UltraTech Cement Limited has informed the Exchange about Investor Presentation
28th April, 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 and year ended 31st March, 2023
Attached is an investor’s presentation on the performance of the Company for the quarter and year ended 31st March, 2023.
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
Cementing growth with concrete results
Q4 FY23
Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX
01
Macro and Sectoral Update
02
Key Highlights
03
ESG Update
04
Financial Performance
MNT - Million Metric Tons, LMT - Lakh Metric Tons, MTPA - Million Tons Per Annum, LTPA - Lacs Tons Per Annum, MW - Mega Watts, Q1 - April-June, Q2 - July-September, Q3 - October-December, Q4 - January-March, CY - Current Year period, LY - Corresponding period Last Year, FY - Financial Year (April-March)
GLOSSARY
01 Macro and Sectoral Update
Nathdwara Cement Works, Rajasthan was conferred a Silver trophy at the prestigious India Green Manufacturing Challenge 2022 (IGMC) during the year for its consistent efforts on improving its energy efficiency, water conservation, biodiversity protection and other aspects of sustainability.
4
Region
Volume Growth
I
C
H
R
Key drivers
North
Central
East
West
South
✓ Infrastructure segment registered growth on account of execution of major projects. ✓ Commercial demand registered growth in J&K. ✓ Housing segment growth in all the regions supported by increased cash flow from crop
harvest except Punjab (sand mining restriction).
✓ Housing and Commercial segment: growth in all the regions. ✓ Infrastructure segment: degrowth across the regions with delays in commencement of new
projects during the harvest season.
✓ Overall growth driven by Housing & Rural (PMAY, PMGSY, Housing For All). Institutional
strengthening of Gram Panchayat Program and support by farmers earning.
✓ Infrastructure segment slowed down in West Bengal and Jharkhand due to scarce availability
of aggregates.
✓ Maharashtra: Infrastructure segment grew in Mumbai led by Metro and Mumbai Trans Harbour Link (MTHL), Coastal road project. Housing segment: growth in all the regions.
✓ Gujarat: Housing growth in Urban and Rural areas due to improved cash flows. Infrastructure growth supported by major projects i.e., Bullet Train, Vadodara-Mumbai Expressway and Western Dedicated Freight Corridor etc.
✓ Housing and Commercial segment grew in all the regions (except Telangana). ✓ Infrastructure grew in Andhra Pradesh, Telangana, Karnataka on execution of major projects. Rural demand growth across all regions except Telangana and Tamil Nadu (Unseasonal rains).
I: Infrastructure, C: Commercial, H: Housing, R: Rural, IHB: Individual Housing Builder, PMAY : Pradhan Mantri Awas Yojana, PMGSY : Pradhan Mantri Gram Sadak Yojana
5
02 Business Update
UltraTech supplied ~70% of cement for the ~ 14 kms Zuari Bridge, Goa; the 2nd longest cable stayed bridge in India.
Domestic sales grew 15% with capacity utilization of 95%.
Operating EBITDA improved to ₹ 1060/Mt from ₹ 900/Mt in the last quarter.
Commissioned cement capacity of 5.6 MTPA, taking total grey cement capacity of the Company to 126.95 MTPA in India.
ReadyMix Concrete (RMC) network increased to 231 plants spread across more than 100 cities.
Trade mix at 66% and Blended cement at 69%.
Clinker conversion ratio at 1.42.
Premium products mix contributed to 20.4% of trade sales; up 26% yoy.
7
Domestic sales grew 14% with capacity utilization of 84%.
Operating EBITDA at ₹ 1,011/Mt compared to ₹ 1,266/Mt for last year (Impacted by higher energy costs)
Commissioned 12.4 mtpa grey cement capacity in India ; 4 lac tpa wall care putty plant at Nathdwara, Rajasthan.
54 new ReadyMix Concrete (RMC) plants added.
Blended cement at 70% with clinker conversion ratio at 1.41; up 2.4% from last year.
Commissioned WHRS capacity of 43 MW during the year taking total WHRS capacity of the company to 210 MW.
Implemented renewable power capacity of 76 MW during the year taking total renewable power capacity of the company to 345 MW.
WHRS – Waste heat recovery system
8
Hirmi
Cuttack
Jharsugda
Chhatisgarh
➢ 1.3 mtpa brownfield grinding cement unit at Hirmi, Chhattisgarh, taking cement capacity of the Company in the State to 8.1 mtpa.
Odisha
➢ 2.8 mtpa greenfield grinding cement
unit at Cuttack
➢ 1.5 mtpa brownfield grinding cement
unit at Jharsuguda
➢ Taking cement capacity of the
Company in the State to 6.9 mtpa.
9
UltraTech raked 118 awards in last 4 years
UltraTech Crack Filler gets
awards for innovative pack design
23
Mn+ website visits in FY23
#BaatGharKi Videos
350 Mn+ views as of March, 2023
129 original videos and 500+ translated videos
10
03 ESG Update
Climate and Energy
Circular Economy
Environment
Green Energy
ESG Metric
CO2 Emission [kg CO2/t cement]
Alternative Raw Material and Fuel
[MnT]
Water Positive
[Times]
Green Power Mix ^
[% to total power]
FY23
Performance*
557
-4.3%
29.3
+21%
4.1x
+8%
25%
+32%
*Unaudited numbers ^ Includes renewable power mix in grid power consumption
12
UltraTech has been ranked 6th in the Construction Material
sector globally on the S&P Global’s Dow Jones Sustainability
World Index (DJSI) for FY22.
UltraTech is the only Indian company to be featured in the
global sectoral list by DJSI for FY22. The overall score of 80 on
the index is a significant improvement over the last five years.
13
Thirteen UltraTech mines awarded 5-star ratings
UltraTech creates history as thirteen of its limestone mines received 5-Star ratings at the 75th anniversary celebration of the Indian Bureau of Mines in March, 2023. These are the highest ever number of 5-Star ratings conferred to any company across all sectors in India.
A 5-star rating, highest in the rating scheme, is given to mines which performed best on parameters such as scientific, efficient, and sustainable mining, compliance of approved production, land resettlement and other social impacts.
14
14
Training through digitalization
Safety toll-free number
E-learning modules on critical processes
Virtual training for contractual workforce
3D animation incident learning videos
➢ Virtual Reality for
contractual workforce
➢ Completed training for more than 14,000 workers
➢ As a result
incidents of Lost Time Injuries (LTIs), Fatal Potential element of LTIs and Lost Time Injury Frequency Rate have reduced
15
Spread over 47 locations in India.
Reaches out to ~500 villages in 16 states across India
More than 1.6 million beneficiaries
Education reaching out to 0.13 million students
CSR spend of ₹ 115 Crores in FY23
16
Skill development through 10 training centres
Education support across India through 31 schools
Women empowerment through training in various streams and making them self-reliant
Supported portable drinking water facilities for animals across unit locations
Healthcare support benefitted 17,953 beneficiaries
Training for Agniveer program at Dalla plant, Uttar Pradesh
17
04 Financial Performance
UltraTech’s Shared Service Centre has won the Best Shared Services Team of the Year Award at the 9th edition of Shared Service Summit & Award 2022, organised by UBS Forums.
UltraTech Knowledge Service Centre (“UKSC”) is a digitally-enabled “Centre of Excellence”, processing payments, performing accounting transactions, ensuring controls and managing compliances. The award recognizes the Shared Service Centre’s teamwork and collaboration to grow as one of the best in class Share Service Centre.
Particulars
Q4 FY23
Growth (YoY)
Growth (QoQ)
Volume in Million tons Growth (YoY)
FY23
Grey Cement - Domestic
29.9
15%
23%
99.6
14%
Cement Export & Clinker Sales
White Cement
Total Sales Volume - India
0.2
0.5
30.5
-17%
50%
19%
15%
16%
23%
0.5
1.6
-43%
11%
101.7
14%
Grey Cement – Overseas
1.3
-2%
11%
4.4
-10%
Total Consolidated Sales Volume*
31.7
14%
22%
105.7
12%
* After elimination of inter company sales
19
Particulars
Q4 FY23
Growth (YoY)
Growth (QoQ)
FY23
₹ Crores Growth (YoY)
Grey Cement - Domestic
16,039
20%
White Cement
ReadyMix Concrete (RMC)
664
1,138
22%
34%
23%
16%
14%
53,788
21%
2,278
17%
3,922
49%
Others
295
-25%
-18%
1,282
3%
Grey Cement – Overseas
616
-12%
7%
2,145
-4%
Total Consolidated Sales Volume*
18,436
19%
21%
62,338
21%
* After elimination of inter company sales
20
EBITDA (₹ Crores)
Normalized PAT* (₹ Crores)
3,165
+9% YoY
2,462
3,444
1,478
+13% YoY
1,058
1,666
Q4FY22
Q3FY23
Q4FY23
Q4FY22
Q3FY23
Q4FY23
12,022
11,123
5,667
5,064
FY22
FY23
FY22
FY23
* Excludes reversal of accumulated provision for tax and MAT credit availed amounting to ₹ 983 Crores for three months ended 31/03/2022 and ₹ 1,518 for year ended 31/03/2022.
21
241
6,612
s e r o r C ₹ n
i
y r o t n e v n
I
s y a D y r o t n e v n
I
l
e u F
47
54
39
Increase in inventory of ₹ 1016 Crores
➢ Significant increase in input costs.
➢ Efficient working capital management.
Mar-22
Dec-22
Mar-23
Inventory includes raw material, work-in-progress, finished goods, fuel etc.
22
74%
95%
77%
83%
s e r o r C ₹
7,294
11,712
9,253
9,178
FY20
FY21
FY22
FY23
Operating Cash Flow
OCF/EBITDA (in %)
Operating Cash Flow = EBITDA less Interest, Taxes, change in Working Capital
23
Other Capex, 1,282, (16%)
Strategic Investments, 818, (10%)
ESG Capex, 874, (11%)
Dividend Paid, 1,093, (14%)
Others, 67, (1%)
Growth Capex, 3,839, (48%)
2.83
22,229
1.72
16,981
FY19
FY20
0.55
6,717
FY21
0.32
3,901
FY22
0.24 2,702
FY 23
Nebt Debt (₹ Crores)
Nebt Debt/EBITDA (Times)
Deleveraged further after capex spends and dividend payout
24
70000
60000
50000
40000
30000
20000
10000
0
11.2%
43,632
9.5%
13.1%
18.9%
17.2%
14.5%
62,379
60,938
56,931
60,350
63,335
20.0%
18.0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
FY18
FY19
FY20
FY21
FY22
FY23
Capital Employed (₹ Crores)
ROCE (%)
ROCE is set to increase with additional returns from new investments
• Capital Employed = Net Debt plus Equity. • ROCE is calculated excluding Goodwill (₹ 6,329 Crores as on Mar-23).
25
) t
M
/ ₹ ( e c i r P t n e m e C y e r G c i t s e m o D
5,388
5,373
5,142
Q4FY22
Q3FY23
Q4FY23
➢ Realization improved 4.5% yoy while costs increased 7%.
➢ Impacted EBITDA/Mt by ~ ₹ 60/Mt.
Increase in Realization vs Increase in Cost
Realisation v/s Total Cost
122
115
105
130
123
125
124
110
109
Q1 20
Q4 22
Q3 23 Q4 23
Realisation
Total Cost
WPI Index
Realisation = Selling Price less GST and Discount
26
Logistics Cost
Energy Cost
Raw Material Cost
% to total costs
₹ / Mt
31%
1251
37%
1697
14%
604
Increased 3% YoY
Increased 17% YoY; Decreased 4% QoQ
Increased 9% YoY
India Operations
27
) t
M / ₹ (
t s o c
s c i t s i g o L
1218
1250
1251
Q4FY22
Q3FY23
Q4FY23
Logistics cost v/s Diesel Price Index
YoY costs increase: 3%
➢ Busy season surcharge on rail freight along with 2%
diesel cost hike.
➢ Lead reduced to 413 km from 428 km in Q4 LY.
QoQ costs : neutral
146
134
104
137
137
128
117
107 107
➢ Diesel prices remain flat over previous two quarters
due to which less volatility in costs.
Q1 20
Q4 22
Q3 23 Q4 23
Crude Prices (Index)
Diesel Prices (index)
Logistics Cost (index)
India Operations
28
t
M / ₹ (
t s o c
l
a i r e t a M w a R
Q1 20
610
604
554
YoY cost increase: 9%
➢ Increase in cost of raw materials: fly ash, slag and
gypsum etc.
Q4FY22
Q3FY23
Q4FY23
Conversion Ratio and Fly ash Price Index
111
103
Q4 22
QoQ cost decrease: 1%
➢ Improvement in clinker conversion ratio.
124
125
106
106
Q3 23 Q4 23
Conversion Ratio Index (Clinker to cement)
Flyash Price Index
India Operations
29
1766
1697
1450
YoY cost increase: 17%
) t
M / ₹ (
t s o c
y g r e n E
➢ Blended fuel consumption (CV: 7500) at ~USD 194/t
compared to ~USD 164/t in Q4 FY22.
➢ Pet coke consumption at 52% vs 49% Q4 FY22.
Q4FY22
Q3FY23
Q4FY23
Energy cost v/s Pet coke Price Index
QoQ cost decrease: 4%
219
143
203 198
175
168
➢ Blended fuel consumption (CV: 7500) of ~USD 194/t
compared to USD 200/t in Q3 FY23.
➢ Pet coke consumption increased to 52% vs 43% in Q3
Q1 20
Q4 22
Q3 23 Q4 23
FY23.
Pet coke Price (Index)
Energy Cost (Index)
India Operations
30
673
748
624
YoY cost decrease: 6%
) t
M / ₹ (
t s o c
r e h t O
Q4FY22
Q3FY23
Q4FY23
WPI Index
126
122
125
124
Q1 20
Q4 22
Q3 23 Q4 23
➢ Operating leverage benefit; volume growth of 15%.
QoQ cost decrease: 17%
➢ Operating leverage benefit; volume growth of 23%.
➢ Higher plant maintenance in Q3 FY23.
India Operations
31
Consolidated
Q4 FY23 18,436 226 122 18,784
2,658
230 283 716 5,309 4,195 1,948 15,340 3,444 1,050
Q4 FY22 15,557 211 92 15,860
2,099
461 163 627 3,968 3,479 1,896 12,694 3,165 1,108
Particulars
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 Total Expenses EBITDA Operating EBITDA per ton
₹ Crores
India Operations
Q4 FY23 17,885 227 151 18,263
2,470
302 252 688 5,108 4,158 1,903 14,881 3,383 1,060
Q4 FY22 14,919 231 105 15,255
1,985
329 154 602 3,822 3,452 1,785 12,128 3,126 1,138
^After elimination of inter company sales
32
Consolidated
Q4 FY23
Q4 FY22
Particulars
18,436
3,444
191
762
822
4
1,666
176
15,557
Net Sales ^
3,165
EBITDA
206
703
785
(7)
Finance Costs
Depreciation and Amortization
Tax expenses
Minority interest
1,478 *
Normalized PAT
196
EPS (₹) (basis trailing 12 months and before exceptional items)
₹ crores
India Operations
Q4 FY23
Q4 FY22
17,885
14,919
3,383
3,126
175
733
822
-
1,654
171
175
680
804
-
1,468 *
194
* Excludes reversal of accumulated provision for tax and MAT credit availed amounting to ₹ 983 Crores for three months ended 31/03/2022.
^After elimination of inter company sales
33
Middle East
Q4FY23 480
Q4FY22 463
Particulars
Net Sales
₹ Crores
Lanka
Q4FY23 136
Q4FY22 308
3 1 483 87
26
27 201 36 37 413 70 19
2 6 471 165
14
23 146 25 34 407 64 38
Operating Income Other Income Total Income Purchase/Consumption of Raw Material
Changes in Inventory
Employee Costs Power and Fuel Logistics Cost Other Expenses Total Expenses EBITDA PAT
1 2 139 99
5
2 - 2 6 114 25 21
- 1 309 237
(3)
2 - 2 84 322 (13) (33)
1 USD = ₹ 82.26
34
Consolidated
FY23 62,338 902 503 63,743
8,925
1,300 (509) 2,739 18,491 14,009 7,666 52,620 11,123 1,005
FY22 51,708 891 508 53,107
7,096
1,252 (383) 2,535 12,137 11,712 6,735 41,084 12,022 1,223
Particulars
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 Total Expenses EBITDA Operating EBITDA per ton
₹ Crores
India Operations
FY23 60,359 878 505 61,741
8,704
1,051 (492) 2,621 17,726 13,884 7,458 50,950 10,791 1,011
FY22 49,615 955 522 51,092
6,477
1,025 (382) 2,421 11,613 11,609 6,480 39,243 11,849 1,266
^After elimination of inter company sales
35
Consolidated
Particulars
FY23
62,338
11,123
823
2,888
2,343
10
5,064
176
FY22
51,708
Net Sales ^
12,022
EBITDA
945
Finance Costs
2,715
2,708
Depreciation and Amortization
Tax expenses
(10)
Minority interest
5,667 *
Normalized PAT
196
EPS (₹) (basis trailing 12 months and before exceptional items)
₹ Crores
India Operations
FY23
60,359
10,791
756
2,773
2,329
-
4,933
171
FY22
49,615
11,849
898
2,606
2,744
-
5,601 *
194
Excludes reversal of accumulated provision for tax and MAT credit availed amounting to ₹ 1518 Crores for the year ended 31/03/2022.
^After elimination of inter company sales
36
Middle East
FY23 1,706 29 3 1,738 330 (19) 111 765 120 189 1,496 242 40
FY22 1,460 12 8 1,480 396 2 103 523 94 150 1,269 211 92
Particulars
Net Sales Operating Income Other Income Total Income Purchase/Consumption of Raw Material Changes in Inventory Employee Costs Power and Fuel Logistics Cost Other Expenses Total Expenses EBITDA PAT
FY23 468 4 22 494 344 1 7 1 5 60 418 76 47
₹ Crores
Lanka
FY22 934 - 5 939 830 (2) 10 1 9 115 963 (25) (50)
1 USD = ₹ 80.40
37
Consolidated
31.03.2023
31.03.2022
Particulars
64,987
1,017
(2,669)
63,335
54,380
9,901
7,199
2,702
6,254
61,606
Net Fixed Assets^
101
Investment in Subs/Associates/JVs
(1,357)
Net Working Capital
60,350
50,432
10,203
6,302
3,901
6,017
Total Assets
Shareholders Fund (Incl. Minority Interest)
Total Debt
Less: Treasury Surplus
Net Debt
Deferred Tax Liability
₹ Crores
India Operations
31.03.2023
31.03.2022
62,121
3,187
(3,987)
61,321
53,369
8,750
7,093
1,658
6,295
59,008
2,183
(1,704)
59,488
49,688
9,899
6,148
3,751
6,049
63,335
60,350
Total Equity and Liabilities
61,321
59,488
^Includes goodwill and asset held for sale
38
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
39