Ultratech Cement Limited · NSE:ULTRACEMCO
Ultratech Cement — Q2 FY25 Earnings Presentation
37 slides from Ultratech Cement's earnings presentation, Oct 21, 2024
Slide 1: Exchange filing cover letter
21st October, 2024 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 Q2 FY25
UltraTech Cement Limited A FORCE FOR GOOD Results Q2 FY25 Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX
Slide 3: Agenda
01 02 03 04 Macro and Business ESG Financial Sectoral Update Update Performance Update
Slide 4: Macro and Sectoral Update
01 Macro and Sectoral Update Awarpur Cement Balaji Cement Works, Works, Maharashtra Andhra Pradesh
Slide 5: Macro Indicators
Macro Indicators GDP growth of 6.7% India CPI inflation GST collections RBI keeps repo rate for Q1FY25. Long around 3.6% in July remained steady at unchanged for the election cycle and and August, rising to ₹ 1.75tn per month 10th consecutive slowdown in 5.5% in September for the quarter; time. Main
Slide 6: Key Government Initiatives and Economic Drivers
Key Government Initiatives and Economic Drivers After a subdued Q1FY25, road awards picked up in Aug-24 by NHAI and MoRTH. Chennai Metro’s Phase 2 approved by Central Government. Under Pradhan Mantri Awaas Yojana – Gramin (PMAY-G), 20 million houses will be built with a total subsidy outlay of ₹ 3.0
Slide 7: Sectoral Update Q2 FY25
Sectoral Update Q2 FY25 Zone I C H R Key drivers ✓ Housing registered growth in both rural and urban areas, however few States impacted due to excessive rainfall. ✓ Infrastructure registered degrowth as projects like Dwaraka Expressway, RRTS etc. are nearing completion, delay in North announcement o
Slide 8: Business Update
02 Business Update UltraTech is the largest supplier of cement for the Mumbai’s first Aqua Line underground metro (Line 3) from Aarey Colony to Bandra-Kurla Complex.
Slide 9: Highlights : Q2
Highlights : Q2 Domestic sales volume grew 3% yoy. Blended manufacturing cost per mt reduced by 4% yoy for domestic operations. Domestic operating EBITDA/Mt of ₹ 732, lower by ₹ 224/Mt yoy. UAE-based ‘Ras Al Khaimah Co. for White Cement and Construction Materials PSC’ (RAKWCT), has become a subsidia
Slide 10: Domestic growth plans on track
Domestic growth plans on track Cement Cement Particulars Unit Project Capacity Timelines Particulars Unit Project Capacity (Mtpa) (Mtpa) To be commissioned in FY26 Capacity as at Mar-24 140.8 Patratu, Jharkhand GU B 2.5 Karur, Tamil Nadu GU G 2.7 Commissioned Shahjahanpur, Uttar Pradesh GU G 1.8 Kuk
Slide 11: UltraTech: marching ahead
UltraTech: marching ahead Grey cement capacity (Mtpa) – India Grey Cement Capacity (Mtpa) 183.5 * Added till Further 168.8 Zones FY24 FY26 FY27 Total 157.0 Oct’24 Plan FY25 140.8 North 33.3 3.0 2.7 39.0 Central 28.4 4.5 32.9 East 27.6 3.1 1.2 2.5 6.6 41.0 West 31.1 1.1 3.0 0.0 35.2 South 20.5 5.7 0.
Slide 12: ReadyMix Concrete (RMC): Q2 FY25
ReadyMix Concrete (RMC): Q2 FY25 UltraTech’s RMC 321 134 Plants Network 71 YoY 18 YoY Number of Plants Number of Cities 3.01 1,397 19% YoY 20% YoY Volume (Mn m3) Revenue (₹ Crores) 40% ROCE% 11
Slide 13: Sales Performance Overview
Sales Performance Overview 32.5% 15.3% 27% 44.7% 84.7% 71% 55.3% 67.5% 2% Trade % Non Trade % Bag Sales % Bulk Sales % Road Rail Sea Direct Sales Depot Sales 12
Slide 14: ESG Update
02 ESG Update The Company runs 31 schools across plant locations, benefitting more than 18,000 students.
Slide 15: ESG : Sustainability Highlights
ESG : Sustainability Highlights Climate and Circular Environment Green Energy Economy Energy ESG Metric Scope 1 Net Alternative Water Green Power CO2 Emission Raw Material Positive Mix and Fuel [Times] [% to total power] [kg CO2/t cement] [MnT] H1FY25 550 -1.8% 21.53 +20% 5.5x +21% 30.6% +38% Perfor
Slide 16: ESG : Key trends
ESG : Key trends 70.6% 69.2% 1.46 69.6% 1.44 63.0% 1.41 1.30 FY14 FY23 FY24 H1 FY25 FY14 FY23 FY24 H1 FY25 Blended Cement Mix Clinker to Cement Conversion Factor 759 632 556 550* 462 FY06 FY17 FY24 H1 FY25 FY32 Target Scope 1 Net CO2 Emission [kg CO2/t cement] *Unaudited 15
Slide 17: ESG : Green Power Roadmap
ESG : Green Power Roadmap 60% 25% Waste Heat Recovery System 24% Renewable Power 40% 24% 27% 20% 18% 16% 13% 12% 1.8 437 450 1.5 GW 358 7% 6% 308 1 GW 278 681 1% 612 GW 85 10 MW MW FY19 FY24 H1 FY25 FY25 FY26 FY27 FY30 FY19 FY24 H1 FY25 FY25 FY26 FY27 FY30 WHRS (MW) WHRS % RE Power RE Power % 16
Slide 18: ESG : UltraTech's Sustainability Goals
ESG : UltraTech’s Sustainability Goals Decarbonization EP 100 initiative Net Zero emissions by UltraTech has doubled its energy productivity 2050 from base year of 2010, way ahead of its target year 2035 Water Stewardship Biodiversity and Land use 5 times water positive ‘No net loss’ approach RE 100
Slide 19: UltraTech raises USD 500 million through sustainability-linked financing
UltraTech raises USD 500 million 04 through sustainability-linked Financial Performance financing This financing signifies ongoing commitment to align our Company’s funding strategy with its sustainability and ESG goals, with a fully hedged cost of financing at less than 7.25%. 18
Slide 20: Sales Volume
Sales Volume Volume in Million tons Growth Growth Particulars Q2 FY25 (YoY) (QoQ) Grey Cement - Domestic 25.75 3% -15% Cement Export 0.22 37% 29% White Cement 0.45 7% 3% Sales Volume - India 26.42 3% -15% Overseas 1.66 40% 36% Consolidated Sales Volume* 27.84 4% -13% ReadyMix Concrete (321 plants) (
Slide 21: Revenues
Revenues ₹ Crores Growth Growth Particulars Q2 FY25 (YoY) (QoQ) Grey Cement - Domestic 12,618 -6% -17% White Cement 525 -10% -10% ReadyMix Concrete (RMC) 1,397 20% -6% Overseas 832 39% 38% Others 332 6% 3% Total Consolidated Revenues* 15,308 -3% -14% * After elimination of inter-company sales 20
Slide 22: Profitability
Profitability EBITDA (₹ Crores) PAT (₹ Crores) -18% YoY -36% YoY 1,697 3,205 2,718 1,281 2,239 820 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 21
Slide 23: Sales Realisation (Grey Cement)
Sales Realisation (Grey Cement) 5,349 Realisation Domestic Grey Cement 5,045 Realisation (₹/Mt) 4,901 ➢ Realisation declined 8.4% yoy and 2.9% qoq. Q2FY24 Q1FY25 Q2FY25 Realisation = Selling Price less GST and Discount 22
Slide 24: Key Cost Indicators (Grey Cement): Q2 FY25
Key Cost Indicators (Grey Cement): Q2 FY25 Logistics Fuel Power Raw Materials % to total costs 29% 22% 10% 15% ₹ / Mt 1,191 938 400 640 2% decline yoy 17% decline yoy 7% decline yoy 1% surge yoy and 1% qoq and 7% qoq and 5% surge qoq and 3% qoq Domestic Operations 23
Slide 25: Logistics Cost (Grey Cement)
Logistics Cost (Grey Cement) 1219 1198 1191 yoy costs decrease: 2% Logistics cost (₹/Mt) ➢ Lead distance reduced to 388 kms in Q2FY25 vs 403 kms in Q2FY24 ➢ Benefit on account of improved operating efficiencies and newer capacities in CY. Q2FY24 Q1FY25 Q2FY25 Logistics cost v/s Diesel price index qo
Slide 26: Fuel Cost (Grey Cement)
Fuel Cost (Grey Cement) 2.18 54% 1123 1003 2.05 938 2.03 Fuel cost (₹/Mt) 2.00 44% 1.84 39% 36% 37% Q2 24 Q1 25 Q2 25 Q2 24 Q1 25 Q2 25 Q2FY24 Q1FY25 Q2FY25 Fuel Rate : ₹ /Kcal * Petcoke Consumption Mix % Fuel Consumption Cost v/s Blended fuel price index qoq cost decrease: 7% and yoy cost decrease:
Slide 27: Power Cost (Grey Cement)
Power Cost (Grey Cement) 431 400 yoy cost decrease: 7% Power cost (₹/Mt) 383 ➢ Green Power Mix has increased to 32.0% vs 21.8% in Q2FY24. ➢ Efficiency improvement. Q2FY24 Q1FY25 Q2FY25 Green Power Mix (%) 32.0% 29.4% qoq cost increase: 5% 21.8% ➢ Green Power Mix increased to 32.0% vs 29.4% in Q1FY25
Slide 28: Raw Material Cost (Grey Cement)
Raw Material Cost (Grey Cement) 634 640 Raw Material cost (₹/Mt) 619 qoq cost increase: 3% and yoy cost increase: 1% Q2FY24 Q1FY25 Q2FY25 Raw Material Cost index ➢ Clinker conversion ratio at 1.46 vs 1.44 in Q2FY24 114 115 110 106 108 112 104 104 104 Q2 22 Q2 24 Q1 25 Q2 25 Fly ash Limestone Raising
Slide 29: Other Costs
Other Costs 862 858 755 Other cost (₹/Mt) qoq cost increase: 14% and yoy flat Q2FY24 Q1FY25 Q2FY25 ➢ Higher plant maintenance ➢ Increase in employee cost due to annual increments ➢ Impact of operating leverage - qoq WPI index 113 114 115 100 Q2 22 Q2 24 Q1 25 Q2 25 Domestic Operations 28
Slide 30: Operational Performance: Q2FY25
Operational Performance: Q2FY25 ₹ Crores Q2FY24 Q2FY25 Particulars Domestic Overseas Consolidated* Domestic Overseas Consolidated* 15,195 600 15,735 Net Sales 14,575 832 15,308 281 1 277 Operating Income 331 2 326 158 2 167 Other Income 182 22 221 15,634 603 16,179 Total Income 15,087 856 15,855 Exp
Slide 31: Financial Statement: Q2FY25
Financial Statement: Q2FY25 ₹ Crores Q2FY24 Q2FY25 Particulars Domestic Overseas Consolidated* Domestic Overseas Consolidated* 15,195 600 15,735 Net Sales 14,575 832 15,308 2,609 100 2,718 EBITDA 2,114 108 2,239 211 25 234 Finance Costs 282 35 317 768 30 798 Depreciation and Amortization 850 54 904
Slide 32: Financial Position
Financial Position ₹ Crores Consolidated Domestic Particulars Mar-24 Sep-24 Mar-24 Sep-24 71,284 76,132 Net Fixed Assets^ 68,458 71,262 1,231 3,217 Non-Current Investments 2,221 4,866 (3,010) (1037) Net Working Capital (4,588) (1,915) 69,506 78,313 Total Assets 66,091 74,213 60,283 62,770 Shareholde
Slide 33: Cash Flow Statement: H1 FY25
Cash Flow Statement: H1 FY25 ₹ Crores Particulars H1FY25 EBITDA 5,444 Less : Interest & lease payments (571) Less : Tax paid (484) Less : Increase in working capital (2,531) Operating Cash Flow 1,858 Less : Capex spend (4,486) Free Cash Flow to Firm (Before Strategic Investment) (2,628) 32
Slide 34: Driving excellence in Mining
Driving excellence in Mining Twelve of UltraTech’s Limestone Mines have been rated 5 Star by Indian Bureau of Mines in 2024 Unit Aditya Cement Works Andhra Pradesh Cement Works Awarpur Cement Works Baga Cement Works Dhar Cement Works Gujarat Cement Works Hirmi Cement Works Narmada-Jafrabad Cement Wo
Slide 35: Leading the way in Sustainability
Leading the way in Sustainability UltraTech ranks among Asia-Pacific Climate Leaders 2024 The Financial Times and Statista recently unveiled the 3rd edition of their prestigious Asia-Pacific Climate Leaders 2024 list, recognising companies that are making significant strides in environmental UltraTe
Slide 36: Branding Excellence
Branding Excellence UltraTech wins ‘MarTech brand of the UltraTech wins two trophies at the Indian year’ at ET MarTech Awards 2024 Digital Marketing Awards 2024 UltraTech struck gold at exchange4media’s 15th Indian Digital At the second edition of ET MarTech Awards 2024 Marketing Awards 2024. It sec
Slide 37: 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