Star Cement Ltd. · NSE:STARCEMENT
Star Cement — Q1 FY25 Earnings Presentation
20 slides from Star Cement's earnings presentation, Aug 20, 2024
Slide 1: Stock exchange cover letter for investor presentation
Date: 20th August, 2024 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: 540
Slide 2: Creating a Better Tomorrow - Investors Presentation Q1 FY25
CREATING A BETTER TOMORROW Investors Presentation - Q1 - FY 25 NSE Ticker: STARCEMENT | BSE Ticker: 540575 | Bloomberg Ticker: STRCEM:IN Q1 Presentation | JUN 2024
Slide 3: Key achievements in Q1-FY25
Key achievements in Q1-FY25 New clinker in Meghalaya with 3.3 MTPA capacity commissioned on 21st Apr’24. Production of 54kT in Q1 FY25. Market share in NE increased from 25% to 27% QoQ Accrual of refund started in new grinding unit in Assam from mid-June. Launch of new premium brand Star Dhalai Mast
Slide 4: Know Us Better: Company Snapshot
Know Us Better: Company Snapshot Lumshnong GGU SGU 2
Slide 5: Star Cement – Company snapshots
Star Cement – Company snapshots 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 Siliguri GU, WB Current capacities Current capacity– 2MTPA 7.7 MTPA 6.1 MTPA Guwahati GU, Assam Current – 4MTPA Cement pdn. Clinker pdn. capacity capacity Lumshnong Integrated unit, Meghalaya 51 MW 12.3 MW Current clinker – 6.1MTPA Current grinding – 1
Slide 7: A history of excellent execution and sustained expansion
A history of excellent execution and sustained expansion Capacities FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY271 Plan to take cement capacity Clinker capacity 2.8 2.8 2.8 2.8 2.8 2.8 6.1 6.1 6.1 to ~12MTPA by FY27. Cement capacity 3.67 5.67 5.67 5.67 5.67 7.67 7.67 9.67 11.67 Cement and Cement capa
Slide 8: ESS Goals & Targets
ESS Goals & Targets Modules Target Present Status Green energy Group captive PPA of 18MW finalized & signed with JSW Green Energy Green energy share of 55% on 8th Aug 2024. (Q1 FY25 ~ by FY26. 36.4%) Existing WHRS– 12.3MW; Upcoming – 12MW (New clinker line) Thermal Substitution 15% by FY25 AFR Syste
Slide 9: Financial Highlights
Financial Highlights 7
Slide 10: EBITDA Q1 FY25
EBITDA Q1-FY25 and major reason for downfall 8.5 lac MT 3% growth in NE EBITDA Q1 FY25 11.5 lac tons INR 118Cr. Cement sold (Q1 FY24 – INR 138Cr.) 3.0 lac MT (8%) de-growth in OSNE INR/ton EBITDA – Q1 FY25 1,018 One-time exceptional items Q1 FY24 Non availability of clinker during Q1, additional cli
Slide 11: Cement Sales
Cement Sales Trade vs Non-trade – Q1 FY25 vs Q1 FY24 Product-wise sales – Q1 FY25 vs Q1 FY24 Q1FY25 Q1FY24 Lacs tons Q1 FY25 Q1 FY24 Lacs tons 9.61 10.1 9.72 10.11 1.05 1.00 0.89 0.45 PPC OPC Premium 1.82 1.43 Trade Non Trade Q1 FY25 Q1 FY24 Product Q1 FY25 Q1 FY24 % Change Segments Lacs Lacs % Chan
Slide 12: Logistics
Logistics 1157 227 1129 220 207 1082 Q1 FY24 Q4 FY24 Q1 FY25 Lead Distance (kms) Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 6.70% 4.60% ➢ Average logistics cost majorly increased due to increase in NE & Non-Trade mix in overall sales. 2.50% ➢ 100 new truck will be inducted in Star Cement’s Q1 F
Slide 13: Power & Fuel
Power & Fuel 1486 10.50% 2.2 8.60% 1036 1.7 831 1.5 3.70% Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 Fuel cost ( Rs./Kcal) TSR (%) Q1 FY24 Q4 FY24 Q1 FY25 25.60% 25.70% ➢ Impact in power & fuel cost in Q1 due to changes 36% in Clinker stock and some onetime expenses 33%
Slide 14: Other Key Levers
Other Key Levers 96 510 415 388 31 18 Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 Manpower ( Rs./Ton) Subsidy ( Rs./Ton) Reasons for increase ➢ Accrual of Incentive is started in newly ➢ YOY sales is flat ; annual increment took place and commissioned plant in Guwahati from mid June’24. ➢ Onetim
Slide 15: Financial Highlights – YoY Comparative
Financial Highlights – YoY Comparative Particulars Q1 FY25 Q1 FY24 YoY% Q4 FY24 FY24 Quantity Sales (Lacs tons) Cement and Clinker Sales 11.54 11.65 (1%) 14.11 44.43 Income and Expenses (INR Cr) Revenue from sale of cement and Clinker 751 760 (1%) 914 2,894 Other Revenue 1 9 (84%) 8 43 EBITDA 118 13
Slide 16: Sustainability & CSR: Integrating as key business principles
Sustainability & CSR: Integrating as key business principles 14
Slide 17: Social Initiatives
Social Initiatives • 500 spectacles distributed in eye check-up camp in Silchar Health and • General Health Camp has been organized in Assam covering ~350 people with free medicine & consultation • Under Star Jaladhara, 85 ring wells constructed benefitting over 450 people of Mohitnagar Sanitation •
Slide 18: Social Initiatives
Social Initiatives • School Infrastructure Development works initiated covering over 50 schools in all locations • Classes for Kala Mandir are going on as per schedule with all other extra-curricular activities for 350 students Education • Student Support Programme has been arranged covering 1500 st
Slide 19: Awards & Accolades
Awards & Accolades In Q1 of 2024-25 Star Cement Ltd Star Cement Ltd also won the Brand of has been honored with the the Decade Awards 2024 in the cement prestigious title of “India’s Most category. nationwide presented by BARC Admired & Valuable Company in Asia alongside Herald Global & ETC Corporat
Slide 20: Safe Harbour Clause
Safe Harbour Safe Harbour Clause 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