UltraTech Cement Limited has informed the Exchange about Investor Presentation
19th October, 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 September, 2023. Ref.: ISIN: INE481G01011
Dear Sirs,
Attached is an investor’s presentation on the performance of the Company for the quarter ended 30th September, 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 Taking concrete actions for a sustainable future
Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX
Results Q2 FY24
01 Macro and Sectoral Update
02 Business Update
03 ESG Update
04 Financial Performance
01 Macro and Sectoral Update
The Government of Rajasthan conferred ‘Shiksha Bhushan’ award to Kotputli Cement Works, for contribution to the upliftment of education in Government schools in the Jaipur district, Rajasthan.
Macro Indicators
GDP growth at 7.8% in Q1 FY24 with substantial contribution from the construction and services sector.
IIP grew by 10.3% YoY in August compared to 6% in July, driven by a low base effect and robust growth in the power, mining and manufacturing sectors.
Continuing the trend of the past few quarters, cement demand has remained strong in Q2 FY24 backed by robust infrastructure and rural demand.
Due to significant growth in rural housing and urban real estate, the housing segment will likely see consistent demand expansion.
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Sectoral Update : Q2 FY24
Zone
Volume Gr
I
C
H
R
North
Central
East
West
South
Key drivers ✓ Housing segment registered growth in rural and urban segments, except Uttarakhand, Haryana
and Delhi which were affected due to heavy rains.
✓ Commercial segment growth sustained by industrial and commercial activity across regions. ✓ Infrastructure segment growth momentum continued on account of Delhi Urban Extension Road,
Delhi Metro, Delhi-Meerut Highway, Dwarka Expressway, Bharatpur and Jewar Airport.
✓ Infrastructure segment demand witnessed uptick on account of Gorakhpur Link Expressway,
Ramvan Gaman Path Yojana, Ganga bridge.
✓ Commercial segment growth sustained by industrial and commercial activity across regions. ✓ Housing segment registered growth across regions, except West Bengal and Bihar. ✓ Infrastructure and commercial segment demand adversely impacted due to heavy rains in West
Bengal and Bihar.
✓ In September, East zone was severely impacted due to heavy rains. ✓ Maharashtra: Infrastructure segment demand supported by ongoing projects: Mumbai Metro,
Mumbai Trans Harbour Link, Mumbai Goa Expressway, new phase of Pune metro.
✓ Housing and Commercial segment growth across all regions. ✓ Gujarat: Housing and Commercial segment grew across the regions. ✓ Infrastructure segment registered robust growth as work progressed across major infra projects like Ahmedabad Mumbai High-Speed Railway, Vadodara - Mumbai Expressway and Vadodara Delhi Expressway.
✓ Infrastructure segment demand supported by projects like Kasargode to Kozikode, Ernakulam road
project etc.
✓ Commercial segment growth supported by demand for office space and warehouses.
I: Infrastructure, C: Commercial, H: Housing, R: Rural, IHB: Individual Housing Builder
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02 Business Update
UltraTech’s diversity journey has achieved another milestone. Women constitute 80% of the operating team at Pune Bulk Terminal leading from the front and managing core functions viz., Mechanical, Electrical, Instrumentation, Safety and Security.
This initiative is a cornerstone in our journey towards greater inclusivity and cultural transformation.
Pune Bulk Terminal, Maharashtra
Highlights : Q2
Domestic sales volume grew 15% yoy with capacity utilization of 75%.
Operating EBITDA/Mt of ₹ 955 an improvement of 17.6% yoy
Commissioned cement capacity of 2.5 MTPA, taking total grey cement capacity of the Company to 132.45 MTPA in India.
Commissioned 30 MW of WHRS capacity and 83 MW of renewable power capacity, taking total WHRS capacity to 262 MW and 429 MW of renewable power.
Rural sales at 63% of trade - grew at 15% for the quarter.
Premium Eco-friendly sustainable product mix @ 21.7% of trade sales, 3% improvement on yoy basis.
Blended cement at 70%, clinker conversion ratio improved to 1.44 up 2% yoy.
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Powering our Brand
UltraTech’s creative digital marketing campaigns strike gold for “Most creative banners” and “Best Digital Innovation” at Indian Digital Marketing Awards 2023.
We celebrated Engineer’s Day and appreciated their efforts and work towards the society.
Our Engineers are tirelessly working day and night to enable non-stop progress. They are braving difficult challenges because they know that their effort and resolve will take our Nation to greater heights.
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03
ESG Update
“To actively contribute to the social and economic development of the communities in which we operate. In so doing, in sync with the United Nations Sustainable Development Goals build a better, sustainable way of life for the weaker sections of society and raise the country’s human development index”.
Mrs. Rajashree Birla, Chairperson, The Aditya Birla Centre for Community Initiatives and Rural Development
Pioneering Sustainability
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]
H1FY24
Performance*
560
+0.5% ^
18
+23%
4.55x
+9%
22%
+13%
^ Increase in CO2 emission of 3 kg compared to FY23 is temporary on account of:
✓ 5.5 mtpa of new capacities, which are under stabilization ✓ 52 MW of WHRS is under stabilisation for these new capacities
*Unaudited numbers and green circles indicate % change on yoy basis
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Building a greener value chain through circular economy
UltraTech signed a long-term agreement with Steel Authority of India to procure 2.4 LMT blast furnace slag per annum, reiterating its commitment to driving circularity of materials.
Star Cement, a wholly owned subsidiary, has signed a cooperation agreement with Cemex UAE to boost circular economy in the building materials industry, aiming to recycle concrete waste and reduce carbon emissions.
11
Health Care
Reached out to more than 45,000 beneficiaries
We are committed to provide better health services to the common man.
8,600
Beneficiaries benefited during the quarter
37,000
Children benefited through the immunization programs
Organized at UltraTech plant locations: Sewagram, Gujarat, Vikram, Hirmi, Baikunth, Aditya, Sidhi, Maihar, Dalla, Rajashree, Dhar, Nathdwara
Health camp at Maihar Cement Works, Madhya Pradesh
Rural Mobile Health Camp
Supplied safe drinking water to villages, benefitting more than 26,000 beneficiaries.
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Social Infrastructure
Reached out to more than 31,000 beneficiaries
Reddipalayam Cement Works, Tamil Nadu
Kukurdih Cement Works, Chhatishgarh
We are continuously developing need-based infrastructure near all our plants, strengthening village infrastructure for addressing the basic needs and aspirations of the community, fostering economic growth, improving living conditions, and enhancing the overall well-being of the villagers.
Andhra Pradesh Cement Works, Andhra Pradesh
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04 Financial Performance
UltraTech joins India’s 1ˢᵗ zero-emissions road freight initiative
We have partnered with World Economic Forum's (WEF) “Moving India” initiative which was launched by WEF at the G20 Energy Ministers' meeting. As the largest cement manufacturing company in India and as an industry leader, we are one of the partners of Moving India affirming our commitment to this crucial cause. A transition to zero-emission trucks can lead to 2.8–3.8 gigatons of cumulative CO2 savings through 2050, which is equal to or greater than India's entire economy-wide annual GHG emissions today.
Sales Volume
Particulars
Grey Cement - Domestic
Cement Export & Clinker Sales
White Cement
Sales Volume - India
Q2 FY24
Growth (YoY)
Volume in Million tons Growth (QoQ)
25.08
0.16
0.42
25.66
15%
59%
11%
15%
-12%
58%
2%
-12%
Grey Cement – Overseas
1.18
22%
13%
Consolidated Sales Volume*
26.69
16%
-11%
Trade Sales @ 67% ; RMC volume growth @ 31% yoy
* After elimination of inter company sales volume
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Revenue
Particulars
Q2 FY24
Growth (YoY)
₹ Crores
Growth (QoQ)
Grey Cement - Domestic
13,412
15%
-12%
White Cement
ReadyMix Concrete (RMC)
Others
Grey Cement – Overseas
587
1,161
315
600
9%
31%
-3%
30%
-1%
-6%
24%
8%
Total Consolidated Revenues*
15,735
16%
-10%
* After elimination of inter company sales
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Profitability
EBITDA (₹ Crores)
Profit after tax (₹ Crores)
+35% YoY
3,223
2,718
+70% YoY
1,688
1,281
2,013
756
Q2FY23
Q1FY24
Q2FY24
Q2FY23
Q1FY24
Q2FY24
EBITDA margin improved 200bps yoy
17
Sales Realisation (Grey Cement)
) t
M / ₹ ( n o i t a z i l
a e R t n e m e C y e r G c i t s e m o D
5,342
5,350
5,349
Q2FY23
Q1FY24
Q2FY24
➢ Realization remains flat on QoQ as well as YoY basis,
Realization v/s Cost
Realisation v/s Total Cost index
105
100
100
101
99
101
93
100
93
100
97
Q2FY23
Q3FY23
Q4FY23
Q1FY24
Q2FY24
Oct-23
Grey Cement Realisation (index)
Total Cost (index)
Realisation = Selling Price less GST and Discount
while cost increased on QoQ basis mainly on account of maintenance and employee costs.
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Key Cost Indicators (Grey Cement): Q2 FY24
Logistics Cost
Energy Cost
Raw Material Cost
% to total costs
₹ / Mt
28%
1,219
35%
1,555
Decreased 2% YoY and 4% QoQ
Decreased
10% YoY and 4% QoQ
14%
634
Increased 4% YoY and QoQ
India Operations
19
Logistics Cost (Grey Cement)
1239
1264
1219
) t
M / ₹ (
t s o c
s c i t s i g o L
Q2FY23
Q1FY24
Q2FY24
Logistics cost v/s Diesel price index 120
120
120
109
111
107
Q2 21
Q2 23
Q1 24 Q2 24
Diesel Prices (index)
Logistics Cost (index)
YoY costs decrease: 2%
➢ Benefit on account of lead optimization and improved
operating efficiency.
➢ Lead reduced to 403 km in Q2 FY24 from 428 km in
Q2 FY23.
QoQ costs decrease: 4%
➢ Benefit of lean season rail freights in August and
September.
➢ Lead reduced to 403 km in Q2 FY24 from 410 km in
Q1 FY24.
India Operations
20
Raw Material Cost (Grey Cement)
) t
M / ₹ (
t s o c
l
a
i r e t a M w a R
610
610
634
YoY cost increase: 4%
➢ Increase in cost of raw materials: fly ash, slag etc.
➢ Improvement in clinker conversion ratio to 1.44 vs
1.41 in Q2 FY23.
Q2FY23
Q1FY24
Q2FY24
Conversion Ratio and Fly ash Price index
QoQ cost increase: 4%
110
103
114
113
105
105
➢ Increase in cost of raw materials: gypsum, slag, etc.
Q2 21
Q2 23
Q1 24 Q2 24
Conversion Ratio (index)
Fly ash Price (index)
India Operations
21
Energy Cost (Grey Cement)
1731
1621
1555
YoY cost decrease: 10%
) t
M / ₹ (
t s o c y g r e n E
➢ Blended fuel consumption (CV: 7500) at ~USD 162/t
compared to ~USD 200/t in Q2 FY23.
➢ Pet coke consumption at 39% vs 40% in Q2 FY23.
Q2FY23
Q1FY24
Q2FY24
Fuel cost v/s Blended fuel price index
QoQ cost decrease: 4%
301
216
307
301
204
190
➢ Blended fuel consumption (CV: 7500) of ~USD 162/t
compared to USD 178/t in Q1 FY24.
➢ Pet coke consumption of 7 LMT @ 39% mix of total
Q2 21
Q2 23
Q1 24 Q2 24
fuel.
Imported Coal cost (index)
Fuel cost (index)
India Operations
22
Other Costs
859
862
683
YoY cost : Flat
) t
M / ₹ (
t s o c
r e h t O
Q2FY23
Q1FY24
Q2FY24
WPI index
126
123
125
Q2 21
Q2 23
Q1 24 Q2 24
➢ Operating leverage benefits in the quarter offset by increase in maintenance cost and manpower cost.
QoQ cost increase: 26%
➢ Negative operating leverage due to lower volume in
monsoon period.
➢ Higher plant maintenance and increase in employee
costs during the current quarter.
India Operations
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Operational Performance
Consolidated
Q2 FY24 15,735 277 167 16,179
2,348
425 (279) 812 4,385 3,512 2,258 13,461 2,718 956
Q2 FY23 13,596 297 146 14,039
2,004
325 (312) 691 4,296 3,044 1,977 12,069 2,013 808
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
Q2 FY24 15,195 281 158 15,634
2,187
407 (240) 778 4,207 3,478 2,211 13,026 2,608 955
Q2 FY23 13,176 271 119 13,565
1,984
259 (288) 660 4,103 3,013 1,910 11,640 1,926 812
^After elimination of inter company sales
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Financial Statement
Consolidated
Q2 FY24
Q2 FY23
Particulars
15,735
2,718
234
798
409
(1)
1,281
198
13,596
Net Sales ^
2,013
EBITDA
200
708
344
3
756
173
Finance Costs
Depreciation and Amortization
Tax expenses*
Minority interest
Normalized PAT*
EPS (₹) (basis trailing 12 months)
₹ Crores
India Operations
Q2 FY24
Q2 FY23
15,195
13,176
2,608
1,926
211
768
415
-
1,214
193
187
679
333
-
727
169
* The Company has opted for new tax regime from the financial year 2023-24
. ^After elimination of inter company sales
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Operational Performance : Overseas
Amount in Mn AED
Middle East
Q2FY24 215
Q2FY23 172
Particulars
Net Sales
Amount in Mn SLR
Lanka
Q2FY24 4,531
Q2FY23 3,973
0.1 0.0 215 59
-16
14 79 14 17 168 46 26
11 0.2 183 24
-7
13 89 14 36 169 15 -10
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
21 89 4,641 4,735
-429
83 16 65 311 4,780 -140 -200
85 365 4,423 3,459
-388
86 10 27 222 3,415 1008 675
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Financial Position
Consolidated
30.09.2023
31.03.2023
Particulars
67,846
1,059
(1,500)
67,404
56,204
10,319
5,402
4,917
6,283
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
30.09.2023
31.03.2023
64,994
3,228
(3,048)
65,173
55,066
9,156
5,383
3,773
6,335
62,121
3,187
(3,987)
61,321
53,369
8,750
7,093
1,658
6,295
67,404
63,335
Total Equity and Liabilities
65,173
61,321
^Includes goodwill and asset held for sale
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Cash Flow Statement: H1 FY24
Particulars
India operations
Consolidated
₹ Crores
EBITDA
Less : Interest & lease payments
Less : Tax paid
Less : Increase in working capital
Operating Cash Flow
Less : Capex spend
Free Cash Flow to Firm
5,817
(389)
(706)
(1313)
3,410
(4,328)
(918)
5,941
(442)
(711)
(1454)
3,334
(4,341)
(1,008)
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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)
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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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