Ramco Cements Limited · NSE:RAMCOCEM

Ramco Cements — The Ramco Cements — Q2 FY2021-22 Earnings Presentation

26 slides from Ramco Cements's earnings presentation, Oct 25, 2021

  1. Slide 1: Exchange filing cover letter: Investor Presentation

    Corporate Office: Auras Corporate Centre, V Floor, 98-A, Dr. Radhakrishnan Salai, Mylapore, Chennai - 600 004, India. Tel: +91 44 2847 8666 Fax: +91 44 2847 8676 Website: www.rameocements.in THE RAMCO CEMENTS LIMITED Corporate Identity Number: L26941TN1957PLC003566 25 October 2021 National Stock Exc

  2. Slide 2: The Ramco Cements Limited Investor Update Q2 2021-22

    The Ramco Cements Limited Investor Update Consolidating Strengths. Ready for future Q2 2021-22

  3. Slide 3: Contents

    Contents 1 Overview and Market update 2 Sales and Capacity Utilization 3 Key Performance 4 Income Statement and Financial Analysis 5 Installed Capacity and Capacity in pipeline 6 Debt Leverage The Ramco Cements Limited Investor update Q2FY22

  4. Slide 4: Overview

    Overview Overview of Economy • India's real GDP growth for FY22 is projected at 9.5%, as per Economic Survey 2020-21 • In October 2021, World Economic Outlook (WEO) forecast India’s growth projections as 8.3% in 2021 and 9.6% in 2022 on calendar year basis • India is also expected to emerge as the f

  5. Slide 5: Market update for Q2FY22

    Market update for Q2FY22 South East  Individual housing and Infra demand picked up  Individual housing witnessed de-growth  Week-end lock-downs in KL affected the demand  Demand from Infra / Commercial segment is intact  In KL, active monsoon dampened demand further  Demand in WB is down due t

  6. Slide 6: Sales and Capacity Utilization

    Sales and Capacity Utilization Cement Sales in Lac Tons 27.08 70% 74% +22% Utilization 22.13 Utilization Q2FY21 Q2FY22 Q2FY21 Q2FY22 Demand dampened in Kerala and West Bengal due to heavy monsoon Cement Sales in Lac Tons 48.49 61% 72% +17% Utilization 41.50 Utilization H1FY21 H1FY22 H1FY21 H1FY22 Ca

  7. Slide 7: Key Performance for Q2FY22

    Key Performance for Q2FY22 ` in Crores Revenue EBITDA 1,501 450 402 +19% -11% 1,265 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Profit Before Tax Profit After Tax 517 338 274 -19% +119% 236 Q2FY21 Q2FY22 Q2FY21 Q2FY22  Delivered strong performance even during this difficult quarter  Effective austerity measures t

  8. Slide 8: Key Performance for H1FY22

    Key Performance for H1FY22 ` in Crores Revenue EBITDA 2,736 772 2,317 +18% 720 7% H1FY21 H1FY22 H1FY21 H1FY22 Profit Before Tax Profit After Tax 686 524 494 +6% +99% 345 H1FY21 H1FY22 H1FY21 H1FY22  Delivered strong performance even during this difficult half-year  Effective austerity measures tak

  9. Slide 9: Income Statement for Q2FY22

    Income Statement for Q2FY22 ` in Crores Standalone Consolidated Particulars Q2FY22 Q2FY21 Variance % Q2FY22 Q2FY21 Variance % 1,501.03 1,265.31 19% Revenue 1,510.33 1,273.47 19% 1,099.29 815.01 35% Less: Operating Expenses 1,103.32 818.58 35% 401.74 450.30 11% EBITDA 407.01 454.89 11% 29.40 26.52 11

  10. Slide 10: Income Statement for H1FY22

    Income Statement for H1FY22 ` in Crores Standalone Consolidated Particulars H1FY22 H1FY21 Variance % H1FY22 H1FY21 Variance % 2,735.70 2,317.21 18% Revenue 2,750.32 2,330.26 18% 1,963.95 1,596.84 23% Less: Operating Expenses 1,971.54 1,603.19 23% 771.75 720.37 7% EBITDA 778.78 727.07 7% 53.70 56.45

  11. Slide 11: Opted for New Income Tax Regime

    Opted for New Income Tax Regime Highlights of new tax regime U/s.115BAA Company’s Option from FY 2021-22  Tax rates for domestic companies were changed by the  Tax Rate is reduced from 34.94% to 25.17% from FY 2021-22 Government through an ordinance on 20-9-2019.  Option can be exercised till the

  12. Slide 12: EBITDA

    EBITDA EBIDTA in Crores EBITDA per Ton 780 2050 760 1950 450 2500 740 1850 400 720 1750 350 2000 700 2035 1650 300 1736 680 1550 1728 1500 1592 250 1543 1484 660 1450 1394 1428 200 640 1350 1000 150 620 1250 270 450 403 459 370 402 720 772 100 500 600 1150 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 H

  13. Slide 13: Cost of raw materials

    Cost of raw materials In ` per Ton 776 786 787 6% -3% 754 Q2FY21 Q2FY22 H1FY21 H1FY22  Increase in diesel price pushed the cost of inbound logistics cost  Purchased clinker consumption is Nil in current quarter The Ramco Cements Limited Investor update Q2FY22

  14. Slide 14: Logistics cost

    Logistics cost In ` per Ton 1,109 1,093 +14% 1,007 +9% 977 6% Q2FY21 Q2FY22 H1FY21 H1FY22  Increase in diesel price pushed the cost of outbound  Increase in diesel price pushed the cost of outbound logistics cost logistics cost  Rail Co-efficient for the current quarter is 11% vs 8% YoY  Rail Co

  15. Slide 15: Power and Fuel Cost

    Power and Fuel Cost In ` per Ton 1,057 1,045  Fuel consumption for Q2FY22 is ~ $ 113 / T +28% +30%  Current spot pet coke prices crossed $ 220 / T 823 803  Imported coal follows the pet coke prices 6% -15%  Emphasis on more usage of alternate fuels  Supply constraints of fuel looms large  WHRS

  16. Slide 16: Power Mix

    Power Mix 12% 13% 5% 15% Q2FY21 Q2FY22 72% 83% Grid power Green Power Thermal Power Grid power Green Power Thermal Power 13% 16% 5% H1FY22 15% H1FY21 69% 82% Grid power Green Power Thermal Power Grid power Green Power Thermal Power Focus on Green Power The Ramco Cements Limited Investor update Q2FY2

  17. Slide 17: Fuel Mix

    Fuel Mix 36% 34% 38% Q2FY21 Q2FY22 57% 7% 28% Coal Alternate Fuel Pet coke Coal Alternate Fuel Pet coke 34% 34% 40% H1FY21 H1FY22 57% 9% 26% Coal Alternate Fuel Pet coke Coal Alternate Fuel Pet coke Optimum usage of fuels based on cost per CV The Ramco Cements Limited Investor update Q2FY22

  18. Slide 18: Other Expenditure

    Other Expenditure In ` per Ton 721 699 694 +4% 6% +7% 655 Q2FY21 Q2FY22 H1FY21 H1FY22  Increase in Packing cost during the current period  Due to CoVID, Admin, Advertisement & Sales Promotion expenses were low in Q2 / H1 of previous year The Ramco Cements Limited Investor update Q2FY22

  19. Slide 19: Summarized Balance Sheet

    Summarized Balance Sheet ` in Crores Standalone Consolidated Particulars 30-09-2021 31-03-2021 30-09-2021 31-03-2021 10,004.51 9,311.78 Fixed Assets including CWIP 10,026.34 9,333.53 201.96 200.92 Investments 308.88 306.97 775.14 718.12 Loans and Advances 760.74 695.33 663.06 597.90 Inventories 663.

  20. Slide 20: Summarized Cash flow

    Summarized Cash flow ` in Crores Particulars 30-09-2021 30-09-2020 Operating Profit 771.75 720.37 Changes in working capital (-) 273.63 118.15 Operating Profit increased; Direct Tax paid (-) 80.61 (-) 59.00 Working capital Increased Non-cash items / Others 11.23 14.44 Net cash flow from Operating Ac

  21. Slide 21: Wind power

    Wind power Particulars Q2FY22 Q2FY21 Variance Generation of Wind power (In Crore Units) 12.13 10.20 19% Revenue from Wind power ( ` in Crores) 33.43 28.76 16% Less: Operating Expenses ( ` in Crores) 5.57 5.51 1% EBITDA from Wind power ( ` in Crores) 27.86 23.25 20% Particulars H1FY22 H1FY21 Variance

  22. Slide 22: Key Ratios

    Key Ratios Particulars UOM Q2FY22 Q2FY21 H1FY22 H1FY21 EBTIDA Ratio % 27% 36% 28% 31% PBT Ratio % 18% 27% 19% 21% PAT Ratio % 34% 19% 25% 15% Earnings per Share ` 22 10 29 15 RoE % 35% 18% 23% 14% RoCE (Post-tax) % 23% 13% 16% 10% Debt-Equity Ratio Multiples 0.56 0.55 0.56 0.55 Debt Service Cover Ra

  23. Slide 23: Installed Capacity

    Installed Capacity Clinker Integrated Unit Grinding Unit Dry Mortar 11.40 MTPA 12.20 MTPA 7.20 MTPA 96,000 TPA Ready Mix Concrete Thermal Power Waste Heat Recovery Wind power (*) 56 Cu.Metre / Hour 175 MW 18 MW 166 MW (*) Include Subsidiary State / Product UOM TN AP KAR WB ORI Total Clinker – Integr

  24. Slide 24: Capacity in pipeline

    Capacity in pipeline 01 02 03 04 05 Clinker Capacity Cement Capacity WHRS Capacity TPP Capacity Dry Mortar Capacity 02 02 02 Existing : 11.40 MT Existing : 19.40 MT Existing : 18 MW Existing : 175 MW Existing: 0.96 Lac T In Pipeline In Pipeline In Pipeline In Pipeline In Pipeline Kurnool: 2.25 MTPA

  25. Slide 25: Debt Leverage

    Debt Leverage ` in Crores 4000 4.50 Borrowings as on 30-09-2021 4.45 Net Debt Net Debt / EBITDA 3500 4.00 Particulars ` in Crores 3.32 3000 2.52 3.50 Interest-bearing Borrowings 3.00 2500 - Long Term Debt 2,746 1.76 2.50 2000 - Short Term Debt 599 2.00 1.47 2.28 Interest Free / Soft Loans 218 1500 1

  26. Slide 26: Disclaimer

    Disclaimer This communication, except for the historical information, may contain statements which reflect the Management’s current views and estimates and could be construed as forward looking statements. The future involves certain risks and uncertainties that could cause actual results to differ

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