Ambuja Cements Limited · NSE:AMBUJACEM
Ambuja Cements — Q2 2018 Earnings Presentation
24 slides from Ambuja Cements's earnings presentation, Jul 25, 2018
Slide 1: Cover letter: Investor Presentation on Financial Results
Ambuja Cement ACL:SEC: : July 25, 2018 BSE Limited, ‘National Stock Exchange of India Ltd., Phiroz Jeejeebhoy Towers, Plot No.C/1 'G' Block Dalal Street, Mumbai — 400 023 Bandra — Kurla Complex [email protected] Bandra East, Mumbai 400 051 [email protected] Deutsche Bank Societe de la Bours
Slide 2: Investor Presentation, 25th July 2018
Ambuja partners in Robust Growth Faster Ramp-up – 5x Coal Block - Open Cast 87% cement capacity iconic Krishanganaga growth mine is starrting ahead utilization Hydro Project of Schedule in Jul’18 Enhanced Petcoke Ambujanagar – Good Leads Skill India MCW 7th ranked in LH Launched CIF at 10 utilizatio
Slide 3: Disclaimer / Safe Harbour
Disclaimer / Safe Harbour Cautionary statement regarding forward-looking statements This presentation may contain certain forward-looking statements relating to Ambuja Cements Ltd. (“Ambuja”, or “Company”) and its future business, development and economic performance. These statements include descri
Slide 4: Ambuja Cement (ACL): Leading cement company in India
Ambuja Cement (ACL): Leading cement company in India Current structure Pan India footprint with consolidated cement capacity of 63 mn tonnes. LafargeHolcim Attractive geographical positioning. 63.11% Market leading brands with large network of dealers/retailers (trade sales >80% of total volum
Slide 5: Strong independent standalone footprint & robust strategies
… with a strong independent standalone footprint & robust strategies … Darlaghat / Rauri Physical infrastructure Ropar Integrated Plants 5 Bathinda R Nalagarh Batop Roorkee Kilns 9 Marwar Mundwa* hin ar da Dadri Clinkerisation Capacity 17.7 (MTPA) P Ti La Farraka Grinding Units 8 Rabriyawas a ka kh
Slide 6: Indian economy expected to grow in 2018 and 2019
Indian economy expected to grow in 2018 and 2019 due to recovery in investment 2017e 2018f 2019f 2020f 7.3 7.5 7.5 6.9 6.7 6.5 6.3 6.2 3.1 3.1 3.0 2.9 2.7 2.5 2.4 2.3 2.1 2.0 1.7 1.5 India China US EU World Growth in India is projected to advance to 7.3% in the Fiscal Year 2018/19 (April 1, 2018-M
Slide 7: 2018 Potential drivers for cement demand
2018 Potential drivers for cement demand Infrastructure & Housing Focus on improving Rural income Increased focus on “Housing for All by 2022”, target to Increase in Minimum Support Price (MSP) for construct 12 mn houses for urban residents. The kharif crops by the Government to benefit governme
Slide 8: Brand Architecture
Brand Architecture Solutions & Base Premium services *IMP & MCS Sales of premium products has grown strongly and outperforms the normal growth trend *IMP – Instant Mix Proportion, MCS – Modular Curing Solution, AKC - Ambuja Knowledge Centre 7
Slide 9: Performance highlights – Q2 18 vs Q2 17
Performance highlights – Q2 18 vs Q2 17 Capacity Cement Volumes Net Sales Utilization Up Up YoY growth 5pp 5% 4% Q2 18 : 87% Q2 18 : 6.37 mn t Q2 18 : ₹ 2927 cr Q2 17 : 82% Q2 17 : 6.05 mn t Q2 17 : ₹ 2817 cr PBT PAT Growth Growth 20% 27% Q2 18 : ₹ 658 cr Q2 18 : ₹ 499 cr Q2 17 : ₹ 547 cr Q2 17 : ₹
Slide 10: Performance highlights – H1 18 vs H1 17
Performance highlights – H1 18 vs H1 17 Capacity Cement Volumes Net Sales Utilization Up Up YoY growth 4pp 4% 6% Q2 18 : 86% Q2 18 : 12.59 mn t Q2 18 : ₹ 5690 cr Q2 17 : 82% Q2 17 : 12.07 mn t Q2 17 : ₹ 5347 cr PBT PAT Growth Growth 22% 21% Q2 18 : ₹ 1051 cr Q2 18 : ₹ 771 cr Q2 17 : ₹ 859 cr Q2 17 :
Slide 11: Cement Sales Volumes and Capacity Utilization
Cement Sales Volumes and Capacity Utilization (Mn Tonnes) +5% +5% 6.37 87 6.05 82 Q2’17 Q2’18 Q2’17 Q2’18 Sales Volumes Capacity Utilisation Strong growth in Individual Housing Building (IHB) segment Increased participation in the Building and Infrastructure segment Capacity utilisation improv
Slide 12: Cement Sales Volumes and Capacity Utilization
Cement Sales Volumes and Capacity Utilization (Mn Tonnes) +4% +4% 12.59 86 12.07 82 H1’17 H1’18 H1’ 17 H1’18 Sales Volumes Capacity Utilisation Strong growth in Individual Housing Building (IHB) segment. Increased participation in the Building and Infrastructure segment. Capacity utilisation i
Slide 13: Net Sales
Net Sales (INR Crore) +4% +6% 2,927 5,690 2,817 5,347 Q2’17 Q2’18 HI’17 H1’18 Focus on Premium Products (Compocem and Roof Special) Sales of Premium Products has grown strongly Ambuja’s customer oriented initiatives is creating differentiation resulting in increased sales 12
Slide 14: EBITDA
EBITDA (INR Crore) -4% +8% 651 1,129 622 1,045 Q2’17 Q2’18 H1’17 H1’18 Sales growth of premium brands - Compocem and Roof Special, and Improvements in productivity and efficiency parameters, combined with cost saving measures contributed to the increase in Operating EBITDA in H1’18 by 8%. 13
Slide 15: Raw Material Cost
Raw Material Cost (INR / Tonne) +14% +21% 449 442 393 366 Q2’17 Q2’18 H1’17 H1’18 Raw Material cost impacted due to increase in Fly ash and gypsum cost on a y-o-y basis in Q2’18 and H1’18. 14
Slide 16: Power & Fuel Cost
Power & Fuel Cost (INR / Tonne) +9% +12% 1,021 1,021 933 913 Q2’17 Q2’18 H1’17 H1’18 Power & Fuel cost sees increase on a y-o-y basis due to rise in coal and petcoke prices, however this was partly mitigated by improved efficiencies and productivity improvements. 15
Slide 17: Freight & Forwarding Cost
Freight & Forwarding Cost (INR / Tonne) +13% +10% 1,370 1,351 1,215 1,223 Q2’17 Q2’18 H1’17 H1’18 Freight cost is higher y-o-y basis due to increase in lead and diesel prices and clinker movement through external sidings due to shortage of adequate availability of rakes in the east. 16
Slide 18: Other Expenses Cost
Other Expenses Cost (INR / Tonne) -11% -4% 829 814 779 740 Q2’17 Q2’18 H1’17 H1’18 Other expenses sees a fall on a y-o-y basis, due to various cost saving measures undertaken. 17
Slide 19: Ind AS Result – Standalone – ₹ crore
Ind AS Result – Standalone – ₹ crore Net Sales up 4% PBT up 20% PAT up 27% Standalone Particulars UOM Q2'17 Q2'18 + / - PY Sales (net of excise duty ) ₹ Cr 2817 2927 4% Op. EBITDA ₹ Cr 651 622 -4% Op. EBITDA margin % 23.1 21.3 -180 bps Depreciation ₹ Cr 144 136 -5% Other Income ₹ Cr 56 191 241% Fina
Slide 20: Ambuja Balance Sheet – Standalone – ₹ crore
Ambuja- Balance Sheet– Standalone – ₹ crore Particulars Standalone Dec-17 Jun-18 Shareholders funds 19,973 20,299 Non Current Liabilities 527 506 Current Liabilities 4,117 3,909 Equity & Liabilities 24,617 24,714 Fixed Assets 5,693 5,561 Non Current Investments 11,845 11,814 Non Current Loan and adv
Slide 21: Ind AS Result – Consolidated – ₹ crore (Q2)
Ind AS Result – Consolidated – ₹ crore Consolidated Particulars UOM Q2'17 Q2'18 + / - PY Sales (net of excise duty ) ₹ Cr 6145 6683 9% Op. EBITDA ₹ Cr 1290 1250 -3% Op. EBITDA margin % 21% 19% -200 bps Depreciation ₹ Cr 308 286 -7% Other Income ₹ Cr 81 82 1% Finance Cost ₹ Cr 38 46 22% Share of prof
Slide 22: Ind AS Result – Consolidated – ₹ crore (H1)
Ind AS Result – Consolidated – ₹ crore Consolidated Particulars UOM H1’17 H1’18 + / - PY Sales (net of excise duty ) ₹ Cr 11782 12997 10% Op. EBITDA ₹ Cr 2099 2252 7% Op. EBITDA margin % 17.8% 17.3% -50 bps Depreciation ₹ Cr 620 574 -7% Other Income ₹ Cr 156 168 8% Finance Cost ₹ Cr 100 91 -9% Share
Slide 23: Other key highlights for the Quarter
Other key highlights for the Quarter Ambuja Cement partners in iconic Gare Palma Coal Block - Open Cast MCW Plant Globally Ranked 7th in Kishanganga 330 MW Hydro Power mine (0.6 mt) is starrting ahead of LafargeHolcim CIPR Ranking 2017 Project - Supplied value added Micro fine Schedule in Jul’18 (Or
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