UltraTech Cement Limited has informed the Exchange about Investor Presentation
21st July, 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 30th June, 2023. Ref.: ISIN: INE481G01011
Dear Sirs,
Attached is an investor’s presentation on the performance of the Company for the quarter ended 30th June, 2023.
The same is for your information please.
Yours very truly,
For UltraTech Cement Limited
Sanjeeb Kumar Chatterjee Company Secretary and Compliance Officer
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
Results Q1 FY24
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
2
01 Macro and Sectoral Update
Hirmi Cement Works, Chhatisgarh was conferred the CII National Annual Award for Environmental Best Practices in 2023. The award was given to them for their achievements in kiln productivity, efficiency improvement, and the subsequent reduction in air pollution and CO2 emissions.
.
4
02 Business Update
UltraTech is leveraging technological and digital
innovation to decarbonise manufacturing and
deeply committed to drive operational excellence
and deliver greater value to its stakeholders. For
enhancing reliability and efficiency, we are
constantly exploring new ways
to optimise
operations
through
use
of
cutting-edge
technologies i.e., use of IoT/AI sensors, dynamic
scheduling and auto ordering solutions etc.
5
Region
Volume Growth
I
C
H
R
Key drivers
North
Central
East
West
South
✓ Infrastructure segment demand was supported by Government’s sustained thrust on Projects
like Delhi-Amritsar-Katra road project, Dwarka Expressway, etc.
✓ Commercial demand registered growth due to increased pace of work in all major centers. ✓ Housing segment registered growth in both the segments i.e. rural and urban.
✓ Growth across segments except infrastructure which remained muted, owing to major
projects at completion stage. Indore Metro picking up pace.
✓ All the segments registered growth across regions except commercial demand which
remained flat.
✓ Maharashtra: Infrastructure segment demand picked up across all ongoing projects –
Mumbai Metro, Mumbai Trans Harbour Link, Mumbai Goa Expressway etc. except in Vidarbha due to completion of major projects. Housing and commercial segments registered growth. ✓ Gujarat: Housing registered growth in both the segments i.e. rural and urban. Rural demand improved due to better liquidity on account of cashflow from harvesting. Infra registered robust growth as work progressed across major infra projects like High speed railway - Bullet Train and other metro and road projects.
✓ Housing and Commercial segments registered growth. ✓ Infra registered growth across the regions.
I: Infrastructure, C: Commercial, H: Housing, R: Rural, IHB: Individual Housing Builder
6
Domestic sales volume grew 20% yoy with capacity utilization of 89%.
Operating EBITDA/Mt of ₹ 1,034 vs ₹ 1,248 in Q1 LY and ₹ 1,060 in the last quarter.
Commissioned cement capacity of 3.0 MTPA, taking total grey cement capacity of the Company to 129.95 MTPA in India.
Blended cement at 70%, clinker conversion ratio improved to 1.44; highest so far.
Trade sales at 68%. Rural sales at 65% of trade - growing at 24%
Premium Eco-friendly sustainable product mix @ 21.7% of trade sales.
Commissioned 22 MW of WHRS capacity, total WHRS capacity increased to 232 MW. Green power mix increased to 22%.
7
Ranked 28th, UltraTech is the only cement company to feature in Interbrand’s top 50 Indian Brands for 2023
As per Interbrand’s report, UltraTech has maintained its position in
the Best Indian Brands list owing to its strong financial growth and
continued leadership in its sub-category Cement and Value-added
products under Home-Building and Infrastructure sector.
8
Smart Manufacturing
Energy optimisation and enhanced productivity
Safer operations
Empowering partners
Investment in setting up cloud infrastructure for smart and connected factories to drive digital transformation and accelerate growth for improving efficiencies and enhancing customer experiences.
Scaling up the adoption of algorithmic solutions aimed at improving process stability and energy efficiency. Working on digital mining management and optimisation initiatives to further improve our operational efficiencies.
Adopted various advanced technologies such as computer vision, augmented reality (AR), virtual reality (VR), and other sensors to support our safety objectives at the manufacturing locations.
Our multilingual app, Eye- to-Track, launched for our driver partners. It has been instrumental in helping us provide a superior delivery experience to our customers.
9
UltraTech ranks first among construction material companies on India's Most Sustainable Companies List for 2022-23
03 ESG Update
UltraTech has been ranked No.1 in Sustainability in the
Infrastructure and Engineering sector and 13th overall in
Sustain Labs Paris and BW Businessworld’s India's Most
Sustainable Companies List for 2022-23. Its a recognition
of the significant progress made by the Company in its
key sustainability focus areas of decarbonisation, circular
economy, energy transition, water conservation and
biodiversity management, as well as its ongoing efforts
towards community development.
The rankings are based on extensive research done by Sustain Labs Paris (SLP) to assess the sustainability performance of India's 500 largest companies by revenue for FY23 in accordance with the SLP’s Sustainability Cube framework.
UltraTech has further strengthened its contribution towards
circular economy by developing cement packaging bags using
recycled polypropylene (rPP).
The new cement bags are made with 50 % of rPP. Overall, the
use of rPP has helped to reduce the use of virgin plastic by 43%.
This helps the cement bags to be more environment friendly by
reducing the burden of plastic on landfill or the need for
incineration. With a target
to source 3 crores recycled
polypropylene bags in FY24, UltraTech aims to reduce the use
of virgin polypropylene by over 840 MT.
1111
Biodiversity assessments completed at 13 integrated units and working to complete biodiversity assessments in all 24 integrated units by FY24
Planted 7500+ trees at the premises of its integrated units – Bela, Vikram and Gujarat Cement Works by implementing the concept of Miyawaki forests
Reused, recycled, harvested and recharged more than 81+ million m3 of water in FY23
Zero Liquid discharge plants have been installed at various manufacturing units to help in the reuse of 100% treated water within the sites
12
UltraTech’s determined efforts to protect environment recognized by Confederation of Indian Industry (CII)
UltraTech’s commitment to safety and error prevention recognized by Confederation of Indian Industry (CII)
Our integrated unit Aditya Cement Works has been awarded for (Manufacturing ‘Excellence Sector)’ by the CII-ITC Centre of Excellence for Sustainable Development.
in Environment Management
Our integrated units, Sewagram Cement Works and Rawan Cement Works, have been recognized at the 12th National Poka- Yoke Competition 2023, conducted by CII Institute of Quality and GTPM Club of India under the aegis of CII.
1313
Five of our integrated units, one grinding unit, and one bulk terminal won awards for excellence in safety at the prestigious British Safety Council’s International Safety Awards, 2023
14
Education reach out this quarter 22,252 students
36,000 children got benefited by the immunization programs conducted
Balaji Cement works helping 16,800 villagers through providing safe drinking water
3,200 farmers benefitted from sustainable agricultural practices conducted at Andhra Pradesh Cement Works
Village infrastructures were strengthened in nearby villages at various unit locations
Self Help Groups training program at Maihar Cement Works
15 15
04 Financial Performance
One more feather in our cap. UltraTech is the largest supplier of Cement, Ready-Mix Concrete and specialist Building Products for construction of the new Parliament building in Central Vista.
Particulars
Q1 FY24
Growth (YoY)
Volume in Million tons Growth (QoQ)
Grey Cement - Domestic
Cement Export & Clinker Sales
White Cement
Sales Volume - India
28.50
0.10
0.41
29.01
20%
1%
12%
20%
-5%
-38%
-13%
-5%
Grey Cement – Overseas
1.04
11%
-20%
Consolidated Sales Volume*
29.96
20%
-5%
* After elimination of inter company sales
17
Particulars
Grey Cement - Domestic
White Cement
ReadyMix Concrete (RMC)
Growth (YoY)
₹ Crores
Growth (QoQ)
17%
18%
37%
-5%
-11%
8%
Q1 FY24
15,247
590
1,233
Others
254
-16%
-14%
Grey Cement – Overseas
555
13%
-10%
Total Consolidated Revenues*
17,519
17%
-5%
* After elimination of inter company sales
18
EBITDA (₹ Crores)
Profit after tax (₹ Crores)
+1% YoY
3,444
3,204
3,223
1,584
+7% YoY
1,666
1,688
Q1FY23
Q4FY23
Q1FY24
Q1FY23
Q4FY23
Q1FY24
19
) 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
5,506
5,373
5,350
Q1FY23
Q4FY23
Q1FY24
Realisation v/s Total Cost
126
112
124 123
122
123
109 109
Q1 20
Q1 23
Q4 23 Q1 24
Realisation
Total Cost
WPI Index
Realisation = Selling Price less GST and Discount
Realization vs Cost
➢ Realization marginally lower on QoQ basis while cost
remains flat.
➢ Impacted EBITDA/Mt by ₹ 26/Mt.
20
Logistics Cost
Energy Cost
Raw Material Cost
% to total costs
₹ / Mt
31%
1,264
36%
1,621
14%
610
Increased 1%: YoY and QoQ
Increased 3% YoY; Decreased 4% QoQ
Increased 6% YoY; Increased 1% QoQ
India Operations
21
) t
M / ₹ (
t s o c
s c i t s i g o L
1253
1251
1264
YoY costs increase: 1%
Q1FY23
Q4FY23
Q1FY24
➢ Impacted by resumption of busy season surcharge,
partially mitigated by lead optimization and operating efficiencies.
➢ Lead reduced to 410 km from 429 km in Q1 LY.
Logistics cost v/s Diesel Price Index
165
QoQ costs increase: 1%
137
137
117
113
107 108
145
107
➢ Cyclone “Biparjoy” impacted marine volumes and cost.
Q1 20
Q1 23
Q4 23 Q1 24
Crude Prices (Index)
Diesel Prices (index)
Logistics Cost (index)
India Operations
22
t
M / ₹ (
t s o c
l
a i r e t a M w a R
577
604
610
YoY cost increase: 6%
➢ Increase in cost of raw materials: fly ash, slag and
gypsum etc.
➢ Improvement in clinker conversion ratio.
Q1FY23
Q4FY23
Q1FY24
Conversion Ratio and Fly ash Price Index
QoQ cost increase: 1%
124
124
107
106
111
104
➢ Improvement in clinker conversion ratio.
Q1 20
Q1 23
Q4 23 Q1 24
Conversion Ratio Index (Clinker to cement)
Flyash Price Index
India Operations
23
Ensuring sustainability in business growth
Clinker to cement conversion
1.44
1.42
1.40
Q1FY23
Q4FY23
Q1FY24
Continuous focus on sustainability by promoting use of sustainable products and improving clinker to cement conversion
24
) t
M / ₹ (
t s o c
y g r e n E
1573
1697
1621
Q1FY23
Q4FY23
Q1FY24
Blended Fuel cost at 7500 CV: $/Mt
184
14
170
194
15
179
178
14
164
Energy cost v/s Pet coke Price Index
Q1FY23
Q4FY23
Q1FY24
243
156
198
181
168
160
Receipt at Port
Moisture Loss
Total consumption cost
YoY cost increase: 3% and QoQ cost decrease: 4%
Q1 20
Q1 23
Q4 23 Q1 24
➢ Pet coke consumption at 42% vs 52% in Q4 FY23 and
Pet coke Price (Index)
Energy Cost (Index)
Q1FY23.
India Operations
25
740
624
683
YoY cost decrease: 8%
) t
M / ₹ (
t s o c
r e h t O
Q1FY23
Q4FY23
Q1FY24
➢ Operating leverage benefit; volume growth of 20%.
WPI Index
QoQ cost increase: 9%
126
124
123
➢ Higher maintenance ➢ Operating leverage impact
Q1 20
Q1 23
Q4 23 Q1 24
India Operations
26
Consolidated
Q1 FY24 17,519 218 174 17,911
2,560
433 (49) 707 4,881 4,101 2,055 14,688 3,223 1,018
Q1 FY23 15,007 157 109 15,273
1,999
364 (80) 637 4,013 3,291 1,846 12,069 3,204 1,236
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
Q1 FY24 17,007 218 209 17,434
2,397
403 (32) 676 4,730 4,069 1,982 14,224 3,209 1,034
Q1 FY23 14,543 146 139 14,828
1,932
302 (79) 609 3,860 3,270 1,791 11,685 3,143 1,248
^After elimination of inter company sales
27
Consolidated
Q1 FY24
Q1 FY23
Particulars
17,519
3,223
211
749
577
2
1,688*
179
15,007
Net Sales ^
3,204
EBITDA
216
695
711
(2)
Finance Costs
Depreciation and Amortization
Tax expenses
Minority interest
1,584
Normalized PAT
192
EPS (₹) (basis trailing 12 months)
₹ Crores
India Operations
Q1 FY24
Q1 FY23
17,007
14,543
3,209
3,143
192
720
588
-
1,709*
176
200
667
714
-
1,562
190
* The Company has opted for new tax regime from the financial year 2023-24
.
^After elimination of inter company sales
28
Amount in Mn AED
Middle East
Q1FY24 198
Q1FY23 186
Particulars
Net Sales
Amount in Mn SLR
Lanka
Q1FY24 4,263
Q1FY23 5,440
0.1 0.3 198 55
0.3
13 68 14 30 179 19 -2
0.2 0.3 186 50
-4
13 73 9 18 159 27 4
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
20 72 4,355 3,914
-366
80 17 59 197 3,902 454 334
7 235 5,681 3,463
225
71 6 47 1,863* 5,675 6 -466
* Higher due to exchange loss on account currency devaluation.
29
Consolidated
30.06.2023
31.03.2023
Particulars
66,054
1,042
(2,271)
64,825
56,091
9,886
7,417
2,469
6,265
64,987
Net Fixed Assets^
1,017
Investment in Subs/Associates/JVs
(2,669)
Net Working Capital
63,335
54,380
9,901
7,199
2,702
6,254
Total Assets
Shareholders Fund (Incl. Minority Interest)
Gross Debt
Less: Treasury Surplus
Net Debt
Deferred Tax Liability
₹ Crores
India Operations
30.06.2023
31.03.2023
63,211
3,203
(3,692)
62,721
55,044
8,735
7,369
1,366
6,311
62,121
3,187
(3,987)
61,321
53,369
8,750
7,093
1,658
6,295
64,825
63,335
Total Equity and Liabilities
62,721
61,321
^Includes goodwill and asset held for sale
30
Glossary
➢ 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
➢ CPI - Consumer Price Index
➢ WPI - Wholesale Price Index
➢ IHB - Individual Housing Builder
➢ PMAY - Pradhan Mantri Awas Yojana
➢ PMGSY - Pradhan Mantri Gram Sadak
Yojana
➢ CSR - Corporate Social Responsibility
➢ Realization = Selling Price less GST and Discounts
➢ Blended Fuel includes imported coal and petcoke
➢ Blended Fuel cost/t = CIF price at India port
equivalent to 7500 CV
➢ Receipt basis – Without taking moisture
impact
➢ Net basis – After considering moisture impact
➢ EBITDA = Profit Before Tax plus Finance Cost and
➢ ESG - Environmental, Social, and
Depreciation
Governance
➢ WHRS - Waste Heat Recovery System
➢ Green power Mix includes WHRS and
➢ Operating EBITDA = EBITDA less Other Income
➢ Net Debt = Gross Debt less Liquid Investments
➢ LY - Corresponding period Last Year
captive renewable power
➢ FY - Financial Year (April-March)
➢ IoT - Internet of Things
➢ AI - Artificial Intelligence
➢ rPP - Recycled polypropylene
31
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
32