Ultratech Cement Limited · NSE:ULTRACEMCO
Ultratech Cement — Q3 FY22 Earnings Presentation
26 slides from Ultratech Cement's earnings presentation, Jan 17, 2022
Slide 1: Exchange filing cover letter
ADITYA BIRLA 47 January, 2022 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. Tel. 22721233/4 Tel.
Slide 2: India's Largest Cement Company - Earnings Q3 FY22
India’s Largest Cement Company EARNINGS: Q3 FY22 Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX
Slide 3: ESG update, Key Highlights, Financial Performance
01 02 03 ESG update Key Financial Highlights Performance GLOSSARY MNT – Million Metric Tons, LMT – Lakh Metric Tons, MTPA – Million Tons Per Annum, MW – Mega Watts, Q1 – April-June, Q2 – July-September, Q3 – October-December, Q4 – January-March, CY – Current Year period, LY – Corresponding period La
Slide 4: UltraTech among top Construction Material companies globally in DJSI
UltraTech among top 10 Construction Material companies globally in DJSI Key areas that contributed to significant improvement: UltraTech’s score in S&P’s Dow Jones Sustainability Index (DJSI) has improved 11 points to 79 in FY21 • Adoption of new policies and ranked 7th globally by DJSI in the const
Slide 5: UltraTech wins Leaders Award at Frost & Sullivan & TERI Sustainability 4.0 Awards
UltraTech wins ‘Leaders Award- Mega Large Business, Process Sector’ at Frost & Sullivan & TERI Sustainability 4.0 Awards 2021. Highest Award in the category This award recognizes the Sustainability Excellence on People, Purpose, Partnership, and Planet pillars, along with Sustainability Analytics an
Slide 6: UltraTech helps reduce water borne diseases in local communities
UltraTech helps reduce water borne diseases in local communities Dalla Cement Works has enabled safe drinking water for over 20,000 people in a village in the state of Uttar Pradesh, by cleaning and disinfecting the community water tanks as well as repairing the filtration system. 5
Slide 7: Purvanchal Expressway project
Purvanchal Expressway project Purvanchal Expressway is 340.8 kms long 6 lane wide access expressway in the State of Uttar Pradesh, India. It is a critical infrastructure that reduces impact of congestion and travel time on environment. The project will benefit the society by reduction of ~ 19 millio
Slide 8: Macro indicators
Macro indicators Economy Economy Economy Industry Update Update Update Update ❑ Composite PMI rose to 56.4 in December ❑ Demand is likely to be resilient. Rural and vs 53.3 in September infrastructure growth has been the key driver during the last year; Consumption ❑ December points towards strong f
Slide 9: Sectoral update Q3 FY22
Sectoral update Q3 FY22 State/Region wise performance Volume State/Region I R H C Key drivers Growth • Urban housing demand slowed due to unseasonal rains, festivities and construction ban in NCR North • Rural housing registered marginal growth. Infrastructure segment registered relatively higher gr
Slide 10: Key Performance Drivers (India Operations): Q3 FY22
Key Performance Drivers (India Operations): Q3 FY22 Blended Realization Premium Product Green Power Alternative Fuel UBS Outlets Mix Mix Rs 5527/ton 15.5% of trade 15.6% 5.2% 2759 Outlets 7% YoY 1.1% YoY 2.8% YoY 2.4% YoY 15% YoY 9
Slide 11: Projects commissioned during the quarter
Projects commissioned during the quarter Patliputra Cement Dankuni Cement Kalamboli Bulk Bicharpur Coal Bara Cement Green Power Works, Bihar Works, West Terminal, Mine, Works, Bengal Maharashtra Madhya Pradesh Uttar Pradesh* Commissioned Commissioned Commenced Commenced Commencement of Commissioned
Slide 12: White Cement Expansion Plan
White Cement Expansion Plan • Modernization and Expansion of capacity at Kharia, Rajasthan • Nearly doubling capacity from 6.5 LTPA to 12.53 LTPA • Capital outlay of Rs 965 Crs • Capacity will be commissioned in phased manner 11
Slide 13: First Indian cement brand to win global awards for media innovation
The first Cement brand from India to win Global awards for media innovation UltraTech wins ‘Brand of the Year’ in Smarties Asia Pacific Awarded by The Mobile Marketing Association (MMA) 12
Slide 14: Financial Performance
Financial Performance Sidhi Cement Works, Madhya Pradesh
Slide 15: Sales: Q3 FY22
Sales: Q3 FY22 Grey Cement Export and Grey Cement (India) RMC White Cement Consolidated^ Others (Overseas) Volumes (Mnt) 21.43 151 0.41 0.16 1.24 23.13 No of RMC plants Growth (YoY) -3% 42 5% -45% -9% -3% No of RMC plants Revenues (Rs Crs) 10,629 668 543 316 593 12,710 Growth (YoY) 3% 17% 1% 5% 13%
Slide 16: Performance at a glance
Performance at a glance Particulars Revenues EBITDA Normalised PAT Q3 FY22 Consolidated (Rs Crs) 12,710 2,490 1,173* Growth – YoY 5% -26% -26% Margin 20% 9% 9M FY22 Consolidated (Rs Crs) 36,151 8,857 4,189* Growth – YoY 20% 4% 14% Margin 24% 12% * Excluding reversal of provision of Tax of Rs 535 Crs
Slide 17: Key Cost Indicators: Q3 FY22
Key Cost Indicators: Q3 FY22 Logistic Cost Energy Cost Raw Material Cost 30% 32% 13% Increased 4% YoY to Rs. 1229/t Increased 39% YoY to Rs. 1327/t Increased 7% YoY to Rs. 538/t Increase in prices of input Diesel prices higher by ~24% Increase in prices of fuel material and diesel Above numbers are
Slide 18: Logistics Cost Trend
Logistics Cost Trend Logistics cost (Rs./mt) YoY cost increase : 4% • Diesel price higher by ~24% • Inflationary increase in cost partially mitigated by improved efficiency • Favourable rail - road mix Logistics cost v/s Diesel Price Index 160 160 129 148 160 QoQ cost increase : 1% 107 112 111 89 •
Slide 19: Raw Material Cost Trend
Raw Material Cost Trend Raw Material cost (Rs./mt) YoY cost increase : 7% • Increase in flyash, gypsum prices • Improved Clinker to Cement conversion ratio by ~ 1% YoY cost increase : 4% Conversion ratio and Flyash Price Index 113 111 106 103 102 • Increase in flyash, gypsum and HSD prices 100 Q1 18
Slide 20: Energy Cost Trend
Energy Cost Trend YoY YoYcost costincreased: increase 6% : 39% Energy cost (Rs./mt) • Average fuel consumption cost at USD 151/t vs USD 67/t in Q3 LY • Reduced power consumption by ~ 2% • Green Power Mix : 15.6% Energy cost v/s Petcoke Price Index 206 QoQ cost increase : 21% 168 152 109 126 92 • Ave
Slide 21: Other Cost Trend
Other Cost Trend YoY YoYcost costincreased: increase 6% : 20% Other cost (Rs./mt) • Increase in packing cost ~ 24% • Normalised fixed cost WPI Index 120 125 QoQ cost decrease : 4% 100 110 • fixed cost absorption due to higher QoQ volume Q1 18 Q3 21 Q2 22Q3 22 20
Slide 22: Q3 FY22 Financial Performance
Q3 FY22 Financial Performance Rs Crs Consolidated India Operations Particulars CY LY CY LY 12,710 12,144 Revenues (Net of Taxes) ^ 12,156 11,698 275 118 Operating Income 288 127 71 260 Other Income 70 254 13,055 12,522 Total Income 12,514 12,079 Expenses : 1,715 1,669 Raw Materials Consumed 1,626 1,
Slide 23: Income Statement: Q3 FY22
Income Statement: Q3 FY22 Rs Crs Consolidated * India Operations Particulars CY LY % CY LY % 12,710 12,144 5 Revenues (net of taxes)^ 12,156 11,698 4 2,490 3,362 (26) EBITDA 2,406 3,282 (27) 182 356 49 Finance costs 178 346 49 674 674 - Depreciation and Amortization 645 637 (1) 459 747 39 Tax expens
Slide 24: Financial Position
Financial Position Consolidated India Operations Particulars Mar – 21 Dec – 21 Mar – 21 Dec – 21 64,482 58,325 Capital Employed (Rs Crs) 64,432 58,327 6,717 6,147 Net Debt (Rs Crs) 6,353 5,786 15.3% 16.1% ROCE (basis trailing 12 months ) 15.6% 16.0% 15.6% 15.1% ROE (basis trailing 12 months ) 15.1%
Slide 25: Recognition of UltraTech's sustainability progress
Recognition of UltraTech’s sustainability progress Five-star rating for Sustainable Mine Management UltraTech’s 15 limestone mines were awarded 30 five-star rating awards for the last three years (2017-18, 2018-19 and 2019-20) by the Ministry of Mines and Indian Bureau of Mines. UltraTech wins FICCI
Slide 26: Disclaimer
Disclaimer 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. Impor