Slide 1: Exchange filing cover letter
19th October, 2022 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. Scrip Code: 532538 Scrip Code:
Slide 2: UltraTech Cement Limited Results Q2 FY23
UltraTech Cement Limited Results Q2 FY23 Stock code: BSE: 532538 | NSE: ULTRACEMCO I Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX
Slide 3: Macro and Sectoral update, Business update, ESG update, Financial Performance
01 02 03 04 Macro and Business ESG Financial Sectoral update update update 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 period
Slide 4: Macro and Sectoral update
01 Macro and Sectoral update Rawan Cement Works, Chhattisgarh – A five-star rating is given to its Jhipan Limestone Mine which performed best on parameters such as scientific, efficient and sustainable mining, compliance of approved production, land, resettlement and other social impacts. This was a
Slide 5: Macro Indicators
Macro Indicators FY23 GDP growth forecast revised 20 bps lower to 7% by RBI. September CPI rose to 7.4%, it should begin to fall October onwards with food inflation normalizes and fall in commodity prices. Monsoon has been 6.5% above long period average. Rural demand outlook remains promising in FY2
Slide 6: Sectoral Update Q2 FY23
Sectoral Update Q2 FY23 Volume Zone I R H C Key drivers Gr. Infrastructure segment registered growth on account of execution of major projects Commercial demand registered growth in Rajasthan. North Housing segment registered growth in all the regions supported by good monsoon and cash flow fr
Slide 7: Business update
02 Business update
Slide 8: Q2 Highlights
Q2 Highlights Domestic sales volume grew by 10% for the quarter on yoy basis with capacity utilization of 76%. Operating margin dropped significantly to 14% mainly on account of higher energy costs (increased by 58% yoy) and decline in realization. Commissioned cement capacity of 1.3 mtpa at D
Slide 9: Scaling up digital innovation
Scaling up digital innovation Manufacturing Logistics Customers Adopted Artificial Intelligence (AI) based Demand forecasting, Supply planning and Fin Services (Ledger, Credit, Balances). analytics to improve process performance network optimization. and reliability, contributing to increase i
Slide 10: New Product Launches
New Product Launches UltraTech Maxsheen, an amazing concrete solution that enables building artistic yet durable flooring. Maxsheen offers end-to- end customized flooring solutions – from design to on-site implementation by UltraTech experts. India’s 1st White Cement based Liquid Primer for better a
Slide 11: UltraTech continue its winning streak with impactful brand presence
UltraTech continue its winning streak at various platforms with impactful brand presence E4M’s Golden Mikes Awards for excellence in Digital Marketing Awards for excellence in Digital Radio Advertising Advertising 4 Golds & 1 Silver 1 Gold & 1 Bronze Marketing Awards & Industry Recognition : 61 awar
Slide 12: ESG update
03 ESG update Spread over 52 locations in India 16 24 39 507 States Districts Blocks villages • Population reach 1.6 million • Education Reach 0.13 million students
Slide 13: Environmental Product Declaration granted for four key cement products
Environmental Product Declaration granted for four of our key cement products Four of our key cement products have been granted Environment Product Declaration (EPD). This is a key step in our endeavor to drive sustainability in our business with a life-cycle approach. We are committed to enabling c
Slide 14: Accelerating Decarbonisation
Accelerating Decarbonisation Collaboration with other global companies with a focus on Net Zero. The collaboration will provide solutions extending to digitalization, carbon capture and transition to move to 100% renewable power (RE). Initiated specific collaboration with Council on Energy, Envi
Slide 15: Building a sustainable supply chain
Building a sustainable supply chain Sustainable Supply chain performance KPI Coverage of Tier 1 suppliers through sustainable supply chain awareness Onboarding Sustainability high High risk & Supply chain risk Sessions – 25% of Tier 1 supplies are covered as targeted. risk & critical supplier critic
Slide 16: Sustainable Livelihood
Sustainable Livelihood Gujarat Cement Works, Gujarat Andhra Pradesh Cement Works, Andhra Pradesh More than 1500 women across all units imparted training in beautician course, tailoring etc and currently working as entrepreneurs. More than 800 farmers trained for integrated farming model in an or
Slide 17: Social development
Social development Bela Cement Works, Madhya Pradesh Supported to make village youth physically stronger so that they could join Baikunth Cement Works, Chhatisgarh in Indian Security Forces. ~1200 youth improved their skill through various development courses in the areas of electrical, diesel mecha
Slide 18: Media Coverage
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Slide 19: Financial performance
04 Financial performance Deoghar Airport, Jharkhand – UltraTech supplied more than 85% of the Ahmedabad Metro, Gujarat – UltraTech supplied more than 90% of the cement consumed in the project cement consumed in the project
Slide 20: Sales: Q2 FY23
Sales: Q2 FY23 Grey Cement Grey Cement RMC White Cement Others Consolidated (India) (Overseas) Volume (Mnt) 21.75 186 0.38 0.97 23.10 no. of plants Growth (YoY) 10% 38 -0.2% -20% 7% Nos Revenue (₹ Crores) 11,428 883 540 284 460 13,596 Growth (YoY) 14% 44% 7% 109% -8% 16% After elimination of inter c
Slide 21: Performance Highlights: Q2 FY23
Performance Highlights : Q2 FY23 Net Sales EBITDA PAT Net Debt YoY +15.8% -29.5% -42.5% ₹ 8,357 Crs QoQ -9.4% -37.2% -52.3% 0.77x (Net Debt / EBITDA)* ₹ Crs 13,596 2,013 756 * EBITDA basis trailing 12 months. 20
Slide 22: Key Cost Indicators: Q2 FY23
Key Cost Indicators: Q2 FY23 Logistics Cost Energy Cost Raw Material Cost 27% 37% 13% ₹ 1239/t ₹ 1731/t ₹ 610/t Increased 2% YoY Increased 18% YoY Increased 58% YoY Diesel prices lower by ~1% Increase in input cost and Increase in fuel prices YoY diesel prices Above numbers are for Grey
Slide 23: Logistics Cost Trend
Logistics Cost Trend 1219 1253 1239 YoY cost increase: 2% Logistics cost (Rs./mt) Inflationary increase in cost partially mitigated by improved efficiency Q2FY22 Q1FY23 Q2FY23 QoQ cost decrease: 1% Logistics cost v/s Diesel Price Index 165 154 160 145 137 Average diesel prices lower by 5% on QoQ
Slide 24: Raw Material Cost Trend
Raw Material Cost Trend 610 577 YoY cost increase: 18% Raw Material cost (Rs./mt) 518 Increase in cost of raw material; fly ash, slag and gypsum Q2FY22 Q1FY23 Q2FY23 QoQ cost increase: 6% Conversion Ratio and Fly ash Price Index 120 111 109 Inflationary increase in cost of raw material due 103 1
Slide 25: Energy Cost Trend
Energy Cost Trend 1731 1573 YoY cost increase: 58% Energy cost (Rs./mt) 1099 Blended fuel prices of USD 200/t compared to USD 120/t in LY Q2 Petcoke consumption at 40% vs 19% in LY Q2 Q2FY22 Q1FY23 Q2FY23 QoQ cost increase: 10% Energy cost v/s Pet coke Price Index 243 236 149 156 171 Blended f
Slide 26: Other Costs Trend
Other Costs Trend 801 859 740 YoY cost increase: 7% Other cost (Rs./mt) Inflationary increase in plant maintenance cost Preponed shutdown work Annual increase in employee cost Q2FY22 Q1FY23 Q2FY23 QoQ cost increase: 16% WPI Index 126 126 111 Lower operating leverage due to lower volume in mo
Slide 27: Financial Performance: Q2 FY23
Financial Performance : Q2 FY23 ₹ Crores Consolidated India Operations Particulars Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 13,596 11,743 Net Sales ^ 13,176 11,242 297 274 Operating Income 271 286 146 140 Other Income 119 142 14,039 12,157 Total Income 13,565 11,670 Expenses: 2,004 1,731 Raw Materials Consum
Slide 28: Income Statement: Q2 FY23
Income Statement : Q2 FY23 ₹ Crores Consolidated India Operations Particulars Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 13,596 11,743 Net Sales ^ 13,176 11,242 2,013 2,855 EBITDA 1,926 2,849 200 230 Finance Costs 187 225 708 677 Depreciation and Amortization 679 649 344 637 Tax expenses 333 646 3 (3) Minority
Slide 29: Cash Flow Statement India Operations: Q2 FY23
Cash Flow Statement India Operations : Q2 FY23 ₹ Crores Particulars Amount PBIDT 1,926 Less : Interest & Lease (197) Less : Tax (315) Less : Increase in Working Capital (1,156) Operating Cash Flow 257 Less : Capex (1,509) Free Cash Flow to Firm (1,251) 28
Slide 30: 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