UltraTech Cement Limited has informed the Exchange about Investor Presentation
21st January, 2023
BSE Limited Corporate Relationship Department Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001. Scrip Code: 532538
The Manager Listing Department The National Stock Exchange of India Limited “Exchange Plaza”, Bandra-Kurla Complex, Bandra (East), Mumbai 400 051. Scrip Code: ULTRACEMCO
Dear Sirs
Sub: Investor Presentation for the quarter ended 31st December, 2022.
Attached is an investor’s presentation on the performance of the Company for the quarter ended 31st December, 2022.
The same is for your information please.
Yours very truly,
For UltraTech Cement Limited
Sanjeeb Kumar Chatterjee Company Secretary
Encl: a/a
Luxembourg Stock Exchange BP 165 / L – 2011 Luxembourg Scrip Code: US90403E1038 and US90403E2028
Singapore Exchange 11 North Buona Vista Drive, #06-07 The Metropolis Tower 2, Singapore 138589 ISIN Code: US90403YAA73 and USY9048BAA18
UltraTech Cement Limited Registered Office : Ahura Centre, B – Wing, 2nd Floor, Mahakali Caves Road, Andheri (East), Mumbai 400 093, India
T: +91 22 6691 7800 / 2926 7800 I F: +91 22 6692 8109 I W: www.ultratechcement.com/www.adityabirla.com I CIN : L26940MH2000PLC128420
UltraTech Cement Limited
Taking concrete actions for a sustainable future
Results: Q3 FY23
Stock code: BSE: 532538 | NSE: ULTRACEMCO Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX
01
Macro and Sectoral update
02
Business update
03
ESG update
04
Financial Performance
MW - Mega Watts, Q1 - April-June, Q2 - July-September, Q3 - October-December, Q4 - January-March, CY - Current Year period,
MNT - Million Metric Tons, LMT - Lakh Metric Tons, MTPA - Million Tons Per Annum,
LY - Corresponding period Last Year, FY - Financial Year (April-March)
GLOSSARY
01
Macro and Sectoral update
Aditya Cement Works, Rajasthan was felicitated with the GreenCo Gold rating at the 11th edition of GreenCo Summit organized by Confederation of Indian Industry. The Unit has been recognized for its exemplary efforts and commitment towards protecting the environment by adopting green practices.
Macro Indicators
National Statistical Office (NSO) estimates real GDP growth at 7% for FY23.
The composite PMI surging to an 11-year high of 59.4 in Dec-22.
Dec-22 CPI at 5.72%. Seems heading towards 5% on the back of improvement in domestic food supply and fall in global commodity prices.
USD/INR exchange rate depreciated by 9% since Mar-22. Indication of a stable currency in 2023, should stabilize input costs.
4
Sectoral Update Q3 FY23
Zone
North
Central
East
West
South
Volume Growth
I
R
H
C
Key drivers
➢ Infrastructure segment registered growth attributable to execution of major projects. ➢ Commercial demand registered growth in Madhya Pradesh, Rajasthan and Jammu &
Kashmir.
➢ Housing segment grew in all regions - supported by good monsoon and cash flow from
crop harvest, except in Punjab.
➢ Robust IHB demand. ➢ Delay in commencement of infrastructure projects. ➢ Overall growth driven by housing and rural market (PMAY, PMGSY, Housing for all). ➢ Infrastructure segment registered growth in West Bengal, Bihar and Jharkhand, but degrowth in Chhattisgarh and Odisha due to ban on sand mining and availability of aggregates.
➢ Maharashtra: Infrastructure segment grew in Mumbai, led by Metro and Mumbai Trans Harbour Link (MTHL), Mumbai-Goa express-way. Delay in commencement of new projects in other regions hampered growth.
➢ Gujarat: Housing growth in urban and rural market due to improved cash flow.
Infrastructure growth supported by major projects viz. Bullet Train, Vadodara-Mumbai expressway and Western dedicated freight corridor etc.
➢ Housing segment supported by good monsoon. ➢ Infrastructure segment supported by execution of major projects viz. Bangalore and
Chennai Metro, Central institutional and Expressway projects etc.
I: Infrastructure, R: Rural, H: Housing, C: Commercial, IHB: Individual Housing Builder, PMAY : Pradhan Mantri Awas Yozna, PMGSY : Pradhan Mantri Gram Sadak Yozna
5
02
Business update
UltraTech is the largest supplier of cement (~68%) for the 702 kms Mumbai-Nagpur expressway. Yet another prestigious project exemplifying its expertise and commitment towards nation building.
Q3 Highlights
Domestic sales volume grew 13% with capacity utilization of 83%.
Operating EBITDA improved to Rs 900/Mt from a low of Rs 812/Mt in the last quarter.
Commissioned cement capacity of 5.5 mtpa, taking the total grey cement capacity of the Company to 121.35 mtpa in India.
Ready Mix Concrete (RMC) revenue grew by 50% YoY.
Premium products contributed to 18.8% of trade sales volume.
Green power mix increased to 19.8% with WHRS capacity of 208 MW and renewable power capacity of 325 MW.
Consolidated Net Debt reduced to Rs 7,722 crs in Dec-22 from Rs 8,357 crs in Sep-22.
7
Capacity expansion update
1.9 mtpa integrated cement unit at Pali, Rajasthan, taking cement capacity of the Company in the state to 16.25 mtpa.
1.8 mtpa greenfield grinding unit at Dhule, Maharashtra, taking cement capacity of the Company in the state to 19.45 mtpa.
Pali
Dhule
Dhar
Nathdwara
Brownfield integrated unit of 1.8 mtpa at Dhar, Madhya Pradesh, taking cement capacity of the Company in the state to 18.0 mtpa.
0.4 mtpa greenfield wall care putty plant at Nathdwara, Rajasthan. UltraTech now has a wall care putty capacity of 1.3 mtpa in India.
Construction Chemicals: New products launched in Q3
➢ UltraTech Repair2Day is a specialised ready mix
➢ Quick, easy and hassle free solution to fill surface
plaster for urgent and quick repair.
cracks, tile joints and nail holes.
➢ A special self-curing mortar that develops workable
strength in just 2 days.
A portfolio of 50 products and growing
9
Ready Mix Concrete: Customized concrete for special structures
UltraTech Decor offers end to end landscaping solution from designing to installation; range of designs, colours and textures or any customized unique design as per the requirement. Above picture showcasing decorative flooring done recently with UltraTech Decor.
UltraTech iFloors, concrete that can be customized to deliver high performance industrial and warehouse flooring as per specific business and operational requirements. Above picture showcasing industrial flooring done recently with UltraTech iFloors.
10
03
ESG update
UltraTech conferred IGBC Green Champion Award
UltraTech has received the 9th Indian Green Building Council (IGBC) Green Champion Award for ‘Organisation encouraging IGBC Accredited Professional’ for training employees in green building.
UltraTech is part of the distinguished community spearheading the green and net zero building movement in India.
ESG performance recognised globally
UltraTech recognized as a ‘Leader’ in Climate Change by CDP
UltraTech ranked No. 1 in Infrastructure & Engineering sector in India’s Most Sustainable Companies 2022 rankings by Sustain Labs Paris’
UltraTech recognized for implementing best practices and for taking concerted action on climate issues, securing a place in the Leadership category for its 2022 CDP disclosure.
Labs
Paris’
Sustain with (SLP) BW Businessworld has ranked UltraTech No.1 in Sustainability in the Infrastructure and Engineering sector and #15 out of the top 200 Companies in India.
partnership
in
12
Contribution to social infrastructure development
Refurbished community hall for social activities at Nathdwara, Rajasthan
Internal village roads built near
provides access to safe, affordable, accessible and sustainable transport systems.
➢ Improved rural infrastructure is key to rural development. Crucial pathway for poverty alleviation as it
Andhra Pradesh Cement Works, Andhra Pradesh
➢ Village infrastructure strengthened nearby plant locations benefitting ~17,000 population.
13
Sustainable livelihood
Heavy Motor Vehicle Training
Water Harvesting Structure
Women Group Building Activity
➢ ~1,300 youth got an opportunity to
improve their skills on main and allied trades.
➢ ~900 families were engaged for
different livelihood activities and are being enabled to improve their social and economic status.
➢ Water harvesting structures benefited
~9,000 small farmers.
Tailoring Courses
Preparation of Organic Manure
14
04
Financial performance
UltraTech and IRM India Affiliate collaborate
Risk management key to build a sustainable business. UltraTech has developed comprehensive risk management framework and integrated ESG into its Enterprise Risk Management (ERM) process.
Institute of Risk Management (IRM) India Affiliate has signed a Memorandum of Understanding with UltraTech to work towards enhancing ERM and risk intelligence in the Indian cement sector.
IRM is the world's leading professional body for ERM qualifications across 140+ countries.
Sales: Q3 FY23
Grey Cement (India)
RMC White Cement Others^
Grey Cement (Overseas)
Consolidated*
Volume (Mnt)
Growth (YoY)
24.25
13%
202 no. of plants
51 Nos
Revenue (₹ crores)
12,813
1,001
Growth (YoY)
21%
50%
0.41
-
575
6%
1.19
-4%
577
-3%
25.86
12%
15,299
20%
367
16%
* After elimination of inter company sales ^ Revenues from Construction Chemicals, UltraTech Business Solution and Exports
16
Performance Highlights : Q3 FY23
Net Sales
EBITDA
Normalized PAT
Net Debt
YoY
QoQ
₹ crs
+20.4%
-1.1%
-9.7%
+12.5%
+22.3%
+40.0%
15,299
2,462
1,058
₹ 7,722 crs
0.71x (Net Debt / EBITDA)*
* EBITDA basis trailing 12 months.
17
Key Cost Indicators (Grey Cement): Q3 FY23
Logistics Cost
Energy Cost
Raw Material Cost
28%
₹ 1250/t
38%
₹ 1766/t
14%
₹ 610/t
Increased 2% YoY; 1% QoQ
Increased 33% YoY; 2% QoQ
Increased 13% YoY
18
Logistics Cost Trend (Grey Cement)
) t
m / . s R (
t s o c
s c i t s i g o L
1229
1239
1250
Q3FY22
Q2FY23
Q3FY23
Logistics cost v/s Diesel Price Index
YoY cost increase: 2%
➢ Reimposition of busy season surcharge on rail freight
from Oct-22 onwards.
➢ Benefit on account of lead optimization and improved
operating efficiency.
QoQ cost increase: 1%
138
115
105
154
137
137
128
106
107
➢ Diesel prices remained flat QoQ, however
reimposition of busy season surcharge on rail freight adversely affected costs.
Q1 20
Q3 22
Q2 23 Q3 23
Crude Prices (Index)
Diesel Prices (index)
Logistics Cost (index)
19
Green Logistics
➢ First CNG based vehicle onboarded in Sep-21 at our plant, since then introduced across 13 plants and
4 secondary locations.
➢ Deployment of 250+ CNG vehicles across locations, till date.
➢ Pilot run of LNG vehicles done at one plant in current quarter.
CO2 emissions 132 grams/ kilometer
CO2 emissions 113 grams/ kilometer
20
Raw Material Cost Trend (Grey Cement)
) t
m / . s R (
t s o c
l
a i r e t a M w a R
Q1 20
610
610
538
YoY cost increase: 13%
Q3FY22
Q2FY23
Q3FY23
Conversion Ratio and Fly ash Price Index
120
125
111
102
Q3 22
106
105
Q2 23 Q3 23
Conversion Ratio Index (Clinker to cement)
Flyash Price Index
➢ Increase in cost of raw materials: fly ash, slag and
gypsum.
QoQ cost: Flat
➢ Increase in fly ash price set-off by improved clinker
conversion ratio; 1.42 vs 1.41 in Q2 FY23.
21
Energy Cost Trend (Grey Cement)
) t
m / . s R (
t s o c
y g r e n E
1731
1766
1327
YoY cost increase: 33%
Q3FY22
Q2FY23
Q3FY23
Energy cost v/s Pet coke Price Index
236
203
175
171
204
131
Q1 20
Q3 22
Q2 23 Q3 23
Pet coke Price (Index)
Energy Cost (Index)
➢ Blended fuel prices of USD 200/t compared to USD
151/t in Q3 FY22.
➢ Pet coke consumption at 43% vs 25% Q3 FY22.
QoQ cost increase: 2%
➢ Blended fuel prices remain stable in USD terms but
impacted by exchange rate.
➢ Pet coke consumption increased to 43% vs 40% Q2
FY23.
22
Other Costs Trend
768
859
748
YoY cost decrease: 3%
➢ Operating leverage benefit; volume growth of 13%.
) t
m / . s R (
t s o c
r e h t O
Q3FY22
Q2FY23
Q3FY23
WPI Index
117
126
125
QoQ cost decrease: 13%
➢ Higher plant maintenance in Q2 FY23. ➢ Higher volumes by 11.5%.
Q1 20
Q3 22
Q2 23 Q3 23
23
Financial Performance : Q3 FY23
Consolidated
Q3 FY23
Q3 FY22
Particulars
₹ crores
India Operations
Q3 FY23
Q3 FY22
15,299
222 127 15,648
2,263
381
(400) 694 4,873 3,479 1,895 2,462 903
12,710
275 71 13,055
1,715
331
14 643 3,221 2,912 1,729 2,490 1,046
Net Sales ^
Operating Income Other Income Total Income Expenses:
Raw Materials Consumed
Purchase of Traded Goods
Changes in Inventory Employee Costs Power and Fuel Logistics Cost Other Expenses EBITDA Operating EBITDA per ton
14,755
234 95 15,085
2,220
287
(378) 664 4,655 3,444 1,853 2,340 900
12,156
288 70 12,514
1,626
251
(22) 614 3,075 2,879 1,685 2,406 1,062
^After elimination of inter company sales
24
Income Statement : Q3 FY23
Consolidated
Q3 FY23
Q3 FY22
Particulars
₹ crores
India Operations
Q3 FY23
Q3 FY22
15,299
2,462
215
723
465
4
1058
169.1
12,710
2,490
182
674
459
2
Net Sales ^
EBITDA
Finance Costs
Depreciation and Amortization
Tax expenses
Minority interest
1,173*
Normalized PAT
14,755
2,340
194
694
462
-
990
208.2
EPS (₹) (basis trailing 12 months and before exceptional items)
164.6
12,156
2,406
178
645
460
-
1,123*
205.2
* Excluding reversal of provision of tax of Rs. 535 crs pursuant to completion of prior year tax assessment. ^After elimination of inter company sales
25
Cash Flow Statement: Q3 FY23
Particulars
India operations
Consolidated
₹ crores
EBITDA
Less : Interest & lease payments
Less : Tax paid
Add : Decrease in working capital
Operating Cash Flow
Less : Capex spend
Free Cash Flow
2,340
(161)
(512)
566
2,233
(1,514)
719
2,462
(172)
(512)
399
2,177
(1,517)
660
26
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. Important factors that could make difference to the Company’s operations include global and Indian demand supply conditions, finished goods prices, feedstock availability and prices, cyclical demand and pricing in the Company’s principal markets, changes in governmental regulations, tax regimes, economic developments within India and the countries within which the Company conducts business and other factors such as litigation and labour negotiations. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statement, due to any subsequent development, information or events, or otherwise.
UltraTech Cement Limited Regd. Office: Ahura Centre, Mahakali Caves Road, Andheri (E), Mumbai – 400 093 [Corporate Identity Number L26940MH2000PLC128420]
www.ultratechcement.com or www.adityabirla.com investorrelations.utcl@adityabirla.com
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