Sagar Cements Ltd · NSE:SAGCEM
Sagar Cements — Investor Presentation (March 2022)
31 slides from Sagar Cements's investor presentation, Mar 22, 2022
Slide 1: Exchange cover letter: Updated Corporate Presentation
�!) SAGAR CEMENTS LIMITED - - - -·- - - SCL:SEC: NSE: BSE:2021-22 22 nd March 2022 The National Stock Exchange of India Ltd., The Secretary "Exchange Plaza", 5th Floor BSE Limited Bandra - Kurla Complex P J Towers Bandra (East) Dalal Street Mumbai -400 051 Mumbai-400 001 Symbol: SAGCEM Scrip Code: 5
Slide 2: Sagar Cements Limited Corporate Presentation March 2022
Sagar Cements Limited Corporate Presentation March 2022 Corporate Presentation 1
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”),have been prepared by Sagar Cements Limited (the “Company”), solely for information purposes and do not constitute a prospectus, offering circular or offering memorandum or an offer, or a solicitation of any offer, to purc
Slide 4: Table of Contents
Table of Contents Section 1 Sagar Cement Limited- Corporate Overview 4 Section 2 Key Investment Highlights 16 Section 3 Financial Performance 25 Corporate Presentation 3
Slide 5: Corporate Overview
Corporate Overview Corporate Presentation 4
Slide 6: Corporate Overview
Corporate Overview Sagar Cement has created a niche in Southern markets and in making inroads in to Eastern markets Established in 1985, Sagar Cement Limited (“SCL”) with its current capacity of 8.25 MTPA tones (including 1.25 mn tones post acquisition of Sagar Cements (R) Ltd, (SCRL) ( Previously
Slide 7: Facilities at a Glance
Facilities at a Glance Sagar Cements – Mattampally plant Sagar Cements – Mattampally plant - Robo Lab SCL - 8.8 MW – Waste Heat Recovery Power Plant SCL – 18 M.W. - CPP (Thermal) Sagar Cements – Mattampally plant - CCR Sagar Cements – Mattampally plant - Mines SCRL – Gudipadu Plant SCRL– Gudipadu pl
Slide 8: Key Milestones
Key Milestones Commissioned the 1 MTPA Integrated plant & 1.5 MTPA grinding unit. Enhanced grinding capacity to 1.5 Mn Tonnes at Bayyavaram & enhanced • Exited fromVicat JV for a WHRS to 8.8 MW consideration of INR 425 cr • Acquired BMM Cements, now (SC 2022 (R) with a capacity of 1 mtpa with 20
Slide 9: Vision & Mission
Vision & Mission Vision to double the Capacity every 10 years 2025 2022 10.00 2018 8.25 MTPA 2017 MTPA 5.75 MTPA • Commissioned • Through the 1.00 MTPA Inorganic & 2015 4.3 MTPA Integrated plant Organic Growth • Ramp up at Indore, production at the 2008 4.0 MTPA Bayyavaram Madhya Pradesh • Consolida
Slide 10: Strong Sales & Distribution Channel
Strong Sales & Distribution Channel Distribution Network – Focused on South Strong Brand Equity & Recall Dealers # 1,732 Sub - Dealers # 3,998 Corporate Presentation 9
Slide 11: Inherent Strengths
Inherent Strengths Resources Market • Part of Nalgonda & Yerraguntla Cement Cluster • Plants located in close proximity to major markets in • Strong limestone reserves: the South and select markets in Maharashtra and • Over 404.21 mn tons at Mattampally Odisha • Over 161.96 mn tons at Anantapur (SCR
Slide 12: Professional & Experienced Management
Professional & Experienced Management Inducted on the Board in 1991, and later appointed After having gained industrial experience of over as a Whole-time Director (Marketing and Projects) 15 years, he joined Sagar Cements as its Technical Dr.S.Anand Reddy in 1992 and as Managing Director in 201
Slide 13: Backed by a Strong Board
……Backed by a Strong Board Appointed as Director on 27th February 1997. He has more than 30 years of experience in Banking and retired as Managing Director of Mr K. Thanu Pillai State Bank of Hyderabad. He is also on the Board of several companies. Chairman & Independent Director M.B.A. , CAIIB
Slide 14: Shareholding Structure
Shareholding Structure Shareholding Pattern (As on December 31, 2021) Select Public Investors SN Shareholders % Holding 1 AVH Resources India Pvt Limited 21.85 2 Mutual Funds 8.94 3 Twinvest Financial Services 3.46 Non-Institutions, 34.96% Promoters, 50.28% Capital Structure Institutions, 14.76% Par
Slide 15: Companies associated with Promoters
Companies associated with Promoters RV Consulting Services Pvt. Ltd. Reputed Turn Key Solutions provider (Design, Engineering & Project Management) to Cement Industry & Small Hydro Power Projects Select Customers include: Bharathi Cement Corporation Limited, Vicat Sagar Cement Private Limited,
Slide 16: Key Investment Highlights
Key Investment Highlights Corporate Presentation 15
Slide 17: Strategic Expansion Plan – Rightly Timed and Well Thought-out
Strategic Expansion Plan – Rightly Timed and Well Thought-out Well Positioned to Capture the Demand Revival in South Acquisition Synergies to Derive Multiple Benefits Strong Financials Professional Management with Strong Execution Track Record Corporate Presentation 16
Slide 18: Strategic Expansion Plan – Rightly Timed Expansion during Down cycle
Strategic Expansion Plan – Robust and Well Thought-out :“Rightly Timed Expansion during Down cycle” Sagar Cement, with SCRL, SCMPL, JCPL& Bayyavaram grinding unit acquisitions at current capacity of 8.25MTPA is strongly positioned to derive full benefit in the Cement Up cycle 337 334 341 Cement Dema
Slide 19: Well Positioned to Capture South Recovery: Key Growth Drivers
Well Positioned to Capture South Recovery : “Southern Markets to Witness Demand Revival after Years of Declining to Muted Demand Limited incremental capacity, political stability, formation of new Demand subdued till FY17 resulting in excess capacity Major capacity Addition Post FY07 state augurs we
Slide 20: Proximity to Key Markets with Shorter Lead Distances
Well Positioned to Capture South Recovery :“…Gradually built Proximity to key Markets with Shorter Lead Distances” MAHARASHTRA TELANGANA ORISSA Sundergarh Sholapur Grinding Stn. Nandurbar Jharsuguda Mayurbhanj (Traded Cement) Adilabad Dhule Nagpur Jalgaon Amarawati Bhandara Debagarh Kendujhar Buldha
Slide 21: Acquisition Synergies: Locational Advantage – the Game Changer
Acquisition Synergies to Derive Multiple Benefits: “Locational Advantage – the Game Changer” Pre Acquisition Post Acquisition Maharashtra Odisha Distance to Odisha Distance to Maharashtra Distance to Odisha Distance to Maharashtra ~200 - 300 km ~630 km ~800 km ~630 km Bayyavaram Grinding Plant AP, T
Slide 22: Acquisition Synergies: BMM Acquisition
Acquisition Synergies to Derive Multiple Benefits: “BMM Acquisition” Asset Details Locational Advantage- Reduced Lead Distance Key Mkt Lead Distance (Appox.) FY 2021 Sales Volume Capacity 1.25 MTPA Tamil Nadu From 825 km To 520 km Karnataka From 650 km To 300 km Location Karnataka & AP Border Others
Slide 23: Acquisition Synergies: Grinding plant (Bayyavaram) Acquisition
Acquisition Synergies to Derive Multiple Benefits : “Grinding plant (Bayyavaram, Vizag) Acquisition” Asset Details Location Advantage Odisha Capacity 0.2 MTPA Grinding unit Location Bayyavaram, Vizag, AP Product Portland Slag Cement Key markets Vizag, Vizianagaram, Srikakulam, South of Bayyavaram Ta
Slide 24: Professional Management: Strong Execution Track Record
Professional Management :“Strong Execution Track Record” Dr.S.Anand Reddy Mr S. Sreekanth Reddy Managing Director Joint Managing Director Mr K Ganesh Mr K Prasad Group President CFO Mr. Rajesh Singh R. Soundararajan Chief Marketing Officer Company Secretary, Compliance Officer Professional Managemen
Slide 25: Financial Summary
Financial Summary Corporate Presentation 24
Slide 26: Financial Performance – On An Upward Trajectory
Financial Performance – On An Upward Trajectory Total Income Capacity & Capacity Utilization 62% 61% 58% 56% 52% 53% 54% 53% 53% 5.75 5.75 2.8 2.8 2.8 3.8 4.3 4.3 5.3 1,085 1,220 1,179 1,379 559 489 545 753 814 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Slide 27: Sales Volume Performance – On An Upward Trajectory
2,93,351 3,33,706 FY 10 2,86,904 13,34,828 17.62 % 4,20,867 3,85,973 3,08,430 FY 11 3,03,143 14,14,109 110.30 % 4,16,563 4,10,701 4,05,574 FY 12 3,88,050 5.94 % 16,31,392 4,27,067 3,98,965 3,72,272 FY 13 3,52,146 15,85,002 15.37 % 4,61,619 3,59,739 2,80,244 FY 14 3,27,751 14,19,857 2.84 % 4,52,123 C
Slide 28: Performance Highlights - Consolidated Q3 & 9M FY22
Performance Highlights - Consolidated Q3 & 9M FY22 in Rs.Lakhs Particulars Q3 FY22 Q3 FY21 YoY (%) Q2 FY22 QoQ (%) 9M FY22 9M FY21 YoY (%) Sales Volume (MT) 7,43,181 8,60,525 ▼ 14% 8,53,148 ▼ 13% 24,75,852 21,38,032 ▲ 16% Revenue from Operations 33,365 36,367 ▼ 8% 36,893 ▼ 10% 1,09,515 95,367 ▲ 15%
Slide 29: Summary Financial Highlights
Summary Financial Highlights Historical Financial Performance and Projections Total Book Installed Net worth PBID PAT Productio Income Dividend Value Per Market Price Market Cap. S.no. Year Capacity (₹ in (₹ in (₹ in D/E Ratio No. of Shares n in MT (₹ in % Share per share (₹) (₹ in lakhs) in MT lakh
Slide 30: Certifications, Awards & Accolades
Certifications, Awards & Accolades Certifications ISO 9001 : 2015 QMS ISO 50001 : 2018EMS ISO 14001 : 2015 ISO 45001 : 2018 RMF & ICD for SOX Compliance NABL accreditation for our Mattampally and Bayyavaram Lab Awards & Accolades • Best Employer Award from Telangana State Government for
Slide 31: Certifications, Awards & Accolades
Certifications, Awards & Accolades The company has received Green Co Gold Certificate Award from Confederation of Indian Industries (CII) for its best practices at its Mattampally Plant. The The Bayyavaram Plant has been awarded with Green Co platinum Certificate company has also received Green Pro