Prism Johnson Limited
2,990words
6turns
0analyst exchanges
0executives
Key numbers — 40 extracted
rs,
37%
INR 14,539
1.7%
20%
43%
14.9%
540 bps
INR 2,160
59.9%
21.9%
INR 918
Guidance — 1 items
Executive Summary
opening
“www.prismjohnson.in • 21.9% YoY growth in EBITDA per ton led by cost rationalization initiatives and higher volume of premium products • Cement production normalised as COVID-19 led curbs eased • 10 MW out of the planned 22.5MW commissioned in November 2020; Balance 12.5 MW likely to be commissioned by Q4 FY21 • Plan to commission remaining 12.5 MW (out of 25 MW) of solar power by Q4 FY21 7”
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Risks & concerns — 1 flagged
While this has no impact on the reported EBITDA per ton, this led to a decline of INR 109 per ton in both gross realization and outward freight cost in Q3 FY21.
— Executive Summary
Speaking time
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Opening remarks
Executive Summary
Consolidated (Ex RQBE) Q3 FY21 Financial Performance Snapshot HRJ 37% INR 14,539 mn Q3 FY21 Revenue 1.7% YoY Revenue Growth Led by Strong Revenue Growth in HRJ Division RMC 20% Cement 43% Revenue Mix 18,6 42 14,884 14.9% Q3FY21 EBITDA Margin 540 bps YoY EBITDA Margin Expansion led by Cost Rationalisation Initiatives across divisions & Volume Pick-up in HRJ INR 2,160 mn Q3 FY21 EBITDA 59.9% YoY EBITDA growth led by strong growth across all divisions; Cement EBITDA / ton improved by 21.9% YoY to INR 918 47 30 29 Q3 FY20 Q2 FY21 Q3 FY21 Cash Conversion Cycle* Efficient Working Capital Management 25.3% Q3 FY21 ROCE INR 1,766 mn Operating Cash Flow Mar-20 Dec-20 Strengthening Balance Sheet Significant improvement in Net Debt levels EBITDA Margin Expansion & Efficient Working Capital Management led to ROCE# Expansion from 11.1% in Q3FY20 to 25.3% now Operating Cash Flow (pre- Capex) grew 61.3% YoY to INR 1,766 million in Q3 FY21 www.prismjohnson.in * Cash Conversion Cycle = Inventory Days +
Executive Summary
Division-Wise Q3 FY21 Performance Summary Cement • Cement & Clinker sales volume improved from 1.38 mn tons in Q3 FY20 to 1.42 mn tons in Q3 FY21 • Contribution of premium products continued to improve and constituted around 27.6% of total cement volume in Q3 FY21 • EBITDA per ton grew 21.9% YoY to INR 918 in Q3 FY21 driven by cost rationalization measures and marginal increase in realizations H&R Johnson • Strong sales volume at 14.4 MSM (+23.4% YoY) coupled with sustainable cost rationalization initiatives led to significant EBITDA growth (3.3x YoY); EBITDA margin expanded 910 bps YoY to 14.1% in Q3 FY21 • Fixed cost and working capital continues to remain under control • Improvement in the product mix and expansion of distribution network continues to be the key focus area RMC • Revenue declined 15.2% YoY from INR 3,442 mn in Q3FY20 to INR 2,920 mn due to slower pick up in economic activity in metro and Tier-1 cities; Sales volume picking-up on monthly basis with revival of construc
Prism Cement
Operational Parameters Exceed Pre COVID-19 Levels Cement & Clinker Sales Volume (mn tons) Premium Products % 1.56 1.20 1.19 1.31 1.38 1.42 1.50 26.2% 27.5% 27.6% 23.1% 23.7% 23.4% 19.2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY20 FY21 Regional Sales Breakup Bihar 22% Eastern Uttar Pradesh 53% Madhya Pradesh 25% www.prismjohnson.in FY20 FY21 Sales Volume - Trade vs. Non Trade Non Trade 27% Trade 73% 8 H & R Johnson Division www.prismjohnson.in 9 HRJ (Consolidated): Better Operating Performance Led by Strong Volume Growth and Sustainable Cost Optimization Revenue (INR mn) 4,675 4,895 4,633 4,678 5,423 4,239 EBITDA (INR mn) 765 524 211 195 233 52 1,865 Q1 Q2 Q3 FY20 FY21 Q4 -422 Q1 Q2 Q3 Q4 FY20 FY21 Tiles Sales Volume (msm) • EBITDA margin expanded 910 bps YoY to 14.1% due to higher volumes and reduction in cost 11.7 14.4 Q3 FY20 Q3 FY21 www.prismjohnson.in • Fixed cost and working capital continues to remain under control • Improving product mix and expanding of distribution network continues to be fo
Consolidated Financials
EBITDA Growth Led by Sustainable Cost Rationalization Initiatives Consolidated Revenue Ex RQBE (INR mn) 6,170 5,902 6,196 4,678 4,895 5,423 Cement HRJ Q3 FY20 Q2 FY21 3,442 2,113 2,920 RMC Q3 FY21 Consolidated EBITDA Ex RQBE (INR mn) 14,290 12,910 14,539 Consolidated 2,160 1,896 1,351 1,322 1,303 1,043 Cement www.prismjohnson.in 765 233 524 HRJ 75 50 92 RMC Consolidated Q3 FY20 Q2 FY21 Q3 FY21 23 Consolidated Financial Summary: EBITDA Margin Improvement & Efficient Working Capital Management led to ROCE Expansion Consolidated (Ex RQBE) Financials Summary Consolidated (Ex RQBE) ROCE Particulars (INR mn) Q3 FY20 Q2 FY21 Q3 FY21 % QoQ % YoY Revenue from Operations 14,290 12,910 14,539 12.6% 1.7% 11.1% 13.4% 25.3% 18.6% EBITDA 1,351 1,896 2,160 13.9% 59.9% -3.2% EBITDA Margin % 9.5% 14.7% 14.9% Depreciation & Amortisation Other Income EBIT (Incl. Other Income) Finance Cost Net Profit 595 70 826 680 96 775 92 628 (18.9%) 5.5% Note : Quarterly EBIT (including other income) annualised for ROC
Strengthening Balance Sheet
Continued Focus to Reduce Net Debt Consolidated Net Debt Ex RQBE (INR mn) 22,000 20,000 18,000 16,000 14,000 12,000 10,000 20,877 6.4 2.1 FY16 19,081 5.4 1.9 FY17 19,527 4.4 1.9 FY18 18,562 18,642 3.0 1.7 FY19 3.1 1.7 FY20 14,884 2.5 1.3 9M FY21 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Consolidated Net Debt Consolidated Net Debt / Equity Consolidated Net Debt / TTM EBITDA Significant reduction in Consolidated Net Debt (Ex-RQBE) during 9MFY21 in line with the past five years trend Improvement in Net Debt / Equity led by efficient working capital management and better operational performance Consolidated Net Debt (Ex-RQBE) to Trailing Twelve Months (TTM) EBITDA declined to 2.5x www.prismjohnson.in 25 Standalone Financial Highlights www.prismjohnson.in 26 Standalone Financial Summary: EBITDA Margin Improvement & Lower Finance Costs led Significant to Net Profit Growth Particulars (INR mn) Q3 FY20 Q2 FY21 Q3 FY21 % QoQ Revenue from Operations* 13,788 12,057 13,753 14.1% - Cement - HRJ - RMC
Address
“Rahejas”, Main Avenue, V. P. Road, Santacruz (W), Mumbai—400 054 Safe Harbor Certain statements in this release concerning our future growth prospects are forward-looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company. www.prismjohnson.in 31
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