JK Lakshmi Cement Limited · NSE:JKLAKSHMI

JK Lakshmi Cement — Investor Presentation (June 2016)

31 slides from JK Lakshmi Cement's investor presentation, June 2016

  1. Slide 1: Investor's Meet June'16

    JEEAKS|! Ltd. Investor’s Meet June’16 © JEKLAKSHMIS

  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 Jun’17(E) Sept’18(E) Clinker Capacity 3.96 4.13 4.29 4.62 6.27 6.27 6.60 6.79 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 JKLC CAGR during FY’12

  3. Slide 3: Industry Growth Vs JKLC

    Industry Growth Vs JKLC Demand/Despatches Particulars % Growth Apr.11 - Mar.12 Apr.12 - Mar.13 Apr.13 - Mar.14 Apr.14 - Mar.15 Apr.15 - Mar.16 (12M) (12M) (12M) (12M) (12M) All India 6% 5% 3% 4% 5% North + Gujarat Zone 11% 4% - 3% 3% JK Lakshmi Cement - Existing 14% 8% 7% 6% 3% East Zone 5% 5% JK La

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

    Capacity Utilisation – Year (Apr.-Mar.) Particulars Apr.11 - Mar.12 Apr.12 - Mar.13 Apr.13 - Mar.14 Apr.14 - Mar.15 Apr.15 - Mar.16 (12M) (12M) (12M) (12M) (12M) All India 72% 70% 68% 66% 66% North + Gujarat Zone 84% 86% 83% 77% 73% JK Lakshmi Cement - Existing 100% 94% 99% 82% 85% East Zone 80% 76%

  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(2.0) 1.35 Odisha (Grinding Unit) 0.60 4

  6. Slide 6: Markets

    Markets J&K Punjab H.P. Haryana (33%) Delhi W.U.P. & Utt. Rajasthan (26%) Gujarat (35%) Madhya Pradesh (5%) W.Bengal (6%) Maharashtra Odisha Mumbai (6%) (5%) (21%) 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) % sales % sales % sales % sales Rajasthan / MP 23 26 27 26 Gujarat 34 35 36 35 Maharashtra 8 7 8 6 North 35 32 29 33 6

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

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

  9. Slide 9: Financial Highlights – For 3 Months ended 31.03.2016

    Financial Highlights – For 3 Months ended 31.03.2016 Sr. Particulars Unit For the IVth Qtr. ended No. 31.03.16 31.03.15 Incr. / Decr. (-) in Figures % 1 Production (Incl. Clinker Sale) Mn. MT 2.05 1.45 0.61 42% 2 Sales Mn. MT 2.16 1.55 0.61 39% 3 Turnover Rs. Mn. 8247 6433 1814 28% 4 Net Sales Rs. M

  10. Slide 10: Financial Highlights – For 12 Months ended 31.03.2016

    Financial Highlights – For 12 Months ended 31.03.2016 Sr. Particulars Unit For Twelve Months ended No. 31.03.16 31.03.15 Incr. / Decr. (-) in Figures % 1 Production (Incl. Clinker Sale) Mn. MT 6.88 5.47 1.41 26% 2 Sales Mn. MT 7.32 5.96 1.37 23% 3 Turnover Rs. Mn. 29394 25685 3709 14% 4 Net Sales Rs

  11. Slide 11: Balance Sheet

    Balance Sheet Sl. Particulars Rs.Mn. No. As at As at 31.03.2016 31.03.2015 A EQUITY &LIABILITIES 1 Share Capital 589 589 2 Reserves and Surplus 12746 12719 Net Worth (1 + 2 ) 13334 13307 3 Loans a Long-Term 16201 16661 b Short-Term 2978 2331 Sub-Total (3) 19179 18992 4 Deferred Tax Liabilities (net)

  12. Slide 12: Major Performance Indicators

    Major Performance Indicators Power Consumption (Kwh./ MT of cement) 80 79 79 78 75 75 74 73 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 11

  13. Slide 13: Major Performance Indicators

    Major Performance Indicators Fuel Consumption (K.Cal./Kg.of clinker) 762 763 746 742 738 726 704 703 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 12

  14. Slide 14: Comparative Power Consumption 2014-15

    Comparative Power Consumption 2014-15 Kwh/MT of Cement 84 80 80 79 74 74 JKLC Shree JK Cement Ambuja ACC Ultra Tech 13

  15. Slide 15: Key Financial Ratios

    KEY FINANCIAL RATIOS Particulars Unit 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Operating Profit % 14 19 21 15 15 10 Margin ( net of Excise) Interest Coverage Times 4 5 6 4 4 2 Total Debt / Equity Times 0.97 0.96 1.09 1.27 1.43 1.44 Net Debt / Equity Times 0.37 0.48 0.77 0.97 1.22 1.25 EV per

  16. Slide 16: Split Grinding Unit - Surat

    Split Grinding Unit - Surat Sl Particulars Rs. Mn. No. 1 Capacity (Mn. MT) 1.35 2 Project Cost 2,300 3 Debt 1,600 4 Internal Accruals 700 5 Debt : Equity Ratio 2.29 6 CAPEX upto Mar.'16 1,760 Expected Commissioning - July'16 - Sept'16 15

  17. Slide 17: Split Grinding Unit - Odisha

    Split Grinding Unit - Odisha Sl Particulars Rs. Mn. No. 1 Capacity (Mn. MT) 0.60 2 Project Cost 1,250 3 Debt 750 4 Internal Accruals 500 5 Debt : Equity Ratio 1.50 6 CAPEX upto Mar.'16 350 Expected Commissioning - Sept'17 16

  18. Slide 18: Durg Project

    Durg Project Rs. Mn. Sl No. Particulars Phase -I Phase -II Phase -III Total Durg Durg Odisha 1 Capacity - Clinker (Mn.MT) 1.50 0.50 - 2.00 2 Capacity - Cement (Mn.MT) 1.80 0.90 0.60 3.30 3 Project Cost 16,000 500 1,250 17,750 4 Debt 11,000 - 750 11,750 5 Internal Accruals 5,000 500 500 6,000 6 Debt

  19. Slide 19: 7 MW WHR at Durg

    7 MW WHR at Durg Sl Particulars Rs. Mn. No. 1 Capacity (MW) 7 2 Project Cost 900 3 Debt 600 4 Internal Accruals 300 5 Debt : Equity Ratio 2.00 Expected Commissioning - Qtr.ending Sept'17 18

  20. Slide 20: Growth Opportunity - UCWL

    Growth Opportunity - UCWL S.No. Particulars Rs. Mn. 1 Capacity (Mn. MT) 1.60 2 Project Cost - Rs.Mn 7,000 - Rs / MT 4,375 3 Term Loan from Bank/FI's 4,750 4 Internal Accruals (JKLC's 2,250 Contribution Rs. 1500 Mn. 5 Debt : Equity Ratio 2.11 Expected Commissioning - Dec'16 19

  21. Slide 21: Growth Opportunity - UCWL

    Growth Opportunity - UCWL Revival of M/s Udaipur Cement Works Limited (UCWL) Means of Financing for Revival & Rehabilitation : Rs. Mn. Means of Finance A.Equity 1.Equity/other instruments from JKLC 1500 2. Equity 100 3. Internal Accruals 650 Total Equity 2250 B.Term Loan from Bank/FI’s 4750 Total (A

  22. Slide 22: Advantages to JKLC from UCWL

    Advantages to JKLC from UCWL 1. Land and Limestone Mines are available. 2. Environmental clearances are in place. 3. Major Plants orders released in March-April’14 . 4. Can commence operations in about 2 years as compared to 4 to 5 years required for new cement project. To be fully operational by De

  23. Slide 23: Advantages of UCWL Revival

    Advantages of UCWL Revival 8. Plant has the benefit of 50% Sales Tax Incentive of about Rs. 100 /MT. 9. Proximity of the Plant to the Consumption Centres has freight advantage. 10. The accumulated tax losses of UCWL of over Rs.1000 Mn. will result in tax savings in future years. 11. The combined cap

  24. Slide 24: Shareholding Pattern of JKLC as on 31st March 2016

    Shareholding Pattern of JKLC as on 31st March. 2016 I Promoters & Promoter Group 45.94% II Financial Institutions and Banks 32.86% III Public 21.20% Total 100.00% I Total Share Capital (Rs. Cr.) 58.85 II Total No. of Shares (Cr.) (Face Value Rs. 5/- each) 11.77 23

  25. Slide 25: Shareholder's friendly Initiatives

    Shareholder’s friendly Initiatives 1. Buy-back upto Rs. 975 Mn. 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 mo

  26. Slide 26: Shareholder's friendly Initiatives (Contd..)

    Shareholder’s friendly Initiatives (Contd..) 3. Consistent Dividend Payout Ratio 56% for FY 2016. 30% for FY 2015.  30 % for FY 2014. 20% for FY 2013. 25% for FY 2012. 30% for FY 2011. 25

  27. Slide 27: 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

  28. Slide 28: Way Forward

    Way Forward Setting up WHR plant of 7MW at Durg. Durg plant has reached efficiencies in 4th Qtr. of 15-16. In 16-17 the Company will have much improved efficiencies. Premium Brands Pro+, Platinum Cement is sold from Durg Plant. Reduction in Borrowing Cost on LT Loans through annual resetting. Purcha

  29. Slide 29: Way Forward

    Way Forward Increasing volumes through split location Grinding unit and outsourcing Grinding Arrangement. Short term rating continues at A1+ (highest possible rating). JKLC’s rating has been upgraded from ‘AA-’ to ‘AA’. 28

  30. Slide 30: JKLC to breach 10 Mn MT by Jun'16

    JKLC to breach 10 Mn MT by Jun’16. Would become a 11 Mn MT Cement Company during 2016-17. Cement Capacity (including UCWL) to go up from 9.35 Mn. MT in Mar’16 to over 13 Mn. MT during 2017-18. Efficiency Parameters amongst best in Industry. Key Financial Ratios well within accepted Norms. Become PAN

  31. Slide 31: Thank You

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