HeidelbergCement India Limited has informed the Exchange regarding Investor Presentation
ilEIDELBERGCEMENT
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
31st July 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 30th July 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 Relan Legal Head & Company Secretary
Encl.: a.a
HeidelbergCement India Limited (HCIL)
Q1FY20 Investor Presentation
Bird’s-eye view of clinker plant at Narsingarh, Damoh
July 2019
Slide 1,
Jul’19
Cautionary Statement
(cid:1) 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.
(cid:1) 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.
(cid:1) 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,
Jul’19
Index
1
Indian Cement Industry – trailing twelve months
2 HCIL Quarterly Volumes – trailing twelve months
3 HCIL – Q1FY20 financial and operational highlights
4 Q1FY20 – Income statement
5 Q1FY20 – EBITDA per tonne bridge
6 Q1FY20 – Share of volume
7 Outlook
Slide 3,
Jul’19
1
Indian Cement Industry – trailing twelve months
(cid:1) All India installed cement capacity estimated to be c. 480 Mn T as at Jun’19. (cid:1) Cement Industry reported production volume growth of 11% in last twelve months driven by growth in
infrastructure and rural housing.
(cid:1) During FY19, Cement Industry operated at an average utilization of c. 70%; FY20 has started on low
capacity utilization.
All India Monthly Cement Production (Mn T)
+14%
28.8
25.2
+11%
+15%
+12%
23.4
26.0
25.7
25.6
22.4
22.9
+18%
28.4
24.0
24.0
+12%
+11%
+8%
+9%
Pr. Yr.
Cu. Yr.
+16%
33.1
+2%
+3%
28.9
29.9
26.9
26.4
26.1
25.9
28.5
28.6
28.5
29.2
27.8
28.6
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Slide 4,
Jul’19
Source: Cement Section, Department of Industrial Policy & Promotion – Cement Production
2
HCIL Quarterly Volumes – trailing twelve months
+6%
1.29
-5%
1.27
-1%
1.27
1.26
1.22
1.21
+4%
+6%
1.12
1.06
Sep’17Q Sep’18Q
Dec’17Q Dec’18Q
Mar’18Q Mar’19Q
Jun’18Q Jun’19Q
c.2% volume growth in trailing twelve months
Slide 5,
Jul’19
3
HCIL – Q1FY20 financial and operational highlights
Zero Lost Time Injury (LTI)
Capacity utilization > 90%
Zero Fatality
100% blended cement
mycem power (Premium product) volume increased 53% y/y
>13% of trade volume
Net debt as at Jun’19 Mio ₹ 797
Net debt to TTM EBITDA at 0.15x
Slide 6,
Jul’19
EBITDA of ₹ 1,253 per tonne, increase of 33% y/y
Continue to operate on negative Net Working Capital
3 HCIL – Q1FY20 financial and operational highlights
Highest ever Quarterly
Slide 7,
Jul’19
4
Q1FY20 – 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 Jun 2019 Jun 2018 5,402 4,209 1,193 255 69 1,008 219 789 278 511
5,892 4,316 1,577 279 118 1,416 198 1,218 428 790
Mio ₹
Change
9% 3% 32% 9% 70% 41% -10% 54% 54% 55%
KPIs Sales Volume (KT) Gross realization (INR/t) Total Cost (INR/t) EBITDA (INR/t) EBITDA % of revenue PAT % of revenue
Slide 8,
Jul’19
1,258 4,629 3,430 1,253 27.1% 13.6%
1,267 4,236 3,321 942
-0.7% 9.3% 3.3% 33.0% 22.2% 484 bps 9.5% 405 bps
5
EBITDA per tonne bridge: Q1FY19 to Q1FY20
54
+33%
25
20
22
1,253
392
e n n o
t
r e p ₹
942
Jun’18Q
GSR
Raw Material
Power & Fuel
Freight
Others*
Jun’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.
1,267
1,258
-0.7%
Total cost per tonne is higher mainly due to
increase in raw materials and fuel cost which has
been partially offset by lower logistics cost
Q1FY19
Q1FY20
Sales Volume (KT)
Slide 9,
Jul’19
6
Q4FY19 – Share of volume
45% road volume, flat y/y
40% Coal, -170 bps y/y
>13% of trade volume, +53% y/y
86% Trade sales, +305 bps y/y
Slide 10, Jul’19
7
Outlook
Positives:
(cid:1) Cement demand is likely to grow in mid single digit in calendar year 2019.
(cid:1) 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.
(cid:1) Reduction in interest rates – benefit for home buyers / builders
(cid:1) Stability of Brent crude and INR against USD
Concerns:
(cid:1) Liquidity situation may affect growth not only in cement but across sectors
(cid:1) Hardening of compliance norms
(cid:1) Lower rainfall, albeit monsoon gathered momentum in July
Slide 11, Jul’19
Safety is our foremost priority
Slide 12, Jul’19