Nuvoco Vistas Corporation Limited · NSE:NUVOCO
Nuvoco Vistas — Q2 FY2022 Earnings Presentation
26 slides from Nuvoco Vistas's earnings presentation, Nov 10, 2021
Slide 1: Exchange cover letter for investor presentation
~ ® NUVOCO VISTAS CORP. LTD. N Uv OCO Shaping a new world Ref. No.: Sec/114/2021-22 ~ November 10, 2021 BSE Limited National Stock Exchange of India Phiroze Jeejeebhoy Towers, Dalal Street, Limited Fort, Mumbai - 400 001 Exchange Plaza, C-1, Block G, Scrip Code: 543334 Bandra Kurla Complex, Bandra (
Slide 2: Investor Presentation Q2 FY 2022
INVESTOR PRESENTATION Q2 FY 2022 1
Slide 3: Content Flow
Content Flow Key Economy Sustain- Key Synergy Projects Innovation & Industry ability Financials Update GLOSSARY : Mn T – Million Ton ; MTPA–Million Tons Per Annum; MW–Mega Watts; Q2- July to September; FY – Financial Year ( April- March)
Slide 4: Economy & Industry
Economy & Industry Sheping a new world
Slide 5: Economy
Economy • Economy witnessed V shaped recovery post FY20 (Q1 FY22 GDP – 20%, FY22 expected ~9-10%) • Q2 FY 22 marked by • Lowering of CPI (~5% in Q2) • Improved Production (IIP increased by ~12% in Aug Y-o-Y) • Sequential Improvement in PMI (Manufacturing) – (~54 in Q2) • Steady Rupee (~1% Gain) • Q2
Slide 6: Industry
Industry • All India Demand improved in Q2 FY 22 on Y-o-Y basis • East - Only region to have witnessed demand decline, Largely led by extraneous factors like: • Sand unavailability in Bihar • Transporter’s strike in Chhattisgarh • Heavy monsoon in West Bengal & Cyclone impact in Odisha • Coal Crisis
Slide 7: Synergy
Synergy Sheping a new world
Slide 8: Unlocking Value for Nuvoco
Unlocking Value for Nuvoco Project SPRINT Synergy – Top Company Wide Table agenda Program Project SPRINT – Current run rate ahead of the planned target ✓ Logistics Synergy – Delivering as per plan ; Combating the diesel price hike ✓ Clinker Rerouting – Aiding in lower clinker freight cost ✓ Manufact
Slide 9: Key Projects Update
Key Projects Update Sheping a new world
Slide 10: Clinker Debottlenecking Updates
Clinker Debottlenecking Updates Risda - Clinker debottlenecking Nimbol - Clinker debottlenecking ✓ Clinker Debottlenecking touching 11,000 TPD ✓ Nimbol clinker debottlenecking kickstarted ✓ Achieved 50% completion in Q2 FY22 itself ✓ Capacity enhancement of 1000 TPD during shutdown 9
Slide 11: Cement Expansion CPP Projects
Cement Expansion CPP Projects Enhancing East grinding capability Increasing share of captive Power CPPs at : ✓ Arasmeta (Commissioned) ✓ Jojobera (Under trial commissioning) Brownfield expansion Jojobera - 1.5 MTPA Captive Power Plant at Arasmeta 10
Slide 12: Other Projects Update
Other Projects Update PCC Ramp Up faster than Plans Double Bull in North ✓ Ramp up at Sales and Manufacturing end ✓ PCC Roll out from Jojobera ✓ Manufacturing from all 3 plants in North ✓ Opportunity for 100% conversion from PPC to PCC at Jajpur completed ✓ Panagarh already kickstarted ✓ System prim
Slide 13: Sustainability
Sustainability Sheping a new world 12
Slide 14: Sustainability – Key Thrust Area
Sustainability – Key Thrust Area Carbon footprint baseline under validation from external agency (CII) Key Projects: Rainwater Harvesting; Thrust on Reduction in Composite water consumption Cement Decreased by ~8% on QOQ basis Green Concrete Tree Plantation in RMX Increased by ~50% on QOQ basis AFR
Slide 15: CSR Activities in Q2 FY 22
CSR Activities in Q2 FY 22 Shikshit • Support to meritorious students – Education scholarship to 11 Class X students at Bhiwani plant. Bharat • Installed water purifiers in 15 schools around Arasmeta plant benefitting 3000+ students. • Medical equipment, O2 cylinders, concentrators provided by Sonad
Slide 16: Innovation & Awards
Innovation & Awards Sheping a new world
Slide 17: Innovation Focused
Innovation Focused...... Zero M Watershield 2K Zero M Speedex Tile Grout Zero M GermiCheck ✓ Acrylic Cementitious ✓ Ready-to-use unsanded tile ✓ Anti- Microbial wall putty Waterproofing Coating grout ✓ Ideal for roof slabs, bathrooms, ✓ Recommended for vitrified, non- ✓ Certified for protection agai
Slide 18: Awards
Awards Mr. Prasadi Lal Meena, Industries Minister, Rajasthan felicitating Team Nuvoco at the event. • Nuvoco’s DGMF (Cement with MicroFiber) received Excellence Award under Product Innovation in Cement category at Times of India - Rajasthan Industrial Icons 2021. • Nuvoco is the only cement company
Slide 19: Key Financials
Key Financials 18
Slide 20: Key Highlights – Q2 FY 22 – QoQ basis
Key Highlights – Q2 FY 22 – QoQ basis Market Cost Pressure Profitability Extraneous Factors – Impacted Operational performance in Q2 • East Region – Most Impacted • Coal crises • Seasonally weak quarter • Domestic Petcoke - ~29%* • Demand Declined ~15+% • Imported Petcoke - ~42%* • Imported Coal -~7
Slide 21: Key Highlights – Q2 FY 22 – YoY basis
Key Highlights – Q2 FY 22 – YoY basis Key Updates for Q2 FY 22 ✓ Volumes at par despite weak demand in East ✓ Price acceleration Program improved revenue ✓ Premium product share increased by ~3%* ✓ Synergies plans (Project SPRINT) on track ✓ Higher incentive from Jojobera expansion ✓ CPP and WHR Sav
Slide 22: Key Indicators - Consolidated
Key Indicators - Consolidated For the period Q2 FY 2022 3.8 2020 338 17% 877 Total Volume Total Revenue Total EBITDA EBITDA Margin EBITDA (Million T) (INR Cr) (INR Cr) (%) (INR/T) 21
Slide 23: Income Statement
Income Statement Consolidated (All amount in INR Cr) H1 FY21^ H1 FY22 % Change Revenue from Operations 3240 4223 30% EBITDA 614 858 40% EBITDA Margin 18.9% 20.3% 1.4pps Finance costs 420 297 (29)% Depreciation and Amortisation expense 318 442 39% Profit/(Loss) before Tax (178) 118 Tax expense (50) 3
Slide 24: Key Cement Cost Elements – INR/T
Key Cement Cost Elements – INR/T Raw Material Cost Power & Fuel Cost Distribution Cost 551 1008 1298 Increased ~2% YOY Increased ~14% YOY Increased ~2% YOY Hike in input prices - Steep rise in fuel prices - Diesel price hike ~20% - Moderated by Moderated by captive power Moderated by Synergy and raw
Slide 25: Deleveraging
Deleveraging Net debt/EBITDA (x) Key Updates IPO proceeds deployed – Rs. 605 Cr 1.1x reduction 4.2x post FY 21 in Q2 3.7x Substantial reduction in interest 3.1x rate from Mar-21 to Sept, 21. Full 3.0x impact of it will be seen in FY 23. Working Capital increased with hike FY 20 FY 21 June FY 22 Sept
Slide 26: Disclaimer
Disclaimer Statements in this ‘presentation’ describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements”. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the Company’s operatio