UltraTech Cement Limited has informed the Exchange about Investor Presentation
19th January, 2024
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
Dear Sirs
Sub: Investor Presentation for the quarter ended 31st December, 2023. Ref.: ISIN: INE481G01011
Dear Sirs,
Attached is an investor’s presentation on the performance of the Company for the quarter ended 31st December, 2023.
The same is for your information please.
Yours very truly,
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 Taking concrete actions for a sustainable future
Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX
Results Q3 FY24
01 Macro and Sectoral Update
02 ESG Update
03 Business Performance Update
04 Growth Plans
01 Macro and Sectoral Update
Hirmi Cement Works, Chhattisgarh revived a community pond located in the proximity of the Unit.
Macro Indicators
Overall GDP growth expected at 7.3% for FY24 supported by a
surge in
non-agriculture sectors.
For April- November 2023, IIP growth stood at 6.4 % as against 5.6 % in the first eight months of FY23.
CPI increased to 5.7% yoy in December v/s 5.6% yoy in November. The anticipated inflation stands at ~5% for Q4FY24 v/s average ~5.5% in YTD Dec-23.
Pre-election spending and thrust on infrastructure to remain key demand drivers in fiscal 2024.
4
Sectoral Update : Q3 FY24
Zone
Volume Gr
I
C
H
R
North
Central
East
West
South
Key drivers ✓ Housing segment registered de-growth in rural and urban owing to NGT ban, delayed kharif harvesting in Punjab, Haryana and Uttar Pradesh. Labour shortage on account of state elections impacted construction activities in Rajasthan. Himachal Pradesh registered growth.
✓ Commercial segment grew across the regions. ✓ Infrastructure segment growth momentum continued on account of road projects Delhi-Amritsar-Katra, Delhi Urban Extension Road, Jodhpur Road Project, Delhi Metro, Indore Metro, Jewar Airport, Delhi Meerut RRTS.
✓ Infrastructure segment growth momentum continued on account of Gorakhpur Link Expressway,
Kanpur Lucknow Expressway, Kanpur Metro, Ganga Expressway. Elections in Madhya Pradesh
✓ Housing and Commercial segment grew across the regions. ✓ Housing segment registered growth across the regions except Bihar. ✓ Infrastructure and Commercial segment demand adversely impacted due to festivities, shortage of
aggregates and sand.
✓ Rural demand fueled by release of pending arrears of last 2 years of harvest payment. ✓ Maharashtra: Infrastructure segment demand supported by ongoing projects: Mumbai Metro, Mumbai
Goa Expressway, new phase of Pune Metro.
✓ Commercial and Housing segment grew across all regions except Vidarbha. ✓ Gujarat: Housing and Commercial segment grew in rural and urban segments. ✓ Infrastructure segment growth relatively slower owing to following projects, viz. Ahmedabad Mumbai
High-Speed Railway, Deesa Airport, Rajkot Airport nearing completion.
✓ Infrastructure segment demand supported by ongoing projects : Bangalore-Chennai Expressway,
Ernakulam Road Project, Railway Bridge Road, Wadi.
✓ Commercial segment growth sustained by industrial and commercial activities across regions.
I: Infrastructure, C: Commercial, H: Housing, R: Rural
5
4.55x Water Positive
29.3 MnT* Alternative Raw Material and Fuel
02 ESG Update
24% Green Power Mix
* For FY23
Emission
560 [kg CO2/t cement]
Holistic Decarbonization Commitment
FY30
85%
FY26
60%
Q3 FY24
24%
UltraTech will use 85% green power by 2030
Our Company also targets to meet 100% of its electricity requirement through renewable sources by 2050, as part of its RE100 commitment. As a member of EP100, our Company is committed to double its energy productivity.
% Green Energy Mix
7
Sustainability across the value chain
Driving in the lane of green mobility, UltraTech has successfully piloted electric trucks for clinker transportation from Dhar Cement Works, Madhya Pradesh.
Demonstrates our focused efforts to drive sustainability across the value chain of operations.
8
CSR update
Baga Cement Works enables women’s livelihoods through micro enterprises The women were trained to become self- reliant in conducting businesses, helping them set up microenterprises based on locally available resources and community requirement.
Reddipalayam Cement Works, Tamil Nadu
Empowering the local communities by educating the girl child Our integrated manufacturing unit Reddipalayam Cement Works helped better academic performance and increasing rural girl education through holistic intervention.
Baga Cement Works, Himachal Pradesh
Maihar Cement Works, Madhya Pradesh
Maihar Cement Works enabling water security in nearby communities Built a check dam on the river Tamas in Madhya Pradesh improving the lives of over 25,000 villagers.
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03 Business Performance Update
UltraTech remains the largest supplier of cement to the Regional Rapid Transit System (RRTS) under construction linking Delhi to Ghaziabad and Meerut
Highlights : Q3
Domestic sales volume grew 5% yoy with capacity utilization of 77%.
Operating EBITDA/Mt of ₹ 1208 for India Operations, an improvement of 34% yoy and 27% qoq.
Achieved highest ever Profit after tax of Rs 1,777 Crs, improved 68% yoy and 39% qoq.
Entry in Jharkhand with acquisition of 0.54 mtpa grinding capacity from Burnpur Cement Limited.
Green Power Mix of 24.1%, an improvement of 21% yoy, includes WHRS power mix 16.1% and RE Power Mix 7.9%.
Rural sales at 64% of trade - grew at 5% for the quarter.
UBS outlets increased to 3,609 - contributing to 26% of trade sales volume.
11
Sales Volume
Particulars
Q3 FY24
Growth (YoY)
Volume in Million tons Growth (QoQ)
Grey Cement - Domestic
Cement Export & Clinker Sales
White Cement
Sales Volume – India
25.44
0.14
0.48
26.06
5%
30%
18%
5%
1%
-12%
14%
2%
Grey Cement – Overseas
1.38
20%
17%
Consolidated Sales Volume*
27.32
6%
2%
* After elimination of inter company sales volume
12
Revenues
Particulars
Grey Cement - Domestic
White Cement
ReadyMix Concrete (RMC)
Others
Grey Cement – Overseas
Q3 FY24
Growth (YoY)
13,989
648
1,293
284
655
7%
13%
29%
14%
-20%
-10%
₹ Crores
Growth (QoQ)
4%
11%
11%
9%
5%
Total Consolidated Revenues*
16,487
8%
RMC volume grew 28% yoy with 270 plants
* After elimination of inter company sales
13
Profitability
EBITDA (₹ Crores)
Profit after tax (₹ Crores)
+38% YoY
2,718
3,395
2,462
+68% YoY
1,281
1,777
1,058
Q3FY23
Q2FY24
Q3FY24
Q3FY23
Q2FY24
Q3FY24
Highest ever quarterly PAT
14
Sales Realisation (Grey Cement)
) t
M / ₹ ( n o i t a z i l
a e R t n e m e C y e r G c i t s e m o D
5,388
5,349
5,499
Q3FY23
Q2FY24
Q3FY24
Realisation v/s Total Cost index
100
100
101
99
101
93
100
93
100
97
103
94
Q2FY23
Q3FY23
Q4FY23
Q1FY24
Q2FY24
Q3FY24
Grey Cement Realisation (index)
Total Cost (index)
Realisation
➢ Realization improved by 2.1% and 2.8% yoy and qoq.
➢ Visible margins improvement.
Realisation = Selling Price less GST and Discount
15
Key Cost Indicators (Grey Cement): Q3 FY24
Logistics Cost
Energy Cost
Raw Material Cost
% to total costs
₹ / Mt
29%
1,221
33%
1,477
15%
631
Decreased 2% yoy and qoq Flat
Decreased
16% yoy and 5% qoq
Increased 3% yoy and qoq: Flat
India Operations
16
1250
1219
1221
yoy costs decrease: 2%
Logistics Cost (Grey Cement)
) t
M / ₹ (
t s o c
s c i t s i g o L
Q3FY23
Q2FY24
Q3FY24
Logistics cost v/s Diesel price index 120
120
120
110
107
107
Q2 21
Diesel Prices (index)
Q3 23 Logistics Cost (index)
Q2 24 Q3 24
➢ Lead reduced to 397 kms in Q3 FY24 vs. 413 kms in Q3 FY23.
qoq cost flat
➢ Lead reduced to 397 kms in Q3 FY24 from 403 kms in
Q2 FY24.
➢ Benefit of lead optimization and operating efficiencies
absorbed busy season surcharge on rail freight.
India Operations
17
Raw Material Cost (Grey Cement)
) t
M / ₹ (
t s o c
l
a
i r e t a M w a R
610
634
631
yoy cost increase: 3%
➢ Increase in cost of raw materials: gypsum and slag.
➢ Clinker conversion ratio at 1.42.
Q3FY23
Q2FY24
Q3FY24
Conversion Ratio and Fly ash Price index
qoq cost flat
114
104
113
114
105
105
➢ Increase in cost of raw materials: gypsum and slag.
Q2 21
Q3 23
Q2 24 Q3 24
Conversion Ratio (index)
Fly ash Price (index)
India Operations
18
Energy Cost (Grey Cement)
1766
1555
1477
yoy cost decrease: 16%
) t
M / ₹ (
t s o c y g r e n E
Q3FY23
Q2FY24
Q3FY24
➢ Blended fuel consumption (CV: 7500) at ~USD 150/t
compared to ~USD 200/t in Q3 FY23.
➢ Pet coke consumption at 44% vs 43% in Q3 FY23.
Fuel Consumption Cost v/s Blended fuel price index
yoy cost decrease: 5%
294
226
239
221
190
178
➢ Blended fuel consumption (CV: 7500) of ~USD 150/t
compared to USD 162/t in Q2 FY24.
Q2 21
Q3 23
Q2 24 Q3 24
➢ Pet coke consumption at 44% vs 39% in Q2FY24.
Blended Fuel Price (index)
Fuel Consumption Cost (index)
India Operations
19
Other Costs
748
862
849
yoy cost increase : 14%
) t
M / ₹ (
t s o c
r e h t O
Q3FY23
Q2FY24
Q3FY24
➢ Increase in plant maintenance cost.
WPI index
qoq cost decrease: 1%
124
125 125
➢ Benefit of Operating Leverage and one time cost in
Q2 FY24.
Q2 21
Q3 23
Q2 24 Q3 24
India Operations
20
Operational Performance
Consolidated
Q3 FY24 16,487 253 140 16,880
2,506
378 (228) 769 4,178 3,621 2,262 13,485 3,395 1,191
Q3 FY23 15,299 222 127 15,648
2,263
381 (400) 694 4,873 3,479 1,895 13,185 2,462 903
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
India Operations
Q3 FY24 15,882 252 140 16,274
2,297
406 (252) 737 4,003 3,581 2,214 12,986 3,288 1,208
Q3 FY23 14,755 234 95 15,085
2,220
287 (378) 664 4,655 3,444 1,853 12,745 2,340 900
^After elimination of inter company sales
21
Financial Statement
Consolidated
Q3 FY24
Q3 FY23
Particulars
16,487
3,395
262
783
580
(2)
1,777
223
15,299
Net Sales ^
2,462
EBITDA
215
723
465
4
Finance Costs
Depreciation and Amortization
Tax expenses*
Minority interest
1,058
PAT*
169
EPS (₹) (basis trailing 12 months)
₹ Crores
India Operations
Q3 FY24
Q3 FY23
15,882
3,288
237
754
586
-
1,711
218
14,755
2,340
194
694
462
-
990
165
* The Company has opted for new tax regime from the financial year 2023-24
. ^After elimination of inter company sales
22
Operational Performance : Overseas
Amount in Mn AED
Middle East
Q3FY24 240 0.3 0.1 240 64 2 13 77 17 18 191 50 27
Q3FY23 207 1 1 208 38 (10) 13 98 15 16 171 37 21
Particulars
Net Sales Operating Income Other Income Total Income Purchase/Consumption of Raw Material Changes in Inventory Employee Costs Power and Fuel Logistics Cost Other Expenses Total Expenses EBITDA PAT
Q3FY24 4,361 23 45 4,428 3,531 832 69 15 71 241 4,760 (332) (419)
Amount in Mn SLR
Lanka
Q3FY23 5,574 55 308 5,937 4,161 (11) 88 12 52 322 4,625 1,312 985
66% increase in cess on cement imports in Sri Lanka impacted performance
23
Financial Position
Consolidated
31.12.2023
31.03.2023
Particulars
69,635
1,139
(829)
69,946
58,033
10,583
5,042
5,541
6,371
64,987
Net Fixed Assets^
1,017
Investment in Subs/Associates/JVs
(2,669)
Net Working Capital
63,335
54,380
9,901
7,199
2,702
6,254
Total Assets
Shareholders Fund (Incl. Minority Interest)
Gross Debt
Less: Treasury Surplus
Net Debt
Deferred Tax Liability
₹ Crores
India Operations
31.12.2023
31.03.2023
66,799
3,297
(2,397)
67,698
56,844
9,418
4,991
4,427
6,427
62,121
3,187
(3,987)
61,321
53,369
8,750
7,093
1,658
6,295
69,946
63,335
Total Equity and Liabilities
67,698
61,321
^Includes goodwill and asset held for sale
24
Cash Flow Statement
Particulars
EBITDA
Less : Interest & lease payments
Less : Tax paid
Less : Increase in working capital
Operating Cash Flow
Less : Capex spend
Free Cash Flow
₹ Crores
For 9 months ended Dec-23
9,336
(674)
(1,396)
(1,971)
5,296
(6,922)
(1,627)
25
Awards and Accolades
UltraTech has been honoured with ‘India’s Top Value Creators 2023’ in cement category by Dun & Bradstreet.
Birla White’s CSR efforts wins the Golden Peacock CSR Award.
Newsweek magazine and Statista recognized UltraTech as one of the most trusted Building Materials company globally.
UltraTech bags 5 trophies at e4m Maddies 2023.
Our Company’s integrated unit Reddipalayam Cement Works recognized with the Best Performing Wind Farms for the year 2022-23.
UltraTech has been honoured by Confederation of Indian Industries (CII) for successfully implementing ‘SAP Advanced Financial Closing (SAP-AFC).
26
04 Growth Plans
UltraTech is the largest supplier of cement for the Rajkot International Airport, Gujarat.
27
UltraTech: Expansion status update
Location
Unit
Project
Capacity as at Dec-23
Bangalore, Karnataka Roorkee, Uttar Pradesh Kotputli, Rajasthan Rajpura, Punjab Karur, Tamil Nadu Kukurdih, Chhattisgarh APCW, Andhra Pradesh Arakkonam, Tamil Nadu Sonar Bangla, West Bengal Durgapur, West Bengal Lucknow, Uttar Pradesh Shahjahanpur, Uttar Pradesh Maihar, Madhya Pradesh Patratu, Jharkhand Total Cement Capacity by FY25
BT GU IU GU GU IU IU GU GU GU BT GU IU GU
B B B G G G B B B B G G B G
Expected Timeline
Commissioned Q4 FY24
Q1 FY25
Q2 FY25
Q3 FY25 Q3 FY25
Q4 FY25
Cement Capacity (Mtpa) 133.0 1.0 1.0 1.8 2.6 3.3 2.7 1.8 1.2 0.6 0.6 1.8 1.8 4.5 2.5 157.4
Grey Cement Capacity in India (mtpa)
Dec-23
Ongoing expansion
Zones
North
Central
East
West
South
26.5
28.4
27.0
30.7
20.5
4.4
7.3
6.4
-
6.3
24.4
All India
133.0
FY25
30.9
35.7
33.4
30.7
26.8
157.4
Company’s grey cement capacity will increase to 157.4 mtpa by FY25
G : Greenfield, B : Brownfield, GU : Grinding Unit, IU : Integrated Unit, BT : Bulk Terminal
28
Phase III expansion
Rajpura
Bathinda
Baga
Bagheri
Roorkee
Panipat
Jhajjar
NKT
Kotputli
Pali
Aditya
Vikram
Nathdwara
Sewagram
Wanakbori
Magdalla
Gujarat
Dhar
Dhule
Jafrabad
GCW
NMCU
Pune
Hotgi
Dadri
Sikandrabad Aligarh Shahjahanpur
Lucknow
Tanda
Bihar
Assam
Maihar
Bara
Bela
Sidhi
Patliputra
Dalla
Burnpur
Sonar Bangla
WBCW
Dankuni West Bengal
Rawan
Hirmi
Kukurdih
Raipur
Nagpur
Awarpur
Manikgarh
Jharsuguda
Cuttack
Ratnagiri
Rajashree
Shankarpally
Balaji
Ginigera
Andhra Pradesh
APCW
Mangalore
Doballapur
Tamil Nadu
Karnataka
Arakkonam
Karur
Reddipalayam
Cochin
Tuticorin
Integrated Unit
Grinding Unit
Bulk Terminal
Jetty
Phase III Expansion
Brownfield Expansion Nathdwara, Rajasthan Aligarh, Uttar Pradesh North Hotgi, Maharashtra West APCW, Andhra Pradesh South Total (A)
Greenfield Expansion Bihar West Bengal East Andhra Pradesh South Total (B)
Total (A+B)
Bulk Terminal Gujarat (G) Karnataka (G) Assam (G) Tamil Nadu (G) Maharashtra (B) Total
Capacity (mtpa) 1.2 2.7 3.9 2.7 2.7 2.7 2.7 9.3
Capacity (mtpa) 3.3 3.3 6.6 6.0 6.0 12.6
21.9
Capacity (mtpa) 1.2 1.2 1.2 1.8 1.0 6.4
GU – Grinding Unit, IU – Integrated Unit, BT – Bulk Terminal, G – Greenfield Expansion, B – Brownfield Expansion. Plant locations marked are for reference purpose only.
29
UltraTech: Growing stronger
Grey Cement Capacity in India (mtpa)
Zones
North
Central
East
West
South
FY25
Phase III
FY27
30.9
35.7
33.4
30.7
26.8
3.9
-
6.6
2.7
8.7
34.8
35.7
40.0
33.4
35.5
All India
157.4
21.9
179.3
Grey cement capacity (Mtpa) – India
Grey cement capacity of 179.3 Mtpa at 69 locations across the country by FY27.
30
Investment Impact: Capital expenditure and return on investment
₹ 13,000 Crs Capex
₹ 6,000/Mt ($ 72/Mt) of cement capacity
IRR ~15%
To be commissioned by FY27
Optimal use of financial resources
1 USD = ₹ 83
31
Glossary
➢ MNT - Million Metric Tons
➢ LMT - Lakh Metric Tons
➢ MTPA - Million Tons Per Annum
➢ LTPA - Lacs Tons Per Annum
➢ MW - Mega Watts
➢ Q1 - April-June
➢ Q2 - July-September
➢ Q3 - October-December
➢ Q4 - January-March
➢ CY - Current Year period
➢ LY - Corresponding period Last Year
➢ FY - Financial Year (April-March)
➢ CPI - Consumer Price Index
➢ WPI - Wholesale Price Index
➢ NGT – National Green Tribunal
➢ DMRC - Delhi Metro Rail Corporation
➢ RRTS- Regional Rapid Transit System
➢ CSR - Corporate Social Responsibility
➢ ESG - Environmental, Social, and
Governance
➢ WHRS - Waste Heat Recovery System
➢ Green power Mix includes WHRS and
captive renewable power
➢ Realization = Selling Price less GST and Discounts
➢ Blended Fuel includes imported coal and petcoke
➢ Blended Fuel cost/t = CIF price at India port
equivalent to 7500 CV
➢ EBITDA = Profit Before Tax plus Finance Cost and
Depreciation
➢ Operating EBITDA = EBITDA less Other Income
➢ Net Debt = Gross Debt less Liquid Investments
32
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
33