UltraTech Cement Limited · NSE:ULTRACEMCO
UltraTech Cement — Q4 FY2024 Earnings Presentation
49 slides from UltraTech Cement's earnings presentation, June 2024
Slide 1: UltraTech Cement Limited - Big in Your Life
UltraTech Cement Limited BIG IN YOUR LIFE STOCK CODE: BSE: 532538 NSE: ULTRACEMCO REUTERS: UTCL.NS BLOOMBERG: UTCEM IS / UTCEM LX
Slide 2: Contents
Contents Aditya Birla Group Indian UltraTech Operational and Overview Cement Sector Landscape Financial Performance 2
Slide 3: Aditya Birla Group - Overview
Aditya Birla Group - Overview
Slide 4: Aditya Birla Group - Overview
Aditya Birla Group - Overview ◼ # 1 cement player in India ◼ 3rd largest cement player globally (ex - China) PREMIUM GLOBAL ◼ # 2 in VSF globally ◼ 2nd Largest carbon black producer CONGLOMERATE ◼ # 1 producer of specialty chemicals, caustic globally soda & advanced materials in India ◼ Present in e
Slide 5: UltraTech Cement
UltraTech Cement India’s Largest Selling Cement Brand Largest RMC manufacturer Market Capof FY24 ConsolidatedRevenue 3rd largest cement player in India with 307 plants ~USD 34bn* ~USD 8.4 bn globally (ex - China) Different Products to provide complete Leading Player of White ~2.4 bn bags of cement ~
Slide 6: Building the Sustainable Future
Building the Sustainable Future Enhanced Stakeholder Value VISION To be The Leader in Building Solutions Socially responsible Profitable growth Strong financials Premium brand Market leader Innovation Sustainability MISSION To deliver superior valueto stakeholders on the four pillars of Customer Tea
Slide 7: Diversified product portfolio catering a full suite of building solutions
Diversified product portfolio catering a full suite of building solutions Conventional: Positioning cement at Contemporary: Providing an umbrella the core of all construction Building solutions of related construction products and services Capacity * Capacity White Cement 0.68 MTPA 307 RMC plants in
Slide 8: Grey Cement: Balanced growth through organic and inorganic expansion
Grey Cement: Balanced growth through organic and inorganic expansion Capacity evolution (In mtpa) 146.2* 116.8 Organic Inorganic 2027 69.4 66.9 67.7 51.8 132.4 mtpa 188.9 mtpa ^ 24.8 9.6 35.0 ◼ Acquisition of : ◼ After Phase 3 31.0 20.0 2025 1.1 76.8 o Jaypee Cement (21.2 mtpa), expansion 1.0 18.0 1
Slide 9: Birla White: Building a Robust Portfolio
Birla White: Building a Robust Portfolio Products Range 2001 2002-2006 1988 Launch of VAPs, White Cement White Putty Textura, Levelplast 9 2018-2022 Launch of VAPs 2012-2014 Fragrance Putty Launch of Pre-cote, Waterproof/Bioshield New Putty Facility putty White cement based liquid primer 9
Slide 10: UltraTech RMC
UltraTech RMC Product offering based on the requirement Ludhiana Chandigarh Performance Usage based Decorative Green Dehradun Patiala Sonepat Roorkee Ghaziabad based Concrete Concrete Concrete Concrete Bahadurgarh Gurgaon Delhi Meerut Kanpur Bhiwadi Noida Shahjahanpur Faridabad Siliguri Jaipur Neemr
Slide 11: UltraTech Building Solutions
UltraTech Building Solutions One-stop building solution for the retail customer 3,952 UltraTech Helps to increase the share of Building Solutions outlets customer wallet to 60% + Benefits for Home Builders ◼ Convenience, trust empowerment Benefits for Dealers ◼ Increase in earning capacity ◼ Better
Slide 12: UltraTech Building Products
UltraTech Building Products Dry Mix Environment Synergy friendly ◼ In line with our vision ◼ Environment (M-Sand helping ‘To be THE LEADER in conserve sand beds; less water Building Solutions’ needed in curing) ◼ Forward integration of ◼ Society (Homogenous end product; the cement business batchwise
Slide 13: Board of Directors
Board of Directors ◼ Chairman of the Aditya Birla Group since 1995 Kumar Mangalam Birla ◼ Chairs the Boards of all the Aditya Birla Group’s major companies in India (Hindalco, Grasim, Aditya Birla Capital and UltraTech Cement) and globally; Global companies include Novelis, Birla Carbon, Aditya Birl
Slide 14: Board of Directors (Independent Directors)
Board of Directors (Independent Directors) Arun Adhikari ◼ Alumni of the Indian Institute of Technology, Kanpur and the Indian Institute of Management, Calcutta Independent Director ◼ Areas of expertise - sales and marketing, culminating in general management and leadership roles ◼ Masters in Law fr
Slide 15: Management Team
Management Team ◼ Chartered Accountant with over 33 years experience, of which over 28 years have been with the Aditya Birla Group ◼ Key responsibilities include risk management, audit and compliance, planning, treasury, capital structuring and capital Atul Daga allocation Chief Financial Officer ◼
Slide 16: Shareholding Pattern
Shareholding Pattern 6 1 Promoter Group 16 Foreign Portfolio Investors (FPI) and Others As on Mutual Fund (MF), Institutions, Insurance and 31st March 2024 Bodies Corporate 60 Other Public Holding 18 GDRs Key Foreign Portfolio Investors (FPI) Key Domestic Mutual Funds, Insurance and Institutional In
Slide 17: Indian Cement Sector
Indian Cement Sector
Slide 18: Global Cement production and per capita consumption
Global Cement…. Per capita consumption one of the lowest in-spite of higher growth India is the second largest cement …but remains a highly underpenetrated market producer in the world… Global cementproduction (per capita cement consumption in kg- FY23) 1,430-1,480 1,110-1,130 32.2% 950-980 51.1% 75
Slide 19: Cement Industry growth
Cement Industry growth 11.0% 9.3% 9.3% 8.7% CAGR ~7% 6.3% 7.3% 4.2% 7.1% 7.7% 7.2% 8.2% 620~625 5.7% 4.5% 2.1% -5.8% 424 -7.3% 388 336 350 317 324 255 214 FY11 FY15 FY19 FY20 FY21 FY22 FY23 FY24 FY30 P Cement demand (MnT) Cement demand growth Avg GDP growth Cement demand expected to cross 625 Mtpa b
Slide 20: All segments indicating a positive demand environment
All segments indicating a positive demand environment Rural Urban Infrastructure Industrial & Demand Drivers Housing Housing Commercial ~8% ~9% ~6% ~6% ~6% ~6% ~5% ~1% Segmental CAGR FY19-24 FY24-30 FY19-24 FY24-30 FY19-24 FY24-30 FY19-24 FY24-30 Demand Mix (%) 37% 35% 30% 30% 24% 26% 9% 9% (FY24 --
Slide 21: UltraTech Landscape
UltraTech Landscape
Slide 22: UltraTech - India Footprint
UltraTech - India Footprint ◼ 24 Integrated Units1 (IU) ◼ 31 Grinding Units2 (GU) ◼ 8 Bulk Packaging Terminals3 (Sea + Rail) ◼ 1 White Cement & 3 Putty Unit ◼ 5 Jetties Grey Cement Capacity (mtpa) UTCL UTCL Capacity UTCL Industry Zones Share As at Mar-24 Mix Capacity in Industry North 33.3 24% ~127.
Slide 23: UltraTech – Contributing to build a strong nation
UltraTech – Contributing to build a strong nation Grey cement capacity (Mtpa) – India 183.5 Grey Cement Capacity (Mtpa) 168.8 Added in Planned in 157.0 Zones FY24 FY26 FY27 Total 140.8 FY25 FY25 North 33.3 3.0 2.7 39.0 Central 28.4 4.5 32.9 East 27.6 2.7 1.6 2.5 6.6 41.0 West 31.1 1.1 3.0 35.2 South
Slide 24: Key Cost Indicators (Grey Cement): Q4 FY24
Key Cost Indicators (Grey Cement): Q4 FY24 Logistics Cost Energy Cost Power Raw Material Cost % to total costs 32% 25% 9% 15% ₹ / Mt 1,226 1,025 395 601 India Operations 24
Slide 25: End-to-end capabilities with integrated operations
End-to-end capabilities with integrated operations Strong manufacturing capability with control over supply chain Raw material Captive power generation Production Capacity Limestone ◼ Captive power plant generates 1,189 MW of Particulars UOM Current ◼ Key input for manufacturing cement power Grey Ce
Slide 26: Nationwide reach with strong logistics presence across India
Nationwide reach with strong logistics presence across India ~6.5 mn bags dispatched per day in India (FY24) > 30,000 destinations ~61% lifting by GPS enabled fleet Integratedmodel ~30,000+ orders processed daily Integrated Unit Grinding Unit Bulk Terminals Jetty Jetty Inland water transport One of
Slide 27: Extensive Technical Support to the Distribution Network
Extensive Technical Support to the Distribution Network ◼ Over 1,600 personnel deployed to provide technical advisory & testing Services along with value-added solutions to home builders, engineers, architects and contractors ◼ Mobile concrete vans providing on-site testing for concrete, water, aggr
Slide 28: Digitally connected
Digitally connected UltraTech Trade Connect ◼ Customer Connect: Order scheduling, ◼ Platform to engage with dealers, acknowledgement and real time tracking for Non- retailers, masons, contractors, trade and Key customers. architects ◼ UltraTech - Prashikshan Pahal: To provide basic knowledge about c
Slide 29: ESG at UltraTech
ESG at UltraTech
Slide 30: Progressing towards our sustainability targets
Progressing towards our sustainability targets Climate and Circular Environment Green Energy Economy Energy CO2 Alternative Raw WATER Green Power ESG Metric Net Emission material and Fuel Positive Mix [kg CO2/t cement] [MnT] [Times] [% of Total Power] FY24* Performance 556 35.2 5x 23.6% *Unaudited 3
Slide 31: Carbon Emission reduction
Carbon Emission reduction Scope 1 Target Achieved Key Steps leading to reduction in emissions Carbon 2032 till 2024 Emission reduction 27% 12% Increase in alternative fuel and clean energy Specific Net Direct GHG emissions Adoption of emerging technologies FY17 FY21 FY22 FY23 FY24 FY32 12% 27% Incre
Slide 32: ESG Ratings
ESG Ratings S&P Global CSA Score 75 (2023) S&P Global CSA Rank (2023) 6th (DJSI, Sector: Construction Materials) Climate (2024) B Water (2024) A- ESG Score (2023) 57 ESG Rating (2024) B 32
Slide 33: Board Structure and Compliance
Board Structure and Compliance Shareholders Independent Directors 50% Board of Directors Nomination, Remuneration and Stakeholders Woman Directors 30% Audit Relationship Compensation Risk Management Corporate Social Board Attendance >90% Finance and Sustainability Responsibility Executive Management
Slide 34: Policies governing our business
Policies governing our business 1. Sustainability Policy 11. Anti-Harassment and Anti-Discrimination Policy 2. Code of Conduct 12. Supplier Code of Conduct 3. Tax Policy 13. Human Rights Policy 4. Policy on Related Party Transaction 14. Safety Policy 5. Whistleblower Policy 15. Occupational Health P
Slide 35: Financial Statistics
Financial Statistics
Slide 36: Key Performance Trends - Consolidated
Key Performance Trends - Consolidated Grey Cement Sales (Million Tonnes) and Net Sales (Rs Crs) Capacity Utilisation (%) 140.00 90% 73,301 73,154 73,007 72,861 72,714 72,567 72,421 72,274 72,128 71,981 71,834 71,688 71,541 71,395 71,248 71,101 70,955 70,808 70,662 70,515 70,368 70,222 70,075 69,929
Slide 37: Key Performance Trends - Consolidated
Key Performance Trends - Consolidated EBIDTA (Rs Crs) Normalised PAT (Rs Crs) 14265.30 14236.77 14208.24 14179.71 14151.18 14122.65 14094.12 14065.59 14037.06 14008.52 13979.99 13951.46 13922.93 13894.40 7355.25 7340.54 7325.83 7311.12 7296.41 7281.70 7266.99 7252.28 7237.57 7222.86 7208.15 7193.43
Slide 38: Grey Cement Cost Trends – India Operations
Grey Cement Cost Trends – India Operations Energy Cost (Rs / Mt) Comparative Cost (TPP / WHRS ) 8.00 7.50 7.20 7.24 1750.00 1740.00 1730.00 7.00 1720.00 1710.00 1700.00 1690.00 6.50 1680.00 1670.00 1660.00 1650.00 1640.00 1630.00 1620.00 1610.00 1,692 6.00 5.80 1600.00 1590.00 1580.00 1570.00 1560.0
Slide 39: Grey Cement Cost Trends – India Operations
Grey Cement Cost Trends – India Operations Raw Materials Cost (Rs/ Mt) Logistics Cost (Rs / Mt) 650.00 1280.00 1270.00 1260.00 1250.00 1240.00 1230.00 600.00 617 1220.00 1210.00 1,248 600 1200.00 1190.00 1,233 550.00 1180.00 1170.00 1,214 1160.00 1150.00 1,187 1140.00 1130.00 500.00 531 1120.00 1110
Slide 40: Key Inputs: Historical Price Trends
Key Inputs: Historical Price Trends Blended Fuel Price Trend 2.800 2.49 2.60 2.51 300 2.21 2.35 2.18 2.300 2.00 2.05 2.03 250 1.77 1.800 1.28 1.43 200 1.08 1.10 1.16 200 200 1.300 184 194 178 150 151 164 162 0.800 72 80 120 150 152 100 68 67 0.300 50 -0.200 0 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q2FY22 Q3FY2
Slide 41: EBITDA PMT Trend
EBITDA PMT Trend 1651 1689 99 198 1478 1460 1449 1438 65 1394 68 88 108 1387 1324 1299 70 1262 1251 1262 31 58 51 1231 1178 54 1158 103 82 46 1159 1090 40 1110 1106 1094 58 89 1061 32 50 72 1016 70 50 926 945 62 866 45 57 1413 1453 1185 1159 1381 1590 54 1101 1034 1208 1169 1330 1011 1277 1248 1069
Slide 42: Quarterly Performance Trends – India Operations
Quarterly Performance Trends – India Operations Rs Crs Particulars Q4FY24 Q3FY24 Q2FY24 Q1FY24 Q4FY23 Q3FY23 Q2FY23 Q1FY23 Q4FY22 Q3FY22 Q2FY22 Q1FY22 Q4FY21 Capacity (MTPA) 140.8 133.0 132.5 130.0 127.0 121.4 115.9 114.6 114.6 112.6 111.4 111.4 111.4 Total Sales Volume (MnT) 33.9 26.1 25.7 29.0 30.
Slide 43: Annual Performance Trends – India Operations
Annual Performance Trends – India Operations Rs Crs Particulars FY24 FY23 FY22 FY21 FY20 FY19 FY18 FY17 FY16 FY15 Capacity (MTPA) 140.8 127.0 114.6 111.4 111.4 109.4 85.0 66.3 64.7 60.2 Total Cement Volume (MnT) 114.6 101.7 89.5 82.6 78.8 82.4 60.6 50.2 49.3 46.1 Net Sales 67,536 60,360 49,615 42,57
Slide 44: Annual Performance Trends – India Operations
Annual Performance Trends – India Operations Rs Crs Financial Position FY24 FY23 FY22 FY21 FY20 FY19 FY18 FY17 FY16 FY15 Net Fixed Assets (Incl. Goodwill) 68,445 62,123 59,008 56,161 57,681 58,613 40,782 24,387 24,499 23,632 Investments in Subs/Associates/JVs 2,221 3,187 2,183 2,118 772 759 751 746
Slide 45: Quarterly Performance Trends - Consolidated
Quarterly Performance Trends - Consolidated Rs Crs Particulars Q4FY24 Q3FY24 Q2FY24 Q1FY24 Q4FY23 Q3FY23 Q2FY23 Q1FY23 Q4FY22 Q3FY22 Q2FY22 Q1FY22 Q4FY21 Capacity (MTPA) 146.2 138.4 137.9 135.4 132.4 126.8 121.3 120.0 120.0 118.0 116.8 116.8 116.8 Total Sales Volume (MnT) 35.1 27.3 26.7 29.96 31.65
Slide 46: Annual Performance Trends - Consolidated
Annual Performance Trends - Consolidated Rs Crs Particulars FY24 FY23 FY22 FY21 FY20 FY19 FY18 FY17 FY16 FY15 Capacity (MTPA) 146.2 132.4 120 116.8 116.8 115.4 89.0 70.3 67.7 63.2 Total Cement Volume (MnT) 119.0 105.7 94.0 86.4 83.1 86.0 64.6 53.7 52.6 49.4 Net Sales 69,810 62,338 51,708 44,239 41,7
Slide 47: Annual Performance Trends – Consolidated
Annual Performance Trends – Consolidated Rs Crs Financial Position FY24 FY23 FY22 FY21 FY20 FY19 FY18 FY17 FY16 FY15 Net Fixed Assets (Incl. Goodwill) 71,269 64,987 61,606 58,775 60,258 61,200 43,332 27,124 27,233 26,239 Investments in Subs/Associates/JVs 1,231 1,017 101 74 47 44 34 23 15 21 Net wor
Slide 48: Glossary
Glossary ➢ MNT - Million Metric Tons ➢ WHRS - Waste Heat Recovery System ➢ LMT - Lakh Metric Tons ➢ Green power Mix includes WHRS, captive renewable power and ➢ MTPA - Million Tons Per Annum renewable power mix in grid power consumption ➢ LTPA - Lacs Tons Per Annum ➢ EBITDA = Profit Before Tax plus
Slide 49: Disclaimer
Disclaimer Statements in this ‘presentation’ describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Impor