Ultratech Cement Limited · NSE:ULTRACEMCO
Ultratech Cement — Q2 FY22 Earnings Presentation
24 slides from Ultratech Cement's earnings presentation, Oct 18, 2021
Slide 1: Exchange filing cover letter
18th October, 2021 BSE Limited The Manager Corporate Relationship Department Listing Department Phiroze Jeejeebhoy Towers, The National Stock Exchange of India Limited Dalal Street, “Exchange Plaza”, Bandra-Kurla Complex, Mumbai 400 001. Bandra (East), Mumbai 400 051. Tel.: 22721233/4 Tel.: 26598236
Slide 2: India's Largest Cement Company - Earnings Q2 FY22
India’s Largest Cement Company EARNINGS: Q2 FY22 Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX
Slide 3: ESG update, Key Highlights, Financial Performance
01 02 03 ESG update Key Financial Highlights Performance GLOSSARY MNT – Million Metric Tons, LMT – Lakh Metric Tons, MTPA – Million Tons Per Annum, MW – Mega Watts, Q1 – April-June, Q2 – July-September, Q3 – October-December, Q4 – January-March, CY – Current Year period, LY – Corresponding period La
Slide 4: UltraTech joins RE100 – Commits to 100% renewable energy usage by 2050
UltraTech joins RE100 – Commits to 100% renewable energy usage by 2050 • Target to be on 100 % renewable energy by 2050. • Contracted renewable energy capacity scaled up 2.5 times in the last two years. • On track to achieve a green energy mix of 34% by 2024. 3
Slide 5: Expanding the boundaries: Carbon footprint at concrete level
Expanding the boundaries: Carbon footprint at concrete level GCCA members committed to drive down the CO2 footprint and aspire to deliver carbon neutral concrete by 2050 210 UltraTech under It will help to Tackling climate change requires GCCA leadership is achieve carbon actions across the value ch
Slide 6: Key Highlights
Key Highlights Sadar Double bridge, Nagpur is a critical infrastructure that reduces environment impact by reducing congestion. The project will benefit the society by reduction of ~ 1.1 million tons of CO2 emissions over its life, based on estimated fuel savings from the project.
Slide 7: Macro indicators
Macro indicators • Q1 GDP growth at 20.1% driven by low base, FY22 GDP • In light of an overall good monsoon and reduced Covid forecast remains unchanged at 9.5% by RBI while CPI caseload, expecting cement demand to increase in inflation forecast trimmed to 5.3% ensuing quarters with strong infrastr
Slide 8: Sectoral update Q2 FY22
Sectoral update Q2 FY22 State/Region wise performance Volume State/Region I R H C Key drivers Growth • Infrastructure segment registered growth North • Housing witnessed degrowth on account of heavy rains • Housing registered growth led by rural housing Central • Infrastructure segment saw degrowth
Slide 9: Key Performance Drivers (India Operations): Q2 FY22
Key Performance Drivers (India Operations): Q2 FY22 Grey Domestic Revenue Premium Products RMC UBS Green Power Volume Growth Volume Capacity Outlets Commissioned* 8% YoY 14% YoY 14% YoY 33% YoY 14% YoY 12 MW WHRS 21 MW Solar * Commissioned during the quarter ended 30/09/2021, taking total Waste Heat
Slide 10: CSR awards
CSR awards National Award for Corporate Social Sidhi Cement Works, Madhya Pradesh wins Fame CSR Responsibility for excellence in Covid Support- award 2021 for CSR response towards pandemic from the India CSR Network 9
Slide 11: UltraTech continues its winning spree
UltraTech continues its winning spree Brand Leader across segments Awarded by The Mobile Marketing Association (MMA) in 10th annual MMA Smarties India Awards 2021 for creative use of mobile technologies. 10
Slide 12: Financial Performance
Financial Performance Dalla Cement Works, Uttar Pradesh
Slide 13: Sales: Q2 FY22
Sales: Q2 FY22 Grey Cement White Export and Grey Cement (India) RMC Consolidated Cement Others (Overseas) Volumes (Mnt) 19.9 148 No of RMC plants 0.38 0.21 1.21 21.64 Growth (yoy) 8% 43 No of RMC plants 17% -45% 0% 8% Revenues (Rs Crs) 9,884 614 505 240 501 11,743 Growth (yoy) 13% 57% 16% -7% -1% 14
Slide 14: Performance at a glance
Performance at a glance Particulars Revenues EBITDA PBT PAT Q2 FY22 Consolidated (Rs Crs) 11,743 2,855 1,947 1,314 Growth – YoY 14% 1% 8% 0.3% Margin 24% 17% 11% H1 FY22 Consolidated (Rs Crs) 23,441 6,367 4,474 3,016 Growth – YoY 31% 23% 44% 43% Margin 27% 19% 13% 13
Slide 15: Key Cost Indicators: Q2 FY22
Key Cost Indicators: Q2 FY22 Logistics Cost Energy Cost Raw Material Cost 13% 31% 28% Increased 7% YoY to Rs. 1219/t Increased 17% YoY to Rs. 1099/t Increased 3% YoY to Rs. 518/t Diesel price hike – 21% YoY Steep hike in coal / petcoke prices Higher input costs 14
Slide 16: Logistics cost trend
Logistics Cost Trend Logistics cost (Rs./mt) YoY cost increase : 7% • Diesel price higher by ~21% • Inflationary increase in cost partially mitigated by improved efficiency Logistics cost v/s Diesel Price Index 160 149 132 148 QoQ cost increase : 3% 138 100 104 111 108 87 • Diesel price higher by ~7
Slide 17: Raw Material cost trend
Raw Material Cost Trend Raw Material cost (Rs./mt) Cost increase : 3% YoY and 2% QoQ • Increase in slag, gypsum and HSD prices Conversion ratio and Flyash Price Index 112 • Increase in diesel prices impacted input costs 111 111 103 102 103 Q1 18 Q2 21 Q1 22 Q2 22 Conversion Ratio Index (Clinker to c
Slide 18: Energy cost trend
Energy Cost Trend YoY YoYcost costincreased: increase 6% : 17% Energy cost (Rs./mt) • Reduced power consumption by ~ 4% • Green Power Mix : 13.7% • Increased imported fuel prices Energy cost v/s Petcoke Spot Price Index 240 QoQ cost increase : 8% 171 108 117 126 76 • Fuel price impact Q1 18 Q2 21 Q1
Slide 19: Other cost trend
Other Cost Trend YoY YoYcost costincreased: increase :6% 25% Other cost (Rs./mt) • Increase in packing cost ~ 20% • Normalised fixed cost WPI Index 120 QoQ cost increase : 20% 118 100 108 • Annual plant maintenance Q1 18 Q2 21 Q1 22 Q2 22 18
Slide 20: Q2 FY22 Financial Performance
Q2 FY22 Financial Performance Rs Crs UTCL Standalone India Operations Particulars CY LY CY LY Revenues (Net of Taxes) 11,272 9,895 11,242 ^ 9,861^ Operating Income 277 124 286 136 Other Income 142 146 142 134 Total Income 11,690 10,165 11,670 10,131 Expenses : Raw Materials Consumed 1,442 1,189 1,49
Slide 21: Income Statement: Q2 FY22
Income Statement: Q2 FY22 Rs Crs Consolidated India Operations Particulars CY LY % CY LY % 11743 10264 14 Revenues (net of taxes)^ 11242 9861 14 2855 2833 1 EBITDA 2849 2784 2 24% 28% (4) Margin (%) 25% 28% (3) 230 358 36 Finance costs 225 348 35 678 677 (0.1) Depreciation and Amortization 649 646 (
Slide 22: EBITDA PMT trend
EBITDA PMT trend 1449 1394 68 69 1187 1156 1159 1006 154 89 172 121 855 1381 1324 75 1033 1069 984 885 780 Q2FY16 Q2FY17 Q2FY18 Q2FY19 Q2FY20 Q2FY21 Q2FY22 Operating Profit Other Income Total EBITDA 21
Slide 23: Value creation for all stakeholders
Value creation for all stakeholders 17.3% 16.5% 15.3% 15.6% 12.0% 10.0% 9.0% 12.1% 59,275 60,724 64,482 60,078 33,763 39,051 44,180 46,163 FY19 FY20 FY21 Sep 21 FY19 FY20 FY21 Sep 21 Capital Employed (Rs Crs) ROCE * Net Worth (Rs Crs) ROE * 3.55 Net Debt : EBITDA reduced to 0.47x from the peak of 0.
Slide 24: Disclaimer
Disclaimer Statements in this ‘presentation’ describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Impor