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
13th February 2020
National Stock Exchange of India Ltd Listing Department, 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 6th February 2020 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.p
Rajesh Relan Legal Head & Company Secretary
Encl.: a.a
HeidelbergCement India Limited {HCIL)
"'e
��,x'f- � - rtds of €. �
Q3FY20 Investor Presentation
February 2020
i-lEIDELBERGCEMENT
Cautionary Statement
□ Statements in this presentation, which describe the Company's objectives, projections, to be "forward-looking
estimates, expectations or predictions, may be considered
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,
Feb'20
i-lEIDELBERCiCEMENT
Index
1 f I 1ndian Cement Industry - trailing twelve months
2 I HCIL Quarterly Volumes 3 l Q3FY20 - HCIL's Financial and operational highlights 41 Q3FY20 and 9mFY20 - Income statement s I Q3FY20 - EBITDA per tonne bridge 6 r Q3FY20 - Share of volume
7 I Capacity increase in Central India
8 I Outlook
Slide 3,
Feb'20
HEIDELBERCiCEMENT
[0 Indian Cement Industry - trailing twelve months
□ All India installed cement capacity estimated to be c. 495 Mn T. □ During calendar year 2019, cement Industry reported production volume growth
of 3.5%. The cement Industry operated at an average utilization of c. 68%.
All India Monthly Cement Production (Mn T)
2018 .2019
+8%J
I 33.1
0oJ0 � a f7 f7 T+ 27.8 28.6 28.8 28.3
28.5 29.2
.
s%
f.?
28.1 � f!? 28.4
1
I
1
26.0- 25. 7
24.5
25.6 25.1
!1··. <r?4
%
26.2 26.1
27.2
@ I�! 30.5
28·9
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Slide 4,
Feb'20 Source: Cement Section, Department of Industrial Policy & Promotion - Cement Production
HEIDELBERGCEMENT
[G HCIL Quarterly Volumes
�
1.29
1.22
ra,
1.2�+ 1.21
�
1.12
1.06
re.
1.26
1.27
�
1.12
1.13
1.� 1.22
Sep'17Q Sep'18Q Dec'17Q Dec'18Q Mar'18Q Mar'19Q Jun'18Q Jun'19Q Sep'18Q Sep'19Q Dec'18Q Dec'19Q
Decrease in Dec'19 volume due to clinker sale in Dec'18Q and marginal de-growth in Central and Southern region.
Cement capacity utilization > 90%; the Company continues to sell 100% blended cement.
Slide 5, Feb'20
HEIDELBERGCEMENT
Cl) E
::l -0 > Cl) "'C ca,_....
'+- 0 'cf!. <.0 �
...., C: (1) -ca ·-::::s >
C'" (1)
.c: en ca
(.) "'C C: ca
.c: en ca
(.)
Cl)
a,
.... .c "'C .... a, z .s::..... "'C a, "'C a, a, (.)>< a,
�.... ·--ca.... ca u.
0,_ a, N
"'C
"i: �C>u, C: <.0 oo Cl) .... o-c C: a, (1) en -c ca C: (1) a, ,_ a.(.) a, (1) "'C "'C ,_ ti) (1) J 3: -o(.) Q.
"'O c_
Cl) 1---cc·:; C·- "'O--= Eg ·.:::::.:.. So c� - "'d" Ottv NO>- ·- LL2 "'O I Cl) .....,�::::s 0 .c "'·- � �@) ·- C
C (..)z '+- 0 Cl) .s::.
(.) C:
ta,_....., ....., ,_ ·- -c ·- ta C. Cl) �
tzw �w u
� Ill m ..I w C
0·-.c
in � � Hv
0 f'I .0 Q)
�
Q. ::::s Cl)
E ::l -�o--- >�,_ � 0 Cl) 3:M oil) Q. E Cl) 0 � E
.-. - � ._.
�
::::s........ C: - a,
E·-I-.... en
0 ...I 0 a, N
■-
C>
C)
J!1 .c: ■--.c: .c: -ca ■-...., n:s'-
C 0
a, C. 0 -0 C
ca -ca
■- (.) C ca ·- C LL u,'°' ..J - 0 :::c I
[8 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
KPls Sales Volume (KT) Gross realization (INR/t) Total Cost (INR/t EBITDA (INR/t) EBITDA 0/4 of revenue PAT% of revenue
Change
Quarter ended Dec'19Q Dec'18Q 5,639 16,599 -3% _30/4 12,594 4,414 1,225 C.-2% J 4,005 50/4 254 811 357 12% 102 1,074 3,551 -3% 170 12% 576 904 2,975 -5%
9 months ended Dec'19Q Dec'18Q 15,900 12,315 3,584 763 233 3,054 588 2,467 869 1,598
5,485 4,285 1,200 268 114 1,047 190 857 211 646
1o ' 957 319 r -34 ° 586 '- 10% J 2,018 � --
.....
Miof
Change
a.0.0 2% 12% 6% 53% 16% -2% 21% 10 °/4 26%
1,223 4,467 3,503 981 22.0% 11.8%
1,294 4,316 3,412 947 21.9% 10.5 °/4 �
3,615 4,559 3,483 1,108 24.3 °/4 12.2%
3,686 4,273 3,341 972
-1.9% 6.7% 4.3% 13.9% 22.8% 153 b s 10.1% 210 bps
Slide 7, Feb'20
HEIDELBERCiCEMENT
[8 EBITDA per tonne bridge
29
Q) C:
Q) a.
947
210
981
Dec'18Q
GSR
Raw Material Power & Fuel
Freight
Others*
Dec'19Q
Note: Change in inventory has been apportioned 30% in Raw Material and 70% in Power and Fuel expenses. *Other expenses include other operating income, employee cost and miscellaneous expenses.
□ Saving in Power and Fuel due to lower Petcoke prices and increase in WHRS power generation. □ Increase in others on per tonne basis is mainly due to:
□ Decrease in volume by 5.4%. □ Lower other operating income mainly due to Non recognition of VAT incentive. □ Employee cost higher due to increase in provision for retirement benefits driven by change in the
discounting factor.
Slide 8,
Feb'20
HEIDELBERCiCEMENT
tz w � w u " � ILi m ..I ILi Q-l&I :t
a, LL
ai a,
ci5
G)
E ::s -0 > .... 0
G)
(a .c UJ a �
CG Proposed capacity increase in Central India
Caption
lmlai Plant (M.P.)
Jhansi Plant (U.P.)
Existing Capacity
2.00 Mio Tonnes
2.70 Mio Tonnes
FY19 Capacity Utilisation
94.5%
99.6%
Proposed capacity addition
0.50 Mio Tonnes
0.55 Mio Tonnes
Proposed capacity expected by
February 2020
March 2020
Investment required
f 63 Mio
f 144 Mio
Capacity utilization in Central India plants is nearing 100%.
The debottlenecking projects will increase the production capacity, improve operational efficiency and profitability.
HCIL's total capacity to increase to 6.26 Million tonnes per annum
Slide 10, Feb'20
HEIDELBERGCEMENT
[Goutlook
Positives: � □ Cement demand is likely to grow around mid single digit in calendar year 2020. □ Govt. allocation towards National infrastructure pipeline, Road transportation, low cost housing, Urban and Rural development, Railways, Highways, Airports, Power and
Renewable energy, industrial and dedicated freight corridors etc.
□ Multiple reduction in interest rates by RBI - benefit for home buyers/ builders
□ Stability of Brent crude is likely to help control fuel and diesel prices
• Concerns: [: ]
□ Decrease in economic activities - lower than expected GDP growth □ Weakness in economy may lead to depreciation of Indian Rupee
□ Liquidity situation may affect cement and other sectors; concerted efforts by the Govt.
Slide 11, Feb'20
HEIDELBERCiCEMENT
HeidelbergCement India Limited - Investor Relations
For additional information, please contact:
AmitAngra Email: amit.angra@heidelbergcement.in Tel: +91-124-4503-700 (B)
Address: HeidelbergCement India, 9th Floor, Infinity Tower C, DLF Cyber City, Phase 2, Gurugram, Haryana 122002, India
Website: www.mycemco.com
Slide 12, Feb'20
rlEIDELBERCiCEMENT
Bird's-eye view of clinker plant at Narsingarh, Damoh
HEIDELBERGCEMENT
for better building
Safety is our foremost priority
HE:IDELBERCiCEMENT