JK Lakshmi Cement Limited · NSE:JKLAKSHMI

JK Lakshmi Cement — Investor Presentation (August 2017)

27 slides from JK Lakshmi Cement's investor presentation, August 2017

  1. Slide 1: Investor's Meet August'17

    JELAKSHMIS Investor’s Meet August’17 JKLAKSHMIS EM ENT Lid A

  2. Slide 2: Growth Chart – Capacity & Production – JKLC

    GROWTH CHART – CAPACITY & PRODUCTION – JKLC Mn. MT. As on 31st March 2011 2012 2013 2014 2015 2016 2017 Sep’18(E) Clinker Capacity * 3.96 4.13 4.29 4.62 6.27 6.27 6.60 6.77 Cement Capacity * 4.75 4.75 5.29 6.64 8.30 8.65 10.90 11.50 Production * 4.31 4.72 5.00 5.23 5.47 6.88 7.48 JKLC CAGR during FY

  3. Slide 3: Industry Growth Vs JKLC

    Industry Growth Vs JKLC Particulars % Growth Apr.12 - Mar.13 Apr.13 - Mar.14 Apr.14 - Mar.15 Apr.15 - Mar.16 Apr.16 - Mar.17 (12M) (12M) (12M) (12M) (12M) All India 5% 3% 5% 5% -1% North + Gujarat Zone 4% - 3% 2% -4% JK Lakshmi Cement - Existing 8% 7% 6% 3% 1% East Zone 5% 5% 1% JK Lakshmi Cement -

  4. Slide 4: Capacity Utilisation – Year (Apr.-Mar.)

    Capacity Utilisation – Year (Apr.-Mar.) Particulars Apr.12 - Mar.13 Apr.13 - Mar.14 Apr.14 - Mar.15 Apr.15 - Mar.16 Apr.16 - Mar.17 (12M) (12M) (12M) (12M) (12M) All India 70% 68% 66% 66% 62% North + Gujarat Zone 86% 83% 78% 72% 67% JK Lakshmi Cement - Existing 94% 99% 82% 85% 76% East Zone 80% 74%

  5. Slide 5: Mother Plants – Cement (Clinker) - Mn.MT

    Mother Plants – Cement (Clinker) - Mn.MT 1.30 UCWL 1.60(1.20) Jharli (Grinding Unit & AAC Block) 4.65(4.79) Udaipur Jaykaypuram Kalol (Grinding Unit) 0.90 Surat (Grinding Unit) Durg 2.70(1.98) 1.35 Odisha (Grinding Unit) 0.60 4

  6. Slide 6: Markets

    Markets J&K Punjab H.P. Haryana (36%) Delhi W.U.P. & Utt. Rajasthan (26%) Gujarat (34%) Madhya Pradesh (9%) W.Bengal (1%) Maharashtra Odisha Mumbai (4%) (10%) (17%) Andhra Pradesh (2%) 5

  7. Slide 7: Region-wise Cement Sales - Sirohi

    Region-wise Cement Sales - Sirohi Regions 2012-13 2013-14 2014-15 2015-16 (12M) 2016-17 (12M) % sales % sales % sales % sales % sales Rajasthan / MP 23 26 27 26 26 Gujarat 34 35 36 35 34 Maharashtra 8 7 8 6 4 North 35 32 29 33 36 6

  8. Slide 8: Region-wise Cement Sales - Durg

    Region-wise Cement Sales - Durg Regions 2015-16 (12M) 2016-17 (12M) % sales % sales Chhattisgarh 57 54 Odisha 21 17 West Bengal 6 1 Madhya Pradesh 5 9 Maharashtra 4 10 Jharkhand 3 4 Bihar 2 3 Others 2 2 7

  9. Slide 9: Financial Highlights – For 3 Months ended 30.06.2017

    Financial Highlights – For 3 Months ended 30.06.2017 Sr. Particulars Unit For the Ist Qtr. ended No. 30.06.17 30.06.16 Incr. / Decr. (-) in Existing Durg Total Existing Durg Total Figures % 1 Production (Incl. Clinker Sale) Lac MT 15.19 6.17 21.36 14.67 5.09 19.76 1.60 8% 2 Sales Lac MT 16.63 6.22 2

  10. Slide 10: Major Performance Indicators

    Major Performance Indicators Power Consumption (Kwh./ MT of cement) 79 79 78 75 75 74 74 73 71 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2016-17 Sirohi Durg 9

  11. Slide 11: Major Performance Indicators

    Major Performance Indicators Fuel Consumption (K.Cal./Kg.of clinker) 763 746 742 738 726 704 703 703 700 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2016-17 Sirohi Durg 10

  12. Slide 12: Key Financial Ratios

    KEY FINANCIAL RATIOS Particulars Unit 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Operating Profit % 19 21 15 15 10 13 Margin ( net of Excise) Interest Coverage Times 5 6 4 4 2 2 Total Debt / Equity Times 0.96 1.09 1.27 1.41 1.47 1.57 Net Debt / Equity Times 0.48 0.77 0.97 1.18 1.26 1.20 EV per

  13. Slide 13: 7 MW WHR at Durg

    7 MW WHR at Durg Sl No. Particulars Rs. Cr. 1 Capacity (MW) 7 2 Project Cost 90 3 Debt 60 4 Internal Accruals 30 5 Debt : Equity Ratio 2.00 6 CAPEX upto Jun.'17 79 Expected Commissioning - Oct'17 17

  14. Slide 14: 20 MW TPP at Durg

    20 MW TPP at Durg S.No. Particulars Rs. Cr. 1 Capacity (MW) 20 2 Project Cost 135 3 Debt 100 4 Internal Accruals 35 5 Debt : Equity Ratio 2.86 Expected Commissioning - Oct'18 18

  15. Slide 15: Split Grinding Unit at Odisha

    Split Grinding Unit at Odisha S.No. Particulars Rs. Cr. 1 Capacity (Mn. MT) 0.60 2 Project Cost 150 3 Debt 100 4 Internal Accruals 50 5 Debt : Equity Ratio 2.00 6 CAPEX upto Jun.'17 48 Expected Commissioning - Qtr.ending Sep'18 19

  16. Slide 16: Revival & Rehabilitation of UCWL

    Revival & Rehabilitation of UCWL S.No. Particulars Rs. Cr. 1 Capacity (Mn. MT) 1.60 2 Project Cost - Rs.Cr. 815 - Rs/MT 5,094 3 Term Loan from Bank/MFs 525 4 Promoters Contribution 290 5 Debt : Equity Ratio 1.91 Commissioned - Mar'17 20

  17. Slide 17: Means of Finance for UCWL

    Means of Finance for UCWL Rs. Cr. Means of Finance A.Equity 1.Equity/ OCCRPS from JKLC 205 2. Equity 10 3. Internal Accruals 65 4. Unsecured Loan from JKLC 10 Total Equity 290 B.Term Loan from Bank/MFs 525 Total (A+B) 815 21

  18. Slide 18: Advantages to JKLC from UCWL

    Advantages to JKLC from UCWL 1. Commissioned in Mar’2017. 2. Investment cost in UCWL is US $ 72 per MT as against the cost of US $ 120 per MT for a new Green field Cement Plant i.e., about 40% cheaper. 3. The plant has an excellent location, well connected by Road, Rail & Air and is close to the Nat

  19. Slide 19: Advantages of UCWL Revival

    Advantages of UCWL Revival 7. The accumulated tax losses of UCWL of over Rs.100 Cr. will result in tax savings in future years. 8. The combined capacities of JKLC & UCWL would increase the market share and consolidation of capacities would give benefits of synergy & logistics. 9. Availability of sur

  20. Slide 20: Shareholding Pattern of JKLC as on 30th Jun'2017

    Shareholding Pattern of JKLC as on 30th Jun’2017 I Promoters & Promoter Group 45.94% II FIIs,MFs,Banks etc. 29.14% III Public 24.92% Total 100.00% I Total Share Capital (Rs. Cr.) 58.85 II Total No. of Shares (Cr.) (Face Value Rs. 5/- each) 11.77 24

  21. Slide 21: Shareholder's friendly Initiatives

    Shareholder’s friendly Initiatives 1. Buy-back upto Rs. 97.5 Cr. at a Cap of Rs. 70/- per share in Feb’2012. Cap of Rs. 70/- per share represents :  57% Premium over 12 months average price.  68% Premium over 6 months average price.  67% Premium over 3 months average price.  66% Premium over 1 m

  22. Slide 22: Shareholder's friendly Initiatives (Contd..)

    Shareholder’s friendly Initiatives (Contd..) 3. Consistent Dividend Payout Ratio 13% for FY 2017. 56% for FY 2016. 30% for FY 2015.  30 % for FY 2014. 20% for FY 2013. 25% for FY 2012. 30% for FY 2011. 29% Average for last 7 Years 26

  23. Slide 23: JKLC among Best Performers on the bourses

    JKLC among Best Performers on the bourses Annualised Stock Price Return since January 2003 Company CAGR return (%) Shree cement 55.5 JK lakshmi Cement 39.4 Chettinad Cement 36.8 Birla Corp 33.8 Mangalam Cement 30.0 Madras Cement 29.6 Ambuja Cement 25.4 Grasim Inds 24.9 ACC 24.9 Prism Cement 24.0 Cen

  24. Slide 24: Way Forward

    Way Forward Setting up WHR Plant of 7MW at Durg. Setting up TPP Plant of 20 MW at Durg. At Durg in 2016-17 the Company has achieved much improved efficiencies. Premium Brands Pro+, Platinum Cement is sold from Durg Plant. Reduction in Borrowing Cost on LT Loans through annual resetting. Purchase of

  25. Slide 25: Way Forward

    Way Forward Increasing volumes through split location Grinding unit and outsourcing Grinding Arrangement. Short Term rating continues at A1+ (highest possible rating). Long Term rating is ‘AA’. 29

  26. Slide 26: JKLC has breached 10 Mn MT in Oct'16

    JKLC has breached 10 Mn MT in Oct’16. JKLC became a 11 Mn MT Cement Company in Mar’2017. Cement Capacity (including UCWL) has gone up from 9.35 Mn. MT in Mar’16 to 13 Mn. MT in Mar’2017. Efficiency Parameters amongst best in Industry. Key Financial Ratios well within accepted Norms. Become PAN India

  27. Slide 27: Thank You

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