UltraTech Cement Limited has informed the Exchange about Investor Presentation
23rd January, 2025
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
Sub: Investor Presentation for the quarter ended 31st December, 2024 Ref.: ISIN: INE481G01011
Dear Sirs,
Attached is an investor’s presentation on the performance of the Company for the quarter ended 31st December, 2024.
The same is for your information please.
Thanking you,
Yours faithfully, 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 A FORCE FOR GOOD
Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX
Results Q3 FY25
01 Macro and Sectoral Update
02 Business Update
03 ESG Update
04 Financial Performance
01 Macro and Sectoral Update
Andhra Pradesh Cement Works
Macro Indicators
NSO estimates real GDP growth at 6.4% for FY25, growth to pick up in H2, registering a 6.8% rise compared with 6.0% in H1.
India’s CPI inflation eased to 5.22% in December vs. 5.48% in November.
Repo rate remains unchanged at 6.5% for eleventh consecutive meeting; slashed CRR by 50 bps to 4%.
Private consumption is expected to emerge as the primary driver of growth (7.3% yoy in current fiscal vs. 4.0% last fiscal), spurred by a recovery in rural demand attributable to better agricultural prospects.
Source: Research Reports
MPC: Monetary Policy Committee CRR: Cash Reserve Ratio NSO : The National Statistical Office
4
Sectoral Update Q3 FY25
Zone
I
C
H
R
Key drivers
North
Central
East
West
South
✓ Housing segment registered growth in both rural and urban areas. ✓ Infrastructure segment registered degrowth on account of pollution control measures taken in Delhi and surrounding regions,
projects on hold due to farmers agitation in Punjab and completion of major projects like RRTS.
✓ Commercial segment registered overall growth.
✓ Housing segment registered growth across regions except Prayagraj which faced restrictions on heavy vehicles movement
owing to Kumbh Mela preparations.
✓ Infrastructure segment demand was supported by various NHAI projects, Jabalpur Ring Road, Prayagraj railway station, Boras
Dam etc.
✓ Commercial segment registered overall growth. ✓ Housing segment registered strong growth across regions except Odisha due to cyclone Dana. ✓ Infrastructure segment demand was stable. Shortage of sand and aggregates, assembly election in Jharkhand impacted the
momentum.
✓ Commercial segment registered growth across region. ✓ Maharashtra: Infrastructure registered degrowth on account of lower fund flows due to assembly elections in Maharashtra. ✓ Housing segment registered growth in both rural and urban areas. ✓ Commercial segment registered strong growth across all regions. ✓ Gujarat: Housing segment demand remained flat. ✓ Infrastructure segment registered degrowth on account of extended monsoon, strike by aggregate manufacturer, non-
availability of labour due to festivities. ✓ Commercial segment demand was muted.
✓ Housing registered slow growth across regions owing to extended monsoon, cyclone impacting demand in Tamil Nadu, some
parts of Telangana and Andhra Pradesh.
✓ Infrastructure demand was lower on account of issues related to fund allocation and floods impacting construction activities. ✓ Commercial segment demand was fairly good.
I: Infrastructure, C: Commercial, H: Housing, R: Rural
NHAI : National Highway Authority of India RRTS : Regional Rapid Transit System
5
02 Business Update
UltraTech is the largest supplier of cement for the Ahmedabad-Gandhinagar Metro (Phase II).
Highlights : Q3
Domestic sales volume grew 10.5% yoy and 9% qoq.
Trade volume grew 12.5% yoy and rural sales volume grew 13% yoy.
Domestic operating EBITDA/Mt of ₹ 964, higher by ₹ 232/Mt qoq.
The India Cements Limited (ICEM) has become a subsidiary of the Company with effect from 24th Dec, 2024. ICEM’s grey cement capacity is 14.45 mtpa.
Green Power Mix of 33.4%, an improvement of 39% yoy, includes WHRS power mix of 19.9% and RE Power Mix of 13.5%.
Premium product mix of 26.5%, up 15% yoy.
UBS outlets increased to 4,432 contributing 19.5% of domestic grey sales volume.
7
ReadyMix Concrete (RMC): Q3 FY25
UltraTech’s RMC Plants Network
348
78 YoY
140
15 YoY
Number of Plants
Number of Cities
3.17
14% YoY
1,469
14% YoY
Volume (Mn m3)
Revenue (₹ Crores)
40%
ROCE%
8
Sales Performance Overview : Q3 FY25
34.6%
65.4%
18.1%
81.9%
74%
24%
58.9%
41.1%
2%
Trade %
Non Trade %
Bag Sales %
Bulk Sales %
Road
Rail
Sea
Direct Sales
Depot Sales
9
Organic growth plans on track
Particulars
Unit Project
Timelines
Particulars
Unit
Project
Cement Capacity (Mtpa)
140.8
GU
IU
GU
IU
GU
GU
GU
GU
GU
IU
BT
BT
G
G
B
B
B
B
B
B
B
B
G
B
2.7
2.7
0.4
1.8
1.2
0.6
0.6
0.6
0.6
4.5
1.8
1.0
Commissioned
Commissioned
Commissioned
Commissioned
Commissioned
Commissioned
Q4 FY25
Q4 FY25
Q4 FY25
Q4 FY25
Q4 FY25
Q4 FY25
To be commissioned in FY26
Patratu, Jharkhand Shahjahanpur, Uttar Pradesh Nathdwara, Rajasthan Dhule, Maharashtra Visakhapatnam, Andhra Pradesh Parli, Maharashtra
GU GU IU GU GU GU
To be commissioned in FY27
Aligarh, Uttar Pradesh Bihar West Bengal APCW, Andhra Pradesh Andhra Pradesh Gujarat Karnataka Assam Tamil Nadu Capacity addition in FY26 and FY27
GU GU GU IU IU BT BT BT BT
B G B B G B
B G G B G G G G G
Cement Capacity (Mtpa)
2.5 1.8 1.2 1.8 3.3 1.2
2.7 3.3 3.3 2.7 2.7 1.2 1.2 1.2 1.8 26.5
Capacity as at Mar-24
Karur, Tamil Nadu
4 2 ’ c e D
l l i
T
Kukurdih, Chhattisgarh
Jharsuguda, Odisha
APCW, Andhra Pradesh
Arakkonam, Tamil Nadu
Kukurdih, Chattisgarh
Karur, Tamil Nadu
Sonar Bangla, West Bengal
Durgapur, West Bengal
Maihar, Madhya Pradesh
Lucknow, Uttar Pradesh
Panvel, Maharashtra
Capacity addition in FY25 (Excl. BT)
15.7
G : Greenfield, B : Brownfield, GU : Grinding Unit, IU : Integrated Unit, BT : Bulk Terminal
10
UltraTech: marching ahead
Grey cement capacity (Mtpa) – India
Grey Cement Capacity in India (mtpa)
182.8
194.6
140.8
209.3
Zones
FY24
Added till Dec’24
Further Plan FY25
Kesoram*
FY26
FY27
Total
North
Central
East
West
South
33.3
28.4
27.6
31.1
20.5
All India
140.8
Overseas
5.4
Overall
146.2
1.5
3.7
1.1
18.7
25.0
4.5
1.2
0.6
6.3
10.8
10.8
3.0
2.7
2.5
3.0
3.3
11.8
6.6
5.4
14.7
FY24
FY25
FY26
FY27
*Pending regulatory approval for transfer of mines
Spread over 82 locations across the country by FY27
40.5
32.9
41.6
35.2
59.2
209.3
5.4
214.7
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M&A Update
• Image will be placed
Inorganic growth
12
India Cements Limited - Cement Business Overview
S No Plants
State
1
2
3
4
5
Sankari
Sankarnagar
Dalavoi
Chennai
Vishnupuram
6 Malkapur
Tamil Nadu
Tamil Nadu
Tamil Nadu
Tamil Nadu
Telangana
Telangana
7
8
9
Chilamkur
Andhra Pradesh
Yerraguntla
Andhra Pradesh
Banswara
Total
Rajasthan
Clinker (Mtpa) 0.50
Cement (Mtpa) 0.86
1.40
1.20
-
2.86
2.24
1.50
0.66
1.09
2.05
1.85
1.10
2.50
2.40
1.46
0.73
1.50
11.45
14.45
Integrated Unit
Grinding Unit
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Transaction update : India Cements Limited
Cement Capacity
Enterprise Valuation
Equity Value as on 24th December, 2024
Add: Net Debt
14.45 Mtpa
100% Enterprise Value (EV)
₹ Crs
11,198
877
12,075
Enterprise Value
$ 98 / Mt
EV will be adjusted down further after completion of divestment of non core assets
USD /INR : 85.178 as of 24th December 2024
14
Transaction update: Kesoram
• Awaiting mines transfer approval from state authorities of
Telangana and Karnataka.
• Financials of Kesoram Cement will be consolidated with
UltraTech with retrospective effect from 1st April, 2024 -
appointed date of merger as per the NCLT approved scheme
of arrangement.
15
UltraTech’s Capacity in southern states post acquisitions
Grey Cement Capacity (Mtpa) in Southern States
States
Tamil Nadu
Andhra Pradesh
Telangana
Karnataka
South
Existing Capacity
India Cements
Kesoram*
Total Capacity
6.40
12.40
7.35
26.15
5.86
2.19
4.90
12.95
12.26
14.59
6.65
16.35
49.85
1.75
9.0
10.75
*Pending regulatory approval for transfer of mines
16
Transaction update: Star Cement Limited
Acquired non-controlling financial stake equivalent to
8.42% of equity share capital of Star Cement Limited
at a total cost of ₹ 776 Crs
17
02 ESG Update
During the quarter, the Company helped 50,000+ people, meet their essential water needs in Andhra Pradesh.
ESG : Key trends
69.6%
69.2%
70.1%
1.44
1.46
63.0%
1.41
1.30
FY14
FY23
FY24
9M FY25
Blended Cement Mix
FY14 Clinker to Cement Conversion Factor
FY23
FY24
9M FY25
759
632
556
* 551
FY06
FY17
FY24 9M FY25 Scope 1 Net CO2 Emission [kg CO2/t cement]
462
FY32 Target
*Unaudited
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ESG : Green Power Roadmap
Waste Heat Recovery System
24%
25%
Renewable Power
21%
19%
20%
324
358
468
500
16%
278
6%
85
1%
10
7%
612 MW
13%
752 MW
13%
1 GW
60%
38%
2 GW
26%
1.6 GW
FY19
FY24
Dec'24
FY25
FY26
FY27
FY30
FY19
FY24
Dec'24
FY25
WHRS (MW)
WHRS %
RE Power
FY26 RE Power %
FY27
FY30
20
ESG : UltraTech’s Sustainability Goals
Decarbonization Net Zero emissions by 2050
EP 100 initiative UltraTech has doubled its energy productivity from base year of 2010, way ahead of its target year 2035
Water Stewardship 5 times water positive
Biodiversity and Land use ‘No net loss’ approach
RE 100 initiative 85% green power in total mix by 2030 and 100% RE by 2050
Circular Economy
A sustainable solution towards urban, industrial and agricultural waste management
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Consistent efforts towards sustainability
UltraTech leverages inland waterways
To deploy 100 + EV trucks in logistics operations
UltraTech conducted a pilot project to transport mineral gypsum using inland waterways through the National Waterway (Ganga-Bhagirathi- Hooghly river system). This makes UltraTech the first cement company in India to utilize the waterway for large-scale gypsum transport. The gypsum was shipped from Haldia port in West Bengal to the Gaighat terminal in Patna, Bihar, for use at UltraTech’s Grinding Unit - Patliputra Cement Works. This initiative aims to reduce carbon emissions, decongest roads and railways, and aligns with the Government of India's Cargo Movement policy under the Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047.
UltraTech has signed a contract to deploy around 100 electric trucks for transporting 75,000 MT of clinker monthly from its Dhar Cement Works in Madhya Pradesh to Dhule Cement Works in Maharashtra, covering a 400 km roundtrip. This makes UltraTech the first cement company in India to use electric trucks on such a large scale for long-distance transportation. The switch to electric trucks is expected to reduce transport emissions by 17,000 MT of CO2 annually. The Company also operates over 500 CNG/LNG trucks in collaboration with logistics partners.
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CSR in Action
Rajpura Cement Works
Education out-reach this quarter 21,739 students
Kukurdih Cement Works
32,730 children benefitted from the immunization program conducted
Andhra Pradesh Cement Works 7,689 people gained skills at various plant locations; to boost employability and entrepreneurship
Nathdwara Cement Works
Village infrastructure strengthened in nearby villages at various plant locations
23
04 Financial Performance
24
Sales Volume
Particulars
Q3 FY25
Growth (YoY)
Volume in Million tons Growth (QoQ)
Grey Cement - Domestic
28.10
10.5%
Cement Export
White Cement
0.20
0.51
41%
6%
Sales Volume - India
28.81
10.6%
Overseas
Consolidated Sales Volume*
ReadyMix Concrete (348 plants) (Mn M3)
1.78
30.37
3.17
29%
11%
14%
9%
-9%
12%
9%
8%
9%
6%
*After elimination of inter-company sales volume and excluding India Cements sales volume
25
Revenues
Particulars
Grey Cement - Domestic
Cement Export
White Cement
ReadyMix Concrete (RMC)
Building Products
Overseas
Q3 FY25
13,969
76
641
1,469
231
884
Growth (YoY)
-0.1%
37%
-1%
14%
26%
35%
Total Consolidated Revenues*
16,971
3%
₹ Crores Growth (QoQ)
11%
-8%
22%
5%
8%
6%
11%
* After elimination of inter-company sales and including India Cements sales of Rs 78 Crs for 7 days.
26
Profitability
EBITDA (₹ Crores)
3,395
-8% YoY
2,239
3,131
1,777
PAT (₹ Crores)
-17% YoY
1,470
820
Q3FY24
Q2FY25
Q3FY25
Q3FY24
Q2FY25
Q3FY25
Including 7 days performance of India Cements Limited
27
Sales Realisation (Grey Cement)
t n e m e C y e r G c i t s e m o D
) t
M / ₹ ( n o i t a s i l
a e R
5,499
4,901
4,970
Realisation
Q3FY24
Q2FY25
Q3FY25
➢ Realisation declined 9.6% yoy and improved 1.4% qoq.
Realisation = Selling Price less GST and Discounts
28
Key Cost Indicators (Grey Cement): Q3 FY25
% of total costs
₹ / Mt
Logistics
29%
1,161
Fuel
21%
883
Power
10%
402
Raw Materials
15%
633
5% decline yoy and 2% qoq
16% decline yoy
and 6% qoq
5% decline yoy
and flat qoq
Flat yoy and 1% decline qoq
Domestic Operations excluding India Cements
29
Logistics Cost (Grey Cement)
) t
M / ₹ (
t s o c
s c i t s i g o L
100
Q3 22
1,221
1,191
1,161
yoy costs decrease: 5%
➢ Lead distance reduced to 377 kms in Q3FY25 vs. 397 kms in Q3FY24.
Q3FY24
Q2FY25
Q3FY25
Logistics cost v/s Diesel price index
qoq costs decrease: 2%
99
99
97
97
97
95
Diesel Prices (index)
Logistics Cost (index)
Q3 24
Q2 25 Q3 25
➢ Benefit on account of improved operating efficiencies
Domestic Operations excluding India Cements
30
Fuel Cost (Grey Cement)
1,052
938
883
) t
M / ₹ (
t s o c
l
e u F
Q3FY24
Q2FY25
Q3FY25
qoq cost decrease: 6% and yoy cost decrease: 16%
➢ Blended imported fuel consumption (CV: 7500) at
$ 125/t; 6% lower qoq and 17% lower yoy.
2.05
2.03
2.00
1.84
1.76
Q3 24
Q2 25
Q3 25
58%
54%
44%
36%
37%
Q3 24
Q2 25
Q3 25
*
l
a c K / ₹ : e t a R
l
e u F
% x i M n o i t p m u s n o C e k o c t e P
Domestic Operations excluding India Cements
* Fuel Rate ₹/Kcal = Cost per Mt/Net CV (Net off moisture consumed at plant)
31
Power Cost (Grey Cement)
424
400
402
yoy cost decrease: 5%
➢ Green Power Mix has increased to 33.4% vs. 24.1% in
Q3FY24.
➢ Efficiency improvement.
Q3FY24
Q2FY25
Q3FY25
Green Power Mix (%)
32.0% 33.4%
qoq cost : flat
24.1%
Q3 24
Q2 25 Q3 25
➢ Green Power Mix increased to 33.4% vs. 32.0% in
Q2FY25.
) t
M / ₹ (
t s o c
r e w o P
15.6%
Q3 22
Domestic Operations excluding India Cements
32
Raw Material Cost (Grey Cement)
) t
M / ₹ (
t s o c
l
a
i r e t a M w a R
100
Q3 22
631
640
633
Q3FY24
Q2FY25
Q3FY25
Raw Material Cost index
➢ Clinker conversion ratio at 1.45 vs. 1.43 in Q3FY24
qoq cost decrease: 1% and yoy flat
112
103
102
113
113 108 105 101
100
Q3 24
Q2 25 Q3 25
Fly ash
Limestone Raising
Gypsum
Domestic Operations excluding India Cements
33
Other Costs
849
858
784
) t
M / ₹ (
t s o c
r e h t O
100
Q3 22
Q3FY24
Q2FY25
Q3FY25
WPI index
108
110
109
Q3 24
Q2 25 Q3 25
Cost decrease: 9% qoq, 8% yoy
➢ Operating leverage benefit. ➢ Higher plant maintenance in Q2FY25.
Domestic Operations excluding India Cements
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Operational Performance: Q3 FY25
Q3FY24
Standalone 15,882 252 140 16,275
Consolidated* 16,487 253 140 16,880
2,297 406 (253) 737 4,003 3,581 2,214 12,985 3,289 1,208
2,506 378 (228) 769 4,178 3,621 2,262 13,485 3,395
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
Q3FY25
Standalone 16,102 226 206 16,535
Consolidated* 16,971 223 244 17,438
2,467 635 (89) 786 3,746 3,745 2,260 13,550 2,984 964
2,768 636 (108) 850 3,980 3,811 2,369 14,306 3,131
*After elimination of inter company transactions and including 7 days performance of India Cements Limited
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Financial Statement: Q3 FY25
Q3FY24
Standalone
Consolidated*
Particulars
15,882
3,289
237
754
580
-
-
16,487
Net Sales
3,395
EBITDA
262
783
580
6
(2)
Finance Costs
Depreciation and Amortization
Tax expenses
Share of Profit from JVs & Associates
Minority interest
1,718
1,777
PAT
223
EPS (₹) (basis trailing 12 months)
₹ Crores
Q3FY25
Standalone
Consolidated*
16,102
2,984
342
857
352
-
-
1,434
16,971
3,131
382
917
358
(1)
4
1,470
217
*After elimination of inter company transactions and including 7 days performance of India Cements Limited
36
Financial Position
Particulars
Net Fixed Assets^ Non-Current Investments (Includes funds earmarked for open offer of ICEM) Net Working Capital
Total Assets
Shareholders Fund (Incl. Minority Interest)
Gross Debt
Less: Treasury Surplus
Net Debt
Deferred Tax Liability
Total Equity and Liabilities
₹ Crores
Standalone
Mar-24
68,458
2,221
(4,588)
66,091
59,095
8,087
7,516
571
6,425
66,091
Dec-24
72,601
12,842
(1,780)
83,663
61,616
19,384
4,101
15,283
6,764
83,663
^Includes goodwill and asset held for sale
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Branding Excellence
UltraTech named Brand of the Year at ET Brand Equity DigiPlus Awards 2024
UltraTech takes the podium at the Afaqs! Foxglove Awards 2024
➢ UltraTech bagged four gold and six trophies across three
campaigns, including two special awards at ET brand equity digiplus awards.
➢ Competing at the national level with 100+ brands across categories, we won two silver and a bronze trophy in the content marketing domain.
➢ Company won awards across several categories including digital campaigns, mobile marketing, content marketing, industry and special awards.
➢ Winning across categories includes Innovative Content
Strategy, Best Use of Search Engine Optimisation, and Best Use of Data Analytics, our Company’s success is a testament to its evolving digital consumer outreach.
The awards acknowledge India’s growing influence on the global digital marketing scene and honours outstanding work that drives compelling brand narratives.
Afaqs! Foxglove is one of India's biggest advertising awards, recognizing brands and agencies for innovation and creativity in digital and content marketing.
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Revolutionizing Retail and earning Industry Honors
UltraTech felicitated at the e4m Pitch Top 50 Brands 2024
UltraTech was announced as a winner in the ‘Evergreen’ category, focusing on established brands that have adapted to changing trends and consumer preferences.
e4m is India's most prestigious marketing awards that showcase brands that are shaping the future of consumer engagement and business growth.
Breaking old records, creating new: UBS redefines retail expansion
UBS created a record of opening 150 stores in a single day at the same time, which is approximately 1 store every 9.6 minutes. The stores were inaugurated in the North Zone across 135 locations across Delhi, Haryana, Madhya Pradesh, Rajasthan, Himachal Pradesh, Jammu & Kashmir, Punjab, Uttar Pradesh, Uttarakhand. This got recognition from both the ‘Asia Book of Records’ and the ‘India Book of Records.
During the digital launch UltraTech’s two products were also showcased: Weather Pro Top- Shield and UltraTech BituPro DPC Coating.
This is the second such extensive launch by the UBS team. In March 2024, UBS made history by digitally inaugurating 75 UBS stores spanning 47 locations across Rajasthan, Madhya Pradesh, and Haryana in a single day.
The current expansion has solidified UBS’s position as the nation's largest pan-India multi-category retail chain catering to individual home builders (IHBs). These stores cater to urban customers as well as consumers residing in villages and talukas. Nearly 60% of the UBS stores are in villages and small towns to tap into the rising demand for housing in rural India.
39
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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