J.k. Cement Ltd. · NSE:JKCEMENT
J.k. Cement — Q4 FY23 Earnings Presentation
33 slides from J.k. Cement's earnings presentation, May 29, 2023
Slide 1: Exchange filing cover letter
JK Cement Ltd. v@JKcement CIN: L17229UP1994PLC017199 Registered Office # Kamla Tower, Kanpur-208001, U.P., India @ +91-512-2371478 t0 85 & +91-512-2399854 & shambhu.singh@jkcement.com @ www.jkcement.com Date: 29" May, 2023 BSE Ltd. National Stock Exchange of India Ltd., Corporate Relationship Depart
Slide 2: Investor Presentation – Q4 & FY23
Investor Presentation – Q4 & FY23 1
Slide 3: Agenda
Agenda Macro Forecast ESG & CSR Update Company Overview Q4 & FY23 Performance
Slide 4: Macro Forecast
1 Macro Forecast
Slide 5: Demand Growth
Demand Growth Demand (MMT) Growth 12.0% 11.0% 505 425 8.0% 395 9.0% 8.0% 356 335 327 328 5.0% 299 5.0% 269 274 2.0% 1.0% -3.0% FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24E FY28E Growth is expected to continue due to government's focus on infrastructure development, rising demand for rural and urban
Slide 6: Outlook for FY24
Outlook for FY24 1. The Indian economy is well equipped to face 4. Demand Drivers any headwinds and is expected to grow at a rate Rural and Urban Housing – 61% of over 6% higher that the global growth rate • Government initiatives like “Housing for All” will push demand 2. Momentum will be aided by
Slide 7: ESG & CSR
2 ESG & CSR
Slide 8: Key ESG Metrics and Sustainability Goals
Key ESG Metrics and Sustainability Goals CO2 Emission (Kg/Ton of Cementious Material) Green Power Mix Thermal Substitution Rate Water Positivity FY 22 535 32% 11% 4.6 Times FY 23 522 44% 13% 4.3Times 465 75% 35% 5 Times FY 30 Specific Net Scope 1 emission Green Power mix was 19% in TSR was 6% in bas
Slide 9: JK Cement's CSR Outreach
JK Cement’s CSR Outreach Rs 51 Crores Social Impact Promoting higher education & vocational training 43% Contributed towards MCD Schools for Uplifting Education 27% System with smart classes. 20% Sparsh- Sanitary Napkin Pad production for Self Employment of 10% Women Construction of 249 Ramps in sch
Slide 10: JK Cement's CSR Outreach (2/2)
JK Cement’s CSR Outreach (2/2) Contribution to JK Gram Panchayat Trust for Cattle Breeding Construction of guest house at Mahakaleswar temple Ujjain Sparsh Sanitary Napkin promotion and production program to provide low cost Sanitary napkins. Contribution to MCD for upliftment of Education system wi
Slide 11: Company Overview
0 3 Company Overview
Slide 12: Company Snapshot
Company Snapshot Rs 9720 Cr Revenue from Operations 48 Years Partnering in India’s progress by catering to its infrastructure needs Complete Portfolio Grey Cement, White Cement (WhitemaxX); value-added products like wall putty, gypsum plaster, tile adhesives & grouts, wood finishes & paints. 95,000
Slide 13: Cementing a New Phase
Cementing a New Phase Commenced two greenfield projects Panna Hamirpur Integrated unit Grinding unit Capacity 2MTPA Capacity 2MTPA 12
Slide 14: Ongoing Expansion
Ongoing Expansion Greenfield Expansion at Ujjain Expansion Greenfield Expansion at Prayagraj (Grinding Unit) (Grinding Unit) Additional Grey cement plant of 1.5 MTPA Grey cement plant of 2.0 MTPA Capacity Civil work is progressing as per schedule Ordering for machinery and civil /mechanical Status U
Slide 15: Integrated Product Portfolio
Integrated Product Portfolio Gypsum Plaster Grey Tile Cement Adhesives White Wood Cement Finish Paints + Putty Construction Chemicals 14
Slide 16: Performance Highlights Q4 & FY23
4 Performance Highlights Q4 & FY23
Slide 17: Key Performance Highlights for Q4FY23 – Grey Cement (QOQ)
Key Performance Highlights for Q4FY23 – Grey Cement (QOQ) Central India expansion achieved 60% capacity utilisation with positive EBITDA in first full quarter of Capacity expansion operations Volume Growth Double Digit volume growth of 13% Net Sales NSR increased to Rs.4978 per ton from Rs.4894 per
Slide 18: Key Performance Highlights for FY23 – Grey Cement
Key Performance Highlights for FY23 –Grey Cement Greenfield capacity expansion of 4 MTPA in Central India commissioned within 18 months .Total Capacity Capacity expansion increased to 20.7 MTPA Volume Growth Robust double digit volume growth of 17 % , higher than Industry growth of 12 % Net Sales Re
Slide 19: Volume Highlights - Quarterly
Volume Highlights - Quarterly Grey Business White Business Combined YOY Growth YOY Growth YOY Growth 17% 7% 16% 13% 9% 13% QOQ Growth QOQ Growth QOQ Growth 5.33 5.89 4.97 4.89 1.09 1.03 1.05 1.10 36.55 41.38 35.38 35.46 35.49 35.38 3.94 3.84 4.23 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY
Slide 20: Volume Highlights - Yearly
Volume Highlights - Yearly Grey Cement White Cement Combined YOY Growth YOY Growth YOY Growth 17% 8% 16% 6.98 4.28 20.48 4.11 18.97 134.87 16.20 141.85 14.86 121.25 121.25 FY22 FY23 FY22 FY23 FY22 FY23 Standalone Subsidiary Standalone Subsidiary Grey White Overall comment on the performance Double d
Slide 21: Standalone Financial Highlights
Standalone Financial Highlights (Rs Cr) Q4FY23 Q3F23 QoQ Q4FY22 YoY FY23 FY22 YoY Grey Net Sales 1791 1740 3% 1745 3% 6735 5788 16% White Net Sales 541 494 10% 479 13% 2042 1741 17% Total Net Sales 2332 2234 4% 2224 5% 8777 7529 17% Combined EBITDA 372 267 39% 397 6% 1346 1536 12% 20
Slide 22: Consolidated Financial Highlights
Consolidated Financial Highlights (Rs Cr) Q4FY23 Q3F23 QoQ Q4FY22 YoY FY23 FY22 YoY Grey Net Sales 2059 1790 15% 1745 19% 7052 5788 22% White Net Sales 666 588 13% 560 19% 2451 2052 19% Total Net Sales 2725 2378 15% 2305 18% 9503 7840 21% Combined EBITDA 360 247 45% 399 10% 1320 1535 14% 21
Slide 23: Key Cost Variables
Key Cost Variables Pet coke 6.5% sulphur USA CFR Diesel Prices (Rs/Litre) ($/MT) 105 300 100 250 95 90 200 85 150 80 100 75 70 50 65 0 60 Pet Coke Prices have come down 10% YoY Diesel prices continued to remain stable during during Q4FY23 Q4FY23 22
Slide 24: Energy Cost Trend (Standalone)
Energy Cost Trend (Standalone) (Rs/MT) 26% YOY 32% YOY 4% QOQ 1528 1646 1575 1254 1155 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 4% reduction in fuel prices on QOQ Increase due to substantial rise in Petcoke prices 23
Slide 25: Logistics Cost Trend (Standalone)
Logistics Cost Trend (Standalone) (Rs/MT) 7% YOY 7% YOY 1% QOQ 1255 1240 1228 1175 1148 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Diesel price hike & busy season surcharge on rail 5% Diesel price hike & increase in lead due to freight (YOY),Rail/Road mix is 16:84 in Q4FY23 seeding new markets 24
Slide 26: Employee Cost Trend (Standalone)
Employee Cost Trend (Standalone) (Rs/MT) 12% YOY 1% YOY 4% QOQ 370 373 361 347 309 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Annual Increase offset by better operating leverage 25
Slide 27: Other Expenses Trend (Standalone)
Other Expenses Trend (Standalone) (Rs/MT) 3% YOY 2% YOY 1% QOQ 983 962 953 946 942 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Reduction due to lower Advertisement & Packing cost due to softening of Polymer price Higher Advertisement and Maintenance . (YOY) 26
Slide 28: Standalone Financial Statement
Standalone Financial Statement QoQ YoY YoY (Rs Cr) Q4FY23 Q3FY23 Q4FY22 FY23 FY22 % Inc/Dec %Inc/Dec % Inc/Dec Net Sales 2332 2234 4% 2224 5% 8776 7529 17% Rev from Operations 2384 2292 4% 2269 5% 8999 7679 17% Operating Expenses 2012 2025 1% 1872 7% 7653 6143 25% EBITDA 372 267 39% 397 6% 1346 1536
Slide 29: Consolidated Financial Statement
Consolidated Financial Statement QoQ YoY YoY (Rs Cr) Q4FY23 Q3FY23 Q4FY22 FY23 FY22 Inc/Dec% Inc/Dec% Inc/Dec% Net Sales 2725 2378 15% 2305 19% 9503 7840 21% Rev from Operations 2778 2436 14% 2351 18% 9720 7991 22% Operating Expenses 2418 2189 10% 1952 24% 8400 6456 30% EBITDA 360 247 46% 399 10% 13
Slide 30: Cash Profit & Dividend Payout
Cash Profit & Dividend Payout Cash Profit (Standalone) Dividend Per Share (Rs) (Rs Cr) # 15.0 15.0 15.0 1055 10.0 1020 7.5 FY22 FY23 FY19 FY20 FY21 FY22 FY23 # The Board has proposed dividend of Rs 15 per share for FY23 Cash Profit After Tax = PBT+ Depreciation- Current Tax 29
Slide 31: Consolidated Debt Profile
Consolidated Debt Profile (Rs Cr) FY23 FY22 Gross Debt 4534 3434 Cash 1621 1284 Net Debt 2913 2150 Net Debt/EBITDA (Times) 2.20 2.24 Equity 4701 4252 0.62 0.51 Net Debt/Equity (x) Long Term AA+ Short Term A1+ 30
Slide 32: Awards
9 sKcement % skcement A Landmark Achievement for Team Muddapur! Congratulations on being India's only integrated 4‘ Time in a Row Certified FEB 2023 — FEB 2024 INDIA skcement
Slide 33: Thank You
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