Ambuja Cements Limited · NSE:AMBUJACEM
Ambuja Cements — Q1 2018 Earnings Presentation
21 slides from Ambuja Cements's earnings presentation, May 4, 2018
Slide 1: Cover letter: Investor Presentation on Q1 2018 results
Ambuja Cement ACL:SEC: May 4, 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 cmlist@nse .co.in Deutsche Bank Societe de la Bourse de
Slide 2: Investor Presentation 4th May, 2018
Higher EBITDA Lowest Power High AFR usage at Robust Growth Fast ramp up Ambujanagar Unit Growth kWh/T Globally 2nd rank Best Legal Shipping - Silver Continue to Build 85% cement Compliance Jubilee Strong Brand capacity utilization Keel ad Investor Presentation 4th May, 2018
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: A 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 projected to grow fastest in 2018-19 & 2019-20
Indian economy projected to grow fastest in 2018-19 & 2019-20 2017 2018 2019 7.8 7.4 6.7 6.9 6.6 6.4 3.8 3.9 3.9 2.9 2.7 2.3 2.3 2.4 2.0 India China US EU World IMF keeps GDP growth forecast for India unchanged at 7.4% for 2018-19 and 7.8% for 2019-20, holding that economic activity will be lifted
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”. Increase in Minimum Support Price (MSP) for To achieve a target of completing one crore kharif crops to be at least 1.5x of production (Pradhan Mantri A
Slide 8: Brand Architecture
Brand Architecture Solutions & Base Premium services *IMP & MCS Share of Premium products expected to increase sharply 7 *IMP – Instant Mix Proportion, MCS – Modular Curing Solution, AKC - Ambuja Knowledge Centre
Slide 9: Performance highlights – Q1 18 vs Q1 17
Performance highlights – Q1 18 vs Q1 17 Capacity Cement Volumes Net Sales Utilization Up Up YoY growth 4 pp 3% 9% Q1 18 : 85% Q1 18 : 6.22 mn t Q1 18 : ₹ 2763 cr Q1 17 : 81% Q1 17 : 6.02 mn t Q1 17 : ₹ 2530 cr EBITDA EBITDA Margin PAT Growth Growth Growth 29% 3 pp 10% Q1 18 : ₹ 507 cr Q1 18 : 18.4%
Slide 10: Cement Sales Volumes and Capacity Utilisation
Cement Sales Volumes and Capacity Utilisation (Mn Tonnes) +3% +4% 6.02 6.22 85 81 Q1’17 Q1’18 Q1 17 Q1 18 Sales Volumes Capacity Utilisation Strong growth in Individual Housing Building (IHB) segment. Increased participation in the Building and Infrastructure segment. Capacity utilisation impr
Slide 11: Net Sales
Net Sales (INR Crore) +9% 2,763 2,530 Q1’17 Q1’18 Focus on Premium Products (Compocem and Roof Special) Sales of Premium Products is continuously growing Ambuja’s customer oriented initiatives is creating differentiation resulting in increased sales. 10
Slide 12: EBITDA
EBITDA (INR Crore) +29% 507 394 Q1’17 Q1’18 A top line growth of 9% on a y-o-y basis attributable to improved realisations and sales growth of premium brands - Compocem and Roof Special and Productivity improvements combined with cost saving measures contributed to the increase in Operating EBITDA
Slide 13: Raw Material Cost
Raw Material Cost (INR / Tonne) +28% 434 338 Q1’17 Q1’18 RM cost impacted due to rise in Fly ash and gypsum cost on a y-o-y basis. 12
Slide 14: Power & Fuel Cost
Power & Fuel Cost (INR / Tonne) +14% 1,020 892 Q1’17 Q1’18 Power & Fuel cost see increase on a y-o-y basis due to rise in coal and petcoke prices, however partly mitigated by improved efficiency and productivity improvements. 13
Slide 15: Freight & Forwarding Cost
Freight & Forwarding Cost (INR / Tonne) +8% 1,331 1,227 Q1’17 Q1’18 Freight cost higher y-o-y basis due to increase in lead and diesel prices, FOR sales, despatches were impacted due to railway rakes availability especially in the East region. 14
Slide 16: Other Expenses Cost
Other Expenses Cost (INR / Tonne) +3% 798 820 Q1’17 Q1’18 Other expenses see marginal rise on a y-o-y basis, however SG&A sees a reduction due to various initiatives undertaken. 15
Slide 17: Ind AS Result – Standalone – ₹ crore
Ind AS Result – Standalone – ₹ crore Net Sales up 9% Operating EBITDA up 29% PAT up 10% Standalone Particulars UOM Q1'17 Q1'18 + / - PY Sales (net of excise duty ) ₹ Cr 2,530 2,763 9% Op. EBITDA ₹ Cr 394 507 29% Op. EBITDA margin % 15.6% 18.4% 280 bps Depreciation ₹ Cr 146 139 -5% Other Income ₹ Cr
Slide 18: Ind AS Result – Consolidated – ₹ crore
Ind AS Result – Consolidated – ₹ crore Net Sales up 12% Operating EBITDA up 24% PAT up 30% Consolidated Particulars UOM Q1'17 Q1'18 + / - PY Sales (net of excise duty ) ₹ Cr 5,637 6,314 12% Op. EBITDA ₹ Cr 809 1,002 24% Op. EBITDA margin % 14.4% 15.9% 150 bps Depreciation ₹ Cr 313 288 -8% Other Inco
Slide 19: Sustainability a way of life
Sustainability a way of life Ambuja Cement aspires to be the most competitive and sustainable company in the cement manufacturing industry. Acting in a sustainable manner is not only a business imperative but also provides the company with a competitive advantage. Ambuja Cement continues to set indu
Slide 20: Other key highlights for the quarter
Other key highlights for the quarter Best Compliance In-House Ambuja Ranked no 2 in global High AFR usage at Legal Team Award, 2017-18 CDP (Carbon Disclosure Ambujanagar Unit At the 7th National GenNext Business Project) ranking and Law Congress held by Legal Era magazine. ACF- Silver Continue to Bu
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