Sagar Cements Ltd · NSE:SAGCEM
Sagar Cements — H1 FY2017 Earnings Presentation
21 slides from Sagar Cements's earnings presentation, November 2016
Slide 1: Sagar Cements Q2 & H1 FY17 Results Presentation
Sagar Cements Limited Q2&H1FY17Results Presentation
Slide 2: Industry Overview: Perspective on Cement Prices
Industry Overview Perspective on Cement Prices West Prices in the west for major part of the quarter remained depressed owing to lower infrastructure activities and slowdown in rural economy. Prices though have picked up recently Prices remained firm in the region owing to strong demand South
Slide 3: Overview
Overview Subdued volume growth owing to seasonal weakness & lower government offtake Prices remained volatile; overall trend mix with prices remaining high in north and south regions Pet coke inventory build up negates impact of higher input prices for quarter under review Expect demand to strengthe
Slide 4: Sagar Cements – Operational Results
Sagar Cements – Operational Results Sagar Cements Limited l Q2 & H1 FY17 Investor / Analyst Presentation 4
Slide 5: Performance Highlights
Performance Highlights Sagar BMM Q2 FY17 H1 FY17 Revenue 22,858 13,827 8,935 ` 29,604 16,105 44,940 1,293 ` 2,593 EBITDA 2,890 5,489 1,598 2,896 Rs. lakh 250 708 PAT 4.25 (21) (205) (648) 44 50 Plant Capacity (%) 51 54 71 67 Sagar Cements Limited l Q2 & H1 FY17 Investor / Analyst Presentation 5
Slide 6: Q2 & H1 FY17 Performance Review - Consolidated
Q2 & H1 FY17 Performance Review - Consolidated Rs. lakh - - Income 8,935 16,105 Net Income from operations for Q2 FY17 stood at Net Rs. 13,827 lacs as against Rs. 18,780 lakh in Q2 FY16 18,780 13,827 39,901 29,604 - Q2 FY17 EBITDA stood at Rs. 1,293 lacs as compared to Rs.1,787 lacs generated du
Slide 7: Key Developments
Key Developments Capacity Expansion – • Increase the capacity of grinding unit located at Bayyavram in Anakapally, Visakhapatnam to 15,00,000 MTs per annum Fund Raising • Raising of funds to meet the financial requirement of the proposed projects and general corporate purpose Setting up of a Captive
Slide 8: Executive Director’s Comment
Executive Director’s Comment Commenting on the performance, Mr. Sreekanth Reddy, Executive Director of the Company said, “We are pleased with our performance for the year till date, which saw a healthy growth in revenue and profitability. While higher off- take and steady prices helped in maintainin
Slide 9: State wise Realization & Utilization
State wise Realization & Utilization Mattampally Plant BMM - Gudipadu Plant Gross Realisations (Rs. / tonne) Gross Realisations (Rs. / tonne) Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Overall Average 5,259 5,409 4,927 4,670 Overall Average - 4,697 5,250 5,191 AP 6,049 5,812 5,5
Slide 10: Coal Prices
Coal Prices Q4 FY15 Q3 FY16 Domestic : International coal mix was 34:66 Domestic : International coal mix was 20:80 Singareni Coal: Reasonable quantity sourced Q1 FY16 Q4 FY16 Domestic : International coal mix was 14:86 Domestic : International coal mix was 25:75 Singareni Coal: Nominal
Slide 11: Operations Overview (Consolidated)
Operations Overview (Consolidated) Production July August September Total (MT) Clinker 2,19,737 1,97,123 1,12,759 5,29,619 Cement 1,99,590 1,59,859 1,46,051 5,05,500 Cement Sales Value Rs. Lakh Net Realization Description ('000'MT) (net of excise & VAT) Rs./Mt Q2 FY17 512 19,107 3,732 Q2 FY16* 462 1
Slide 12: Cost Overview – Sagar Cements
Cost Overview – Sagar Cements Average Fuel Cost Per Tonne Rs. / Tonne 866 784 Increase in price of imported coal has resulted in increase in average fuel cost per tonne. Q2 FY16 Q2 FY17 Freight Cost per Tonne 733 Rs. / Tonne Freight per ton increased due to increase in freight rates & 688 fuel p
Slide 13: Cost Overview – BMM
Cost Overview – BMM Average Fuel Cost Per Tonne Rs. / Tonne 866 Average fuel cost per tonne of clinker at Rs.866 during Q2 FY 2017 Q2 FY17 Freight Cost per Tonne 783 Rs. / Tonne Freight cost per ton stood at Rs. 783 during the quarter. Q2 FY17 Sagar Cements Limited l Q2 & H1 FY17 Investor / Anal
Slide 14: Cost Overview – Sagar Cements
Cost Overview – Sagar Cements Employee Cost 905 816 Rs. lakh Employee costs in Q2 FY 17 is Rs. 905 lakhs when compared to Rs. 816 lakhs during Q2FY16. Q2 FY16 Q2FY17 Raw Material Cost Raw Material cost has come down due to lower production 1,940 1826 during the current quarter. Rs. lakh Q2 FY16
Slide 15: Cost Overview – BMM
Cost Overview – BMM Employee Cost 190 Rs. lakh Employee costs in Q2 FY 17 stood at Rs. 190 lakhs. Q2FY17 Raw Material Cost Raw Material cost stood at Rs.801Lakhs during the current quarter. 801 Rs. lakh Q2FY17 Sagar Cements Limited l Q2 & H1 FY17 Investor / Analyst Presentation 15
Slide 16: Plant Highlights - Consolidated
Plant Highlights - Consolidated Sales (5,12,098 Mts.) During Q2 FY17, the plants Others –6% operated at reasonable Orissa –5% utilization levels producing 5,29,619 tons of clinker and Maharashtra – 14% 5,05,500 tons of cement Tamil Nadu - 21% Approximately 63% of cement Karnataka - 17% dispatche
Slide 17: Sales in Q2 FY17
Sales in Q2 FY17 Sagar Cements BMM Cements Consolidated Quantity Quantity % of Total Quantity % of Total % of Total Markets (in Sales (in Tonnes) Sales Sales (in Tonnes) Tonnes) Andhra Pradesh & Telangana 1,64,345 48.9 25,723 14.6 1,90,068 37.1 Karnataka 7,382 2.2 81,634 46.5 89,016 17.3 Tamil Nadu
Slide 18: Dispatches by Road & Rake
Dispatches by Road & Rake Dispatch Details TPT Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 TOTAL BY ROAD 478,345 424,880 301,840 4,48,182 1653,247 BY RAKE - - - 5,506 5,506 TOTAL 478,345 424,880 301,840 4,53,688 1658,753 Consolidated TPT Q1 FY17 Q2 FY17 BY ROAD 5,72,527 4,89,731 BY RAKE 5,310 21,830 TOTAL 5,77,
Slide 19: Key Balance Sheet Items
Key Balance Sheet Items Rs. In Lakh Sagar Cements BMM Cements Consolidated Gross Debt 22,483 26,292 48,775 - Long Term 15,774 23,511 39,285 - Working Capital 6,709 2,781 9,490 Cash & Bank Balance 1,796 299 2095 Debt Equity Ratio (%) 0.28 - 0.72 Net Worth 56,114 48 54,912 Investments 8,222 - 2.65 As
Slide 20: Sales Outside AP & TG
Sales Outside AP & TG Historical trend cement sales OAP & TG Q2 FY17 Q1 FY17 OAP & TG Sales 63% 55% (Consolidated) Q4 FY16 Q3 FY16 Q2 FY16 Q1 FY16 OAP & TG Sales 48% 55% 64% 67% Q4 FY15 Q3 FY15 Q2 FY15 Q1 FY15 OAP & TG Sales 71% 63% 64% 47% Q4 FY14 Q3 FY14 Q2 FY14 Q1 FY14 OAP & TG Sales 46% 57% 58%
Slide 21: Contacts
Contacts For further information contact: Sagar Cements Limited CDR India K Prasad- (Chief Financial Officer) Gavin Desa prasadk@sagarcements.in gavin@cdr-india.com PS Prasad - (V.P. Marketing) Suraj Digawalekar prasadps@sagarcements.in suraj@cdr-india.com Company Secretary &Compliance Officer: Tel.