Ramco Cements Limited · NSE:RAMCOCEM
Ramco Cements — The Ramco Cements — Q1 FY2024 Earnings Presentation
20 slides from Ramco Cements's earnings presentation, Aug 7, 2023
Slide 1: Exchange filing cover letter: Investor Update
14.114 .1 144,ny 74Mar ort, -A-TRA thbf 6.,.50,-W0110'.421AiltfA ' "KS * Corporate Office: Auras Corporate Centre, V Floor, 98-A, Dr. Radhakrishnan Salai, Mylapore, Chennai - 600 004, India. Tel : +91 44 2847 8666 Fax: +91 44 2847 8676 Website : www.ramcocements.in Corporate Identity Number: 1.26941
Slide 2: Investor Update for 1QFY24 The Ramco Cements Limited
Chengalpattu Grinding Plant, Tamil Nadu INNOVATE FOR A DIFFERENTIATE BETTER SUSTAINABLE TOMORROW Investor Update for 1QFY24 The Ramco Cements Limited
Slide 3: Contents
Contents 01 Overview 02 TRCL’s Market update 03 Sales & Capacity Utilization 04 Key Performance 05 Financial Analysis & Key Ratios 06 Capex & Borrowings update 07 ESG Update The Ramco Cements Limited Investor Update 1QFY24
Slide 4: Overview
Overview India's GDP growth for FY24 is projected at 6.5%. CPI inflation fell sharply to 4.7% in April 2023 compared to 5.7% in March 2023 Repo Rate remain unchanged at 6.5%. However, US Federal Reserve’s interest hike of 25 bps put the rupee under pressure Domestic economic activity remains r
Slide 5: TRCL's Market update for 1QFY24
TRCL’s Market update for 1QFY24 South East Volume from B2C & B2B picked up Volume from B2B and B2C remained flat Non-availability of sand has impacted the demand in Kerala Supply disrupted due to rail accident for 20 days in Jun-23 Weak prices prevailed in all the markets NE Cement volume muted due
Slide 6: Sales & Capacity utilization
Sales & Capacity utilization Cement Capacity Utilization % 68% 79% 85% Utilization Utilization Utilization 1QFY23 1QFY24 4QFY23 1QFY23: OPC 26%; B2B 31% 1QFY24: OPC 32%; B2B 35% 4QFY23: OPC 33%; B2B 37% Cement Sales (Lac Tons) Dry Mortar Sales (Lac Tons) +28% -9% +123% -7% 46.28 0.72 42.33 0.67 33.1
Slide 7: Key Performance for 1QFY24
Key Performance for 1QFY24 ` in Crores Revenue +26% -13% Cash profit 3% -23% 2,249 2,581 323 1,779 243 250 1QFY23 1QFY24 4QFY23 1QFY23 1QFY24 4QFY23 Cash profit = PBT + Depreciation – Current Tax Profit Before Tax Profit After Tax -30% -48% 207 -30% -48% 152 154 112 108 79 1QFY23 1QFY24 4QFY23 1QFY2
Slide 8: EBITDA
EBITDA ` in Crores 450 +14% -18% 424 400 349 350 308 300 250 200 150 100 1QFY23 1QFY24 4QFY23 EBITDA / Ton ` 921/T ` 812/T ` 903/T During 1QFY24, the sale volume is higher by 29% YoY & down by 9% compared Rupee depreciation by 7% has pushed up imported fuel price to 4QFY23 Fixed cost absorption was
Slide 9: Interest & Depreciation
Interest & Depreciation ` in Crores Interest cost & its effective rate Depreciation +97% +21% +40% +5% 14.00% 160 148 141 100 93 140 12.00% 77 120 80 10.00% 106 100 8.00% 60 47 7.95% 7.85% 80 6.00% 40 60 5.68% 4.00% 40 20 2.00% 20 - 0.00% - 1QFY23 1QFY24 4QFY23 1QFY23 1QFY24 4QFY23 Finance cost & De
Slide 10: Income Statement for 1QFY24
Income Statement for 1QFY24 ` in Crores Standalone Consolidated Particulars 1QFY24 1QFY23 Variance % 1QFY24 1QFY23 Variance % 2,248.98 1,779.39 26% Revenue 2,253.95 1,785.64 26% 1,899.63 1,471.83 29% Less: Operating Expenses 1,903.20 1,476.30 29% 349.35 307.56 14% EBITDA 350.75 309.34 13% 93.39 47.4
Slide 11: Cost of raw materials per ton
Cost of raw materials per ton In ` +6% -4% 952 911 857 6% 1QFY23 1QFY24 4QFY23 Decrease in Diesel price by 4% Continued levy of Busy season surcharge by railways since Oct’22. The Impact is around ` 30/ T for inward material movements Inflationary impact on cost of other raw materials viz. Fly ash,
Slide 12: Logistics cost per ton
Logistics cost per ton In ` -1% Flat 1,077 1064 1,063 6% 1QFY23 1QFY24 4QFY23 Rail Co-efficient for cement despatches 1QFY24 is 7% vs. 13% in 1QFY23 & & 12% in 4QFY23 Avg. lead distance for 1QFY24 is 274 KMs vs 301 KMs in 1QFY23 & 310 KMs in 4QFY23 The effect of 15% levy of Busy Season Surcharge is
Slide 13: Power and Fuel Cost per ton
Power and Fuel Cost per ton In ` Without adjustments for changes in inventories With adjustments for changes in inventories +12% +8% +7% -4% 1,758 1,742 6% 1,570 1,635 1,669 -15% 1,554 1QFY23 1QFY24 4QFY23 1QFY23 1QFY24 4QFY23 Blended Fuel consumption (incl. TPP) per T of material: 1QFY24: $ 170; 1Q
Slide 14: Power / Fuel Mix
Power / Fuel Mix 17% 27% 27% 44% 4QFY23 1QFY23 1QFY24 50% 19% 64% 29% 23% Grid power Green Power Thermal Power The share of Green Power is expected to reach 40% for FY24 30% 31% 40% 54% 1QFY23 52% 1QFY24 56% 4QFY23 16% 13% 8% Coal Alternate Fuel Pet coke The Ramco Cements Limited Investor Update 1QF
Slide 15: Employee Cost per ton
Employee Cost per ton In ` -16% +22% 349 294 241 1QFY23 1QFY24 4QFY23 Better absorption of employee cost is due to improved operating leverage Employee Cost include Managing Director’s remuneration, in accordance with Ind AS 19 The Ramco Cements Limited Investor Update 1QFY24
Slide 16: Other Expenditure per ton
Other Expenditure per ton In ` -13% +4% 6% 620 541 521 1QFY23 1QFY24 4QFY23 Better absorption of fixed expenses is due to improved operating leverage The Ramco Cements Limited Investor Update 1QFY24
Slide 17: Key Ratios
Key Ratios Particulars UOM 1QFY24 1QFY23 4QFY23 FY23 EBITDA Ratio % 16% 17% 16% 15% PBT Ratio % 5% 9% 8% 6% PAT Ratio % 4% 6% 6% 4% EPS, Not Annualized ` 3 5 6 15 RoE, Annualized % 5% 7% 9% 5% RoCE (Post-tax), Annualized % 6% 6% 8% 5% Debt-Equity Ratio Multiples 0.65 0.64 0.66 0.66 Debt Service Cove
Slide 18: Capex update & Borrowings
Capex update & Borrowings Borrowings as on 30-06-2023 Capex incurred during 1QFY24: ` 284 Crores Particulars ` in Crores Kurnool Integrated Unit: Cement capacity utilization ramped upto Interest-bearing Borrowings ~ 97% in 1QFY24 - Long Term Debt 3,875.48 In Kurnool, 3 MW of WHRS will be commissione
Slide 19: ESG Update
ESG Update CO2 Emission Blended Cement Water Positive Green energy CSR 601 Kg / T of Cement 68% 3.8x 29% 18,000 + Beneficiaries Based on 1QFY24 figures Firm and Focussed for a sustainable future The Ramco Cements Limited Investor Update 1QFY24
Slide 20: Disclaimer
Disclaimer This communication, except for the historical information, may contain statements which reflect the Management’s current views and estimates and could be construed as forward looking statements. The future involves certain risks and uncertainties that could cause actual results to differ