Star Cement Limited has informed the Exchange about Investor Presentation
Date: 19th December, 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 Second Quarter ended 30th September, 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 second quarter ended 30th September, 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
DEBABRATA THAKURTADigitally signed by DEBABRATA THAKURTA Date: 2023.12.19 15:54:34 +05'30' STAR CEMENT LIMITED – CREATING A BETTER TOMORROW Investor Presentation – Quarter 2 FY24
NSE Ticker: STARCEMENT | BSE Ticker: 540575 | Bloomberg Ticker: STRCEM:IN
Q2 Presentation | SEPT 2023
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Contents
Know us Better: Company Snapshot
Cement industry outlook: Poised for strong growth
Sustainability & CSR: Integrating as key business principles
Leading from the front: Our management team
Financial Highlights
2
10
14
19
22
1
Know Us Better: Company Snapshot
2
Star Cement – Company snapshot
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 whole community.
5.67 MTPA grinding capacity
2.8 MTPA clinker capacity
51MW TPP & 12.3MW WHRS
Highest market share in the North-East market
Greener cement ~91% blended cement of Total sales
Premium sales 6.9% of Trade sales
Technical
Other core strengths
Sales and Marketing
Zero Net Debt company
One of the finest limestone reserves
Workforce – 3,800+
2,000+ dealer network
11,000+ Total Retailer Network
3
Largest cement manufacturer in North-East India
Current capacities
5.7 MTPA Cement pdn. capacity
2.8 MTPA Clinker pdn. capacity
51 MW TPP
12.3 MW WHRS
Our expansion plan
3.3 MTPA clinker unit with 10 MW WHRS at Lumshnong ~ INR 1,300 Cr.
Two grinding units and 800 TPD AAC block plant in Assam ~ INR 950 Cr.
24 MW Captive solar power plant in
Guwahati, Assam ~ INR 110 Cr.
Siliguri GU, WB Current capacity– 2MTPA
Guwahati GU, Assam Current – 2MTPA Additional – 2 MTPA (to be commissioned in FY24)
Lumshnong Integrated unit, Meghalaya Current clinker – 2.8MTPA Current grinding – 1.67MTPA TPP – 51MW + WHRS – 12.3MW
Additional capacity – 3.3 MTPA clinker to be commissioned by FY24, with WHRS – 12MW
Silchar GU, Assam Upcoming capacity– 2MTPA (FY26)
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Comprehensive product offerings under the brand
Ordinary Portland Cement (OPC)
Portland Pozzolana Cement (PPC)
Portland Composite Cement (PCC)
Anti-Rust Cement (ARC)
Weather Shield Cement (WSC)
OPC
PPC
PCC
OPC 43: Suitable for construction the grade of where concrete is up to M-30 OPC 53: Provides high strength and to durability structures with optimum particle size distribution and superior crystallized structure.
PPC: Ideal mass for concreting works and Masonry mortars & plastering. Resistant to attacks, chemical durable, improves strength and viscosity, has lower permeability and better has cohesiveness.
PCC: Provides high later strength & durability structures, has to lower permeability owing to high blaine and it is low carbon also emission, as to referred greener cement.
line
ARC: A highlight of Star cement’s innovative product – a premium product of robust R&D, ARC imparts anti-rust and anti-corrosive the properties reinforcing bars for higher durability and service life of the structure.
in
WSC: Star Weather Shield Cement – a Super Premium product of path breaking innovation from Star Cement Ltd. with exceptional weather resistant properties to designed withstand the harshest of weather conditions.
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A history of excellent execution and sustained expansion
Plan to take cement capacity to ~10MTPA by FY26.
Capacities
FY19
FY20
FY21
FY22
FY23
FY24
FY25
FY261
Clinker capacity
2.8
2.8
2.8
2.8
2.8
6.1
6.1
6.1
Cement capacity
3.67
5.67
5.67
5.67
5.67
7.67
7.67
9.67
First plant setup at Lumshnong, Meghalaya
Cement and clinker Capacity expansion at Lumshnong
Cement capacity at Lumshnong, Meghalaya shot up to 1.67MTPA
New cement unit in Mohitnagar, Siliguri – 2.0MTPA
New clinker unit at Meghalaya –3.3MTPA
New cement unit at Sonapur – 2.0 MTPA
New cement unit in Silchar, Assam – 2.0MTPA
FY05
FY08
FY11
FY13
FY17
FY19
FY21
FY23
FY24
FY25
FY26
New cement unit commercialized at Lumshnong, Meghalaya
New clinker unit at Meghalaya – 1.8MTPA
New cement unit at Sonapur – 2.0 MTPA
Clinker production capacity enhanced to 2.8MTPA
Commissioning of 12.3MW WHRS at Lumshnong, Meghalaya
1. Based on ongoing greenfield projects only.
Commissioning of 12MW WHRS
Commercialize AAC block 800 TPD cap.
24MW solar project
6
Endorsing a better future
Annual advertising and Brand Promotion Investment (INR Cr.)
Star Weather shield cement, the Maverick product from Star Cement
29.67
26.20
21.28
32.89
33.53
15.77
FY19
FY20
FY21
FY22
FY23
FY 24 H1
15.77 Invested
advertisement FY24 (INR Cr)
in branding and in the H1
In Q2, Star Weather Shield Cement, the super premium cement was launched at Star Sitaron Ka Milan 2023, the first internationally held Annual Dealer Conference at Pattaya, Thailand. The launch through Holographic act was one of its kind witnessed first time in cement industry.
In Q2, with the launch of Star Weather Shield Cement, aggressive 360-degree branding was initiated with ATL, BTL & digital campaigns across all business regions where Star Cement has its presence.
Branding included launch of Star Weather Shield Product AV, Anamorphic Brand journey video, Press Ads in all leading news papers, PR for media coverage. Digital campaign included promotion in all leading social media platforms such as Facebook, Instagram, YouTube, Twitter which led to a digital reach to more than 35 lacs social media users in North-East, West Bengal & Bihar.
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The technological edge
Star link app (8200+ Users):
Business WhatsApp:
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 Cement official business WhatsApp number is a medium where all queries faced by customers, channel partners etc. are resolved within 48 hours, and it serves as the most preferred method of communication between the company and its stakeholders.
Star Stellar App (2000+ users)
Customer Web Portal:
Facilitating loyalty program for civil login engineers and providing facility to Technical Employees and Civil Engineers for a better performance at work.
Salesforce Automation App
Helping us to track attendance, and various other activities taking place (including field visits by our Sales, Branding and Technical Teams.
Star Saathi App for Dealers and Retailers (9000+ Users)
Strengthening the channels of distribution, the app facilitated flexibility in placement tracking and payment, providing ease of service to our dealers & retailers.
Aiding dealers in generation of ledgers, invoices, debit note/credit notes through OTP authentication.
Implemented Enterprise Resource Management - SAP
to higher operational Leading efficiency and an overall enhanced performance (includes inventory and sales management)
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Cementing its leadership through sustained performance
❑ Market leadership in North-East with market share of over 24% ❑ Strong dealer and distributor network built over the years, enabling leadership position in Eastern India.
Sales volume through the years (lac tons)
21%
4%
13%
6%
-12%
-8%
1%
18%
28%
21.7
26.3
27.4
24
27.1
28.8
26.5
33.9
40.1
8.91
8.96
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
Q2 FY23 Q2 FY24
Note: It doesn’t include sale of clinker, if any.
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Cement Industry Outlook: Poised for strong growth
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India is rising as an economic powerhouse
S&P India Global Manufacturing PMI
•
•
•
The Manufacturing PMI consistently remained around 57 for the last 8 months. Manufacturing employment in India increased for the 8th consecutive month. Favorable manufacturing outlook with strong demand outlook, new client making enquiries about products.
Robust Core industry growth in H1 FY24
•
•
Robust core industry growth (8 industries) – at 7.8% for H1 FY24. (vs H1 23)
High single digit growth in core industries index for the last 3 years. (Decadal high)
12.00%
9.00%
6.00%
3.00%
0.00%
-3.00%
-6.00%
-9.00%
10.40%
7.80% 7.80%
Source: S&P Global; Ministry of Commerce & Industry
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FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Demand drivers firmly in place
Macro indicators
• RBI revises FY24 full year GDP growth estimate from 6.5% to 7%. • ICRA estimates suggest cement volume growth of 9-10% for FY24,
crossing 420Mn. tons.
Urban housing
Rural Housing
Infrastructure
• Urban housing demand is recovering post FY23 with strong pipeline of
launches by real estate developers.
• Rapid urbanization and population growth augurs well for the sector • Sale of luxury homes increased 130% in H1FY24.
• PMAY-G budget allocation in FY24 increased by 172% over last year. • Release of funds pre-election for completion of houses to act as a
trigger for near term demand upcycle.
• India plans to add 80 more airports; approval for 21 greenfield
airports already granted.
• Investing INR 1.2 lac crores in port infra by FY30 under Maritime
India Vision 2030.
Source: Kotak Securities; Budget documents; RBI Monetary Policy
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Strong recovery in real estate gives profound strength
Mn sq. ft.
Strong growth in real estate launches
•
•
•
Real estate launches are at decadal high, momentum is set to continue going forward.
Inventories at decadal low; developers oozing optimism for next leg of launches.
Pause in interest rate hikes in last 3 policy meetings is positive for the sector.
INR Cr.
Budget allocation under PMAY scheme
FY19
FY20
FY21
FY22
FY23
FY24
•
•
•
Allocation of INR 79,000Cr. in PMAY scheme in Union Budget 2023, an increase of 65% over last year.
93 lac houses under PMAY scheme yet to be constructed; ~33lac houses in East.
Of East, 45% houses in West Bengal.
80000
60000
40000
20000
0
Source: Kotak Securities; Budget documents
13
Sustainability & CSR: Integrating as key business principles
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Social initiatives
Health and Sanitation
• •
6 health camps organized; 1500+ beneficiaries free medicine and consultation. Financial assistance to over 50 elderly and disabled persons
Waste management
Health camps
Support to disabled
Menstrual Hygiene
Food security
Livelihood development
• •
Star USHA tailoring school; >200 tailoring machine distributed. Skill development programs org. in Guwahati and Siliguri for >100 persons; mason training
Tailor machine dist.
Skill development
Mason training
Biofloc Project
Dairy Farming
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Social initiatives
Education
• Education tour organized for students; Infra development support in 7 schools. • • Classroom kits and play kits distributed to 3000 students across 15 schools in Mohit agar.
25 set of school benches provided; scholarships provided; computer education on wheels.
Kala Mandir
Educational tour
Remedial classes
Computer education
Shyam Sundar Mandir
Rural development
• • •
Free sports coaching imparted to over 50 boys and 25 girls in Lumshnong, Meghalaya. Financial support to orphanages for installing lighting system. 5 areas identified for rural development in Jalpaiguri; Food support during floods.
Mukhla village support
Azadi ka Amrit Mahotsav
Football coaching
Menstrual Hygiene
Food security
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ESG Update
Decoding ESG (Environment, Social and Governance) compliance
Environment
Social
Governance
within physical,
Refers to how an organisation operates the natural environment. investors Includes examining a company’s natural resource usage, and the impact of its operations and value chain on the environment.
to
how Refers businesses impact their stakeholders such as customers, employees and the in communities which they operate.
Includes corporate governance and business integrity. Corporate governance describes how the company governs to achieve itself and compliance transparency. Business refers business practices.
integrity to ethical
Star Cement 1st ESG report published along with Annual Report FY22-23
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ESG Goals and Targets
Modules
Target
Present Status
Green energy
Green energy share of 55% by FY26.
Captive solar plant - 24MW by 2025 (Further 51MW being planned in Assam)- Total 72MW. Group captive 26MW project is in planning stage.
Existing WHRS– 12.3MW; Upcoming – 12MW (New clinker line)
Thermal Substitution Rate (TSR)
15% by FY25
AFR Feeding system approved by management. Design and Engineering ongoing.
Net Zero Carbon footprint
By 2050
Water positivity
2x water positive by 2025
We aim to follow sectoral roadmap to achieve Net Zero concrete by 2050 and we regularly review & monitor our progress to achieve set targets.
1. Construction of new reservoir with capacity of 1.5 lakh m3 at water catchment area near crusher. 2. Collaboration with communities for rainwater harvesting via pond and to assist in agriculture using drip irrigation.
Mine’s 5 Star Rating
All mines to achieve 4-star rating
1.Application submitted. Inspection completed; awaiting final report.
Diversity and Inclusion
10% women of total workforce in 2025 and 12% by 2027
1. Head count raised from 168 in July to 197 in Sept (rising from 8% to 9% of the total workforce)
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Management Team
Leading from the front: Our management team
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Directed by a versatile group of promoters & directors
Mr. Sajjan Bhajanka Chairman & Managing Director Experience: 50 years’ experience plywood, cement industry.
in ferro alloys and
laminates,
Mr. Rajendra Chamaria Vice Chairman & Managing Director Experience: 36 years’ experience in cement and concrete sleepers' industry with excellent project execution and production knowledge
Mr. Sanjay Agarwal Managing Director Experience: 36 years of industry experience
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
Mr. Keshav Bhajanka Director Qualification: Graduate from Warwick University, UK Experience: Over 10 years of experience in MDF, Exteria and Flooring business.
Mr. Pankaj Kejriwal Executive Director Qualification: Chemical Engineer Experience: 30 years of overall experience including 22 years in the cement industry. He is a member of Research Advisory Committee (RAC) of NCCBM.
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Superior governance through a diverse leadership team
Mr. Kumar Tiwari
Vinit
Manoj
Mr. Agarwal
Mr. Pradeep Purohit
Mr. Sundaram Srinivasan
Samar
Mr. Banerjee
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Chief Manufactg. Officer
Human Chief Resource Officer
Kanak
Mr. Kumar Chhangani Chief Resource Officer
Mineral
Qualification: BSC, Marketing
MBA
in
Experience: Over 3 decades experience across multitude of industries having spent a large part career the cement Industry.
in
Qualification: LLB, CA, CS
Experience: Over 27 years’ experience, including 15 years in the cement industry
Qualification: B. Com, Graduate Dip. IIMM
Experience: 34+ years in the cement and engineering industry
Qualification: Mechanical Engineer
the
Experience: More than 3 decades cement in including industry companies like Ambuja Gujarat Zuari Cement & Cement.
Qualification: BA( PGPM&IR
Eco),
Experience: Over 27 years’ experience, including 14 years the cement in and Building Material Industries.
Qualification: B.E (Mining)
Experience: Over 25 years of work experience and Cement related industries across geographies.
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Financial Highlights
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Quarterly highlights that matter
Sales Volume - Cement Revenue - cement sales
Total EBITDA
Profit after tax (PAT)
~1%
~1%
~25%
~31%
Lacs tons
INR Cr. 593
585
8.91
8.96
INR Cr.
104
INR Cr.
41
83
31
Q2 FY23
Q2 FY24
Q2 FY23
Q2 FY24
Q2 FY23
Q2 FY24
Q2 FY23
Q2 FY24
❑ Cement realizations increased YoY. ❑ Sharp growth in bottom line due to cost optimization at operational levels including but not restricted to
efficient operations, WHRS benefit trickling down, freight optimization.
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Consolidated financial statements
Particulars
Equity Share Capital
Reserves & Surplus
Net Worth
Revenue
EBIDTA
PBT
Tax Expenses
PAT
Return on Equity (Annualised)
Earnings Per Share (Not Annualised)
UoM
INR Cr
INR Cr
INR Cr
INR Cr
INR Cr
INR Cr
INR Cr
INR Cr
%
INR
Q2 FY24
Q2 FY23
40
2,509
2,549
585
104
65
24
41
6.4%
1.01
40
2,226
2,266
593
83
49
18
31
5.5%
0.77
FY23
40
2,376
2,416
2,757
520
380
132
248
10.3%
6.13
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Safe harbour clause
The given communication, except for historical information reflect current estimates and views of the management and 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. 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 several 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 cement 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.
Star Cement Limited www.starcement.co.in
Corporate Office:
CIN: L26942ML2001PLC006663 NSE Ticker: STARCEMENT | BSE Ticker: 540575
Century House, 2nd Floor, P-15/1, Taratala Road, CPT Colony, Taratala, Kolkata – 700088
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