Prism Johnson Limited
4,850words
6turns
0analyst exchanges
0executives
Key numbers — 40 extracted
rs,
5.6 mt
₹53,261
8.5%
34%
17%
49%
13.2%
290 bps
8.7%
490 bps
₹7,023
Guidance — 1 items
Prism Cement
opening
“Cement Capacity • Debottlenecking at Satna, Madhya Pradesh to increase cement production capacity by 0.9 mn tons by June 2022 for total capex of around ₹1.39 bn • Further plan to increase Grinding Capacity at Satna, Madhya Pradesh by approx.”
Advertisement
Risks & concerns — 1 flagged
While this has no impact on the reported EBITDA per ton, this led to a decline of ₹115 per ton in both gross realization and outward freight cost in Q4 FY21 and a decline of ₹109 for FY21.
— Executive Summary
Speaking time
2
1
1
1
1
Advertisement
Opening remarks
Executive Summary
Consolidated (Ex RQBE) FY21 Financial Performance Snapshot ₹53,261 mn FY21 Revenue 8.5% YoY Decline in Revenue due to impact of COVID-19 led lockdowns and curbs in FY21 40 44 18 FY19 FY20 FY21 Cash Conversion Cycle* Efficient Working Capital Management www.prismjohnson.in HRJ 34% RMC 17% Cement 49% FY21 Revenue Mix 18,642 13.2% FY21 EBITDA Margin EBITDA Margin increased by 290 bps in FY21 led by cost rationalisation initiatives; HRJ EBITDA margin at 8.7% (+490 bps) ₹7,023 mn FY21 EBITDA 16.9% YoY EBITDA growth led by strong growth across divisions in H2 FY21; Cement EBITDA / ton grew 8.2% YoY to INR 962 12,343 18.2% FY21 ROCE Mar-20 Mar-21 Strengthening Balance Sheet Significant improvement in Net Debt levels (₹ mn) EBITDA Margin Expansion & Efficient Working Capital Management led to ROCE# Expansion from 13.2% in FY20 to 18.2% in FY21 * Cash Conversion Cycle = Inventory Days + Debtor Days – Creditor Days # FY21 ROCE is based on EBIT including Other Income ₹ 9,301 mn Operating Cash Flo
Executive Summary
Division-Wise FY21 Performance Summary Cement • Cement & Clinker sales volume improved from 5.72 mn tons in FY20 to 5.82 mn tons in FY21 (1.7% growth) • Share of premium products in total sales volume continued to increase; Increased from 22.3% of total cement volume in FY20 to 27.7% in FY21 • EBITDA per ton grew 8.2% from ₹889 in FY20 to ₹962 in FY21, primarily driven by cost rationalization measures H&R Johnson • Tiles sales volume grew at 8.5% from 44.8 mn m2 to 48.6 mn m2, despite impact of COVID-19 during the year • Substantial reduction in fixed costs and working capital during FY21 • Volume growth coupled with sustainable cost rationalization initiatives led to significant EBITDA growth; EBITDA margin expanded 490 bps to 8.7% in FY21; Q4 FY21 EBITDA margin was 12.6% (+1,120 bps YoY) • Improvement in the product mix and expansion of distribution network continues to be the key focus area RMC • Revenue declined 35.8% YoY from ₹14,139 mn in to ₹9,079 mn in FY21 due to severe impact
Strengthening Balance Sheet
Continued Focus to Reduce Net Debt Consolidated Net Debt Ex RQBE (₹ mn) Repayment Obligations (₹ mn) 20,877 6.4 19,081 5.4 19,527 4.4 2.1 1.9 1.9 18,562 18,642 3.0 1.6 3.1 1.7 FY16 FY17 FY18 FY19 FY20 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 12,343 1.8 0.9 FY21 Consolidated Net Debt Consolidated Net Debt / Equity Consolidated Net Debt / EBITDA 7,661 5,866 1,795 Original Repayment Obligation Repaid / Prepaid / Refinanced Repayment Obligation as on March 31, 2021 FY22 Significant reduction in Consolidated Net Debt (Ex-RQBE) during FY21 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 EBITDA declined to 1.8x 21,000 19,000 17,000 15,000 13,000 11,000 9,000 7,000 5,000 3,000 Prior period financials have been restated to give effect to the Composite Scheme of Arrangement and Amalgamation from the appointed date. Please refer to Slide 16 for more d
Prism Cement
Cement Capacity • Debottlenecking at Satna, Madhya Pradesh to increase cement production capacity by 0.9 mn tons by June 2022 for total capex of around ₹1.39 bn • Further plan to increase Grinding Capacity at Satna, Madhya Pradesh by approx. 1.0 mn tons by September 2023 for total capex of around ₹2.50 bn • Cement production capacity to increase to 7.5 mn tons post this expansion
HRJ
Tile Production Capacity • Greenfield tile capacity expansion of 2.5 mn m2 at Panhagarh, West Bengal by January 2023 for incremental capex of ₹550 mn • Tile capacity expansion of 6.0 mn m2 at JV entities by March 2023 for an estimated capex of ₹700 mn • Tile production capacity to increase to 68 mn m2 post this expansion FY22E Capex Outlook • FY22E capex for standalone entity likely to be around ₹4.0-5.0 bn; primarily to be met through internal accruals www.prismjohnson.in 33 Standalone Financial Highlights www.prismjohnson.in 34 Standalone Financial Summary: Strong Margin Expansion & Profit Growth in FY21, Despite Impact of COVID-19 Particulars (₹ mn) Q4 FY20 Q3 FY21 Q4 FY21 % QoQ Revenue from Operations* 13,720 13,755 16,890 - Cement - HRJ - RMC - Inter segment revenue EBITDA (Pre-Exceptional) EBITDA Margin % Depreciation & Amortisation Other Income EBIT (Pre-Exceptional) Finance Cost Exceptional Items Current + Deferred Tax Net Profit Net Profit Margin % Net Debt 6,663 3,669 3,535 (
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 42
Advertisement