Ultratech Cement Limited · NSE:ULTRACEMCO
Ultratech Cement — Q4 FY22 Earnings Presentation
33 slides from Ultratech Cement's earnings presentation
Slide 1: UltraTech Cement Limited – Results: Q4 FY22
UltraTech Cement Limited Taking concrete actions for a sustainable future Results: Q4 FY22 Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX
Slide 2: Key Highlights and update
01 02 03 Key ESG Financial Highlights update Performance and update 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 – Correspondin
Slide 3: Key Highlights and update
01 Key Highlights and update Sewagram Cement Works, Gujarat 3
Slide 4: Macro indicators
Macro indicators GDP growth forecast for FY22 ~ 8.9%, lowered due to slow down in H2 FY22 CPI inflation at ~6.95% in Mar-22 led by higher food and fuel inflation, likely to increase further in Q1 FY23 amidst elevated global commodity prices Manufacturing PMI marginally lower at 54.0 (vs 54.9 in Feb-
Slide 5: Sectoral Update Q4 FY22
Sectoral Update Q4 FY22 State/Region wise performance Volume Region I R H C Key drivers Growth ✓ Urban housing demand slowed due to assembly elections, untimely rains and cold weather. Commercial demand grew in all the states North ✓ Rural housing registered growth in Haryana and Rajasthan. Infrastr
Slide 6: Q4 Highlights
Q4 Highlights Solar Capacity addition Capacity Utilization - 90% 48 MW WHRS Capacity addition Blended Mix - 69% 11 MW Trade Mix – 66% Green Power Mix - 19.7% 6
Slide 7: FY22 Highlights
FY22 Highlights Volume grew 8.8% Operating EBITDA 93.99 MnT Rs 1266/Mt; lower by 7.8% Green Power Capacity added Net Sales up 16.9% 121 MW Solar and Rs 51,708 Crs 42 MW WHRS Operating Costs/Mt Cement Capacity Addition up 17% 3.2 MTPA 7
Slide 8: ESG Update
02 ESG Update At UltraTech, we endeavour to integrate sustainability into our business conduct. Over the years, we have made conscious investments towards building a sustainable future and remain committed to Invest in our Planet. 8 8
Slide 9: Progressing towards our sustainability targets
Progressing towards our sustainability targets Climate and Circular Environment Green Energy Economy Energy CO2 WASTE WATER Green Power ESG Metric Reduced Recycled Positive Capacity [kg CO2/t cement] [MnT] [Times] [MW] WHRS : FY22 167 Performance* 585 -2% 23.6 +14% 4.2x +6% Renewable : +47% 269 *Una
Slide 10: CSR Update
CSR Update Coverage and Spend: ✓ Geographical Reach : 16 States, 24 Districts, 39 Blocks, 507 Villages ✓ People benefited : 1.4 million ✓ Education for : 1.3 lacs students ✓ CSR Spend : Rs 96 Crores Activities during the quarter: ✓ Continuous education support through 31 Company run schools and Pre-
Slide 11: Women Empowerment
Women Empowerment Smt. Gamit Ramilaben Raysingbhai was recently awarded the Padma Shri for her exemplary work in making villages in Gujarat open- defecation free. She has leveraged the masonry skills gained as a member of UltraTech’s Kutumb programme to form an all-women team for constructing toilet
Slide 12: Sustaining Ecosystems and Building Livelihoods
Sustaining Ecosystems and Building Livelihoods Enhances rural livelihoods through water conservation in Andhra Pradesh’s Kurnool and Anantapur districts: • Constructed seven rainwater harvesting structures in 2 villages which has led to increase groundwater level by 2 to 4 meters • Created a water s
Slide 13: Safety First
Safety First 4.5 0.19 91% lakh hours of Lost time injury of our sites safety training frequency rate of witnessed zero lost time injury All figures are for FY22 13
Slide 14: Financial Performance
03 Financial Building Performance Stronger and Faster City infrastructure ALL metro projects across the country under construction using UltraTech Cement 14
Slide 15: Sales: Q4 FY22
Sales: Q4 FY22 Grey Cement Export and Grey Cement RMC White Cement (India) Others (Overseas) Consolidated^ Volume (Mnt) 25.95 177 0.40 0.20 1.35 27.69 no. of plants Growth (YoY) - 45 -5% -11% -5% -0.3% nos Growth (QoQ) 21% 26 -2% 29% 8% 20% Nos Revenue (₹ Crores) 13,103 851 545 420 701 15,557 Growth
Slide 16: Sales: FY22
Sales: FY22 Grey Cement Export and Grey Cement Consolidated^ (India) RMC White Cement Others (Overseas) Volume (Mnt) 87.23 177 1.46 0.79 4.93 93.99 no. of plants Growth (YoY) 9% 45 11% -25% 0.6% 9% nos Revenue (₹ Crores) 43,656 2,641 1,955 1,363 2,232 51,708 Growth (YoY) 15% 50% 10% 15% 14% 17% ^Aft
Slide 17: Performance Highlights: Q4 FY22
Performance Highlights : Q4 FY22 ₹ Crores Net Sales EBITDA Normalised Net Debt / PAT * EBITDA YoY +9.3% -15.6% -18.5% 0.32x QoQ +22.4% +27.1% +26.0% ₹ 15,557 ₹ 3,165 ₹ 1,478 ₹ 3,751 (India) * Excluding (1) reversal of provision of Income Tax of ₹ 983 crs pursuant to completion of prior year tax asse
Slide 18: Performance Highlights: FY22
Performance Highlights : FY22 ₹ Crores Net Sales EBITDA Normalised Operating PAT * Cash Flow +16.9% -2.3% 2.5% 76% Cash conversion ₹ 51,708 ₹ 12,022 ₹ 5,667 ₹ 8,979 (India) * Excluding (1) reversal of provision of Income Tax of ₹ 1518 crs pursuant to completion of prior year tax assessments (2) Gain
Slide 19: Operating Cash Flow Trend (India Business)
Operating Cash Flow Trend (India Business) ₹ Crores 11,323 8,979 7,004 4,251 4,608 4,224 3,890 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Acquired assets started generating cash flow and synergy benefits 19
Slide 20: Net Debt trend
Net Debt trend Nebt Debt (₹ Crores) Nebt Debt/EBITDA (Times) 25,000 3.26 3.5 2.64 3 20,000 22,205 2.5 20,112 1.55 15,000 2 10,000 1.5 Net Debt reduction 15,096 0.53 1 From the peak 5,000 0.32 6,353 3,751 0.5 ₹ 18,454 Crores 0 0 Dec-18 FY19 FY20 FY21 FY22 Consolidated Net Debt/EBITDA as on March-22 :
Slide 21: Net Debt Bridge FY22 (India Business)
Net Debt Bridge FY22 (India Business) ₹ Crores 21
Slide 22: Key Cost Indicators: Q4 FY22
Key Cost Indicators: Q4 FY22 Logistics Cost Energy Cost Raw Material Cost 31% 34% 14% Increased 4% YoY to Rs. 1218/t Increased 48% YoY to Rs. 1450/t Increased 7% YoY to Rs. 554/t Increase in input cost and Diesel prices higher by ~11% Increase in fuel prices diesel prices Above numbers are for Grey
Slide 23: Logistics Cost Trend
Logistics Cost Trend 1229 1218 YoY cost increase : 4% 1176 Logistics cost (Rs./mt) ✓ Diesel price higher by ~11% ✓ Inflationary increase in cost partially mitigated by improved efficiency ✓ Road mix higher by 2% Q4FY21 Q3FY22 Q4FY22 QoQ cost decrease : 1% Logistics cost v/s Diesel Price Index 203 ✓
Slide 24: Raw Material Cost Trend
Raw Material Cost Trend 554 YoY cost increase : 7% 538 Raw Material cost (Rs./mt) 520 ✓ Increase in flyash, gypsum and diesel prices ✓ Improved clinker to cement conversion by ~ 1% Q4FY21 Q3FY22 Q4FY22 QoQ cost increase : 3% Conversion Ratio and Flyash Price Index 113 ✓ Increase in cost of gypsum, o
Slide 25: Energy Cost Trend
Energy Cost Trend 1327 1450 YoY cost increase : 48% 978 ✓ Blended petcoke/coal cost for the quarter Energy cost (Rs./mt) USD 164/Mt; increased by 69% ✓ Green Power Mix : 19.7% Q4FY21 Q3FY22 Q4FY22 QoQ cost increase : 9% Energy cost v/s Petcoke Price Index ✓ Power consumption ~ 73.29 Kwh/Mt; lower 20
Slide 26: Other Cost Trend
Other Cost Trend 768 YoY cost increase : 7% 630 672 ✓ Increase in packing material cost ~ 6% Other cost (Rs./mt) ✓ Increase in other fixed costs Q4FY21 Q3FY22 Q4FY22 QoQ cost decrease : 12% WPI Index ✓ Benefit of operating leverage due to higher 131 volume in the quarter 125 ✓ Plant maintenance in Q
Slide 27: Q4 FY22 Financial Performance
Q4 FY22 Financial Performance ₹ Crores Consolidated India Operations Particulars CY LY CY LY 15,557 14,232 Net Sales ^ 14,919 13,757 211 174 Operating Income 231 190 92 60 Other Income 105 82 15,860 14,466 Total Income 15,255 14,029 Expenses : 2,099 1,933 Raw Materials Consumed 1,985 1,774 461 280 P
Slide 28: FY22 Financial Performance
FY22 Financial Performance ₹ Crores Consolidated India Operations Particulars CY LY CY LY 51,708 44,239 Net Sales ^ 49,615 42,578 891 486 Operating Income 955 537 508 734 Other Income 522 746 53,107 45,460 Total Income 51,092 43,860 Expenses : 7,096 5,794 Raw Materials Consumed 6,477 5,290 1,252 842
Slide 29: Income Statement: Q4 FY22
Income Statement: Q4 FY22 ₹ Crores Consolidated India Operations Particulars CY LY % CY LY % 15,557 14,232 9 Net Sales ^ 14,919 13,757 8 3,165 3,751 (16) EBITDA 3,126 3,687 (15) 206 377 45 Finance costs 175 367 52 703 698 (0.8) Depreciation and Amortization 680 671 (1) 785 865 Tax expenses 804 865 7
Slide 30: Income Statement: FY22
Income Statement: FY22 ₹ Crores Consolidated India Operations Particulars CY LY % CY LY % 51,708 44,239 17 Net Sales ^ 49,615 42,578 17 12,022 12,302 (2) EBITDA 11,849 12,055 (2) 945 1,486 36 Finance costs 898 1,443 38 2,715 2,700 (0.5) Depreciation and Amortization 2,606 2,573 (1) 2,708 2,539 Tax e
Slide 31: Return on Capital Employed (India Business)
Return on Capital Employed (India Business) 7000000.0% 18.0% 15.3% 16.0% 6000000.0% 14.7% 14.0% 5000000.0% 10.1% 11.8% 12.0% 4000000.0% 9.1% 10.0% 3000000.0% 60,182 64,432 60,502 8.0% 57,830 2000000.0% 46,517 6.0% 4.0% 1000000.0% 2.0% 0.0% 0.0% FY18 FY19 FY20 FY21 FY22 Capital Employed (₹ Crores) RO
Slide 32: 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
Slide 33: Aditya Birla – UltraTech Cement
ADITYA BIRLA Ultratech ,C E MEN Tf, ,C E MEN Tf, MEN FTF The Engineer's Choice Ultratech