Ramco Cements Limited · NSE:RAMCOCEM
Ramco Cements — The Ramco Cements — Q2 FY2025 Earnings Presentation
32 slides from Ramco Cements's earnings presentation, Nov 11, 2024
Slide 1: Investor Update cover letter to stock exchanges
Corporate Office: Auras Corporate Centre, V Floor, 98-A, Dr. Radhakrishnan Salai, Mylapore, % Chennai - 600 004, India. Tel: +91 44 2847 8666 Fax: +9144 2847 8676 9 Website: www.ramcocements.in [M^col the ramco cements limited Corporate Identity Number: L26941TN1957PLC003566 11 November 2024 Nationa
Slide 2: The Ramco Cements Limited Investor Update for 2QFY25
Embracing Opportunities. Enhancing Strengths. The Ramco Cements Limited Investor Update for 2QFY25
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 & Borrowings update 07 ESG Update Ariyalur Integrated Plant 08 Awards & Accolades
Slide 4: Overview
Overview The Reserve Bank of India (RBI) retained the GDP growth for FY25 at 7.2%; Indian rupee (INR) has remained steady against US dollar, being least volatile among major emerging market currencies in recent months. Fed cuts interest rate twice, marking the first rate cut in 4 years; Repo Rat
Slide 5: TRCL's Market update for 2QFY25
TRCL’s Market update for 2QFY25 South East B2C Volume remained flat YoY Volume from B2C & B2B have grown YoY in West Bengal B2B volume have de-grown marginally YoY In Odisha, volume from B2C have de-grown YoY; B2B have grown marginally YoY Demand affected due to monsoon, extended heatwave
Slide 6: Sales & Capacity utilization for 1HFY25
Sales & Capacity utilization for 1HFY25 Cement Capacity Utilization % 80% 76% Utilization Utilization 1HFY24 1HFY25 Cement Sales (Lac Tons) Building product Sales (Lac Tons) 87.66 86.93 1.44 1.53 1HFY24 1HFY25 1HFY24 1HFY25
Slide 7: Sales & Capacity utilization for 2QFY25
Sales & Capacity utilization for 2QFY25 Cement Capacity Utilization % 82% 75% 77% Utilization Utilization Utilization 2QFY24 2QFY25 1QFY25 Cement Sales (Lac Tons) Building product Sales (Lac Tons) 0.86 45.33 44.02 42.91 0.77 0.67 2QFY24 2QFY25 1QFY25 2QFY24 2QFY25 1QFY25
Slide 8: Key Performance for 1HFY25
Key Performance for 1HFY25 ` in Crores Revenue Cash Profit 4,592 538 4,146 414 1HFY24 1HFY25 1HFY24 1HFY25 Cash profit = PBT + Depreciation – Current Tax Profit Before Tax Profit After Tax 246 180 83 61 1HFY24 1HFY25 1HFY24 1HFY25 Company registered a total sale volume of 8.85 MnT in 1HFY25 with a m
Slide 9: Key Performance for 2QFY25
Key Performance for 2QFY25 ` in Crores Revenue Cash profit 2,343 287 2,050 2,097 211 204 2QFY24 2QFY25 1QFY25 2QFY24 2QFY25 1QFY25 Cash profit = PBT + Depreciation – Current Tax Profit Before Tax Profit After Tax 138 101 35 48 26 36 2QFY24 2QFY25 1QFY25 2QFY24 2QFY25 1QFY25 Total Sale volume down by
Slide 10: Strong EBITDA margin for 2QFY25 among industry players
Strong EBITDA margin for 2QFY25 among industry players ` in Crores 1000 500 900 412 800 761 400 323 328 700 651 600 300 500 200 400 300 100 200 100 - 0 2QFY24 2QFY25 1QFY25 1HFY24 1HFY25 EBITDA / Ton ` 894 / T ` 721 / T ` 752 / T ` 855 / T ` 736 / T Compared to 1QFY25, the average cement prices for
Slide 11: Interest
Interest ` in Crores 160 16.00% 16.00% 140 14.00% 250 233 14.00% 117 120 210 120 113 12.00% 200 12.00% 100 10.00% 10.00% 150 80 8.00% 8.00% 7.80% 7.96% 7.92% 7.80% 7.96% 60 6.00% 100 6.00% 40 4.00% 4.00% 50 20 2.00% 2.00% - 0.00% - 0.00% 2QFY24 2QFY25 1QFY25 1HFY24 1HFY25 Finance cost increased due
Slide 12: Depreciation
Depreciation ` in Crores 180 169 167 335 160 157 305 140 120 100 80 60 40 20 - 2QFY24 2QFY25 1QFY25 1HFY24 1HFY25 Depreciation increased due to commissioning of Odisha Line II & Building products Plant at Jayanthipuram
Slide 13: Income Statement for 1HFY25
Income Statement for 1HFY25 ` in Crores Standalone Consolidated Particulars 1HFY25 1HFY24 Variance % 1HFY25 1HFY24 Variance % 4,146.37 4,591.77 10% Revenue 4,155.59 4,606.04 10% 3,495.06 3,830.34 9% Less: Operating Expenses 3,503.43 3,838.19 9% 651.31 761.43 14% EBITDA 652.16 767.85 15% 232.92 209.9
Slide 14: Income Statement for 2QFY25
Income Statement for 2QFY25 ` in Crores Standalone Consolidated Particulars 2QFY25 2QFY24 Variance % 2QFY25 2QFY24 Variance % 2,049.50 2,342.79 13% Revenue 2,053.94 2,352.09 13% 1,726.11 1,930.71 11% Less: Operating Expenses 1,730.05 1,934.99 11% 323.39 412.08 22% EBITDA 323.89 417.10 22% 119.87 116
Slide 15: Cost of raw materials per ton
Cost of raw materials per ton In ` 990 946 897 903 904 2QFY24 2QFY25 1QFY25 1HFY24 1HFY25 Decrease in Diesel price by 2% in 1HFY25 & 2QFY25 YoY Inflationary impact on cost of other raw materials viz. Fly ash, Slag & Gypsum
Slide 16: Logistics cost per ton
Logistics cost per ton In ` 1,025 1,019 1,064 1,044 1,041 2QFY24 2QFY25 1QFY25 1HFY24 1HFY25 Rail Co-efficient for cement despatches: 2QFY25 is 6% vs. 7% in 2QFY24 & Rail Co-efficient for cement despatches: 1HFY25 is 7% vs. 7% in 1HFY24 8% in 1QFY25 Avg. lead distance for cement despatches: 1HFY25 i
Slide 17: Power and Fuel Cost per ton
Power and Fuel Cost per ton In ` 1,551 1,358 1,300 1,209 1,121 2QFY24 2QFY25 1QFY25 1HFY24 1HFY25 Blended Fuel consumption (incl. TPP) per T of material: 2QFY25: $ 130; 2QFY24: $ 148; 1QFY25 : $ 137; 1HFY25: $ 133; 1HFY24: $ 158 Blended Fuel cost per Kcal: 2QFY25: ` 1.60; 2QFY24: ` 1.75; 1QFY25: ` 1
Slide 18: Power Mix
Power Mix 22% 20% 25% 40% 41% 42% 2QFY24 2QFY25 1QFY25 39% 33% 38% Grid power Green Power Thermal Power Share of Green Power is expected to reach 42% on an annualized basis in FY25 # 22% 25% 42% 42% 1HFY24 1HFY25 36% 33% # Based on current production levels
Slide 19: Fuel Mix
Fuel Mix 40% 40% 41% 53% 2QFY24 2QFY25 1QFY25 58% 58% 7% 2% 1% Coal Alternate Fuel Pet coke Optimal usage of fuel based on Cost per CV 40% 40% 53% 1HFY24 1HFY25 58% 7% 2%
Slide 20: Employee Cost per ton
Employee Cost per ton In ` 300 303 314 297 308 2QFY24 2QFY25 1QFY25 1HFY24 1HFY25 Better absorption of cost per ton is due to improved operating leverage
Slide 21: Other Expenditure per ton
Other Expenditure per ton In ` 546 546 544 528 510 2QFY24 2QFY25 1QFY25 1HFY24 1HFY25 Better absorption of cost per ton is due to improved operating leverage
Slide 22: Summarized Financial Position
Summarized Financial Position ` in Crores Standalone Consolidated Particulars 30-09-2024 31-03-2024 30-09-2024 31-03-2024 13,617.42 13,421.70 Fixed Assets including CWIP 13,625.43 13,431.64 172.60 223.12 Investments 267.88 319.04 679.01 553.90 Loans and Advances 670.97 545.96 1,209.54 982.30 Invento
Slide 23: Summarized Cash flow
Summarized Cash flow ` in Crores Particulars 1HFY25 1HFY24 Operating Profit 651.31 761.43 Changes in working capital (-) 190.90 52.38 Direct Tax paid (-) 18.86 (-) 9.14 Others 3.73 4.49 Net cash flow from Operating Activities 445.28 809.16 Capital Expenditure (-) 543.87 (-) 1,224.51 Proceeds from sa
Slide 24: Key Ratios
Key Ratios Particulars UOM 2QFY25 2QFY24 1QFY25 1HFY25 1HFY24 EBITDA Ratio % 16% 18% 16% 16% 17% PBT Ratio % 2% 6% 2% 2% 5% PAT Ratio % 1% 4% 2% 1% 4% EPS, Not Annualized ` 1.08 4.28 1.50 2.58 7.62 RoE, Annualized % 1% 6% 2% 2% 6% RoCE (Post-tax), Annualized % 5% 8% 5% 5% 7% Debt-Equity Ratio Multip
Slide 25: Capex update & Borrowings
Capex update & Borrowings Capex incurred during 1HFY25: ` 544 Crores; 2QFY25: ` 263 Crores Borrowings as on 30-09-2024 The cement capacity has been increased from 23 MTPA to 24 MTPA during 2QFY25 at the cost of Particulars ` in Crores $ 8 per ton through de-bottlenecking in Kolimigundla Integrated U
Slide 26: ESG Update
ESG Update CO2 Emission Blended Cement Water Positive Green energy CSR 585 Kg / T of Cement 70% 4.5x 39% 4k + Beneficiaries Based on 2QFY25 figures Firm and Focussed for a sustainable future
Slide 27: Awards & Accolades
Awards & Accolades Ramco Corporate Tech Team has been felicitated with “CIO Award” from RR Nagar Unit bagged 5 Star Rating Award for Sustainable NEXT100 Award 2024 for the implementation of latest technologies like Zero Development framework from Indian Bureau of Mines during Trust Network Access to
Slide 28: Awards & Accolades
Awards & Accolades Jayanthipuram Unit bagged Excellent Energy Efficient Unit Award in the 25th National Award for Excellence in Energy Management 2024, Hyderabad conducted by Confederation of Indian Industry during September 2024
Slide 29: Awards & Accolades
Awards & Accolades Alathiyur / Ariyalur / RR Nagar units bagged 1st prize in various categories in connection with mining in the 64th Mines Safety week organized by Tamil Nadu Mines Safety association during September 2024
Slide 30: Awards & Accolades
Awards & Accolades Jayanthipuram Unit bagged 7 Gold awards from the 38th Chapter Convention & 2 Gold awards from the 24th Chapter Convention on quality concepts conducted by Quality Circle forum of India, Hyderabad & Vishakhapatnam Chapter during September 2024.
Slide 31: Awards & Accolades
Awards & Accolades Alathiyur & Ariyalur unit bagged 11 Gold awards each from Quality Circle forum of India, Madurai Chapter during September 2024
Slide 32: 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