Slide 1: Cover letter to stock exchanges
28th April, 2023 BSE Limited The Manager Corporate Relationship Department Listing Department Phiroze Jeejeebhoy Towers, The National Stock Exchange of India Limited Dalal Street, “Exchange Plaza”, Bandra-Kurla Complex, Mumbai 400 001. Bandra (East), Mumbai 400 051. Scrip Code: 532538 Scrip Code: UL
Slide 2: UltraTech Cement Limited Q4 FY23
UltraTech Cement Limited Cementing growth with concrete results Q4 FY23 Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX
Slide 3: Macro and Sectoral Update, Key Highlights, ESG Update, Financial Performance
01 02 03 04 Macro and Key ESG Financial Sectoral Update Highlights Update Performance GLOSSARY MNT - Million Metric Tons, LMT - Lakh Metric Tons, MTPA - Million Tons Per Annum, LTPA - Lacs Tons Per Annum, MW - Mega Watts, Q1 - April-June, Q2 - July-September, Q3 - October-December, Q4 - January-Marc
Slide 4: Macro and Sectoral Update
01 Macro and Sectoral Update Nathdwara Cement Works, Rajasthan was conferred a Silver trophy at the prestigious India Green Manufacturing Challenge 2022 (IGMC) during the year for its consistent efforts on improving its energy efficiency, water conservation, biodiversity protection and other aspects
Slide 5: Macro Indicators
Macro Indicators FY23 GDP growth forecast at ~7%; FY24 GDP growth is estimated at ~6%. March CPI eased to 5.66% from 6.44% in February and it is projected to cool to ~5% in FY24 backed by lower fuel and food inflation. 1) India’s interest rate cycle has most likely peaked unless there are inflation
Slide 6: Region Volume Growth
Volume Region I C H R Key drivers Growth ✓ Infrastructure segment registered growth on account of execution of major projects. ✓ Commercial demand registered growth in J&K. North ✓ Housing segment growth in all the regions supported by increased cash flow from crop harvest except Punjab (sand mining
Slide 7: Business Update
02 Business Update UltraTech supplied ~70% of cement for the ~ 14 kms Zuari Bridge, Goa; the 2nd longest cable stayed bridge in India.
Slide 8: Q4 FY23 highlights
Domestic sales grew 15% with capacity utilization of 95%. Operating EBITDA improved to ₹ 1060/Mt from ₹ 900/Mt in the last quarter. Commissioned cement capacity of 5.6 MTPA, taking total grey cement capacity of the Company to 126.95 MTPA in India. ReadyMix Concrete (RMC) network increased to 231 pla
Slide 9: FY23 highlights
Domestic sales grew 14% with capacity utilization of 84%. Operating EBITDA at ₹ 1,011/Mt compared to ₹ 1,266/Mt for last year (Impacted by higher energy costs) Commissioned 12.4 mtpa grey cement capacity in India ; 4 lac tpa wall care putty plant at Nathdwara, Rajasthan. 54 new ReadyMix Concrete (RM
Slide 10: Capacity expansion in Chhattisgarh and Odisha
Chhatisgarh ➢ 1.3 mtpa brownfield grinding cement unit at Hirmi, Chhattisgarh, taking cement capacity of the Company in the State to 8.1 mtpa. Odisha ➢ 2.8 mtpa greenfield grinding cement Hirmi unit at Cuttack Cuttack ➢ 1.5 mtpa brownfield grinding cement unit at Jharsuguda Jharsugda ➢ Taking cement
Slide 11: UltraTech awards and digital engagement
UltraTech raked 118 23 awards in Mn+ website last 4 years visits in FY23 UltraTech Crack Filler gets awards for innovative pack design #BaatGharKi Videos 350 Mn+ views as of March, 2023 129 original videos and 500+ translated videos 10
Slide 12: ESG Update
~» ESG Update j ) UltraTech wins TERI-IWA-UNDP Water ) y Sustainability Award for Integrated S Watershed Management Project The award recognizes the impact created by Andhra Pradesh Cement Works watershed project in Petnikota and Ayyavaripalli villages located near the unit. The initiative helped up
Slide 13: ESG Metrics FY23 Performance
Climate and Circular Environment Green Energy Energy Economy ESG Metric CO2 Emission Alternative Water Green Power [kg CO2/t cement] Raw Material Positive Mix ^ and Fuel [Times] [% to total power] [MnT] FY23 557 -4.3% 29.3 +21% 4.1x +8% 25% +32% Performance* *Unaudited numbers ^ Includes renewable p
Slide 14: Ranked 6th in DJSI Construction Material sector
UltraTech has been ranked 6th in the Construction Material sector globally on the S&P Global’s Dow Jones Sustainability World Index (DJSI) for FY22. UltraTech is the only Indian company to be featured in the global sectoral list by DJSI for FY22. The overall score of 80 on the index is a significant
Slide 15: Thirteen UltraTech mines awarded 5-star ratings
Thirteen UltraTech mines awarded 5-star ratings UltraTech creates history as thirteen of its limestone mines received 5-Star ratings at the 75th anniversary celebration of the Indian Bureau of Mines in March, 2023. These are the highest ever number of 5-Star ratings conferred to any company across a
Slide 16: Training through digitalization
Training through Safety toll-free digitalization number ➢ Virtual Reality for contractual workforce ➢ Completed training for more than Virtual training E-learning 14,000 workers for contractual modules on workforce critical ➢ As a result incidents of Lost processes Time Injuries (LTIs), Fatal Potent
Slide 17: CSR reach across India
Reaches out Education Spread over to ~500 More than CSR spend of reaching out 47 locations villages in 16 1.6 million ₹ 115 Crores to 0.13 million in India. states across beneficiaries in FY23 students India 16
Slide 18: CSR: skill development and education
Women empowerment through training in Skill development through 10 training centres Education support across India through 31 schools various streams and making them self-reliant Supported portable drinking water facilities for Healthcare support benefitted 17,953 beneficiaries Training for Agniveer
Slide 19: Financial Performance
04 Financial Performance UltraTech’s Shared Service Centre has won the Best Shared Services Team of the Year Award at the 9th edition of Shared Service Summit & Award 2022, organised by UBS Forums. UltraTech Knowledge Service Centre (“UKSC”) is a digitally-enabled “Centre of Excellence”, processing
Slide 20: Sales volume Q4 FY23
Volume in Million tons Growth Growth Growth Particulars Q4 FY23 FY23 (YoY) (QoQ) (YoY) Grey Cement - Domestic 29.9 15% 23% 99.6 14% Cement Export & Clinker Sales 0.2 -17% 50% 0.5 -43% White Cement 0.5 19% 16% 1.6 11% Total Sales Volume - India 30.5 15% 23% 101.7 14% Grey Cement – Overseas 1.3 -2% 11
Slide 21: Sales revenue Q4 FY23
₹ Crores Growth Growth Growth Particulars Q4 FY23 FY23 (YoY) (QoQ) (YoY) Grey Cement - Domestic 16,039 20% 23% 53,788 21% White Cement 664 22% 16% 2,278 17% ReadyMix Concrete (RMC) 1,138 34% 14% 3,922 49% Others 295 -25% -18% 1,282 3% Grey Cement – Overseas 616 -12% 7% 2,145 -4% Total Consolidated S
Slide 22: EBITDA and Normalized PAT
EBITDA (₹ Crores) Normalized PAT* (₹ Crores) +13% YoY +9% YoY 3,444 1,666 3,165 1,478 2,462 1,058 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 5,667 12,022 11,123 5,064 FY22 FY23 FY22 FY23 * Excludes reversal of accumulated provision for tax and MAT credit availed amounting to ₹ 983 Crores for three mo
Slide 23: Inventory and fuel inventory days
241 6,612 Inventory in ₹ Crores Increase in inventory of ₹ 1016 Crores ➢ Significant increase in input costs. 54 ➢ Efficient working capital management. Fuel Inventory Days 47 39 Mar-22 Dec-22 Mar-23 Inventory includes raw material, work-in-progress, finished goods, fuel etc. 22
Slide 24: Operating cash flow
74% 95% 77% 83% ₹ Crores 11,712 9,253 9,178 7,294 FY20 FY21 FY22 FY23 Operating Cash Flow OCF/EBITDA (in %) Operating Cash Flow = EBITDA less Interest, Taxes, change in Working Capital 23
Slide 25: Deleveraged further after capex spends and dividend payout
Other Capex, Strategic 1,282, (16%) Investments, 2.83 818, (10%) 1.72 22,229 ESG Capex, 874, (11%) Dividend Paid, 1,093, (14%) Others, 67, (1%) 16,981 0.55 0.32 0.24 6,717 3,901 2,702 Growth Capex, FY19 FY20 FY21 FY22 FY 23 3,839, (48%) Nebt Debt (₹ Crores) Nebt Debt/EBITDA (Times) Deleveraged furth
Slide 26: ROCE and capital employed
70000 18.9% 17.2% 14.5% 20.0% 9.5% 13.1% 18.0% 60000 16.0% 50000 11.2% 14.0% 12.0% 40000 10.0% 30000 62,379 60,938 60,350 63,335 56,931 8.0% 20000 43,632 6.0% 4.0% 10000 2.0% 0 0.0% FY18 FY19 FY20 FY21 FY22 FY23 Capital Employed (₹ Crores) ROCE (%) ROCE is set to increase with additional returns fro
Slide 27: Domestic Grey Cement Price and realisation vs cost
5,388 5,373 Domestic Grey Cement Price (₹/Mt) 5,142 Increase in Realization vs Increase in Cost Q4FY22 Q3FY23 Q4FY23 ➢ Realization improved 4.5% yoy while costs increased 7%. ➢ Impacted EBITDA/Mt by ~ ₹ 60/Mt. Realisation v/s Total Cost 130 123 122 125 124 115 110 109 105 Q1 20 Q4 22 Q3 23 Q4 23 Rea
Slide 28: Logistics, Energy and Raw Material Cost
Logistics Cost Energy Cost Raw Material Cost % to total costs 31% 37% 14% ₹ / Mt 1251 1697 604 Increased 3% YoY Increased 17% YoY; Increased 9% YoY Decreased 4% QoQ India Operations 27
Slide 29: Logistics cost
1218 1250 1251 YoY costs increase: 3% Logistics cost (₹/Mt) ➢ Busy season surcharge on rail freight along with 2% diesel cost hike. ➢ Lead reduced to 413 km from 428 km in Q4 LY. Q4FY22 Q3FY23 Q4FY23 QoQ costs : neutral Logistics cost v/s Diesel Price Index 146 137 137 ➢ Diesel prices remain flat ov
Slide 30: Raw Material cost
610 604 YoY cost increase: 9% 554 Raw Material cost (₹/Mt ➢ Increase in cost of raw materials: fly ash, slag and gypsum etc. Q4FY22 Q3FY23 Q4FY23 124 QoQ cost decrease: 1% Conversion Ratio and Fly ash Price Index 125 111 106 ➢ Improvement in clinker conversion ratio. 106 103 Q1 20 Q4 22 Q3 23 Q4 23
Slide 31: Energy cost
1766 1697 1450 YoY cost increase: 17% Energy cost (₹/Mt) ➢ Blended fuel consumption (CV: 7500) at ~USD 194/t compared to ~USD 164/t in Q4 FY22. ➢ Pet coke consumption at 52% vs 49% Q4 FY22. Q4FY22 Q3FY23 Q4FY23 Energy cost v/s Pet coke Price Index QoQ cost decrease: 4% 219 203 198 ➢ Blended fuel con
Slide 32: Other cost
748 YoY cost decrease: 6% 673 624 Other cost (₹/Mt) ➢ Operating leverage benefit; volume growth of 15%. Q4FY22 Q3FY23 Q4FY23 QoQ cost decrease: 17% WPI Index 126 ➢ Operating leverage benefit; volume growth of 23%. 125 124 122 ➢ Higher plant maintenance in Q3 FY23. Q1 20 Q4 22 Q3 23 Q4 23 India Opera
Slide 33: Consolidated and India Operations Q4 FY23
₹ Crores Consolidated India Operations Particulars Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 18,436 15,557 Net Sales ^ 17,885 14,919 226 211 Operating Income 227 231 122 92 Other Income 151 105 18,784 15,860 Total Income 18,263 15,255 Expenses: 2,658 2,099 Raw Materials Consumed 2,470 1,985 230 461 Purchase o
Slide 34: Consolidated Q4 FY23 profit
₹ crores Consolidated India Operations Particulars Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 18,436 15,557 Net Sales ^ 17,885 14,919 3,444 3,165 EBITDA 3,383 3,126 191 206 Finance Costs 175 175 762 703 Depreciation and Amortization 733 680 822 785 Tax expenses 822 804 4 (7) Minority interest - - 1,666 1,478 *
Slide 35: Middle East and Sri Lanka Q4 FY23
₹ Crores Middle East Lanka Particulars Q4FY23 Q4FY22 Q4FY23 Q4FY22 480 463 Net Sales 136 308 3 2 Operating Income 1 - 1 6 Other Income 2 1 483 471 Total Income 139 309 87 165 Purchase/Consumption of Raw Material 99 237 26 14 Changes in Inventory 5 (3) 27 23 Employee Costs 2 2 201 146 Power and Fuel
Slide 36: Consolidated and India Operations FY23
₹ Crores Consolidated India Operations Particulars FY23 FY22 FY23 FY22 62,338 51,708 Net Sales ^ 60,359 49,615 902 891 Operating Income 878 955 503 508 Other Income 505 522 63,743 53,107 Total Income 61,741 51,092 Expenses: 8,925 7,096 Raw Materials Consumed 8,704 6,477 1,300 1,252 Purchase of Trade
Slide 37: Consolidated FY23 profit
₹ Crores Consolidated India Operations Particulars FY23 FY22 FY23 FY22 62,338 51,708 Net Sales ^ 60,359 49,615 11,123 12,022 EBITDA 10,791 11,849 823 945 Finance Costs 756 898 2,888 2,715 Depreciation and Amortization 2,773 2,606 2,343 2,708 Tax expenses 2,329 2,744 10 (10) Minority interest - - 5,0
Slide 38: Middle East and Sri Lanka FY23
₹ Crores Middle East Lanka Particulars FY23 FY22 FY23 FY22 1,706 1,460 Net Sales 468 934 29 12 Operating Income 4 - 3 8 Other Income 22 5 1,738 1,480 Total Income 494 939 330 396 Purchase/Consumption of Raw Material 344 830 (19) 2 Changes in Inventory 1 (2) 111 103 Employee Costs 7 10 765 523 Power
Slide 39: Consolidated and India Operations balance sheet
₹ Crores Consolidated India Operations Particulars 31.03.2023 31.03.2022 31.03.2023 31.03.2022 64,987 61,606 Net Fixed Assets^ 62,121 59,008 1,017 101 Investment in Subs/Associates/JVs 3,187 2,183 (2,669) (1,357) Net Working Capital (3,987) (1,704) 63,335 60,350 Total Assets 61,321 59,488 54,380 50,
Slide 40: UltraTech Cement Limited
Statements in this ‘presentation’ describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factor