Sagar Cements Ltd · NSE:SAGCEM
Sagar Cements — Investor Presentation (August 2019)
33 slides from Sagar Cements's investor presentation, Aug 12, 2019
Slide 1: Cover letter to stock exchanges
�ii SAGAR CEMENTS LIMITED �---- - SCL:SEC:NSE:BSE:2019-20 August 12, 2019 The National Stock Exchange of India Ltd., The Secretary "Exchange Plaza", 5 th Floor Bombay Stock Exchange Limited Sandra - Kurla Complex P J Towers Sandra {East) Dala I Street Mumbai - 400 051 Mumbai - 400 001 Symbol: SAGCEM
Slide 2: Sagar Cements Limited Corporate Presentation August 2019
Sagar Cements Limited Corporate Presentation August 2019 Corporate Presentation 1
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”),have been prepared by Sagar Cements Limited (the “Company”), solely for information purposes and do not constitute a prospectus, offering circular or offering memorandum or an offer, or a solicitation of any offer, to purc
Slide 4: Table of Contents
Table of Contents Section 1 Sagar Cement Limited - Corporate Overview 5 Section 2 Key Investment Highlights 16 Section 3 Financial Performance 25 Corporate Presentation 3
Slide 5: Corporate Overview
Corporate Overview Corporate Presentation 4
Slide 6: Corporate Overview
Corporate Overview Sagar Cement has created a niche in Southern markets and in making inroads in to Eastern markets Established in 1985, Sagar Cement Limited (“SCL”) with its current capacity of 5.75 MTPA tones (including 1.25 Sagar Cements - Mattampally mn tones post acquisition of Sagar Cements
Slide 7: Facilities at a Glance
Facilities at a Glance Fully Automated and Integrated Cement Plants Mattampally Clinker Plant Mattampally Grinding Unit 8.8 MW – Waste Heat Recovery Power Plant Robotic Lab for consistent quality Surface Mining – Zero Overburden Railway Siding Corporate Presentation 6
Slide 8: Key Milestones
Key Milestones Enhanced grinding capacity to 1.5 Mn Tonnes at Bayyavaram & enhanced WHRS to 8.8 MW • Exited from Vicat JV for a 2020 consideration of INR 425 cr 2019 • Acquired BMM Cements, now (SC Acquired 65% stake in (R) with a capacity of 1 mtpa with Satguru Cements to set up a Installatio
Slide 9: Vision & Mission
Vision & Mission Vision to double the Capacity every 10 years 2025 2018 10.00 2017 5.75 MTPA MTPA • Through Inorganic & Organic Growth 2015 4.3 MTPA • Ramp up production at the 2008 4.0 MTPA Bayyavaram Unit • Consolidated to 1.5 MTPA. position in the 1998 2.75 South & made • Ramp up production at Fr
Slide 10: Strong Sales & Distribution Channel
Strong Sales & Distribution Channel Distribution Network – Focused on South Strong Brand Equity & Recall Distribution & Consignment Agents # 60 Dealers # 2150 Corporate Presentation 9
Slide 11: Inherent Strengths
Inherent Strengths Resources Market • Part of Nalgonda & Yerraguntla Cement • Plants located in close proximity to major Cluster markets in the South and select markets in • Strong limestone reserves: Maharashtra and Odisha • Over 600 mn tons at Mattampally • Avg lead distance below 300 kms • Over 1
Slide 12: Professional & Experienced Management
Professional & Experienced Management Inducted on the Board in 1991, and later appointed After having gained industrial experience of over as a Whole-time Director (Marketing and Projects) 15 years, he joined Sagar Cements as its Technical Dr.S.Anand Reddy in 1992 and as Managing Director in 201
Slide 13: Non-executive Directors
……Backed by a Strong Board A Financial and Management consultant, known for his acumen in corporate finance. He has been associated with the Board since 1983. Mr O. Swaminatha Reddy Earlier he had served as Chairman of Andhra Bank and AP State Finance Corporation. He is also on the Board of severa
Slide 14: Shareholding Structure
Shareholding Structure Shareholding Pattern (As on June 30, 2019) Select Public Investors SN Shareholders % Holding 1 AVH Resources India Pvt Limited 17.57 Public (Individuals), 2 Mutual Funds 12.18 9.03% 3 Twinvest Financial Services 3.99 Public (Bodies Corporate), Promoters, 23.64% 50.06% FIIs & M
Slide 15: Companies associated with Promoters
Companies associated with Promoters RV Consulting Reputed Turn Key Solutions provider (Design, Engineering & Project Management) to Cement Industry & Small Hydro Power Projects Select Customers include: Bharathi Cement Corporation Limited, Vicat Sagar Cement Private Limited, Maruthi Cements Li
Slide 16: New Investment Highlights
New Investment Highlights Corporate Presentation 15
Slide 17: Satguru Cements Private Limited
Satguru Cements Private Limited Promoters of Satguru Sagar Cements Limited 35% 65% Satguru Cement Private Limited Investment Highlights ► SCL will fund the entire capex for the Project funding construction of a ~1 MTPA facility along External funds INR 2,750 mn with a 5 MW WHR power plant ► Addition
Slide 18: Jajpur Cements Private Limited
Jajpur Cements Private Limited Sagar Cements Limited Investment Highlights ► JCPL has been allocated ~27 acres of land in the Kalinga Nagar Industrial Area, Jajpur. ► SCL has acquired the entire shareholding from 100% the current promoters to construct a 1.5 MTPA cement grinding facility. ► Clinker
Slide 19: Key Investment Highlights
Key Investment Highlights Corporate Presentation 18
Slide 20: Strategic Expansion Plan – Rightly Timed and Well Thought-out
Strategic Expansion Plan – Rightly Timed and Well Thought-out Well Positioned to Capture the Demand Revival in South Acquisition Synergies to Derive Multiple Benefits Strong Financials Professional Management with Strong Execution Track Record Corporate Presentation 19
Slide 21: Strategic Expansion Plan – Rightly Timed Expansion during Down cycle
Strategic Expansion Plan – Robust and Well Thought-out :“Rightly Timed Expansion during Down cycle” Sagar Cement, with BMM & Bayyavaram grinding unit acquisitions at current capacity of 4.2MTPA is strongly positioned to derive full benefit in the Cement Up cycle 5.7 % 10.8% 4.3% 6.5 – 7.5% Cement De
Slide 22: Key Growth Drivers
Well Positioned to Capture South Recovery : “Southern Markets to Witness Demand Revival after Years of Declining to Muted Demand Limited incremental capacity, political stability, formation of new Demand subdued till FY16 resulting in excess capacity Major capacity Addition Post FY07 state augurs we
Slide 23: Proximity to Key Markets with Shorter Lead Distances
Well Positioned to Capture South Recovery :“…Gradually built Proximity to key Markets with Shorter Lead Distances” MAHARASHTRA TELANGANA ORISSA Sundergarh Sholapur Grinding Stn. Nandurbar Jharsuguda (Traded Cement) Adilabad Mayurbhanj Dhule Nagpur Jalgaon Amarawati Bhandara Debagarh Kendujhar Akola
Slide 24: Acquisition Synergies: Locational Advantage
Acquisition Synergies to Derive Multiple Benefits : “Locational Advantage – the Game Changer” Pre Acquisition Post Acquisition Maharashtra Odisha Distance to Odisha Distance to Maharashtra Distance to Odisha Distance to Maharashtra ~200 - 300 km ~630 km ~800 km ~630 km Bayyavaram Grinding Plant AP,
Slide 25: Acquisition Synergies: BMM Acquisition
Acquisition Synergies to Derive Multiple Benefits : “BMM Acquisition” Asset Details Locational Advantage - Reduced Lead Distance Key Mkt Lead Distance (Appox.) FY 2019 Sales Volume Capacity 1.25 MTPA Tamil Nadu From 825 km To 520 km Karnataka From 650 km To 300 km Location Karnataka & AP Border Kera
Slide 26: Acquisition Synergies: Grinding plant (Bayyavaram) Acquisition
Acquisition Synergies to Derive Multiple Benefits : “Grinding plant (Bayyavaram, Vizag) Acquisition” Asset Details Location Advantage Odisha Capacity 0.2 MTPA Grinding unit Location Bayyavaram, Vizag, AP Product Portland Slag Cement Key markets Vizag, Vizianagaram, Srikakulam, South of Odisha Bayyav
Slide 27: Professional Management: Strong Execution Track Record
Professional Management : “Strong Execution Track Record” Dr.S.Anand Reddy Mr S. Sreekanth Reddy Managing Director Joint Managing Director Mr K Ganesh Mr K Prasad Group President CFO Mr.P.S.Prasad R. Soundararajan President Marketing Company Secretary, Compliance Officer Professional Management with
Slide 28: Financial Summary
Financial Summary Corporate Presentation 27
Slide 29: Financial Performance – On An Upward Trajectory
Financial Performance – On An Upward Trajectory Net Revenue Capacity & Capacity Utilization 62% 61% 58% 56% 53% 54% 52% CAGR 6 % 1,085 1,220 559 2.8 2.8 2.8 3.8 4.3 4.3 5.3 489 545 753 814 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Capacity (in mtpa) Capacity Utilisation (
Slide 30: Sales Volume Performance – On An Upward Trajectory
Sales Volume Performance – On An Upward Trajectory 2.84 % 10.42 % 17.62 % 110.30 % 5.94 % 15.37 % 9.17 % 22.22 % 16.20 % 23.28% 10.66% 3,322,957 2,713,915 2,201,413 1,894,513 1,631,392 1,585,002 1,550,099 1,414,109 1,419,857 1,334,828 820,155 293,351 333,706 286,904 420,867 385,973 308,430 303,143 4
Slide 31: Performance Highlights Q1 FY20
Performance Highlights Q1 FY20 Q1 FY 20 Q1 FY 19 FY 19 Consolidated Standalone Consolidated Standalone Consolidated Standalone in Rs. Lakhs 34,565 25,901 27,544 20,208 1,22,043 91,707 Revenue ▲25.49% 9,876 ▲5.52% 8,824 ▲12.48% 36,825 8,007 5,734 3,698 2,538 15,229 11,439 EBITDA ▲116.52% 2,609 ▲13.00
Slide 32: Summary Financial Highlights
Summary Financial Highlights Income Statement (Consolidated) Historical Financial Performance Book Value Per S.no34 Year Production Net worth Turnover PBID NPAT Dividend % D/E Ratio Share (INR) Particulars (INR FY14 FY15 FY16 FY17 FY18 FY19 1 Dec-85 75,919 375 941 243 88 10.00 1.54 12.78 cr)2111 2 D
Slide 33: Awards & Accolades, Certifications
Awards & Accolades Awards & Accolades • Best Employer Award from Telangana State Government for the Year 2015 and 2017 • State Level award for overall performance during Mines Safety week from Director General of Mines 2015 Certifications ISO 9001 : 2000 QMS ISO 14001 : 2004 EMS OHSAS 18001 :