Star Cement Ltd. · NSE:STARCEMENT
Star Cement — Q2 FY24 Earnings Presentation
27 slides from Star Cement's earnings presentation, Dec 19, 2023
Slide 1: Cover letter to stock exchanges for Investor Presentation
Date: 19th December, 2023 To To The Listing Department, The Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block-G Phiroze Jeejeebhoy Towers Bandra Kurla complex, Bandra-East Dalal Street Mumbai-400 051 Mumbai-400 001 Stock code: STARCEMENT Stock code: 5
Slide 2: Investor Presentation – Quarter 2 FY24
STAR CEMENT LIMITED – CREATING A BETTER TOMORROW Investor Presentation – Quarter 2 FY24 NSE Ticker: STARCEMENT | BSE Ticker: 540575 | Bloomberg Ticker: STRCEM:IN Q2 Presentation | SEPT 2023 0
Slide 3: Contents
Contents Know us Better: Company Snapshot 2 Cement industry outlook: Poised for 10 strong growth Sustainability & CSR: Integrating as 14 key business principles Leading from the front: Our management team 19 Financial Highlights 22 1
Slide 4: Know Us Better: Company Snapshot
Know Us Better: Company Snapshot 2
Slide 5: Star Cement – Company snapshot
Star Cement – Company snapshot Star Cement Limited is one of the leading names among Eastern India's cement manufacturers. The organisation has created a strong brand recall with its endeavor to maintain superior quality product, comprehensive supply chain eco- system, and unmatched efforts to uplif
Slide 6: Largest cement manufacturer in North-East India
Largest cement manufacturer in North-East India Current capacities Siliguri GU, WB Current capacity– 2MTPA 5.7 MTPA 2.8 MTPA Cement pdn. Clinker pdn. Guwahati GU, Assam capacity capacity Current – 2MTPA Additional – 2 MTPA (to be commissioned in FY24) 51 MW 12.3 MW TPP WHRS Lumshnong Integrated unit
Slide 7: Comprehensive product offerings under the brand
Comprehensive product offerings under the brand Ordinary Portland Portland Pozzolana Portland Composite Anti-Rust Weather Shield Cement (OPC) Cement (PPC) Cement (PCC) Cement (ARC) Cement (WSC) OPC PPC PCC OPC 43: PPC: PCC: ARC: WSC: Suitable for construction Ideal for mass Provides high later A hig
Slide 8: A history of excellent execution and sustained expansion
A history of excellent execution and sustained expansion Capacities FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY261 Plan to take cement capacity Clinker capacity 2.8 2.8 2.8 2.8 2.8 6.1 6.1 6.1 to ~10MTPA by FY26. Cement capacity 3.67 5.67 5.67 5.67 5.67 7.67 7.67 9.67 First plant setup Cement and Cement c
Slide 9: Endorsing a better future
Endorsing a better future Annual advertising and Brand Promotion Star Weather shield cement, the Maverick Investment (INR Cr.) product from Star Cement 32.89 33.53 29.67 26.20 21.28 15.77 FY19 FY20 FY21 FY22 FY23 FY 24 H1 In Q2, with the launch of Star Weather Shield Cement, aggressive 360-degree br
Slide 10: The technological edge
The technological edge Star link app (8200+ Users): Business WhatsApp: Facilitating loyalty program for Star Cement official business WhatsApp Masons who use Star Cement in number is a medium where all queries faced by customers, channel partners their various projects to earn etc. are resolved with
Slide 11: Cementing its leadership through sustained performance
Cementing its leadership through sustained performance ❑ Market leadership in North-East with market share of over 24% ❑ Strong dealer and distributor network built over the years, enabling leadership position in Eastern India . Sales volume through the years (lac tons) 18% 28% 4% 6% 21% 13% -8% 1%
Slide 12: Cement Industry Outlook: Poised for strong growth
Cement Industry Outlook: Poised for strong growth 10
Slide 13: India is rising as an economic powerhouse
India is rising as an economic powerhouse S&P India Global Manufacturing PMI • The Manufacturing PMI consistently remained around 57 for the last 8 months. • Manufacturing employment in India increased for the 8th consecutive month. • Favorable manufacturing outlook with strong demand outlook, new c
Slide 14: Demand drivers firmly in place
Demand drivers firmly in place • RBI revises FY24 full year GDP growth estimate from 6.5% to 7%. Macro indicators • ICRA estimates suggest cement volume growth of 9-10% for FY24, crossing 420Mn. tons. • Urban housing demand is recovering post FY23 with strong pipeline of launches by real estate deve
Slide 15: Strong recovery in real estate gives profound strength
Strong recovery in real estate gives profound strength Mn sq. ft. Strong growth in real estate launches • Real estate launches are at decadal high, momentum is set to continue going forward. • Inventories at decadal low; developers oozing optimism for next leg of launches. • Pause in interest rate h
Slide 16: Sustainability & CSR: Integrating as key business principles
Sustainability & CSR: Integrating as key business principles 14
Slide 17: Social initiatives
Social initiatives Health and • 6 health camps organized; 1500+ beneficiaries free medicine and consultation. Sanitation • Financial assistance to over 50 elderly and disabled persons Waste management Health camps Support to disabled Menstrual Hygiene Food security Livelihood • Star USHA tailoring s
Slide 18: Social initiatives
Social initiatives • Education tour organized for students; Infra development support in 7 schools. Education • 25 set of school benches provided; scholarships provided; computer education on wheels. • Classroom kits and play kits distributed to 3000 students across 15 schools in Mohit agar. Kala Ma
Slide 19: ESG Update
ESG Update Decoding ESG (Environment, Social and Governance) compliance Environment Social Governance Refers to how an Refers to how Includes corporate organisation businesses impact governance and operates within their stakeholders business integrity. the physical, such as customers, Corporate natu
Slide 20: ESG Goals and Targets
ESG Goals and Targets Modules Target Present Status Captive solar plant - 24MW by 2025 (Further 51MW being Green energy share planned in Assam)- Total 72MW. Group captive 26MW project Green energy of 55% by FY26. is in planning stage. Existing WHRS– 12.3MW; Upcoming – 12MW (New clinker line) Thermal
Slide 21: Leading from the front: Our management team
Management Team Leading from the front: Our management team 19
Slide 22: Directed by a versatile group of promoters & directors
Directed by a versatile group of promoters & directors Mr. Sajjan Bhajanka Mr. Rajendra Chamaria Chairman & Managing Director Vice Chairman & Managing Director Experience: 50 years’ experience in Experience: 36 years’ experience in cement plywood, laminates, ferro alloys and and concrete sleepers' i
Slide 23: Superior governance through a diverse leadership team
Superior governance through a diverse leadership team Mr. Vinit Mr. Manoj Mr. Pradeep Mr. Sundaram Mr. Samar Mr. Kanak Kumar Tiwari Agarwal Purohit Srinivasan Banerjee Kumar Chhangani Chief Executive Chief Financial Chief Operating Chief Manufactg. Chief Human Chief Mineral Officer Officer Officer O
Slide 24: Financial Highlights
Financial Highlights 22
Slide 25: Quarterly highlights that matter
Quarterly highlights that matter Sales Volume - Cement Revenue - cement sales Total EBITDA Profit after tax (PAT) ~1% ~1% ~25% ~31% Lacs tons INR Cr. INR Cr. INR Cr. 593 585 41 8.91 8.96 104 83 31 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 ❑ Cement realizations increased YoY. ❑
Slide 26: Consolidated financial statements
Consolidated financial statements Particulars UoM Q2 FY24 Q2 FY23 FY23 Equity Share Capital INR Cr 40 40 40 Reserves & Surplus INR Cr 2,509 2,226 2,376 Net Worth INR Cr 2,549 2,266 2,416 Revenue INR Cr 585 593 2,757 EBIDTA INR Cr 104 83 520 PBT INR Cr 65 49 380 Tax Expenses INR Cr 24 18 132 PAT INR
Slide 27: Safe harbour clause
Safe harbour clause The given communication, except for historical information reflect current estimates and views of the management and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, or correctness of such