Ultratech Cement Limited · NSE:ULTRACEMCO
Ultratech Cement — Q1 FY22 Earnings Presentation
35 slides from Ultratech Cement's earnings presentation, Jul 22, 2021
Slide 1: Exchange filing cover letter
22nd July, 2021 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.: 26598236 Fa
Slide 2: India's Largest Cement Company: Earnings Q1 FY22
INDIA’S LARGEST CEMENT COMPANY EARNINGS: Q1 FY22 Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX
Slide 3: Table of contents
ESG update Table of Key Highlights contents Financial Performance
Slide 4: ESG update
ESG update UltraTech reaffirms commitment to help rejuvenate biodiversity: • Biodiversity assessment undertaken at 8 of our Integrated units • Committed to undertake biodiversity assessment and biodiversity management plans for all Integrated Units by 2024 • Our initiatives have helped flora and fau
Slide 5: UltraTech ranks amongst the best in the Cement Industry
UltraTech ranks amongst the best in the Cement Industry In its “ESG Way” series, In its “ESG Gauge” compendium, An Equity Research firm says: An Indian Credit Rating agency says: Scores Scores E: 15.5 / 33 UltraTech scored on top E: 50 / 100 UltraTech amongst the S: 27.9 / 33 within the sector in S:
Slide 6: Carbon Emission reduction roadmap
Carbon Emission reduction roadmap Scope 1 Target Key Steps leading to reduction in emissions Carbon 2032 6% Emission reduction 27% Achieved Increase in alternative fuel and clean energy Specific Net Direct GHG emissions Adoption of emerging technologies 2016-17 2017-18 2018-19 2019-20 2020-21 … 2031
Slide 7: Adoption of TCFD framework
Adoption of TCFD framework Detailed study on four step recommendations Climate related risks & opportunities assessment (transitional & physical risks) Scenario analysis conducted as per TCFD recommendation Scientific understanding of climate change & risks it entails 6
Slide 8: Driving circular economy
Driving circular economy UltraTech continues to be >2 times plastic positive 20 million tons of 3.5 lacs tons of alternative raw alternative fuel used* materials used* 7 * During FY21
Slide 9: Driving circular economy….contd.
Driving circular economy….contd. ▪ 25% heat consumption from waste materials at Reddipalayam, Tamil Nadu ▪ Alternative fuels initiative has helped in reduction of landfills, air and soil pollution ▪ >2,000 tons of CO2 emissions reduced 8
Slide 10: CSR Update
CSR Update Empowering women Andhra Pradesh Cement Works catalysed self help group Spoorti Jute Works to empower rural women through creation of sustainable livelihood. Trained in stitching and supplying uniforms for the Unit, the SHG has now become the proud supplier of uniforms for several local in
Slide 11: COVID-19 support program
COVID-19 support program ▪ 628 oxygen cylinders ▪ 9 COVID treatment centres with 296 beds ▪ 5 oxygen plants at Unit locations - Dhar, Neemuch, Nathdwara, Dalla, Maihar ▪ 19,575 COVID fight kits to frontline workers Reaching out to local ▪ 247 awareness campaigns communities ▪ COVID related support f
Slide 12: CSR activities
CSR activities More than 22,000 sachets containing carom seeds and camphor powder (natural disinfectants) were distributed across 15 locations Nursery development at biodiversity farm and model agriculture farm at Vikram Cement 11
Slide 13: CSR activities
CSR activities Generator support to Community Health Centre , Asop , Rajasthan Disinfectant spray at Hirapur, Maharashtra Baikunth, Chhattisgarh Water conservation ▪ Water security for farmers ▪ Rejuvenate local biodiversity ▪ Outreach: 4500 families Tadipatri , Andhra Pradesh 12
Slide 14: Key Highlights Q1 FY22
Key Highlights Q1 FY22 Awarpur Cement Works, Maharashtra
Slide 15: Macro indicators
Macro indicators ▪ Real GDP growth estimate (RBI) at ~9.5% for FY22 ▪ The second wave of COVID-19 impacted domestic cement consumption in rural/urban areas alike ▪ Composite PMI for June 21 at 43.1 ▪ With gradual ease of lockdowns since June 21, the construction activities are treading towards norma
Slide 16: Sectoral Update Q1 FY22
Sectoral Update Q1 FY22 State/Region wise performance Volume State/Region I R H C Key drivers Growth ▪ IHB witnessed increase in demand led by rural housing North ▪ Urban housing also contributed to growth Central ▪ IHB demand continued led by rural housing ▪ Rural, Urban housing and infrastructure
Slide 17: Key Performance Drivers: Q1 FY22
Key Performance Drivers: Q1 FY22 Capacity Volume Revenue Blended Premium Utilization Growth Growth Sales Products Share 26% YoY 47% YoY 56% YoY 3% QoQ 2% YoY 16 India Operations
Slide 18: Sales: Q1 FY22
Sales : Q1 FY22 Grey White Export and India Cement RMC Cement Others Operations Overseas Consolidated* Volumes (Mnt) 20.0 136 No of RMC plants 0.28 0.25 20.53 1.16 21.53 Growth (yoy) 48% 32 No of RMC plants 49% 25% 47% 25% 47% Revenues (Rs Crs) 10,185 509 362 243 11,299 445 11,698 Growth (yoy) 51% 2
Slide 19: Performance at a glance Q1FY22
Performance at a glance Q1FY22 Consolidated Rs. 11,698 Cr Rs. 3,512 Cr Rs. 2,526 Cr Rs. 1,703 Cr Particulars Revenues EBITDA PBT PAT Growth - YoY 54% 49% 93% 114% Margin% 30.0% 21.6% 14.6% Earnings per share * (Rs.) 219 (Trailing 12 months) EPS Growth : 93% 18 * before exceptional items
Slide 20: UltraTech: Partnering the National Infrastructure Development
Pimpalgaon-Nashik-Gonde Road Signature Delhi bridge Estimated reduction of 6 Million tons of CO2 emissions over its lifetime. Estimated reduction of 10 Million tons of CO2 emissions over its life. UltraTech: Partnering the National Infrastructure Development 19
Slide 21: 200 Mn views for #BaatGharKi videos
200 Mn views for #BaatGharKi videos BGK videos are “How-to” videos on various aspects of home building in simple consumer speak in 6 languages Total 69 original videos and 300 translated videos for “BaatGharKi” (BGK) Kannada Tamil English Hindi Malayalam Telugu 20
Slide 22: Awards & Accolades
Awards & Accolades Top honors at E4M Primetime Awards, including coveted title of “Advertiser of the year” • UltraTech won the excellence award for “Advertiser of the year” + 4 other awards across categories at the prestigious Primetime awards • Joined the list of Elite and Prestigious league of adv
Slide 23: UltraTech Smart Factory
UltraTech Smart Factory: Goal-oriented planning & implementation of initiatives well underway Central Support Organization New KPI visibility/estimation Levers: Levers: Energy & Sustainability • AR • IIOT Levers: • Remote Monitoring • Process modelling • Analytics & AI • Analytics Business Impact: B
Slide 24: Financial Performance Q1 FY22
The digital solution implemented in the manufacturing process at one of the plants provides multiple benefits: • Higher output • Lower fuel consumption in kilns and furnaces • Better and greater consistency of quality • Reduced grinding costs due to energy savings Financial Performance Q1 FY22 Rajas
Slide 25: Key Cost Indicators: Q1 FY22
Key Cost Indicators: Q1 FY22 LOGISTICS COST ENERGY COST RAW MATERIAL COST 14% 33% 28% Increased 6% YoY to Rs. 1187/t Increased 12% YoY to Rs. 1019/t Increased 7% YoY to Rs. 510/t • Diesel price hike impact on • Diesel price hike – 28% YoY • Hike in coal / petcoke price input costs 24
Slide 26: Logistics Cost Trend
Logistics Cost Trend Logistics cost (Rs./mt) YoYYoY cost increased: cost increase:6% 6% • Diesel price higher by ~28% Logistics cost v/s Diesel Price Index) 141 149 QoQ cost increase: 1% 117 123 138 100 102 107 108 • Diesel price higher by ~6% 59 Q1 18 Q1 21 Q4 21 Q1 22 Crude Prices (Index) Diesel P
Slide 27: Energy Cost Trend
Energy Cost Trend YoY cost increase: 12% Energy cost (Rs./mt) • Green power share in power mix raised to 15.5% (LY: 13.9%) • Power consumption reduced by 3% • Increase in Petcoke / Coal prices Energy cost v/s Pet coke Price Index 171 QoQ cost increase: 4% 133 117 • Increase in Petcoke / Coal prices
Slide 28: Raw Material Cost Trend
Raw Material Cost Trend Raw Material cost (Rs./mt) YoY: 7% increase, QoQ : 2% decrease • Increase in inbound transportation cost Conversion ratio and Fly ash Prices (Index) Trends due to diesel price hike 111 109 103 103 102 101 Q1 18 Q1 21 Q4 21 Q1 22 Conversion Ratio Index (Clinker to cement) Flya
Slide 29: Other Cost Trend
Other Cost Trend Other cost (Rs./mt) YoY cost increase: 16% • Fixed cost normalization • Increase in packing cost WPI (Index) Trend QoQ cost increase: 6% 118 100 113 105 • Increase in packing cost Q1 18 Q1 21 Q4 21 Q1 22 28
Slide 30: Q1 FY22 Financial Performance
Q1 FY22 Financial Performance Rs Crs UTCL Standalone India Operations Particulars CY LY CY LY Revenues (Net of Taxes) 11,327 7,290 11,299 ^ 7,262 ^ Operating Income 150 84 151 84 Other Income 216 296 204 276 Total Income 11,693 7,670 11,654 7,621 Expenses : Raw Materials Consumed 1,382 739 1,374 749
Slide 31: Income Statement: Q1 FY22
Income Statement : Q1 FY22 Rs Crs Consolidated India Operations Particulars CY LY % CY LY % 11698 7600 54 Revenues (net of taxes)^ 11299 7262 56 3512 2357 49 EBITDA 3468 2302 51 30% 31% (1) Margin (%) 31% 32% (1) 326 394 17 Finance costs 320 383 16 660 651 (1) Depreciation and Amortization 633 619
Slide 32: EBITDA PMT Trend
EBITDA PMT Trend 1689 1651 99 1478 198 1449 1438 1460 1590 65 70 1387 88 108 1251 1453 1262 31 1159 1122 103 82 1090 1036 1051 89 131 70 98 926 98 1379 1372 1330 1356 57 1413 1169 1069 1020 1159 939 990 953 869 FY16 FY17 FY18 FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 FY21 Q1F
Slide 33: Organic Expansion: Fueling growth
Organic Expansion: Fueling growth Cement capacity (mtpa) 2.8 136.25 9.4 3.5 0.6 3.2 116.75* UTCL Integrated Unit UTCL Grinding Unit FY21 Q2 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 UTCL Bulk Terminals Jetty White Cement & PuttyUnits Expansion Expansion of 19.5 mtpa cement capacity is on track 32 *I
Slide 34: Value creation for all stakeholders
Value creation for all stakeholders 16.6% 16,981 15.3% 14,651 1.72 12,132 1.60 12.0% 9,436 64,959 10.0% 64,482 1.22 6,717 5,984 0.84 60,724 59,275 0.55 0.44 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 FY19 FY20 FY21 Q1FY22 Capital Employed (Rs Crs)* ROCE * Net Debt (Rs Crs) Net Debt/ EBITDA We deliver
Slide 35: 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