Ramco Cements Limited · NSE:RAMCOCEM
Ramco Cements — The Ramco Cements — Q4 FY2023 Earnings Presentation
31 slides from Ramco Cements's earnings presentation, May 18, 2023
Slide 1: Cover letter to stock exchanges: Investor Update
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 THE RAMCO CEMENTS LIMITED Corporate Identity Number: 126941TN1957PL0003566 18 May 2023 National Stock Excha
Slide 2: Investor Update 4QFY23 & FY23
Chengalpattu Grinding Plant, Tamil Nadu INNOVATE FOR A DIFFERENTIATE BETTER SUSTAINABLE TOMORROW Investor Update The Ramco Cements Limited 4QFY23 & FY23
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 update 07 ESG update 08 Awards & Accolades The Ramco Cements Limited Investor Update 4QFY23
Slide 4: Overview
Overview 1 Overview of Economy • India's GDP growth for FY24 is projected at 6.5%. CPI inflation has gradually declined from 7.8% in April 2022 to 5.7% in March 2023 and is projected to ease further to 5.2% in 4QFY24. • Repo Rate increased by 250 bps during FY23 and tops pre-pandemic levels. In Apri
Slide 5: TRCL's Market update for 4QFY23
TRCL’s Market update for 4QFY23 South East Cement demand for B2C & B2B particularly in road Cement demand from: projects, picked up B2C segment remained flat; B2B segment has grown Weak prices prevailed in all the markets Overall demand improved Share of premium products in 4QFY23 & FY23: 28%
Slide 6: Sales & Capacity utilization
Sales & Capacity utilization Sales (Lac Tons) +46% +29% 47.00 36.37 66% 32.27 85% Utilization Utilization 4QFY22 4QFY23 4QFY22 4QFY23 3QFY23 OPC % for FY22: 29%; B2B % for FY22: 29% OPC % for FY23: 30%; B2B % for FY23: 34% +35% 150.25 57% 73% 111.40 Utilization Utilization FY22 FY23 Sales include Dr
Slide 7: Key Performance for 4QFY23
Key Performance for 4QFY23 ` in Crores Revenue EBITDA +50% 2,581 +28% +39% 424 +44% 2,018 305 1,719 294 4QFY22 4QFY23 3QFY23 4QFY22 4QFY23 3QFY23 Profit Before Tax Cash profit +26% 207 +113% +51% 323 +33% 164 243 214 97 4QFY22 4QFY23 3QFY23 4QFY22 4QFY23 3QFY23 Cash profit = PBT + Depreciation – Cur
Slide 8: Key Performance for FY23
Key Performance for FY23 ` in Crores Revenue EBITDA -7% +36% 8,172 1,314 1,219 6,011 FY22 FY23 FY22 FY23 Profit Before Tax Cash profit -41% -8% 801 1,037 954 474 FY22 FY23 FY22 FY23 Cash profit after tax = PBT + Depreciation – Current Tax Revenue for FY23 surpassed ` 8,000 Crores with volume growth
Slide 9: Income Statement for 4QFY23
Income Statement for 4QFY23 ` in Crores Standalone Consolidated Particulars 4QFY23 4QFY22 Variance % 4QFY23 4QFY22 Variance % 2,581.29 1,719.04 50% Revenue 2,583.57 1,722.68 50% 2,156.82 1,413.98 53% Less: Operating Expenses 2,160.87 1,418.50 52% 424.47 305.06 39% EBITDA 422.70 304.18 39% 77.15 33.4
Slide 10: Income Statement for FY23
Income Statement for FY23 ` in Crores Standalone Consolidated Particulars FY23 FY22 Variance % FY23 FY22 Variance % 8,171.97 6,010.62 36% Revenue 8,190.19 6,031.69 36% 6,953.32 4,696.14 48% Less: Operating Expenses 6,971.71 4,713.62 48% 1,218.65 1,314.48 7% EBITDA 1,218.48 1,318.07 8% 240.52 112.40
Slide 11: EBITDA
EBITDA ` in Crores -7% 450 +39% 424 +44% 1400 1314 1219 400 1200 350 1000 305 294 300 800 250 600 200 400 150 200 100 0 4QFY22 4QFY23 3QFY23 FY22 FY23 EBITDA / Ton ` 956/T ` 917/T ` 823/T ` 1190/T ` 823/T Rupee depreciation has pushed up imported fuel price Sale Volume up by 35% in FY23 YoY; 46% in
Slide 12: Cost of raw materials
Cost of raw materials In ` per Ton of cement +15% 967 +1% +13% 962 916 844 6% 812 4QFY22 4QFY23 3QFY23 FY22 FY23 Additional incidence of freight on increased inter-unit clinker movement to grinding plants Impact of increase in diesel price: 4QFY23: Flat YoY; FY23: 3% YoY Busy season surcharge of 15%
Slide 13: Logistics cost
Logistics cost In ` per Ton of cement -2% -3% -2% 1,108 1,099 1,097 1,079 1,082 6% 4QFY22 4QFY23 3QFY23 FY22 FY23 Rail Co-efficient for 4QFY23 is 12% vs 15% & 10% in 4QFY22 & 3QFY23 Rail Co-efficient in FY23 is 11% vs 13% YoY Avg. lead distance is 310 KMs vs 326 KMs & 299 KMs in 4QFY22 & 3QFY23 Aver
Slide 14: Power and Fuel Cost
Power and Fuel Cost In ` per Ton of cement +14% -16% +43% 1,966 1,796 1,661 1,462 6% 1,257 -15% 4QFY22 4QFY23 3QFY23 FY22 FY23 Blended Fuel consumption (incl. TPP) per T of material: 4QFY23: $ 178; 4QFY22: $ 162; 3QFY23: $ 191; FY23: $ 177; FY22: $ 125 Blended Fuel cost per Kcal: 4QFY23: ` 2.21; 4QF
Slide 15: Power Mix
Power Mix 18% 27% 25% 4QFY22 50% 4QFY23 3QFY23 16% 55% 66% 20% 23% Grid power Green Power Thermal Power 16% 22% FY22 15% Focus on Green Power FY23 56% 69% 22% The Ramco Cements Limited Investor Update 4QFY23
Slide 16: Fuel Mix
Fuel Mix 33% 31% 32% 3QFY23 52% 4QFY22 56% 4QFY23 59% 13% 9% 15% Coal Alternate Fuel Pet coke 40% 32% 40% FY22 Optimum usage of fuels based on cost per CV FY23 55% 13% 20% The Ramco Cements Limited Investor Update 4QFY23
Slide 17: Employee Cost
Employee Cost In ` per Ton of cement -25% 413 -25% -26% 327 329 310 244 4QFY22 4QFY23 3QFY23 FY22 FY23 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 Upda
Slide 18: Other Expenditure
Other Expenditure In ` per Ton of cement -24% -18% -11% 698 675 645 598 6% 529 4QFY22 4QFY23 3QFY23 FY22 FY23 Other expenditure include contribution to political parties amounting to ` 20.50 Crores Better absorption of fixed expenses is due to improved operating leverage The Ramco Cements Limited In
Slide 19: Wind power
Wind power Particulars 4QFY23 4QFY22 Variance 3QFY23 Variance Revenue from Wind power ( ` in Crores) 1.66 2.77 40% 1.47 13% Less: Operating Expenses ( ` in Crores) 5.32 5.27 1% 5.15 3% EBITDA from Wind power ( ` in Crores) (-) 3.66 (-) 2.50 - (-) 3.68 - Particulars FY23 FY22 Variance Revenue from Wi
Slide 20: Summarized Financial Position
Summarized Financial Position ` in Crores Standalone Consolidated Particulars 31-03-2023 31-03-2022 31-03-2023 31-03-2022 12,161.61 10,785.59 Fixed Assets including CWIP 12,181.86 10,806.79 202.31 201.27 Investments 272.70 297.09 637.08 709.51 Loans and Advances 621.14 690.99 882.34 833.33 Inventori
Slide 21: Summarized Cash flow
Summarized Cash flow ` in Crores Particulars 31-03-2023 31-03-2022 Operating Profit 1,218.65 1,314.48 Operating Profit decreased mainly Changes in working capital 247.12 (-) 17.05 due to increase in price of fuel; Changes in working capital mainly Direct Tax paid (-) 31.64 (-) 157.47 due to increase
Slide 22: Debt Leverage
Debt Leverage ` in Crores 5000 6.00 Net Debt Net Debt / EBITDA Borrowings as on 31-03-2023 4500 3.57 4.45 2.88 5.00 Particulars ` in Crores 4000 3500 Interest-bearing Borrowings 3.32 2.52 1.89 4.00 3000 - Long Term Debt 3,825.37 2500 3.00 1.76 - Short Term Debt 478.13 2000 1.47 2.00 Interest Free /
Slide 23: Key Ratios
Key Ratios Particulars UOM 4QFY23 4QFY22 3QFY23 FY23 FY22 EBITDA Ratio % 16% 18% 15% 15% 22% PBT Ratio % 8% 10% 5% 6% 13% PAT Ratio % 6% 7% 3% 4% 15% EPS, Not Annualized ` 6 5 3 15 38 RoE, Annualized % 9% 8% 4% 5% 15% RoCE (Post-tax), Annualized % 8% 6% 5% 5% 10% Debt-Equity Ratio Multiples 0.66 0.6
Slide 24: Capex update
Capex update Kurnool Integrated Unit: Clinker Capacity of 2.5 MTPA & Cement Capacity of 1.5 MTPA commenced commercial production from 16th June 2022 & 23rd September 2022 respectively and achieved clinker capacity utilization ~ 83% in 4QFY23. WHRS capacity of 8 MW in Kurnool was commissioned during
Slide 25: Installed Capacity as at 31st March 2023
Installed Capacity as at 31st March 2023 Clinker Integrated Unit Grinding Unit Dry Mortar 15 MTPA 15 MTPA 7 MTPA 3 LTPA Capacity in Pipeline: 1 MTPA Capacity in Pipeline: 2 LTPA Ready Mix Concrete Thermal Power Waste Heat Recovery Wind power 56 Cu.Metre / Hour 175 MW 39 MW 166 MW Capacity in Pipelin
Slide 26: ESG Update
ESG Update CO2 Emission Blended Cement Water Positive Green energy CSR 591 Kg / T of Cement 70% 3.8x 22% 4,00,000 + Beneficiaries Based on FY23 figures Firm and Focussed for a sustainable future The Ramco Cements Limited Investor Update 4QFY23
Slide 27: Awards & Accolades
Awards & Accolades Ariyalur Unit bagged ‘Gold Award’ in the Environment, Health, and Safety Excellence Ariyalur Unit had won various awards in the Mines Environment Week 2022- Awards, 2022 instituted by Confederation of Indian Industry, Southern region on 31 st 23 awards function conducted by Mines
Slide 28: Awards & Accolades
Awards & Accolades The Ramco Cements Limited Investor Update 4QFY23
Slide 29: Awards & Accolades
Awards & Accolades Jayanthipuram Unit had won various awards in the Mines Environment Week 2022-23 awards function conducted by Mines Environment and Mineral Conservation Council on 5th March 2023 for Reclamation & Rehabilitation, Large mechanized mine and Waste Dump management The Ramco Cements Lim
Slide 30: Awards & Accolades
Awards & Accolades Ramasamy Raja Nagar bagged the following awards in 4QFY23 “Aatmanirbhar Factory Award” from International Research Institute for Manufacturing (IRIM) on 21st April 2023 “Gold Medal” in the National Awards for Manufacturing Competitiveness (NAMC) 2022-23 instituted by IRIM “Diamond
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