Ultratech Cement Limited · NSE:ULTRACEMCO
Ultratech Cement — Q4 FY24 Earnings Presentation
42 slides from Ultratech Cement's earnings presentation, 2024
Slide 1: UltraTech Cement Limited Results Q4 FY24
UltraTech Cement Limited Building a sustainable future Results Q4 FY24 Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX 1
Slide 2: Macro and Sectoral Update, Business Update, ESG Update, Business Performance
01 02 03 04 Macro and Business ESG Business Sectoral Update Update Performance Update Update
Slide 3: Macro and Sectoral Update
01 Macro and Sectoral Update Awarpur Cement Works, Maharashtra was recognized towards its efforts for mineral conservation, environment protection and afforestation activities at the Mines Environment & Mineral Conservation Council 2023-24 under the aegis of Indian Bureau of Mines.
Slide 4: Macro Indicators
Macro Indicators GDP Growth CPI inflation eased Industry demand IMD forecasts estimates for FY24 to a five-month low growth of ~9% for above normal rains at 7.6% announced of 4.9% in March FY24 supported by bodes well to rein by National FY24, averaging at ~ continued traction in inflation. Statisti
Slide 5: Sectoral Update: Q4 FY24
Sectoral Update : Q4 FY24 Zone Volume Gr I C H R Key drivers ✓ Housing registered growth across all regions except Delhi, some parts of Uttar Pradesh and Punjab owing to transporter’s strike, farmer agitation and NGT ban. ✓ Infrastructure growth continued on account of ongoing NHAI and metro project
Slide 6: Business Update
02 Business Update UltraTech is the single largest source of cement for the ITC Ratnadipa, a landmark building, on the western coastline of Sri Lanka. 6
Slide 7: Highlights: Q4
Highlights : Q4 Domestic sales grew 11% yoy with capacity utilization of 98%. Domestic operating EBITDA/Mt of ₹ 1,185, higher by ₹ 125/Mt on yoy and lower by ₹ 23/Mt qoq. Achieved record Profit after Tax of ₹ 2,258 Crs, up 36% yoy and 27% qoq. Commissioned cement capacity of 7.8 MTPA, taking total g
Slide 8: Domestic growth plans on track
Domestic growth plans on track Cement Cement Expected FY26/FY27 Unit Project Capacity FY25 Unit Project Capacity Timelines (Mtpa) (Mtpa) 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 Kukurdih, Chhattisgarh IU
Slide 9: UltraTech: marching ahead
UltraTech: marching ahead Grey cement capacity (Mtpa) – India 183.5 Grey Cement Capacity (Mtpa) 168.8 Added in Planned 157.0 Zones FY24 FY26 FY27 Total 140.8 FY25 in FY25 North 33.3 3.0 2.7 39.0 Central 28.4 4.5 32.9 East 27.6 2.7 1.6 2.5 6.6 41.0 West 31.1 1.1 3.0 35.2 South 20.5 2.7 3.6 3.3 5.4 35
Slide 10: ESG Update
03 ESG Update
Slide 11: Sustainability Highlights
Sustainability Highlights Climate and Circular Environment Green Energy Economy Energy ESG Metric CO2 Emission Alternative Water Green Power [kg CO2/t cement] Raw Material Positive Mix and Fuel [Times] [% to total power] [MnT] FY24 556 35.2 5x 23.6% Performance* *Unaudited 11
Slide 12: Focus on reducing CO2 footprint
Focus on reducing CO2 footprint 16.4% 5.4% 69.2% 69.6% 14.3% 5.4% 15.9 278 63.0% 210 1.8% 0.3% 10.5 1.1 33 FY14 FY23 FY24 FY14 FY23 FY24 FY14 FY23 FY24 WHRS (MW) WHRS % Volume (LMT) AFR % Waste Heat Recovery System Alternative Fuel Blended Cement % 7.2% 5.3% 33.7 612 1.44 28.2 1.41 345 9.7 0.2% 4 1.
Slide 13: CO2 Emission Trend
CO2 Emission Trend 759 632 556 * 462 FY06 FY17 FY24 FY32 Target Scope 1 Net CO2 Emission [kg CO2/t cement] *Unaudited 13
Slide 14: Sustainability in Action
Sustainability in Action UltraTech installs 7,600 floating solar panels to harness renewable energy Our integrated manufacturing unit, Awarpur Cement Works has installed 7,600 floating solar photovoltaic panels. This will eliminate ~ 6,000 metric tons of CO2 emission- equivalent to the benefits of 0
Slide 15: Corporate Social Responsibility
Corporate Social Responsibility Education Healthcare Sustainable Agriculture Animal Rural support livelihoods husbandry infrastructure Our Presence 31 28,096 Soil and water conservation activities Empowering women through organic farming 8,317 26,000 Company schools beneficiaries of health for small
Slide 16: Business Performance Update
04 Business Performance Update UltraTech is the largest cement supplier for the Surat Diamond Bourse (World’s largest office building on a single basement). 16
Slide 17: Sales Volume
Sales Volume Volume in Million tons Growth Growth Growth Particulars Q4 FY24 FY24 (YoY) (QoQ) (YoY) Grey Cement - Domestic 33.22 11% 31% 112.23 13% Cement Export 0.16 -1% 14% 0.57 19% White Cement 0.53 12% 11% 1.84 13% Sales Volume - India 33.91 11% 30% 114.65 13% Grey Cement – Overseas 1.32 0.4% -5
Slide 18: Revenues
Revenues ₹ Crores Growth Growth Growth Particulars Q4 FY24 FY24 (YoY) (QoQ) (YoY) Grey Cement - Domestic 17,176 7% 23% 59,824 11% White Cement 715 8% 10% 2,541 12% ReadyMix Concrete (RMC) 1,558 37% 21% 5,244 34% Grey Cement – Overseas 675 10% 3% 2,485 16% Others 373 26% 31% 1,226 -4% Total Consolida
Slide 19: Profitability
Profitability EBITDA (₹ Crores) PAT (₹ Crores) +36% YoY +23% YoY 2,258 4,250 3,444 3,395 1,666 1,777 Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY24 13,586 7,005 11,123 5,064 FY23 FY24 FY23 FY24 19
Slide 20: Earnings growth
Earnings growth +23.7 % 243 +13.8 % 360 322 337 338 CAGR 192 196 CAGR 176 242 127 189 84 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 Earnings Per Share (₹) Cash Earnings Per Share (₹) 12.8% 13.0% 11.1% 14.6% 10.5% 8.7% 60,283 29.3% 54,380 50,432 19.3% 19.3% 21.7% 44,180 39,051 13.2%
Slide 21: Enhanced financial efficiency
Enhanced financial efficiency 102% 82% 80% 77% 91% 76% 12,500 0.98 1.02 10,898 0.86 8,972 9,283 9,069 0.80 0.76 0.70 5,956 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 Operating Cash Flow (₹ Crores) Cash Conversion Ratio Asset Turnover Ratio 21
Slide 22: Financial Strength: Head room for growth
Financial Strength: Head room for growth 18.3% 18.0% 16.6% 17.2% 2.8 12.8% 22,229 1.7 9.2% 9,721 9,752 10,381 9,286 16,981 0.6 6,985 5192 0.3 0.2 0.2 6,717 3,901 2,702 2,779 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY 23 FY 24 Cash Profit (₹ Crores) CFROI (%) Nebt Debt (₹ Crores) Nebt Debt/
Slide 23: Increasing Investments for Growth and Sustainability
Increasing Investments for Growth and Sustainability ₹ Crores 9,187 ~9,500 14% 16% 11% 13% 6,299 21% 14% 75% 70% 65% FY23 FY24 FY25 Growth Capex ESG Capex Other Capex Capital allocation on growth and ESG 23
Slide 24: Self-Sustaining Cash flows
Self-Sustaining Cash flows ₹ Crores Free Cash Flow Position Net Debt Movement 24
Slide 25: Sales Realisation (Grey Cement)
Sales Realisation (Grey Cement) +3.5 % 5,373 5,499 CAGR 5,150 5,170 5,373 4,783 5,170 Domestic Grey Cement 4,576 Domestic Grey Cement Realisation (₹/Mt) 4,352 Realisation (₹/Mt) Q4FY19 Q4FY20 Q4FY21 Q4FY22 Q4FY23 Q4FY24 Q4FY23 Q3FY24 Q4FY24 Consistently improving margins +3.5 % 4,182 CAGR 3,893 3,88
Slide 26: Key Cost Indicators (Grey Cement): Q4 FY24
Key Cost Indicators (Grey Cement): Q4 FY24 Logistics Fuel Power Raw Materials % to total costs 32% 25% 9% 15% ₹ / Mt 1,226 1,025 395 601 2% decline yoy 21% decline yoy 2% decline yoy Stable yoy and flat qoq and 3% qoq and 7% qoq and 5% decline qoq Domestic Operations 26
Slide 27: Logistics Cost (Grey Cement)
Logistics Cost (Grey Cement) 1251 1221 1226 yoy costs decrease: 2% Logistics cost (₹/Mt) ➢ Lead distance reduced to 400 kms in Q4 FY24 vs 413 kms in Q4 FY23. ➢ Sustainable Internal efficiencies Q4FY23 Q3FY24 Q4FY24 Logistics cost v/s Diesel price index qoq cost flat 113 113 112 106 104 104 100 ➢ Lea
Slide 28: Fuel Cost (Grey Cement)
Fuel Cost (Grey Cement) 1295 Fuel Rate : ₹ /Kcal 2.51 1052 1025 Fuel cost (₹/Mt) 2.00 2.05 2.03 1.28 Q4 21 Q4 22 Q4 23 Q3 24 Q4 24 Q4FY23 Q3FY24 Q4FY24 Fuel Consumption Cost v/s Blended fuel price index qoq cost decrease: 3% and yoy cost decrease: 21% 204 242 187 188 198 ➢ Blended fuel consumption (
Slide 29: Power Cost (Grey Cement)
Power Cost (Grey Cement) 424 402 395 yoy cost decrease: 2% Power cost (₹/Mt) ➢ Green Power Mix has increased to 25.7% vs 20.3% in Q4FY23. ➢ Efficiency improvement. ➢ Power consumption per ton of cement reduced by 2% Q4FY23 Q3FY24 Q4FY24 yoy. 8.0% qoq cost decrease: 7% 7.9% 5.1% 3.5% 2.4% ➢ Green Pow
Slide 30: Raw Material Cost (Grey Cement)
Raw Material Cost (Grey Cement) 631 604 601 yoy cost flat Raw Material cost (₹/Mt) ➢ Clinker conversion ratio at 1.44 vs 1.42 in Q4FY23. Q4FY23 Q3FY24 Q4FY24 Conversion Ratio and Raw Material Cost index qoq cost decrease: 5% 135 128 126 116 117 115 ➢ Decrease in cost of raw materials. 102 ➢ Clinker
Slide 31: Employee Cost
Employee Cost 304 283 226 271 271 Employee cost (₹/Mt) 212 258 254 Q4FY23 Q3FY24 Q4FY24 FY20 FY21 FY22 FY23 FY24 Employee efficiency: a driving force for UltraTech’s performance Domestic Operations 31
Slide 32: Other Costs
Other Costs 849 624 649 yoy cost increase : 4% Other cost (₹/Mt) ➢ Higher brand building and CSR expenses. Q4FY23 Q3FY24 Q4FY24 qoq cost decrease: 24% WPI index 118 119 119 ➢ Operating leverage benefit; volume growth 30%. ➢ Lower plant maintenance in a seasonal quarter. 100 Q4 21 Q4 23 Q3 24 Q4 24 D
Slide 33: Operational Performance: Q4FY24
Operational Performance: Q4FY24 ₹ Crores Q4FY23 Q4FY24 Particulars Domestic Overseas Consolidated* Domestic Overseas Consolidated* 17,885 616 18,436 Net Sales 19,452 675 20,069 227 4 226 Operating Income 354 1 350 151 3 122 Other Income 154 4 136 18,263 622 18,784 Total Income 19,960 681 20,555 Expe
Slide 34: Financial Statement: Q4FY24
Financial Statement: Q4FY24 ₹ Crores Q4FY23 Q4 FY24 Particulars Domestic Overseas Consolidated* Domestic Overseas Consolidated* 17,885 616 18,436 Net Sales 19,452 675 20,069 3,382 95 3,444 EBITDA 4,174 101 4,250 175 18 191 Finance Costs 227 35 261 733 29 762 Depreciation and Amortization 786 29 815
Slide 35: Operational Performance: Q4FY24 (Overseas)
Operational Performance : Q4FY24 (Overseas) Amount in Mn AED Amount in Mn SLR Middle East Sri Lanka Particulars Q4FY24 Q4FY23 Q4FY24 Q4FY23 232 215 Net Sales 5,739 5,896 0.4 1 Operating Income 18 33 0.2 0.2 Other Income 139 80 232 216 Total Income 5,896 6,009 46 39 Purchase/Consumption of Raw Materi
Slide 36: Operational Performance: FY24
Operational Performance: FY24 ₹ Crores FY23 FY24 Particulars Domestic Overseas Consolidated* Domestic Overseas Consolidated* 60,360 2,174 62,338 Net Sales 67,536 2,485 69,810 878 33 902 Operating Income 1,105 4 1,099 505 25 503 Other Income 662 10 617 61,742 2,233 63,743 Total Income 69,303 2,500 71
Slide 37: Financial Statement: FY24
Financial Statement: FY24 ₹ Crores FY23 FY24 Particulars Domestic Overseas Consolidated* Domestic Overseas Consolidated* 60,360 2,174 62,338 Net Sales 67,536 2,485 69,810 10,790 319 11,123 EBITDA 13,282 359 13,586 756 103 823 Finance Costs 867 106 968 2,773 115 2,888 Depreciation and Amortization 3,
Slide 38: Operational Performance: FY24 (Overseas)
Operational Performance : FY24 (Overseas) Amount in Mn AED Amount in Mn SLR Middle East Sri Lanka Particulars FY24 FY23 FY24 FY23 884 780 Net Sales 18,894 20,883 0.9 13 Operating Income 82 180 0.6 1.3 Other Income 345 988 885 794 Total Income 19,320 22,050 223 151 Purchase/Consumption of Raw Materia
Slide 39: Financial Position
Financial Position ₹ Crores Consolidated Domestic Particulars Mar-24 Mar-23 Mar-24 Mar-23 71,269 64,987 Net Fixed Assets^ 68,445 62,123 1,231 1,017 Investment in Subs/Associates/JVs 2,221 3,187 (3,446) (3,064) Net Working Capital (4,575) (3,986) 69,055 62,940 Total Assets 66,091 61,323 60,283 54,380
Slide 40: Awards and Accolades
Awards and Accolades Andhra Pradesh Cement Works and Dalla Cement Works have been awarded UltraTech emerges victorious for Sustainable Development at the at 10ᵗʰ Indian Marketing 18 CII-ITC Sustainability Awards 2023 by th Awards 2023. the CII-ITC Centre of Excellence. UltraTech win came across dive
Slide 41: Awards and Accolades
Awards and Accolades Vikram Cement Works (VCW) and Andhra Pradesh Cement Sidhi Cement Works shines at National Energy Efficiency Awards Works (APCW) were honoured at the CII National Award for Excellence in Water Management 2023. Sidhi Cement Works, has clinched top honours at the CEE 3rd VCW was aw
Slide 42: 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