Ramco Cements Limited · NSE:RAMCOCEM
Ramco Cements — The Ramco Cements — Q2 FY2023 Earnings Presentation
31 slides from Ramco Cements's earnings presentation, Nov 9, 2022
Slide 1: Investor Presentation filing cover letter
aiwcep, , - ateist ' 41a4r ritleAr Wir ,,Ag V4140 .11# tt-V. 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: L26941TN1957PLC003566
Slide 2: The Ramco Cements Limited Investor Update: Firm & Focussed Q2FY23
The Ramco Cements Limited Investor Update Firm & Focussed Q2FY23
Slide 3: Contents
Contents 01 Overview 05 Financial Analysis & Key Ratios 02 Market update 06 Capex update 03 Sales & Capacity Utilization 07 ESG update 04 Key Performance 08 Awards & Accolades The Ramco Cements Limited Investor Update Q2FY23
Slide 4: Overview of Economy
Overview 1 Overview of Economy • India's GDP growth for FY23 is projected at 6.5% from an earlier estimate of 7.5% on account of extended geopolitical tensions and aggressive monetary policy tightening globally • Repo Rate increased by 190 bps during last six months and tops pre-pandemic levels • Ru
Slide 5: Market update for Q2FY23
Market update for Q2FY23 South East Demand from Individual housing & Infra particularly in Demand from Individual housing remained flat road projects, picked up Demand from Infra / Commercial segment have grown Prices have dropped despite increase in cost Demand subdued in eastern markets
Slide 6: Cement Sales & Capacity utilization
Cement Sales & Capacity utilization Cement Sales (Lac Tons) 33.11 27.08 +22% 55% 66% Utilization Utilization Q2FY22 Q2FY23 Q2FY22 Q2FY23 Share of Premium products increased by 4% and stood at 24% for H1FY23 66.21 +37% 51% 48.49 68% Utilization Utilization H1FY22 H1FY23 H1FY22 H1FY23 The Ramco Cement
Slide 7: Key Performance for Q2FY23
Key Performance for Q2FY23 ` in Crores Revenue EBITDA 1,793 402 1,501 +19% -52% 193 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Profit Before Tax Profit After Tax 274 517 -94% -98% 16 11 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Delivered strong volume growth during Q2FY23. But Profitability has The Company is not entitled t
Slide 8: Key Performance for H1FY23
Key Performance for H1FY23 ` in Crores Revenue EBITDA 3,573 772 2,736 +31% -35% 500 H1FY22 H1FY23 H1FY22 H1FY23 Profit Before Tax Profit After Tax 524 686 -68% -82% 170 124 H1FY22 H1FY23 H1FY22 H1FY23 Cement prices have dropped while fuel has increased to an unprecedented level Revenue surpassed
Slide 9: Income Statement for Q2FY23
Income Statement for Q2FY23 ` in Crores Standalone Consolidated Particulars Q2FY23 Q2FY22 Variance % Q2FY23 Q2FY22 Variance % 1,793.20 1,501.03 19% Revenue 1,800.61 1,510.33 19% 1,600.55 1,099.29 46% Less: Operating Expenses 1,606.02 1,103.32 46% 192.65 401.74 52% EBITDA 194.59 407.01 52% 55.05 29.4
Slide 10: Income Statement for H1FY23
Income Statement for H1FY23 ` in Crores Standalone Consolidated Particulars H1FY23 H1FY22 Variance % H1FY23 H1FY22 Variance % 3,572.59 2,735.70 31% Revenue 3,586.25 2,750.32 30% 3,072.38 1,963.95 56% Less: Operating Expenses 3,082.32 1,971.54 56% 500.21 771.75 35% EBITDA 503.93 778.78 35% 102.53 53.
Slide 11: EBITDA
EBITDA EBITDA in Crores EBITDA per Ton 450 2300 800 772 402 2300 2100 400 370 700 1900 350 1592 1700 1800 600 305 308 300 1728 500 1500 500 1300 250 1484 238 1300 400 1100 200 193 900 300 800 956 929 700 150 790 200 755 500 582 100 300 100 300 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 H1FY22 H1FY23
Slide 12: Cost of raw materials
Cost of raw materials In ` per Ton 855 846 +9% 787 6% +12% 754 Q2FY22 Q2FY23 H1FY22 H1FY23 One off item of usage of clinker in TN units received from AP units during Q2FY23 in view of maintenance of TN units. The impact is ~ ` 55 per Ton The Ramco Cements Limited Investor Update Q2FY23
Slide 13: Logistics cost
Logistics cost In ` per Ton 1,109 1,093 -5% -2% 1,069 6% 1,051 Q2FY22 Q2FY23 H1FY22 H1FY23 Rail Co-efficient for Q2 is 9% vs 11% YoY Rail Co-efficient in H1 remained flat at 11% YoY Average lead distance is 279 KMs; Down by 8% Average lead distance in H1 is 290 KMs; Down by 10% Impact of i
Slide 14: Power and Fuel Cost
Power and Fuel Cost In ` per Ton 2,013 Blended Fuel consumption per T of material: 1,798 Q2FY23: $ 199 / T +90% +72% H1FY23: $ 181 / T 6% 1,057 1,045 Usage of high cost pet coke -15% Emphasis on increased usage of green energy Rupee depreciation has impacted the fuel cost Q2FY22 Q2FY23 H1FY2
Slide 15: Power Mix
Power Mix 13% 19% 15% Q2FY23 Q2FY22 59% 22% 72% Grid power Green Power Thermal Power Grid power Green Power Thermal Power Focus on Green Power 16% 17% H1FY22 15% H1FY23 21% 62% 69% Grid power Green Power Thermal Power Grid power Green Power Thermal Power The Ramco Cements Limited Investor Update Q2F
Slide 16: Fuel Mix
Fuel Mix 34% 38% 34% Q2FY22 54% Q2FY23 12% 28% Coal Alternate Fuel Pet coke Coal Alternate Fuel Pet coke Optimum usage of fuels based on cost per CV 34% 32% 40% H1FY22 H1FY23 54% 26% 14% Coal Alternate Fuel Pet coke Coal Alternate Fuel Pet coke The Ramco Cements Limited Investor Update Q2FY23
Slide 17: Employee Cost
Employee Cost In ` per Ton 442 405 -25% -16% 339 333 Q2FY22 Q2FY23 H1FY22 H1FY23 Due to better operating leverage The Ramco Cements Limited Investor Update Q2FY23
Slide 18: Other Expenditure
Other Expenditure In ` per Ton 721 699 -12% -12% 634 6% 617 Q2FY22 Q2FY23 H1FY22 H1FY23 Increase in Volume has led to better absorption of fixed expense Softening of polymer price during Q2FY23 The Ramco Cements Limited Investor Update Q2FY23
Slide 19: Summarized Financial Position
Summarized Financial Position ` in Crores Standalone Consolidated Particulars 30-09-2022 31-03-2022 30-09-2022 31-03-2022 11,558.30 10,785.59 Fixed Assets including CWIP 11,578.92 10,806.79 201.07 201.27 Investments 286.31 297.09 645.33 709.51 Loans and Advances 632.21 690.99 958.98 833.33 Inventori
Slide 20: Summarized Cash flow
Summarized Cash flow ` in Crores Particulars 30-09-2022 30-09-2021 Operating Profit 500.21 771.75 Operating Profit decreased mainly Changes in working capital (-) 409.39 (-) 273.63 due to increase in price of fuel; Working capital increased mainly Direct Tax paid (-) 28.98 (-) 80.61 due to effect of
Slide 21: Wind power
Wind power Particulars Q2FY23 Q2FY22 Variance Generation of Wind power (In Crore Units) 10.74 12.13 11% Revenue from Wind power ( ` in Crores) 26.23 33.43 22% Less: Operating Expenses ( ` in Crores) 5.22 5.57 6% EBITDA from Wind power ( ` in Crores) 21.01 27.86 25% Particulars H1FY23 H1FY22 Variance
Slide 22: Key Ratios
Key Ratios Particulars UOM Q2FY23 Q2FY22 H1FY23 H1FY22 EBITDA Ratio % 11% 27% 14% 28% PBT Ratio % 1% 18% 5% 19% PAT Ratio % 1% 34% 3% 25% EPS, Not Annualized ` 0.48 21.86 5.23 29.01 RoE, Annualized % 1% 35% 4% 23% RoCE (Post-tax), % 2% 23% 4% 16% Annualized Debt-Equity Ratio Multiples 0.73 0.56 0.73
Slide 23: Capex update
Capex update Kurnool Integrated Unit commenced commercial production from 23rd WHRS capacity of 6 MW in Kurnool will be commissioned during Nov September 2022; Unit was inaugurated by Honorable Chief Minister of 2022; Balance 6.15 MW will be commissioned in Mar 2023. TPP of 18 Andhra Pradesh, Sh
Slide 24: Capex update
Capex update Spent ` in Crores Guidance ` in Crores Particulars Q2FY23 H1FY23 H2FY23 FY24 Kolimigundala Integrated Unit Cement plant, WHRS,TPP 115 264 60 100 Railway Siding 28 51 91 100 Township 13 25 18 - RR Nagar Modernization 139 274 125 40 Limestone Benefication Plant at RRN 18 29 15 7 Inf
Slide 25: Overview of Installed Capacity
Overview of Installed Capacity Clinker Integrated Unit Grinding Unit Dry Mortar 14 MTPA 14 MTPA 7 MTPA 5 LTPA Include upcoming in TN, AP, OR Ready Mix Concrete Thermal Power Waste Heat Recovery Wind power 56 Cu.Metre / Hour 193 MW 43 MW 166 MW Include upcoming in Kurnool 18 MW Include upcoming in Ku
Slide 26: ESG Update
ESG Update CO2 Emission Blended Cement Water Positive Green energy CSR 561 Kg / T of Cement 74% 2x 21% 1,20,000 + Beneficiaries Based on half-year figures Firm and Focussed for a sustainable future The Ramco Cements Limited Investor Update Q2FY23
Slide 27: Awards & Accolades
Awards & Accolades CSR Winner Award by Green Tech Foundation for Award received by Alathiyur Plant for Best Environment Protection Promotion of Health Care Alathiyur Plant received ‘Gold Medal’ Award in the India Green Alathiyur & Ariyalur Plant received ‘Platinum’ Award from Apex India Manufacturin
Slide 28: Awards & Accolades
Awards & Accolades Wind Farm Division received ‘Best Performing Wind Farm Awards’ from IWPA Ariyalur Plant received ‘Green Champion’ Award with the cash prize of ` 1 lac from Government of Tamil Nadu for water management, energy efficiency, adoption of eco-friendly measures in the plant, creating
Slide 29: Awards & Accolades
Awards & Accolades Ariyalur Plant receives Best CSR Impact Award in the Corporate Social Ramasamy Raja Nagar unit has received 9th National Award for Responsibility Summit & Awards 2022, conducted by UBS Forums. This Environmental Best Practices 2022 from Confederation of Indian is the second time,
Slide 30: Awards & Accolades
Awards & Accolades Energy Efficient Unit Award for Ramasamy Raja Nagar Unit by CII Ramasamy Raja Nagar & Ariyalur receives Overall Performance Award in ‘A’ Class Mines Category conducted by Tamil Nadu Mines Safety Association Ramasamy Raja Nagar won the Kaizen Mela Award 2022 conducted by Qual
Slide 31: 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