Ultratech Cement Limited · NSE:ULTRACEMCO

Ultratech Cement — Q4 FY20 Earnings Presentation

34 slides from Ultratech Cement's earnings presentation, May 20, 2020

  1. Slide 1: Cover letter to BSE and NSE

    20th May, 2020 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 Fax

  2. Slide 2: India's Largest Cement Company – Earnings Q4 FY20

    INDIA’S LARGEST CEMENT COMPANY Earnings: Q4 FY20 20th May 2020 Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX

  3. Slide 3: Contents

    Macro UltraTech and Industry and ESG updates CONTENTS Key updates and highlights 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

  4. Slide 4: Macro and Industry updates

    Macro and Industry updates General Economic Slowdown Pandemic added to the Weakness Consumer sentiment was affected; construction work halted Cement offtake for the quarter shrunk due to COVID-19 Ultra Tech Cement Limited I 3

  5. Slide 5: UltraTech and ESG

    UltraTech and ESG Key Environment Protection Initiatives … Key Activities / Actions Targets / Achievement • Increased share of blended products Target 25% Zero carbon • Increased use of alternative fuels • Increased use of alternative raw reduction materials over FY06 Project Jal • Implementation of

  6. Slide 6: UltraTech and ESG: Our achievements

    UltraTech ULTRATECH ESGESG andAND Our achievements FY19 Sustainability Received ‘Green Pro Amongst the Top 10 Report included Ecolabel’ Globally, in the among Global Top 20 certification from CII- Dow Jones and recognised as Green Products & Sustainability Index the 'Most Engaging Services Council f

  7. Slide 7: Project Jagruti: Sustainability awareness amongst employees

    UltraTech and ESG Project Jagruti: Sustainability awareness amongst employees 650+ Number of 23 Number of plants employees covered covered under the under the project project An initiative to embed sustainability culture amongst employees Target to cover 50% employees under Project Jagruti over the

  8. Slide 8: UltraTech's participation in fight against COVID-19

    UltraTech ULTRATECH ESGESG andAND UltraTech’s participation in fight against COVID-19  Provided meals to 1.80 lakhs people  Distributed grocery packets ~ 50000  Supplied > 6.0 lakhs N95 masks & sanitizers  Distributed ~ 1.00 lakh medical PPE  Facilitated 2 quarantine centers in the State of Raj

  9. Slide 9: Sustainability at UltraTech

    UltraTech ULTRATECH ESGESG andAND Sustainability at UltraTech People benefited: 1.6 million Education Education for: 1 lakh children Social Change Healthcare CSR at Rural Health Camps for: UltraTech 2 lakhs people Villages Covered: 502 Infrastructure Sustainability Development Livelihood [ Program c

  10. Slide 10: UltraTech and ESG: Key Initiatives

    UltraTech and ESG Key Initiatives … • Promoting digital education in Education government schools • Covered 355 schools • Focus on Mother and Child Health Care Health Covered > 9000 families • Special camps on school health check-up for vision and dental (> 3500 children) • Promoting Self Help Group

  11. Slide 11: Integration update: Century Cement

    Integration update : Century Cement Plant operating Capacity utilization efficiency Reduced ~80% in Q4 despite improvement power consumption COVID-19 program on track ~ 8% over Q3 Leveraging One-time integration Pet coke usage synergies costs booked up at 69% (materials, during the quarter: movement

  12. Slide 12: Integration update: Century Cement… contd

    Integration update : Century Cement… contd Brand transition Increase in 84% production to completed for realization: be transitioned to ~65% production ~ Rs. 160/t vs Q3 UltraTech brand by Q3 FY21 Logistics Completed people Extended synergies in integration, technical services process strengthening

  13. Slide 13: Integration update: UltraTech Nathdwara

    Integration ULTRATECH update : UltraTech Nathdwara NATHDWARA First full year of operation under “UltraTech” banner…. Commenced work for Achieved 14% cost Generated average reduction through installation of EBITDA in excess efficiency 11 MW WHRS.… of Rs.1250/t (FY20) improvement in EBITDA profile to

  14. Slide 14: Other updates: Deferred Tax Reversal during Q4 FY20

    Other updates : Deferred Tax Reversal during Q4 FY20 Government of India introduced section 115BAA under Income Tax Act, providing option to corporates for a lower income tax rate @ 25.168% (34.944% earlier) The Company has the benefit of existing tax breaks and incentives under the old tax regime t

  15. Slide 15: Q4 FY20: Performance Highlights

    Q4 FY20 : Performance Highlights Turnover (Rs. crores) Operating EBITDA (Rs. crores) 11730 2491 2346 2009 10200 9800 Q4FY19 Q3FY20 Q4FY20 Q4FY19 Q3FY20 Q4FY20 Operating Margin (%) Normalised PAT (Rs. crores) 23 1117 1028 740 21 20 Q4FY19 Q3FY20 Q4FY20 Q4FY19 Q3FY20 Q4FY20 Operating EBITDA improved 1

  16. Slide 16: FY20: Performance Highlights

    FY20 : Performance Highlights Turnover (Rs. crores) Operating EBITDA (Rs. crores) 39923 9090 7156 39257 FY 19 FY 20 FY 19 FY 20 Operating EBITDA (Rs./t) Normalised PAT (Rs. crores) 3633 1154 869 2332 FY 19 FY 20 FY 19 FY 20 Achieved highest ever EBITDA pmt since inception: Rs. 1154 /t Normalised PAT

  17. Slide 17: Key Achievements for FY 2019-20

    Key Achievements for FY 2019-20 Commissioned 2 MTPA cement capacity at Bara… Total consolidated capacity 114.8 MTPA Commissioned 33 MW WHRS capacity: Total 118 MW Commenced operation for 32 MW Solar capacity: Total 99 MW Completed integration of UltraTech Nathdwara: 6.25 mtpa capacity Highest Consol

  18. Slide 18: Leverage Reduction Remained Key Focus for the Year

    Leverage Reduction Remained Key Focus for the Year Consolidated net debt (Rs. crores) Consistent improvement in working capital  Reduction during Q4: Rs. 404 crores 22111 Judicial Capex Spends 18625  Capex spend for the year: Rs.1604 crores 16860  Target for FY21: Rs.1000 crores Q4FY19 Q3FY20 Q4F

  19. Slide 19: Sales Performance: Q4 FY20

    Sales Performance: Q4 FY20 MnT Q4 FY20 Particulars CY LY % CY LY % Annual Capacity India 111.4 109.4 2 111.4 109.4 2 (MTPA) Domestic sales 19.92 23.73 (16) 76.40 79.34 (4) Exports and others 0.60 0.84 (29) 2.36 3.02 (22) Total India Operations 20.52 24.56 (16) 78.76 82.36 (4) Consolidated Sales 21.4

  20. Slide 20: Key Performance Drivers: Q4 FY20

    Key Performance Drivers : Q4 FY20 Premium products Trade sales Maintained rural Blended sales at volume growth: increased 2% YoY sales volume 68% up 2% YoY ~ 19% YoY Number of UBS1 outlets: ~2145 Improved clinker to UBS1 Contributed YoY reduction in added 230 new cement conversion 7% of total sales

  21. Slide 21: Operating Cost: Q4 FY20

    Operating Cost : Q4 FY20 LOGISTICS COST ENERGY COST RAW MATERIAL COST 33% 26% 14% Declined YoY 3% Declined YoY 13% Increased YoY 5% to Rs.1149/t to Rs.914/t to Rs.497/t  Benefit from lower fuel  Higher fly ash and other  Benefit due to prices additive prices exemption of railway  Increased share

  22. Slide 22: Logistics Cost Trends

    Logistics Cost Trends Logistics cost (Rs./t) YoY cost reduced: 3% 1180  Railways extended period for 1149 exemption of busy season 1122 3% surcharge: cost benefits ~ 3%  Improved clinker to cement conversion ratio Q4FY19 Q3FY20 Q4FY20 Cost increase vs Q3: (-) 2% Logistics costs v/s Diesel Price In

  23. Slide 23: Energy Cost Trends

    Energy Cost Trends Energy cost (Rs./t) YoY cost reduced: 13%  Average fuel prices dropped :~ 15% 1053 986  ‘Green power’ consumption 13% 914 increased to 11.6% (LY: 7.9%)  Pet coke usage at 77% (LY: 67%)  Average power consumption Q4FY19 Q3FY20 Q4FY20 improved : 100 bps Energy cost v/s Pet coke

  24. Slide 24: Raw Materials Cost

    Raw Materials Cost Raw Materials Cost (Rs./t) QoQ cost reduced marginally: 1% 1% 500 497  Increased usage of low-cost additives 473 Q4FY19 Q3FY20 Q4FY20 YoY costs up: 5% Conversion ratio and Fly ash Prices (Index) Trends  Fly ash prices increased ~ 4% 108 108  Increased use of additives due to 10

  25. Slide 25: Other Cost Trends

    Other Cost Trends Other costs (Rs./t) QoQ cost decreased: 7% Sabka 774 Vishwas 67 Scheme 7% 659  Lower maintenance cost: Rs. 25/t 707 556 Q4FY19 Q3FY20 Q4FY20 PP Granules Price (Index) Trend YoY cost increase: 18%  Sales volume lower: (-) 16% 109 105  Packing costs reduced 7% 100 99 FY17 Q4 Q3 Q4

  26. Slide 26: Q4 FY20 Performance - P&L

    Q4 FY20 Performance - P&L Rs. crores UTCL Standalone Published India Operations Particulars CY LY % CY LY % Revenues (Net of Taxes) 10237 11765 (13) 10200^ 11730^ (13) Operating Income 123 218 (43) 167 220 (24) Other Income 224 145 55 212 128 65 Total Income 10584 12128 (13) 10578 12078 (12) Expen

  27. Slide 27: Income Statement: Q4 FY20

    Income Statement : Q4 FY20 Rs. crores Consolidated India Operations Particulars CY LY % CY LY % 10579 12170 (13) Revenues (net of taxes) 10200 11730 (13) 2639 2672 (1) EBITDA 2592 2619 (1) 25% 22% 3 Margin (%) 25% 22% 3 505 505 - Finance costs 485 496 2 672 641 (5) Depreciation & Amortization 646

  28. Slide 28: FY20 Performance - P&L

    FY20 Performance - P&L Rs. crores UTCL Standalone Published India Operations Particulars CY LY % CY LY % Revenues (Net of Taxes) 40033 39234 2 39923^ 39257 ^ 2 Operating Income 616 765 (19) 697 766 (9) Other Income 727 497 46 645 468 38 Total Income 41376 40495 2 41264 40490 2 Expenses : Raw Mater

  29. Slide 29: Income Statement: FY20

    Income Statement : FY20 Rs. crores Consolidated India Operations Particulars CY LY % CY LY % 41476 40904 1 Revenues (net of taxes) 39923 39257 2 9930 7811 27 EBITDA 9724 7623 28 24% 19% 5 Margin (%) 24% 19% 5 1986 1778 (12) Finance costs 1926 1733 (11) 2702 2451 (10) Depreciation & Amortization 25

  30. Slide 30: EBITDA PMT Trends

    EBITDA PMT Trends Rs. Per Ton 1236^ 1195 1085 1122 82 1070 1036 73 1051 996 1036 973 992 131 864 59 60 89 926 58 851 98 98 77 81 36 38 57 1154 995 1122 399 1011 976 896 990 937 911 939 953 25 828 813 869 374 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Operating Profit

  31. Slide 31: Financial Position

    Financial Position Rs. crores Consolidated India Operations Particulars 31.03.2020 31.03.2019 31.03.2020 31.03.2019 53553 53440 Net Fixed Assets incl. CWIP 51646 51778 563 967 Net Operating Working Capital 83 368 1085 1051 Other Current Assets 1251 1152 39123 33763 Shareholders Fund 38533 33220 2289

  32. Slide 32: Cash Flow

    Cash Flow Rs. crores Consolidated Particulars India Operations 7112 Operating Cash Profit (Net of Tax) 6895 225 Change in Working Capital 167 7337 Cash Flow from Operations 7061 (1604) Capex (1582) 5733 Free Cash Flow 5479 Free Cash flows will rise further after acquisitions achieve maturity Ultra T

  33. Slide 33: Ultra Tech Cement Limited I

    Ultra Tech Cement Limited I

  34. Slide 34: 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

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