Acc Limited · NSE:ACC
Acc — Q3 2016 Earnings Presentation
23 slides from Acc's earnings presentation, Oct 21, 2016
Slide 1: Q3'16 Results Investor Presentation
Q3’16 Results Investor Presentation Oct 21, 2016
Slide 2: Agenda
Agenda 1 Cement Industry Update 2 Key Highlights 3 Financial Summary 4 Performance Analysis 2 ACC Limited / India Investor Presentation
Slide 3: Cement Industry
Cement Industry Industry Utilisation at the lowest Regional players growing faster than major players due to large capacity addition with very large price difference Due to over capacity in South region, inflow from South players impacting West markets South and West market growth less than
Slide 4: Agenda: Key Highlights
Agenda 1 Cement Industry Update 2 Key Highlights 3 Financial Summary 4 Performance Analysis 4 ACC Limited / India Investor Presentation
Slide 5: Q3'16 – Key Highlights
Q3’16 – Key Highlights Volume Capacity Utilisation @ 66% (Industry Capacity utilisation ~60%) Cement Sales Volume @ 5.07 Mio ton lower by 9.6% YoY & 17.2% QoQ RMX volume growth of 5% YoY & lower 3% QoQ Net Sales Declined by 10 % YoY, 13% QoQ; Overall realisation dipped YoY Per ton cost for
Slide 6: Agenda: Financial Summary
Agenda 1 Cement Industry Update 2 Key Highlights 3 Financial Summary 4 Performance Analysis 6 ACC Limited / India Investor Presentation
Slide 7: Consolidated Financial Results (1/2)
Consolidated Financial Results – (1/2) [Rs Cr] Q3 YTD Particulars 2015 2016 Variance 2015 2016 Variance Net Sales 2740 2473 -10% 8587 8274 -4% Other Operating Income 50 49 -2% 299* 159 -47% Cost of materials consumed -418 -361 -13% -1338 -1208 -10% Purchase of stock-in-trade -22 -20 -13% -87 -64 -26
Slide 8: Consolidated Financial Results (2/2)
Consolidated Financial Results – (2/2) [Rs Cr] Q3 YTD Particulars 2015 2016 Variance 2015 2016 Variance Operating EBITDA 313 274 -13% 1258 1165 4% Other income 18 26 43% 100 90 -11% Depreciation -163 -155 -5% -504 -445 -12% PBIT 168 145 -14% 854 810 -5% Interest -14 -19 32% -50 -52 3% PBT before exc
Slide 9: Q3 Operating EBITDA Waterfall – Consolidated
Q3 Operating EBITDA Waterfall – Consolidated [Rs Cr] 23 45 313 5 4 30 16 3 274 Op Price Other Op. Volume Cost of Power & Freight & Others Op EBITDA income material Fuel forwarding EBITDA Q3’15 consumed expense expense Q3’16 9 ACC Limited / India Investor Presentation 21st Oct’2016
Slide 10: YTD Operating EBITDA Waterfall – Consolidated
YTD Operating EBITDA Waterfall – Consolidated [Rs Cr] Cost reduced by Rs 326 Cr 1258 140 42 57 216 1165 1118 275 125 1 5 Op Sales tax L-F-L Op Price Other Op. Volume Cost of Power & Freight & Others Op EBITDA incentives EBITDA income material Fuel forwarding EBITDA Jan’15- Jan’15- consumed expense e
Slide 11: Quarterly Trend – Financials Consolidated
Quarterly Trend – Financials Consolidated Cement Volume [’MT] Op EBITDA [Rs Cr] Q3’15 5.6 Q3’15 313 Net Sales [Rs. Cr] Q4’15 6.0 Q4’15 280 Q1’16 6.4 Q3’15 2740 Q1’16 434 Q2’16 6.1 Q2’16 458 Q4’15 2846 Q3’16 5.1 Q3’16 274 Q1’16 2929 Op EBITDA Margin [%] EPS Q3’15 11.4 Q3’15 6.1 Q2’16 2872 Q4’15 9.8 Q
Slide 12: Financial Position
Financial Position Rs Cr Consolidated Standalone Particulars 30.09.16 31.12.15 30.09.16 31.12.15 8721 8,421 Shareholders Funds 8749 8,443 3 3 Minority interest - - - - Short term borrowing 51 36 485 470 Deferred Tax Liabilities 483 469 9209 8,894 Sources of Fund 9283 8,948 7618 7,711 Fixed Assets 75
Slide 13: Agenda: Performance Analysis
Agenda 1 Cement Industry Update 2 Key Highlights 3 Financial Summary 4 Performance Analysis 13 ACC Limited / India Investor Presentation
Slide 14: Cement Sales Volume
Cement Sales Volume [MioT] -9.6% Q3’16 YoY : 5.6 • Cement volume de-growth mainly due to heavy 5.1 rains & floods in Bihar, Jharkhand, Uttar Pradesh & Madhya Pradesh which contributed to volume decline Q3 • Sand shortage in Uttar Pradesh led to lower demand YoY • Premium Products volume increased fr
Slide 15: Consolidated Net Sales
Consolidated Net Sales [Rs Cr] -10% 2,740 2,473 Q3’16 YoY : • Realization lower due to lower Cement sales volume in North, East & South regions & lower Q3 prices in East, South & West regions YoY • RMX recorded 5% growth in volume while realisation dipped by 2% Q3’15 Q3’16 -4% 8,587 8,274 YTD’16 YoY
Slide 16: Consolidated Operating Costs as % to Sales
Consolidated Operating Costs as % to Sales [Rs Cr] Op EBITDA Other Op income Other op income Changes in Cost of materials consumed Op EBITDA Cost of materials consumed inventories 50 Changes in 49 313 (2%) 274 (2%) 361 Purchases of 418 inventories (11%) (16%) (13%) stock-in-trade 22 (14%) Purchases
Slide 17: Raw Materials – Cement Business
Raw Materials – Cement Business [Rs/Ton Cement] Q3’16 YoY : • Slag prices renegotiated & reduced (Impact Rs 7 Cr) -12% • Reduction in Fly ash cost (Impact Rs 3 Cr) 575 508 • Gypsum mix optimization & price reduction (Impact Rs 11 Cr) Q3 • Reduction in cost of additives & corrective material by rate
Slide 18: Employee Cost - Consolidated
Employee Cost - Consolidated [Rs Cr] One-Off Adjustment 167 196 +0% Q3 197 YoY -30 Q3’15 Q3’16 One-Off Adjustment 539 578 +4% YTD 554 YoY -15 YTD’15 YTD’16 18 ACC Limited / India Investor Presentation 21st Oct’2016
Slide 19: Power & Fuel Cost - Cement Business
Power & Fuel Cost - Cement Business [Rs/Ton Cement] -4% Q3 1,096 1,051 YoY Q3’16 YoY : Power Mix Q3’15 Q3’16 • Higher Petcoke consumption in Kiln from 19% Thermal Power Plant 71% 67% to 63% and lower cost of Imported Coal & Grid Power 25% 29% Petcoke (Cost saving Rs 72 Cr) WHRS, DG & Wind Mill 4% 4%
Slide 20: Freight & Forwarding Cost – Cement Business
Freight & Forwarding Cost – Cement Business [Rs/Ton Cement] +7% 1,057 1,136 Q3 Q3’16 YoY : YoY • Primary Road lead distance increased by 21 km (Impact Rs 17 Cr, ~ Rs 32/t) Q3’15 Q3’16 • Increase in clinker freight due to long lead inter-unit clinker movement Mode of Transport Mix (~Rs 18 Cr - Impact
Slide 21: Other Expenses - Consolidated
Other Expenses - Consolidated [Rs Cr] Q3’16 YoY : • Reduction in packing material cost by Rs 13/T -11% Cement (Impact ~Rs 7 Cr) 687 • Lower Marketing & Selling overhead (Impact ~Rs 610 11 Cr) Q3 • Royalty on Limestone [Provision in Q3’15 YoY towards contribution to DMF/NMET effective from Jan’15] (I
Slide 22: Disclaimer
Disclaimer Cautionary statement regarding forward looking statements This presentation may contain certain forward-looking statements relating to the Company’s future business, developments and economic performance Such statements may be subject to a number of risks, uncertainties and other importan
Slide 23: Contact information
Contact information Ajeet Modi Investor Relations Phone: +91 22 3302 4321 (Board) Phone: +91 22 3302 4388 (Direct) www.acclimited.com 23 ACC Limited / India Investor Presentation 21st Oct’2016