Accolades Ariyalur unit had been awarded Winner in Visionary Leader Ariyalur unit had been awarded BIS Sustainable Award under Award under Health & Safety Management Category by Apex Sustainable Development Category by Bureau of Indian India Foundation on 6th October 2023. Standards on 13th
Slide 28: Awards & Accolades
Awards & Accolades Kolaghat unit had been awarded “CII Energy Conservation Award” for the year 2023, by the Confederation of India Industry on 20th December 2023. This is the 5th time the unit is receiving this award Ramco Cements Investor Update 3QFY24
Slide 29: Awards & Accolades
Awards & Accolades Ariyalur unit had been awarded Platinum Award under Kolaghat had been awarded “Memento of Appreciation” on 14th Occupational Health & Safety Category by Apex India October 2023 for the year 2023 by the Bureau of Indian Standards Foundation on 6th October 2023. This is the fifth ti
Slide 30: 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