Ultratech Cement Limited · NSE:ULTRACEMCO
Ultratech Cement — Q3 FY23 Earnings Presentation
28 slides from Ultratech Cement's earnings presentation, Jan 21, 2023
Slide 1: Exchange filing cover letter for investor presentation
21st January, 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:
Slide 2: UltraTech Cement Limited Results: Q3 FY23
UltraTech Cement Limited Taking concrete actions for a Results: sustainable future Q3 FY23 Stock code: BSE: 532538 | NSE: ULTRACEMCO Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX
Slide 3: Macro and Sectoral update, Business update, ESG update, Financial Performance
01 02 03 04 Macro and Business ESG Financial Sectoral update update update 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
Slide 4: Macro and Sectoral update
01 Macro and Sectoral update Aditya Cement Works, Rajasthan was felicitated with the GreenCo Gold rating at the 11th edition of GreenCo Summit organized by Confederation of Indian Industry. The Unit has been recognized for its exemplary efforts and commitment towards protecting the environment by ad
Slide 5: Macro Indicators
Macro Indicators National Statistical Office (NSO) estimates real GDP growth at 7% for FY23. The composite PMI surging to an 11-year high of 59.4 in Dec-22. Dec-22 CPI at 5.72%. Seems heading towards 5% on the back of improvement in domestic food supply and fall in global commodity prices. USD/INR e
Slide 6: Sectoral Update Q3 FY23
Sectoral Update Q3 FY23 Volume Zone I R H C Key drivers Growth ➢ Infrastructure segment registered growth attributable to execution of major projects. ➢ Commercial demand registered growth in Madhya Pradesh, Rajasthan and Jammu & North Kashmir. ➢ Housing segment grew in all regions - supported by go
Slide 7: Business update
02 Business update UltraTech is the largest supplier of cement (~68%) for the 702 kms Mumbai-Nagpur expressway. Yet another prestigious project exemplifying its expertise and commitment towards nation building.
Slide 8: Q3 Highlights
Q3 Highlights Domestic sales volume grew 13% with capacity utilization of 83%. Operating EBITDA improved to Rs 900/Mt from a low of Rs 812/Mt in the last quarter. Commissioned cement capacity of 5.5 mtpa, taking the total grey cement capacity of the Company to 121.35 mtpa in India. Ready Mix Concret
Slide 9: Capacity expansion update
Capacity expansion update 1.9 mtpa integrated cement unit at Pali, 1.8 mtpa greenfield grinding unit at Dhule, Rajasthan, taking cement capacity of the Maharashtra, taking cement capacity of the Company in the state to 16.25 mtpa. Company in the state to 19.45 mtpa. Pali Dhule Dhar Nathdwara Brownfi
Slide 10: Construction Chemicals: New products launched in Q3
Construction Chemicals: New products launched in Q3 ➢ UltraTech Repair2Day is a specialised ready mix ➢ Quick, easy and hassle free solution to fill surface plaster for urgent and quick repair. cracks, tile joints and nail holes. ➢ A special self-curing mortar that develops workable strength in just
Slide 11: Ready Mix Concrete: Customized concrete for special structures
Ready Mix Concrete: Customized concrete for special structures UltraTech Decor offers end to end landscaping solution from UltraTech iFloors, concrete that can be customized to designing to installation; range of designs, colours and deliver high performance industrial and warehouse textures or any
Slide 12: UltraTech conferred IGBC Green Champion Award
03 ESG update UltraTech conferred IGBC Green Champion Award UltraTech has received the 9th Indian Green Building Council (IGBC) Green Champion Award for ‘Organisation encouraging IGBC Accredited Professional’ for training employees in green building. UltraTech is part of the distinguished community
Slide 13: ESG performance recognised globally
ESG performance recognised globally UltraTech recognized as a ‘Leader’ in Climate Change UltraTech ranked No. 1 in Infrastructure & Engineering by CDP sector in India’s Most Sustainable Companies 2022 rankings by Sustain Labs Paris’ UltraTech recognized for implementing best practices and for Sustai
Slide 14: Contribution to social infrastructure development
Contribution to social infrastructure development Refurbished community hall for social activities at Nathdwara, Rajasthan ➢ Improved rural infrastructure is key to rural development. Crucial pathway for poverty alleviation as it Internal village roads built near provides access to safe, affordable,
Slide 15: Sustainable livelihood
Sustainable livelihood Heavy Motor Vehicle Training Water Harvesting Structure Women Group Building Activity ➢ ~1,300 youth got an opportunity to improve their skills on main and allied trades. ➢ ~900 families were engaged for different livelihood activities and are being enabled to improve their so
Slide 16: UltraTech and IRM India Affiliate collaborate
04 Financial performance UltraTech and IRM India Affiliate collaborate Risk management key to build a sustainable business. UltraTech has developed comprehensive risk management framework and integrated ESG into its Enterprise Risk Management (ERM) process. Institute of Risk Management (IRM) India A
Slide 17: Sales: Q3 FY23
Sales: Q3 FY23 Grey Cement Grey Cement Consolidated* (India) RMC White Cement Others^ (Overseas) Volume (Mnt) 24.25 202 0.41 1.19 25.86 no. of plants Growth (YoY) 13% 51 - -4% 12% Nos Revenue (₹ crores) 12,813 1,001 575 367 577 15,299 Growth (YoY) 21% 50% 6% 16% -3% 20% * After elimination of inter
Slide 18: Performance Highlights: Q3 FY23
Performance Highlights : Q3 FY23 Normalized Net Sales EBITDA Net Debt PAT YoY +20.4% -1.1% -9.7% ₹ 7,722 crs QoQ +12.5% +22.3% +40.0% 0.71x (Net Debt / EBITDA)* ₹ crs 15,299 2,462 1,058 * EBITDA basis trailing 12 months. 17
Slide 19: Key Cost Indicators (Grey Cement): Q3 FY23
Key Cost Indicators (Grey Cement): Q3 FY23 Logistics Cost Energy Cost Raw Material Cost 28% 38% 14% ₹ 1250/t ₹ 1766/t ₹ 610/t Increased 2% YoY; 1% QoQ Increased 33% YoY; 2% QoQ Increased 13% YoY 18
Slide 20: Logistics Cost Trend (Grey Cement)
Logistics Cost Trend (Grey Cement) 1229 1239 1250 YoY cost increase: 2% Logistics cost (Rs./mt) ➢ Reimposition of busy season surcharge on rail freight from Oct-22 onwards. ➢ Benefit on account of lead optimization and improved operating efficiency. Q3FY22 Q2FY23 Q3FY23 QoQ cost increase: 1% Logisti
Slide 21: Green Logistics
Green Logistics ➢ First CNG based vehicle onboarded in Sep-21 at our plant, since then introduced across 13 plants and 4 secondary locations. ➢ Deployment of 250+ CNG vehicles across locations, till date. ➢ Pilot run of LNG vehicles done at one plant in current quarter. CO2 emissions 132 grams/ kilo
Slide 22: Raw Material Cost Trend (Grey Cement)
Raw Material Cost Trend (Grey Cement) 610 610 YoY cost increase: 13% Raw Material cost (Rs./mt) 538 ➢ Increase in cost of raw materials: fly ash, slag and gypsum. Q3FY22 Q2FY23 Q3FY23 QoQ cost: Flat 120 Conversion Ratio and Fly ash Price Index 125 111 106 ➢ Increase in fly ash price set-off by impro
Slide 23: Energy Cost Trend (Grey Cement)
Energy Cost Trend (Grey Cement) 1731 1766 YoY cost increase: 33% 1327 Energy cost (Rs./mt) ➢ Blended fuel prices of USD 200/t compared to USD 151/t in Q3 FY22. ➢ Pet coke consumption at 43% vs 25% Q3 FY22. Q3FY22 Q2FY23 Q3FY23 QoQ cost increase: 2% Energy cost v/s Pet coke Price Index 236 203 204 ➢
Slide 24: Other Costs Trend
Other Costs Trend 859 768 748 YoY cost decrease: 3% Other cost (Rs./mt) ➢ Operating leverage benefit; volume growth of 13%. Q3FY22 Q2FY23 Q3FY23 QoQ cost decrease: 13% WPI Index 126 117 125 ➢ Higher plant maintenance in Q2 FY23. ➢ Higher volumes by 11.5%. Q1 20 Q3 22 Q2 23 Q3 23 23
Slide 25: Financial Performance: Q3 FY23
Financial Performance : Q3 FY23 ₹ crores Consolidated India Operations Particulars Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 15,299 12,710 Net Sales ^ 14,755 12,156 222 275 Operating Income 234 288 127 71 Other Income 95 70 15,648 13,055 Total Income 15,085 12,514 Expenses: 2,263 1,715 Raw Materials Consumed
Slide 26: Income Statement: Q3 FY23
Income Statement : Q3 FY23 ₹ crores Consolidated India Operations Particulars Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 15,299 12,710 Net Sales ^ 14,755 12,156 2,462 2,490 EBITDA 2,340 2,406 215 182 Finance Costs 194 178 723 674 Depreciation and Amortization 694 645 465 459 Tax expenses 462 460 4 2 Minority i
Slide 27: Cash Flow Statement: Q3 FY23
Cash Flow Statement: Q3 FY23 ₹ crores Particulars India operations Consolidated EBITDA 2,340 2,462 Less : Interest & lease payments (161) (172) Less : Tax paid (512) (512) Add : Decrease in working capital 566 399 Operating Cash Flow 2,233 2,177 Less : Capex spend (1,514) (1,517) Free Cash Flow 719
Slide 28: 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