Ramco Cements Limited · NSE:RAMCOCEM
Ramco Cements — The Ramco Cements — Q3 FY2022 Earnings Presentation
28 slides from Ramco Cements's earnings presentation, Jan 24, 2022
Slide 1: Filing cover letter to stock exchanges
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.ramcocements.in THE RAMCO CEMENTS LIMITED Corporate Identity Number: L26941TN1957PLC003566 24 January 2022 National Stock Exc
Slide 2: The Ramco Cements Limited Investor Update Q3 2021-22
The Ramco Cements Limited Investor Update Consolidating Strengths. Ready for future Q3 2021-22
Slide 3: Contents
Contents 01 Overview 05 Income Statement & Financial Analysis 02 Market update 06 Key Financial Ratios 03 Sales 07 Capex update 04 Key Performance 08 Glimpses of 1st Sustainability Report The Ramco Cements Limited Investor update Q3FY22
Slide 4: Overview of Economy
Overview Overview of Economy • India's GDP growth for FY22 is expected to be in the range of 9% - 9.5% • During the second quarter, economy grew at the rate of 8.4% • Looking at the current trend, India is on course to achieve the $400-billion merchandise exports target for the current fiscal year P
Slide 5: Market update for Q3FY22
Market update for Q3FY22 South East Individual housing and Infra demand picked up Individual housing witnessed de-growth Above normal monsoon affected demand in Nov’21 Demand from Infra / Commercial segment have grown Price increase to cover cost push could not sustain in Q3 Cement price
Slide 6: Sales
Sales Cement Sales (Lac Tons) 30.07 78.56 26.14 +15% 67.64 +16% Q3FY21 Q3FY22 9MFY21 9MFY22 Share of Premium products stands at 22% for the current period Weak demand persisted during the quarter, due to various reasons viz. monsoon, festivals and COVID implications The Ramco Cements Limited Inv
Slide 7: Key Performance for Q3FY22
Key Performance for Q3FY22 ` in Crores Revenue EBITDA 1,556 403 1,345 +16% -41% 238 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Profit Before Tax Profit After Tax 298 201 -59% -62% 113 83 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Delivered strong volumes during the quarter Cement prices have declined sharply in Dec’21 Vari
Slide 8: Key Performance for 9MFY22
Key Performance for 9MFY22 ` in Crores Revenue EBITDA 4,292 1,124 -10% 1,009 3,663 +17% 9MFY21 9MFY22 Profit Before Tax Profit After Tax 769 792 547 +41% -20% 637 9MFY21 9MFY22 9MFY21 9MFY22 Delivered strong volumes during the nine months period Price increases were not sufficient to cover incre
Slide 9: Income Statement for Q3FY22
Income Statement for Q3FY22 ` in Crores Standalone Consolidated Particulars Q3FY22 Q3FY21 Variance % Q3FY22 Q3FY21 Variance % 1,555.88 1,345.42 16% Revenue 1,558.69 1,349.58 15% 1,318.21 942.08 40% Less: Operating Expenses 1,323.58 945.74 40% 237.67 403.34 41% EBITDA 235.11 403.84 42% 25.28 15.99 58
Slide 10: Income Statement for 9MFY22
Income Statement for 9MFY22 ` in Crores Standalone Consolidated Particulars 9MFY22 9MFY21 Variance % 9MFY22 9MFY21 Variance % 4,291.58 3,662.63 17% Revenue 4,309.01 3,679.84 17% 3,282.16 2,538.92 29% Less: Operating Expenses 3,295.12 2,548.93 29% 1,009.42 1,123.71 10% EBITDA 1,013.89 1,130.91 10% 78
Slide 11: Income Statement of Subsidiaries
Income Statement of Subsidiaries ` in Crores Q3FY22 Ramco Windfarms Limited Ramco Industrial & Technology Services Ltd Particulars Q3FY22 Q3FY21 Variance % Q3FY22 Q3FY21 Variance % 1.23 2.42 49% Revenue 10.70 9.59 12% -0.29 0.99 - EBITDA -1.62 0.20 - 9MFY22 Ramco Windfarms Limited Ramco Industrial &
Slide 12: Opted for New Income Tax Regime in current FY
Opted for New Income Tax Regime in current FY 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 exer
Slide 13: EBITDA
EBITDA EBITDA in Crores EBITDA per Ton 459 1124 450 1100 450 2500 1009 2500 403 402 400 369 900 350 2000 2000 2035 700 300 271 1728 1500 1661 1500 238 250 1543 1484 500 1394 1428 200 790 1285 1000 1000 300 150 100 500 100 500 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 9MFY21 9MFY22 Pet coke
Slide 14: Cost of raw materials
Cost of raw materials In ` per Ton 818 799 769 4% 10% 6% 742 Q3FY21 Q3FY22 9MFY21 9MFY22 Increase in diesel price pushed the cost of inbound logistics cost The Ramco Cements Limited Investor update Q3FY22 Q2FY22
Slide 15: Logistics cost
Logistics cost In ` per Ton 1,111 1,100 1,007 +10% 1,007 +9% 6% Q3FY21 Q3FY22 9MFY21 9MFY22 Increase in diesel price pushed the cost of logistics cost Increase in diesel price pushed the cost of logistics cost Rail Co-efficient for the current quarter is 15% vs 12% YoY Rail Co-efficient for
Slide 16: Power and Fuel Cost
Power and Fuel Cost In ` per Ton 1,380 Average Fuel consumption / T for Q3FY22 is $ 149 1,174 Pet coke consumption / T for Q3FY22 is $ 168 +69% +45% Imported coal consumption / T for Q3FY22 is $ 141 818 809 6% CIF Pet coke price peaked to $ 250 / T in Oct’21 -15% Current CIF spot pet coke
Slide 17: Power Mix
Power Mix 17% 15% 11% Q3FY22 15% Q3FY21 72% 70% Grid power Green Power Thermal Power Grid power Green Power Thermal Power Focus on Green Power 15% 15% 8% 15% 9MFY21 9MFY22 70% 77% Grid power Green Power Thermal Power Grid power Green Power Thermal Power The Ramco Cements Limited Investor update Q3FY
Slide 18: Fuel Mix
Fuel Mix 38% 37% 42% Q3FY21 Q3FY22 59% 3% 21% Coal Alternate Fuel Pet coke Coal Alternate Fuel Pet coke Optimum usage of fuels based on cost per CV 35% 38% 44% 49% 9MFY21 9MFY22 7% 27% Coal Alternate Fuel Pet coke Coal Alternate Fuel Pet coke The Ramco Cements Limited Investor update Q3FY22 Q2FY22
Slide 19: Employee Cost
Employee Cost In ` per Ton 455 -10% 408 382 -8% 351 Q3FY21 Q3FY22 9MFY21 9MFY22 Increase in volume has led to better absorption of employee cost The Ramco Cements Limited Investor update Q3FY22 Q2FY22
Slide 20: Other Expenditure
Other Expenditure In ` per Ton 707 684 648 +9% 6% +19% 575 Q3FY21 Q3FY22 9MFY21 9MFY22 Increase in Packing cost during the current period due to increase in polymer price Advertisement & Sales Promotion expenses have increased during the current year Increase in Admin & CSR expenses during the
Slide 21: Wind power
Wind power Particulars Q3FY22 Q3FY21 Variance Generation of Wind power (In Crore Units) 228 350 35% Revenue from Wind power ( ` in Crores) 3.95 8.50 54% Less: Operating Expenses ( ` in Crores) 5.81 5.64 3% EBITDA from Wind power ( ` in Crores) -1.86 2.86 - Particulars 9MFY22 9MFY21 Variance Generati
Slide 22: Key Ratios
Key Ratios Particulars UOM Q3FY22 Q3FY21 9MFY22 9MFY21 EBTIDA Ratio % 15% 30% 24% 31% PBT Ratio % 7% 22% 15% 22% PAT Ratio % 5% 15% 18% 15% EPS, Not Annualized ` 3 9 32 23 RoE % 5% 16% 17% 14% RoCE (Post-tax) % 5% 11% 12% 10% Debt-Equity Ratio Multiples 0.60 0.57 0.60 0.57 Debt Service Cover Ratio M
Slide 23: Capex update
Capex update Clinkering unit of 2.25 MTPA in Kurnool will be commissioned in Feb 2022 Cement mill of 1 MTPA in Kurnool will be commissioned in FY 2022-23 WHRS capacity of 12.15 MW in Kurnool will be commissioned in FY 2022-23 TPP capacity of 18 MW in Kurnool will be commissioned in FY 2022-2
Slide 24: Glimpses of 1st Sustainability Report
Glimpses of 1st Sustainability Report First Report on Sustainability Resource Efficiency Responsible Product People & Communities Our first year of sustainability report Circular Economy Supply chain Strategic Collaborations released during the month of Dec’21 Zero Waste to Landfill; 100% Vendors as
Slide 25: Sustainability towards net zero carbon emissions
Sustainability towards net zero carbon emissions FY2021 FY2020 Absolute Emissions (in tCo2) Category FY2021 FY2020 Scope I Emissions 74,61,451 91,65,306 Net Zero Scope II Emissions 90,354 91,915 Carbon emission Emission Intensity (tCo2/MT of Cement) 27 MW Higher usage of Increased usage of 166 MW Wa
Slide 26: Sustainability by pioneering wind generation
Sustainability by pioneering wind generation Carbon emission reduction from windmills ~ 2 lac tons per year in the last two decades The Ramco Cements Limited Investor Corporateupdate Presentation Q3FY22
Slide 27: Restoration of mined land into an eco-park in Pandalgudi
Care for Environment Restoration of mined land into a eco-park in Pandalgudi, Tamil Nadu The Ramco Cements Limited Investor Corporateupdate Presentation Q3FY22
Slide 28: 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