Star Cement Limited has informed the Exchange about Investor Presentation
Date: 22nd September, 2023
To The Listing Department, National Stock Exchange of India Limited Exchange Plaza, C-1, Block-G Bandra Kurla complex, Bandra-East Mumbai-400 051 Stock code: STARCEMENT
To The Listing Department BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai-400 001 Stock code: 540575
Dear Sir/Madam,
Subject: Investor Presentation for the first Quarter ended 30th June, 2023
Pursuant to the Regulation 30 of Securities and Exchange Board of India (Listing obligations and Disclosures Requirements) Regulation, 2015, an Investor Presentation for the first quarter ended 30th June, 2023 has been prepared and the same has been disseminated on the Company’s website at https://www.starcement.co.in/investor/investors-presentation. We are enclosing herewith a copy of the Presentation for your information and record.
Request you to kindly take this communication on record.
Thanking you,
Yours faithfully, For Star Cement Limited
Debabrata Thakurta
(Company Secretary)
Encl. as stated
CREATING A BETTER TOMORROW
STAR CEMENT LIMITED STAR CEMENT LIMITED An Integrated Cement Company AN INTEGRATED CEMENT COMPANY
NSE Ticker: STARCEMENT | BSE Ticker: 540575 | Bloomberg Ticker: STRCEM:IN
Q1 Presentation | JUNE 2023
SAFE HARBOUR
This quarterly investor presentation has been prepared by Star Cement Limited (‘Star Cement’) and does not constitute a prospectus or
placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part
thereof) delivered or supplied, should not be deemed to constitute an offer.
No representation or warranty, express or implied,
is made as to, and no reliance should be placed on, the fairness, accuracy,
completeness, or correctness of such information or opinions contained herein. The information contained in this presentation is only
current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be
‘forward-looking statements, including those relating to the general business plans and strategy of Star Cement,
its future financial
condition and growth prospects, future developments in its industry, and its competitive and regulatory environment, and statements which
contain words or phrases such as ‘will’,
‘expected to’,
‘horizons of growth’,
‘strong growth prospects’, among many others, or similar
expressions or variations of such expressions. These forward-looking statements involve a number of risks, uncertainties, and other
factors that could cause actual results, opportunities, and growth potential to differ materially from those suggested by the forward-looking
statements. These risks and uncertainties include, but are not limited to, risks with respect to its Formulations and API business.
Star Cement may alter, modify, or otherwise change in any manner, the content of this presentation, without obligation to notify any person
of such revision or changes. This presentation cannot be copied and disseminated in any manner.
2
INDEX
KNOW US BETTER: CORPORATE OVERVIEW
BETTER PROSPECTS & POSSIBILITIES: INDIAN CEMENT INDUSTRY
WHAT MAKES US BETTER: STRENGTHS & STRATEGIES
GIVING BACK TO SOCIETY: OUR CSR INITIATIVES
PROMISING A BETTER TOMORROW: ENVIRONMENT, SOCIAL AND GOVERNANCE
LEADING FROM THE FRONT: OUR MANAGEMENT TEAM
NUMBERS THAT SPEAK FOR US: FINANCIAL PERFORMANCE REVIEW
APPENDIX:
KNOW US BETTER CORPORATE OVERVIEW
AT A GLANCE
Star Cement Limited is one of the leading names among eastern India's cement manufacturers. The organisation has created a strong brand recall with its endeavor to maintain superior quality product, comprehensive supply chain eco- system, and unmatched efforts to uplift the community as a whole. The organisation caters to significant cement markets across the eastern India region and functions across its manufacturing units.
5.67 MTPA 5.7 MTPA AGGREGATE CEMENT AGGREGATE CEMENT CAPACITY CAPACITY
2.8 MTPA 5.7 MTPA AGGREGATE CEMENT AGGREGATE CLINKER CAPACITY CAPACITY
51 MW 5.7 MTPA
AGGREGATE CEMENT THERMAL POWER GENERATING CAPACITY CAPACITY
12.3 MW 5.7 MTPA
WASTE HEAT RECOVERY AGGREGATE CEMENT POWER GENERATING CAPACITY CAPACITY
1,800+ TOTAL DEALER NETWORK
11,000+ TOTAL RETAILER NETWORK
3,100+ WORKFORCE
ZERO DEBT COMPANY
HIGHEST MARKET SHARE IN NORTH- EASTERN REGION
ONE OF THE COUNTRY'S FINEST LIMESTONE RESERVES
5
OUR FOOTPRINT
LUMSHNONG, MEGHALAYA
2.8 MTPA CLINKER UNIT
1.67 MTPA GRINDING UNIT
51 MW THERMAL POWER PLANT
12.3 MW WASTE HEAT RECOVERY PLANT
SONAPUR, GUWAHATI, ASSAM
2.0 MTPA GRINDING UNIT
MOHITNAGAR, SILIGURI, WEST BENGAL
2.0 MTPA GRINDING UNIT
Map is used only for representation purpose
6
OUR STAR PRODUCTS
ORDINARY PORTLAND CEMENT (OPC)
PORTLAND POZZOLANA CEMENT (PPC)
ANTI RUST CEMENT (ARC)
OPC 43: Suitable for construction where the grade of concrete is upto M-30. OPC 53: Provides high strength and durability to structures with optimum particle size superior crystallized structure.
distribution
and
PPC: Ideal for: Mass concreting works Masonry mortars and plastering It is resistant to chemical attacks, more durable, improves strength and viscosity, has lower permeability, is water-resistant, and has better cohesiveness.
ARC: A highlight of Star Cement’s innovative product line and a robust R&D, ARC imparts anti-rust and anti-corrosive properties in the higher bars reinforcing durability and service life of the structure.
for
A JOURNEY THAT SPEAKS OF EXPANSION
FY 2004 – 05 First plant set up at Lumshnong with cement capacity of 0.40 MTPA and clinker capacity of 0.40 MTPA
FY 2010 – 11 Capacity of total
FY 2016 – 17 Capacity of cement
cement production at Lumshnong increased to 1.27 MTPA and clinker to 0.80 MTPA
plant at Lumshnong increased to 1.67 MTPA
FY 2020 – 21 New cement plant at commercialised at Mohitnagar, West Bengal with capacity 2.00 MTPA
FY 2023 – 24 New Cement unit to be commercialised at Sonapur with capacity – 2.00 MTPA along with 800 TPD AAC Block plant. New clinker unit to be commercialised at Lumshnong with capacity – 3.00 MTPA
FY 2007 – 08 New Cement Unit commercialised at Lumshnong and existing clinker and cement capacity increased.
FY 2012 – 13 New Clinker unit
FY 2018 – 19 Capacity of
clinker production increased 2.8 MTPA
commercialised at Lumshnong with capacity 1.8 MTPA and new cement unit commercialised at Sonapur with capacity 2.0 MTPA.
FY 2022 – 23 12.3 MW Waste heat Recovery power plant commercialised at Lumshnong.
Total Cement Capacity
– 5.67 MTPA
Total Clinker Capacity
– 2.80 MTPA
FY 2024 – 25 New Cement unit to be commercialised at Silchar
8
BETTER PROSPECTS AND POSSIBILITIES INDIAN CEMENT INDUSTRY
INDUSTRY SCENARIO
T N E M E C N A D N
I
I
According to the estimate of the National Council for Cement and Building Materials (NCCBM), India’s cement industry is expected to add ~80 million tons capacity by 2025. The market size of the India's cement industry was 3,644.5 million tons in 2022. The industry hopes to reach 4,832.6 million tons by 2028 at a compound annual growth rate (CAGR) of 4.94 percent during 2023-2028.
India is the second biggest producer of cement in the world after China. It has 8 per cent of the global installed capacity in cement production. It has a total of 210 large cement plants, out of which 77 are in the states of Andhra Pradesh, Rajasthan, and Tamil Nadu.
Y R T S U D N
I
India’s cement
industry has strong linkages with other sectors, such as,
infrastructure, construction, housing, transportation, coal, power, steel, etc. It has a significant role in implementing various Government flagship schemes and visions like housing for all, smart cities, concrete highways, dedicated freight corridors (DFC), clean India mission, ultra- mega power projects, waterways, etc.
T N E M E C L A B O L G
Y R T S U D N
I
In 2022, the size of the global cement market reached US$ 363.4 billion, and it is expected to grow at a CAGR of 5.4 per
cent during 2023 - 2028 to reach US$ 498.23 billion by 2028
The Russia-Ukraine conflict, sticky inflation, and high energy prices continue to hurt logistics and production costs, which
have negatively impacted the global economy and the construction industry
Source: Industry Outlook : Cement Industries of India – Infomerics Valuation and Rating Private Limited
10
INSTALLED CAPACITY AND UTILISATION
Being the second largest cement producer in the world after China, India contributes over 8 per cent to the global installed capacity in cement production. India has potentially rich deposits of limestones in different regions of the country essentially required for cement production.
CEMENT DEMAND MIX
REGION-WISE INSTALLED CAPACITY
COMMERCIAL AND INDUSTRIAL PLEX, 10%
INFRASTRUCTURE, 23%
RURAL HOUSING, 30%
WEST, 13%
CENTRAL, 13%
NORTH, 22%
LOW COST HOUSING, 12%
URBAN HOUSING, 25%
EAST, 19%
SOUTH, 33%
The Indian cement industry is one of the technologically advanced industries in the country with state-of-the-art plants for the production. Keeping pace with the global advancement, the Indian cement industry has brought about modifications and upgradation in technology, particularly on the energy conservation front.
Source: Industry Outlook : Cement Industries of India – Infomerics Valuation and Rating Private Limited
11
PRODUCTION AND CONSUMPTION
PRODUCTION
The production of cement stood at ~375 million tons in FY2023, up from 351 million tons in FY2022. The domestic production with 7 per cent y-o-y growth has surpassed the pre-covid levels
CONSUMPTION
India’s total cement consumption was ~370 million tons in FY2023. Domestic consumption was likely to grow by 6.3 per cent over the preceding year.
PRODUCTION AND CONSUMPTION (MILLION TONS)
270
267
288
285
328
325
327
328
285
285
351
350
375
370
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
Production
Consumption
Source: Industry Outlook : Cement Industries of India – Infomerics Valuation and Rating Private Limited
The contraction in cement production in 2020-21 was due to the pandemic and restrictions put on economic subsequent after activities lockdowns across the country.
the
12
KEY GOVERNMENT INFRASTRUCTURE INITIATIVES
The Ministry of Railways in a recent announcement is planning to develop dedicated corridors in different parts of the country to meet the requirements of the cement sector. These corridors will be created specifically in areas, where the concentration of cement factories is higher, and those corridors would be interlinked with the source of raw materials, such as, clinker, limestone, and fly-ash. This will help the cement industry significantly to reduce logistic, and operational costs. The effort will be put in place for the next 10 years until the FY 2033.
In the Union Budget 2023-24, the Government allocated US$ 1.8 billion for the creation of safe housing, clean drinking water, sanitation, and increasing road and telecom connectivity, among other initiatives. It also allocated US$ 9.6 billion to address urban housing shortages.
It is anticipated that India's infrastructure will expand at 7 percent between the years 2022 and 2027; however, 42 percent of the projects in the National Infrastructure Pipeline (NIP) are already under implementation. Construction work picked up as a direct result of the Government's investment of US$ 1.4 trillion in infrastructure projects between 2019 and 2023. Additionally, it is anticipated that over 40 percent of India’s population will migrate to cities by the year 2030, which will create a need for 25 million new dwellings.
The cement manufacturers reported a seven-fold increase in demand, which culminated in a two-fold increase in production. In terms of mergers, the cement industry evoked considerable discussion in 2022. In September, Asia's richest man Gautam Adani's Adani Group bought the cement business of Swiss building materials major Holcim, which included Ambuja Cement and ACC, for $6.4 billion.
The PM Gati-Shakti plan was unveiled in October 2021, which had an outlay of INR 100 lakh crores. This Plan attempted to incorporate the infrastructure programs of several Ministries and State Governments, such as, Bharat Mala, Sagar Mala, inland waterways, dry/land ports, and UDAN, etc. Further, economic zones, such as, textile clusters, pharmaceutical clusters, defense corridors, electronic parks, industrial corridors, fisheries clusters, and agricultural zones would be included in the coverage in order to boost connectivity and make Indian enterprises more competitive.
In March 2023, 156 critical infrastructure gaps from ports to movement of bulk commodities, such as, coal, cement, fertilizers and food grains, were identified for intervention under the plan. As per the latest estimates of ongoing and proposed projects, mega projects worth INR 110 trillion in the National Infra Pipeline will be monitored under the PM Gati-Shakti.
13
WHAT MAKES US STRONGER STRENGTHS AND STRATEGIES
PRODUCTION STRENGTH
5.7 MTPA CEMENT PRODUCTION CAPACITY
2.8 MTPA CLINKER PRODUCTION CAPACITY
51 MW THERMAL POWER CAPACITY
12.3 MW WASTE HEAT RECOVERY SYSTEM
LARGEST MANUFACTURER OF CEMENT IN NORTH- EAST INDIA
OUR EXPANSION PLANS
Setting up a 3 MT clinker unit with WHRB at
Lumshnong: INR 1,300 Crores
Setting up two grinding units and AAC block plant
in Assam: INR 950 Crores
2.0 MTPA Grinding unit at Siliguri, West Bengal
2.0 MTPA Grinding unit at Guwahati, Assam
Setting up a 2.0 MTPA Grinding unit in Guwahati, Assam along with 800 TPD AAC Block plant and another unit at Silchar, Assam
1.7 MTPA grinding unit and 2.8 clinker unit at Lumshnong, Meghalaya
Setting up 3.0 MTPA Clinker unit, with WHRB.
15
ENDORSING A BETTER FUTURE
ANNUAL ADVERTISING & BRAND PROMOTION INVESTMENT (INR CR)
AKSHAY KUMAR, AS OUR BRAND AMBASSADOR, BOOSTED OUR BRAND VISIBILITY
29.67
26.20
21.28
32.89
33.53
8.82
FY19
FY20
FY21
FY22
FY23
FY 24 Q1
8.82
Invested in branding and advertisement in the Q1 FY 23-24 (INR Cr)
In Q1, the company organized a digital campaign called “Best Ethnic Wear Contest & Fathers Day Celebration” for its Facebook and Instagram users. The campaigns achieved a total engagement of more than 3.5 lakh users.
In Q1 we continued with the Brand Television Commercial with Akshay Kumar as brand Ambassador. Association of Akshay Kumar caused an uplift on the brand perceptions and has had a positive impact on the saliency of Star Cement as a brand.
In Q1 we also launched new creative for Repositioning of Premium Product Anti Rust Cement
16
ADVANCING WITH TECHNOLOGY
APP
LINK
(4000+
STAR USERS): Facilitating loyalty program for Masons who use Star Cement in their various projects to earn Reward points which can be used to redeem a variety of gifts.
STAR STELLAR APP (1900+ USERS): civil Facilitating loyalty program for engineers and providing login facility to Technical Employees and Civil Engineers for a better performance at work.
AUTOMATION
SALESFORCE APP: Helping us to track attendance, and various other activities taking place (including field visits by our Sales, Branding and Technical Teams.
BUSINESS WHATSAPP: Star Cement official business WhatsApp number is a medium where all queries faced by customers, channel partners etc. are resolved within 48 hours, and also serves as the most preferred method of communication between the company and its stakeholders.
CUSTOMER WEB-PORTAL: Aiding dealers in generation of ledgers, invoices, debit note/credit notes through OTP authentication.
ENTERPRISE MANAGEMENT
IMPLEMENTED RESOURCE SAP: Leading to higher operational efficiency and an overall enhanced performance (includes management of inventory and sales).
17
FOR
APP
STAR SAATHI DEALERS (1800+ USERS): Strengthening the channels of distribution, the app facilitated flexibility in placement tracking and payment, providing ease of service to our dealers
REACHING FAR AND WIDE
STRONG SUPPLY CHAIN & DISTRIBUTION NETWORK
We emphasize on strengthening being among the first one to identify the disparity in demand and supply forces, through a strong supply chain & distribution network:
EASY AVAILABILITY OF RAW MATERIAL: Easy access and proximate location to limestone mines within 2-3 km of our plants in Integrated vehicle logistics system.
RIGHT MIX OF DISPATCH MODES: Availability of different modes of transportation, railways for uninterrupted supply
including roadways and
IMPROVING RAIL TRANSPORT CONNECTIVITY: Raw Material Inward & Cement outward dispatches from Siliguri siding ensured alternate mode availability for enhanced serviceability and Cost Efficiency.
ENHANCING PRODUCTIVITY THROUGH OWN FLEET: Optimum utilization of owned fleet of 190+ trucks through digitization enabled the organization to increase the overall efficiency & productivity
ESTABLISHED DEALER-DISTRIBUTOR NETWORK: Our extensive distribution network helps deepen penetration in the Eastern region
DISTRIBUTION NETWORK SPREAD ACROSS 10 STATES, LEADING TO AN EDGE OVER PEERS
DEALER NETWORK
978
1041
1056
1126
1047
1048
1050
1268
1190
647
700
551
FY 18-19
FY 19-20
FY 20-21
FY 21-22
FY 22-23
FY 23-24
North-east Rest of East India
Rest of East India
18
THE STAR SHINING BRIGHT AND STRONG
Enjoys a leadership position in the North East with market share of more than 23%
Gradually increasing share in the Eastern region through concerted efforts
Strong dealer and distributor network built over the years, steering year-on-year growth, enabling leadership position in
market
DISTRIBUTION NETWORK SPREAD ACROSS 10 STATES, LEADING TO AN EDGE OVER PEERS
SALES THROUGH THE YEARS – VOLUME (LAKH TONS)
18%
28%
21%
4%
13%
6%
19%
-12%
-8%
21.7
26.3
27.4
24
27.1
28.8
26.5
33.9
40.1
9.80
11.64
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
FY 19-20
FY 20-21
FY 21-22
FY 22-23
Q1 FY23
Q1 FY24
19
GIVING BACK TO THE SOCIETY OUR CSR INITIATIVES
SHARING THE RESPONSIBILITY TOWARDS THE COMMUNITY
Health and Sanitation
•
• • •
•
•
•
Organized free health Check-up camps at Sonapur where more than 150 patients were examined & free medicine were distributed. Set up a system to ensure regular collection of garbage from Lumshnong and Umsahi village. Bore-wells were constructed in several households of Mohitnagar to help source ground water. Toilet blocks have been constructed at Gomaria Krishak Kalyan Sangha & community Hall, Lalmati to improve sanitation . Schools are being identified to set up Drinking Water systems, and renovating sanitation facilities including toilets Special camp was setup in Mohitnagar to distribute grocery and other food items to specially abled persons. Potable water was distributed at Maa Kamakhya Mandir during Ambubachi Mela, 2023. Similarly, water bottles were distributed at Bhutnath mandir.
•
•
•
• •
•
Star Ujjibit Skill Development center for skill development & placement of unemployed youth at Chamata inaugurated and has started and skill development training to its 1st batch. Star Usha Tailoring Centre is functioning regularly in all locations. The trainees of Star Usha Tailoring Centre are now stitching uniform for students of Divine Word School and Star Public School. Construction of 29 bio-floc tanks has been completed in three locations. Cultivation has been started in 19 tanks in Guwahati and Siliguri and is going to be started shortly in Lumshnong. Regular production for sanitary napkin unit & Agarbatti Making unit at Srijani. Beautician training course is going on flawlessly. Students are courageously participating in practical sessions. Bee farming is going on very well. Four bee farmers of Lumshnong and Umstain village are doing comparatively well, and they are selling their products in the market @ INR 1000/- per litter.
Livelihood development
21
SHARING THE RESPONSIBILITY TOWARDS THE COMMUNITY
Education
•
•
• •
•
• •
65 students from Waizher, Tongseng, Sonapyrdi and Brichrnyot and Lumshnong village have been enrolled in Star Public School. Regular School bus service is benefiting around 104 students of Lumshnong, Waizer, Cheruphi, Pandare, Brichrnyot and Tongseng village. Currently there are three school buses running in three different directions. Construction of Basketball ground in Star Public School is underway. Identification of educational institution at Lumshnong, GGU & SGU plant peripheral area for development is underway. Computer Education on wheels is operating in GGU plant peripheral area. The same has been initiated in Mohit Nagar. Identification of schools for the distribution of desk benches is in progress. 20 students from Lumshnong, village have been enrolled in Star Public School.
•
•
•
•
•
•
Construction of Dorbar Shnong office of Lumshnog, Dongiew community hall and Foundation work of SCML local market, Brichrnyot RCLP school Kitchen room has been completed. Construction RCC Hall at Maina Parijat Sangha, Dikchak, boundary wall & renovation of Manikut at Srimanta Sankardev Sangha, Digaru is completed. Construction of prayer hall and repairing & renovation of Office Room, Dimaria Sangbadik Sangha, and Sonapur is underway. Emergency food support provided to 800 road blockage people of NH-6 on 17th June 2023. The NH-6 was not operational due landslide near to Sonapyrdi village. Solar lights repaired in Tongseng, Brichrnyot and Umstain village and 50 solar streetlights have been installed in different villages like Khaddum, Pandare, Sonapyrdi, Sakri & Lumshnong village. Implementation of solar home lighting system in Sakri village has been completed. The project will cover entire village households. Victims of Manipur were supported with all possible relief materials.
Rural Development
22
PROMISING A BETTER TOMORROW ENVIRONMENT, SOCIAL AND GOVERNANACE
STAR CEMENT ESG UPDATE
DECODING ESG
STAR CEMENT LIMITED HAS ENGAGED EY FOR ESG TRANSFORMATION FOR 3 YEARS. THE ENGAGEMENT STATUS AS ON YEAR 1 IS AS FOLLOWS –
ENVIRONMENT
SOCIAL
GOVERNANCE
Refers to how an organisation operates within the physical, natural environment. Includes investors examining a company’s natural resource usage, and the impact of its operations and value chain on the environment.
Refers to how businesses impact their stakeholders such as customers, employees and the communities in which they operate.
Includes corporate governance and business integrity. Corporate governance describes how the company governs itself to achieve compliance and transparency. Business integrity refers to ethical business practices.
STEPS COMPLETED
ESG MATERIALITY ASSESSMENT
BRSR REPORT SUBMITTED
TO SEBI
ESG ROADMAP DEVELOPMENT
ESG TARGETS AND GOALS DEFINED
ESG REPORT
STEPS ONGOING
MICROSITE
ESG GOALS AND TARGETS
ESG TARGETS
ESG GOALS
CURRENT STATUS
EXPECTED COMPLETION
2X Water Positive
4% Thermal substitution Rate
15% Green energy portfolio
12% female in total workforce
1.37x
0.1%
NIL
8%
All mines to achieve 4 star rating
3x3 Star, 1x4 Star, 1 New
2025
2025
2027
2027
2025
Reducing Clinker factor in Cement
Increase use of green power
Adopt energy efficient measures
Enhancing co- processing of waste
Optimizing logistics and transportation
Removing emission through offset
LEADING FROM THE FRONT OUR MANAGEMENT TEAM
GOOD GOVERNANCE PROMISING A BETTER TOMORROW
OUR PROMOTERS TEAM
Mr. Sajjan Bhajanka Chairman Director
& Managing
50
Experience: years’ plywood, in experience laminates, ferro alloys and cement industry
Mr. Rajendra Chamaria Vice Chairman & Managing Director
in
36 cement
Experience: years’ and experience concrete sleepers industry with excellent project execution skill and production knowledge
Mr. Sanjay Agarwal Managing Director
Experience: 36 industry experience
years’
Mr. Prem Kumar Bhajanka Managing Director
Experience: 43 years of industry experience
Mr. Tushar Bhajanka Deputy Managing Director
Qualification: MPhil in Economics from the University of Cambridge
Experience: 4 years’ industry experience
27
GOOD GOVERNANCE PROMISING A BETTER TOMORROW
OUR MANAGEMENT TEAM
Mr. Tiwari Chief Officer
Vineet
Executive
Qualification: MBA in Marketing
Experience: Over three decades experience across a multitude of industries having spent a large part career the cement Industry
in
Mr. Agarwal Chief Officer
Manoj
Financial
Chartered
Qualification: LL.B, Accountant, Company Secretary
Experience: Over years’ 27 experience, including 15 years cement the in industry
Pankaj
Mr. Kejriwal Executive Director
Qualification: Chemical Engineer
Experience: years’ experience
22 overall
Mr. Pradeep Purohit Chief Officer
Operating
Qualification: Com, Dip. IIMM
B. Graduate
34+ the and
Experience: years in cement engineering industry
Mr. Sundaram Srinivasan Chief Manufacturing Officer
Qualification: Mechanical Engineer
Experience: More than 3 decades in cement the including industry like companies Ambuja Gujarat Cement & Zuari Cement.
Samar
Mr. Banerjee Chief Resource Officer
Human
Qualification: BA( Eco), PGPM&IR
Experience: Over 27 years’ experience, including 14 years in the cement and Building Material Industries.
Kanak
Mr. Kumar Chhangani Chief Resource Officer
Mineral
Qualification: B.E (Mining)
Experience: Over 25 years of work experience Cement and related industries across geographies.
28
NUMBERS THAT SPEAK FOR US FINANCIAL HIGHLIGHTS
OPERATIONAL AND FINANCIAL UPDATES
Production in Q1 FY24 was 11.8 lakhs MT vs 9.9 lakhs MT in Q1 FY23, a YoY growth of 19%.
OPERATIONAL
Plant optimization has helped reduce power consumption per MT of Cement.
Purchase of conditioned fly-ash through rakes is helping reduce flyash cost.
FINANCIAL
EBITDA for the quarter stood at INR 138 Cr
Cement sales in Q1 FY24 was up by 19% YoY to INR 757 Cr.
Profit After Tax for the quarter stood at INR 93 Cr.
SAP has been adopted across the organisation.
FUNCTIONAL
WHRS Plant commissioned in April 2023 and is helping lower power cost.
Use of own fleet is helping to minimizing logistics cost.
30
QUARTERLY HIGHLIGHTS THAT MATTER
SALES VOLUME - CEMENT (MILLION TONS)
REVENUE FROM CEMENT SALES (INR CR)
EBITDA (INR CR)
11.65
755
627
9.80
138
138
68
PAT (INR CR)
93
Qtr ending June 2022
Qtr ending June 2023
Qtr ending June 2022
Qtr ending June 2023
Qtr ending June 2022
Qtr ending June 2023
Qtr ending June 2022
Qtr ending June 2023
An YoY increase in sales volume by 19%
Increase in sales volume and better pricing resulted in the increase in revenue from cement sales by 21%
EBITDA remained same in Q1 FY24 as compared to Q1 FY23
PAT for the period increased by 36% as compared to the same period last year.
31
APPENDIX
STANDALONE FINANCIAL HIGHLIGHTS
PARTICULARS
Equity Share Capital
Reserves & Surplus
Net Worth
Revenue
EBIDTA
PBT
Tax Expenses
PAT
Return on Equity (Annualised)
Earnings Per Share (Not Annualised)
Q1 FY24
Q1 FY23
40
1,477
1,518
778
99
77
23
54
14.2%
1.34
40
1340
1,380
658
86
64
23
41
11.9%
1.02
FY23
40
1,423
1,464
2,731
339
249
85
164
11.2%
4.06
INR Cr
INR Cr
INR Cr
INR Cr
INR Cr
INR Cr
INR Cr
INR Cr
%
INR
33
CONSOLIDATED FINANCIAL HIGHLIGHTS
PARTICULARS
Equity Share Capital
Reserves & Surplus
Net Worth
Revenue
EBIDTA
PBT
Tax Expenses
PAT
Return on Equity (Annualised)
Earnings Per Share (Not Annualised)
Q1 FY24
Q1 FY23
40
2,469
2,509
769
138
104
11
93
14.8%
2.31
40
2196
2236
680
138
105
38
68
12.2%
1.67
FY23
40
2,376
2,416
2,757
520
380
132
248
10.3%
6.13
INR Cr
INR Cr
INR Cr
INR Cr
INR Cr
INR Cr
INR Cr
INR Cr
%
INR
34
THANK YOU
MR. MANOJ AGARWAL investors@starcement.co.in www.starcement.co.in
CORPORATE OFFICE ‘Century House’, 2nd Floor P-15/1, Taratala Rd, 2nd Floor, CPT Colony Taratala, Kolkata, West Bengal 700 088 35