HeidelbergCement India Limited has informed the Exchange regarding Investor Presentation
HEIDELBERGCEMENT
HeidelbergCement India Limited CIN: L26942HR1958FLC042301 Registered Office 9th Floor, Infinity Tower "C", DLF Cyber City, Phase-II, Gurugram, Haryana 122002, India Phone +91-124-4503700 · Fax +91-124-4147698 Website: www.mycemco.com
4th June 2019
Listing Department, National Stock Exchange of India Ltd Exchange Plaza, C/1, Block G, Sandra Kurla Complex, Sandra (E) Mumbai - 400 051
HCIL:SECTL:SE:2019-20
BSE Ltd. Listing Department Phiroze Jeejeebhoy Towers Dalal Street, Fort, Mumbai - 400001
Scrip Code:500292
Trading Symbol: Heidelberg
Dear Sir,
Sub: Presentation for Conference Call - Regulation 30(6)
This has reference to our letter dated 24th May 2019 sent earlier informing about conference. call being organised by PhillipCapital (India) Pvt. Ltd. Further to our aforesaid letter please find attached a presentation to be made to analysts and the institutional investors at the conference call scheduled today.
After the conference call, a transcript of the discussion shall also be posted on the website of the Company, www.mycemco.com for information of the investors.
Thanking you,
Yours faithfully, For HeidelbergCement India Ltd.
� Rajesh� Legal Head & Company Secretary
Encl.: a.a
HeidelbergCement India Limited (HCIL)
Q4FY19 and FY19 Investor Presentation
Bird’s-eye view of clinker plant at Narsingarh, Damoh
June 2019
Slide 1,
Jun’19
Cautionary Statement
Statements in this presentation, which describe the Company’s objectives, projections,
estimates, expectations or predictions, may be considered to be “forward-looking
statements” within the meaning of applicable Securities Laws and Regulations. These
statements are based on certain assumptions and expectations of future events. Actual
results could however materially differ from those expressed or implied.
Important factors that could make a difference to the Company’s operations include global
and Indian political, economic and demand-supply conditions, finished goods prices, raw
materials cost and availability, cyclical demand and pricing in the Company’s principal
markets, changes in Government regulations, Policies, tax regimes, economic developments
within India besides other factors such as litigation and industrial relations as well as the
ability to implement strategies.
The Company assumes no responsibility to publicly amend, modify or revise any forward
looking statements, on the basis of any subsequent development, information or events or
otherwise.
Slide 2,
Jun’19
Index
1
Indian Cement Industry – trailing twelve months
2 HCIL – FY19 financial and operational highlights
3 HCIL – Annual sales volumes and utilization trend
4 Q4FY19 and FY19 – Income statement
5 Q4FY19 and FY19 – EBITDA per tonne bridge
6 Q4FY19 – Share of volume
7 Balance sheet
8 Debt and repayment profile
9 Credit rating
10 Q4FY19 Awards and accolades
11
ISO Certification
12 Outlook
Slide 3,
Jun’19
1
Indian Cement Industry – trailing twelve months
All India installed cement capacity estimated to be c. 480 Mn T as at Mar’19. Cement Industry reported production volume growth of 13% in last twelve months driven by growth in
infrastructure and rural housing.
During FY19, Cement Industry operated at an average utilization of c. 70%.
All India Monthly Cement Production (Mn T)
+22%
+13%
+14%
28.5
27.8
28.8
24.6
25.2
23.4
+11%
+15%
+12%
+18%
28.4
+9%
26.0
25.7
25.6
23.4
22.4
22.9
24.0
24.0
26.1
25.9
FY18
FY19
+12%
+11%
+8%
+16%
33.1
28.9
29.9
26.9
26.4
28.5
28.6
Apr
May
June
July
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Slide 4,
Jun’19
Source: Cement Section, Department of Industrial Policy & Promotion – Cement Production
2
HCIL – FY19 financial and operational highlights
Zero Lost Time Injury (LTI)
Zero Fatality
Utilization > 90%
100% blended cement
Premium product volume increased 19% y/y
EBITDA of ₹ 987 per tonne increase of 26% y/y
INR ECB of ₹ 1,500 Mio repaid; Received interest free loan of Mio ₹ 687 from UP Govt.
Phase 1 of de-bottlenecking project completed
Continue to operate on –ve Net Working Capital
Net debt at Mar’19 Mio ₹ 2,669
Net Debt to EBITDA at 0.55x
Board recommended dividend of ₹ 3 per share (30%); interim dividend of ₹ 1 per share (10%) distributed during FY19
Slide 5,
Jun’19
2
HCIL – FY19 financial and operational highlights
Highest ever Annual
Slide 6,
Jun’19
3
HCIL – Annual sales volumes and utilization trend
Vol (Mn T)
+5.3%
Utilization %
4.90
4.85
4.80
4.75
4.70
4.65
4.60
4.55
4.50
4.45
4.40
0.05
0.00
Slide 7,
Jun’19
4.42
82
FY15-16
4.90
91
+3.8%
4.65
86
+1.4%
4.48
83
FY16-17
FY17-18
FY18-19
Utilization % (RHS)
Cement sales volume (Mn T)
91
90
89
88
87
86
85
84
83
82
0
4
Q4FY19 and FY19 – Income statement
Particulars
Total Income (net of taxes) Operating expenses EBITDA Depreciation/amortization Other Income EBIT Interest and financial charges Profit Before Tax Tax Expenses Profit After Tax
Quarter ended
Mar 2019 Mar 2018 5,313 4,112 1,202 254 58 1,005 172 833 312 521
5,434 4,185 1,249 254 115 1,110 160 949 340 609
Change
2% 2% 4% 0% 99% 10% -7% 14% 9% 17%
FY ended
Mar 2019 Mar 2018 18,895 15,261 3,634 1,012 199 2,821 745 2,077 745 1,332
21,334 16,500 4,833 1,018 348 4,164 748 3,416 1,210 2,207
Mio ₹
Change
13% 8% 33% 1% 75% 48% 0% 64% 62% 66%
KPIs Sales Volume (KT) Gross realization (INR/t) Total Cost (INR/t) EBITDA (INR/t) EBITDA % of revenue PAT % of revenue
Slide 8,
Jun’19
1,211 4,416 3,456 1,032 23.4% 11.4%
1,270 4,136 3,236 946
-4.7% 6.8% 6.8% 9.1% 22.9% 49 bps 9.9% 147 bps
4,897 4,308 3,370 987 22.9% 10.5%
4,653 3,999 3,280 781
5.2% 7.7% 2.7% 26.4% 19.5% 338 bps 7.2% 330 bps
5
EBITDA per tonne bridge: Q4FY18 to Q4FY19
23
+9%
112
3
56
1,032
280
t
r e p ₹
946
Mar’18Q
GSR
Raw Material Power & Fuel
Freight
Others*
Mar’19Q
Note: Change in inventory has been apportioned equally on Raw Material and Power and Fuel expenses. *Other expenses include other operating income, employee cost and miscellaneous expenses.
1,270
1,211
-4.7%
Total cost per ton is higher mainly due to increase in coal and
Petcoke price and fly ash cost over last year; increase has been
partially offset by lower power consumption and lower bag price
Q4FY18
Q4FY19
Increase in others is primarily due to decrease in volume
Sales Volume (KT)
Slide 9,
Jun’19
5
EBITDA per tonne bridge: FY18 to FY19
13
+26%
57
19
13
987
309
t
r e p ₹
781
FY18
GSR
Raw Material
Power & Fuel
Freight
Others*
FY19
Note: Change in inventory has been apportioned equally on Raw Material and Power and Fuel expenses. *Other expenses include other operating income, employee cost and miscellaneous expenses.
4,897
4,653
+5.2%
Increase in EBITDA primarily driven by increase sale price and
FY18
FY19
Sales Volume (KT)
Slide 10, Jun’19
partially off-set by increase in total cost.
The Company controlled its variable and fixed cost
through
concentered
efforts
across
various
aspects
including
consumption parameters.
6
Q4FY19 – Share of volume
54% road volume, +1070 bps y/y
40% Coal, +1046 bps y/y
>10% of trade volume, +31% y/y
85% Trade sales, +528 bps y/y
Slide 11, Jun’19
7
Balance sheet
Particulars
Assets Non-current assets a) Property, plant and equipment b) Capital work-in-progress c) Intangible assets d) Financial assets
(i) Security deposits (ii) Derivative instruments e) Other non-current assets
Current assets a) Inventories b) Financial assets
(i) Security deposits (ii) Derivative instruments (ii) Trade receivables (iii) Cash and bank balances (iv) Other financial assets
c) Other current assets
Total assets
31 Mar 2019 Mio ₹
31 Mar 2018 Mio ₹
17,363 172 6
285 - 255 18,081
18,044 81 17
285 - 294 18,720
1,674
1,269
Particulars
Equity and liabilities Equity a) Equity share capital b) Other equity
Non-current liabilities a) Financial liabilities
(i) Borrowings (ii) Other financial liabilities
b) Provisions c) Government grants d) Deferred tax liabilities (net)
Current liabilities a) Financial liabilities (i) Trade payables
145 - 253 3,377 27 3,398 8,874 26,955
107 - 188 2,124 19 2,901 6,608 25,328
-Total outstanding dues of micro enterprises and small enterprises -Total outstanding dues of creditors other than micro enterprises and small enterprises
(ii) Other financial liabilities
b) Other current liabilities c) Government grants d) Provisions
Total liabilities Total equity and liabilities
31 Mar 2019 Mio ₹
31 Mar 2018 Mio ₹
2,266 9,446 11,712
3,918 41 197 650 1,303 6,110
1
2,777
3,045 822 145 2,342
9,133 15,243 26,955
2,266 8,198 10,464
4,692 54 196 512 835 6,289
-
2,266
3,122 896 103 2,189
8,575 14,864 25,328
Entire INR ECB of ₹ 1,500 Mio repaid during FY19; As at Mar’19, Net debt reduced to Mio ₹ 2,669 and Net Debt to EBITDA at 0.55x
Slide 12, Jun’19
8
Debt and repayment profile
6,859
₹ o M
i
₹ o M
i
1,500
687
Mar’18
Repayment
Additions Interest free loan
Debt maturities
2,346
6,046
Mar’19
6,046
1,250
1,250
1,200
Non Convertible Debentures
3,700
2019
2020
2021
2022
beyond 2022
Interest free loan
2,346
Mar’19
With the help of interest free loan, average interest cost reduced to 6.36% p.a.
Slide 13, Jun’19
9
Credit rating
Slide 14, Jun’19
10
Q4FY19 Awards and accolades
Patharia Mines awarded 5 Star Rating
Patharia Mines - first prize in Fire Safety provisions & organizations in Jabalpur Region
Patharia Mines – second prize in use of explosives and dust suppression in Jabalpur Region
Patharia Mines – second prize in standard of working in Jabalpur Region
Patharia Mines – second prize in Electrical Installations & ore handling plant in Jabalpur Region
Patharia Mines – awarded Third in Overall Performance in Jabalpur Region
Slide 15, Jun’19
11
ISO Certification
All HCIL locations are certified for following ISO standards:
ISO 9001:2015 - Quality Management System ISO 14001:2015 - Environment Management System ISO 45001:2018 - Occupational Health and Safety Management System ISO 50001:2011 - Energy Management System
Slide 16, Jun’19
12
Outlook
Positives:
Cement demand is likely grow ~7% in calendar year 2019. Demand is likely to be driven
by growth in infrastructure and affordable housing.
Stability in Govt. will increase the speed of investments in infrastructure projects i.e.
concrete roads, railways, metros, civil aviation, irrigation, mega Industrial and freight
corridors etc.
Reduction in GST rates in Real Estate and benefits in home loan to drive Demand in
Urban India.
Monsoon: India Meteorological Department (IMD) forecast normal monsoon.
Concerns:
Increase in crude prices: negative for the economy and Cement Industry – imported fuel
prices, diesel cost, bags costs etc.
Hardening of compliance norms.
Slide 17, Jun’19
Safety is our foremost priority
Slide 18, Jun’19