Acc Limited · NSE:ACC
Acc — Q4 2017 Earnings Presentation
17 slides from Acc's earnings presentation, Feb 8, 2018
Slide 1: Q4'17 Results Investor Presentation
Q4’17 Results Investor Presentation Feb 08, 2018
Slide 2: Contents
Contents 1 Economy & Cement Industry Update 2 Performance Levers 3 Financial Highlights 2 ACC Limited / India Investor Presentation
Slide 3: Economy
Economy Growth forecast reduced from 7.3% to 6.7% in FY 18; GDP growth to accelerate to 7.5% in FY19 Economy poised for cyclical upswing in 2018, supported by buoyant consumption growth & pick up in private capex activity Fiscal deficit target may widen to 3.5 per cent of GDP in 2018-19 from 3.2 per
Slide 4: Industry
Industry 1/2 2017 was a year of challenges: - Demonetisation impact - Goods and Services Tax glitches - Sand availability - RERA Compliance constraints - Ban on Petcoke Government’s proposed infrastructure projects/schemes: - Road Projects involving Rs 50,000 Cr in Uttarakhand by 2019 - Bharatmala p
Slide 5: Performance Levers
Contents 1 Economy & Cement Industry Update 2 Performance Levers 3 Financial Highlights 5 ACC Limited / India Investor Presentation
Slide 6: Performance Levers – Q4'17
Performance Levers – Q4’17 Cement Volume RMX Volume Capacity Utilization 6.92 mt 7.98 Lakh m3 80% +27% YoY +19% YoY PY 64% Op. EBITDA Op. EBITDA PAT Rs 443 Cr Margin 13.0% Rs 206 Cr 54% YoY PY 10.9% 126% up YoY Sustained performance growth , Cement volume up; Higher Op. EBITDA, Margin improved 6 ACC
Slide 7: Performance Levers – 2017
Performance Levers – 2017 Cement Volume RMX Volume Capacity Utilization 26.21 mt 28.77 Lakh m3 79% +14% YoY +11% YoY PY 73% Op. EBITDA Op. EBITDA PAT Rs 1912 Cr Margin 14.8% Rs 925 Cr 29% YoY PY 13.7% 40% up YoY Significant cement volume growth @14%; Op. EBITDA up, Margin improved, PAT higher 7 ACC
Slide 8: Financial Highlights
Contents 1 Economy & Cement Industry Update 2 Performance Levers 3 Financial Highlights 8 ACC Limited / India Investor Presentation
Slide 9: IND AS Result - Consolidated
IND AS Result - Consolidated Change Change Particulars UoM Q4'16 Q4'17 2016 2017 vs PY vs PY Net Sales Rs Cr 2625 3417 30% 10772 12909 20% Op. EBITDA Rs Cr 287 443 54% 1478 1912 29% Op EBITDA Margin % 10.9 13.0 210 bps 13.7 14.8 110 bps Profit Before Tax (PBT) Rs Cr 96 301 214% 885 1310 48% Tax Expe
Slide 10: Financial Position
Financial Position Rs Cr Consolidated Particulars 31.12.16 31.12.17 Shareholders Funds 8816 9359 Non current Liabilities 598 694 Current Liabilities 3980 4793 Equity & Liabilities 13394 14846 Fixed Assets 7813 7534 Goodwill on consolidation 16 16 Non current investment 117 95 Non current loan and ad
Slide 11: Cement Sales Volume
Cement Sales Volume [MioT] +27% +14% 6.92 26.21 22.99 5.45 Q4’16 Q4’17 2016 2017 Significant volume growth, market share improved Consecutive quarters of the current year witnessed increasing volume growth trend year on year Increased focus on Premium Products; volume grew substantially Focused and
Slide 12: Consolidated Sales
Consolidated Sales [Rs Cr] +30% +20% 3,417 12,909 10,772 2,625 Q4’16 Q4’17 2016 2017 Robust revenue growth; Net sales up despite market challenges RMX Business sustained its growth trend due to higher realisation & increased sale of value added products & services 12 ACC Limited / India
Slide 13: Cost of Material Consumed
Cost of Material Consumed [Rs/t Cement] +16% +12% 582 564 503 506 Q4’16 Q4’17 2016 2017 Landed cost of Flyash and Slag up due to sourcing from long lead Basic price of Slag increased on account of surge in demand Continuous focus on raw mix optimisation through higher usage of additives/corrective m
Slide 14: Power & Fuel
Power & Fuel [Rs/t Cement] +5% +11% 969 1,019 1,030 932 Q4’16 Q4’17 2016 2017 Energy efficiency improved; higher usage of Alternative Fuel Spiraling fuel prices – imported Coal and Petcoke prices increased Higher due to increased consumption of costlier E-auction /imported coal on account of limited
Slide 15: Freight & Forwarding
Freight & Forwarding [Rs/t Cement] 1,181 1,319 1,113 1,274 55* 229* +3% 141* -3% 15* 1,126 1,090 1,098 1,133 Q4’16 Q4’17 2016 2017 Reduction in rail freight due to lower lead Inspite of diesel cost headwinds, road freight rationalised through improvement in logistics efficiency levers Higher handlin
Slide 16: Other Expenses
Other Expenses [Rs/t Cement] -25% -9% 1,079 964 878 806 Q4’16 Q4’17 2016 2017 Absolute cost below previous year 16 ACC Limited / India
Slide 17: Disclaimer
Disclaimer Cautionary statement regarding forward looking statements This presentation may contain certain forward-looking statements relating to the Company’s future business, developments and economic performance Such statements may be subject to a number of risks, uncertainties and other importan