UltraTech Cement Limited · NSE:ULTRACEMCO

UltraTech Cement — Q4 FY2017 Earnings Presentation

18 slides from UltraTech Cement's earnings presentation, Apr 24, 2017

  1. Slide 1: Cover letter to BSE and NSE: Investor Presentation FY2017

    ADITYA BIRLA 24! April, 2017 BSE Limited The Manager Corporate Relationship Department —_Listing Department Phiroze Jeejeebhoy Towers, The National Stock Exchange of India Limited Dalal Street “Exchange Plaza”, Bandra-Kurla Complex, Mumbai 400 001. Bandra (East), Mumbai 400 051. Tel.: 2272 1233/34 T

  2. Slide 2: UltraTech Cement Limited: Resisting sectoral downturn, Q4 FY17

    UltraTech Cement Limited INDIA’S LARGEST CEMENT COMPANY Resisting sectoral downturn, Q4, FY17 Stock Code: BSE:532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX

  3. Slide 3: Indian cement industry could see weakest growth in 15 years

    FY2017 INDIAN CEMENT INDUSTRY COULD POSSIBLY SEE WEAKEST GROWTH IN 15 YEARS.

  4. Slide 4: Q4 FY2017: possibly the weakest fourth quarter in years

    Q4 FY2017 Usually the best of all Not this time. quarters for Possibly the the Cement weakest fourth Industry. quarter in years. SUBDUED HOUSING DEMAND | CAPACITY UTILISATION < 70%. VOLATILE CEMENT PRICES | RISING FUEL COSTS.

  5. Slide 5: Regional demand trend, Q4 FY17

    Regional demand trend, Q4 FY17 • Negative sentiment in the housing segment • Slowdown in UP & Punjab • Infrastructure spending • Metro Rail & • Irrigation in AP & TL Affordable housing • Drought & political instability in TN

  6. Slide 6: We banked on our usual insurance

    UltraTech We banked on our usual ‘insurance’. A captive stretch culture. CAPITALISING ON OUR BRAND, FOOTPRINT, SIZE & SCALE, AND KNOWLEDGE.

  7. Slide 7: Temporary blip during sectoral turbulence

    UltraTech Temporary blip during sectoral turbulence TOTAL SALES CAPACITY VOLUME (MnT) UTILISATION 14.07 82% (+) 1% (-) 1% EBITDA PAT (RS, CRS) (RS,CRS) 1381* 688 (-) 10% (-) 12% * Excluding Rs. 138 Crs being provisions no longer required

  8. Slide 8: Focused on selling more when most were buying less

    UltraTech Focused on selling more when most were buying less Increased UBS span – volume share up 20% Continuous thrust on retail market Blended cement sales up 1%

  9. Slide 9: Ameliorating performance

    UltraTech Ameliorating performance SUPERIOR EQUIPMENT MANAGEMENT USE OF INDUSTRIAL WASTE OVER COAL FOCUS ON CASH MAXIMISATION

  10. Slide 10: Increased manufacturing efficiencies in an inflationary environment

    UltraTech Increased manufacturing efficiencies in an inflationary environment Energy cost at Rs 840/t – up 23% with increase in pet coke price ~ 55% Reduced power consumption – 4% Improved captive power plants efficiency – 2% Enhanced waste heat recovery share – 2% IMPACT: TOTAL MANUFACTURING COST INCRE

  11. Slide 11: Enhanced logistics efficiencies in an inflationary environment

    UltraTech Enhanced logistics efficiencies in an inflationary environment Increased use of sea routes Road freight increase restricted to 5% v/s increase in diesel prices by 27% Market mix alignment – increased supply from new grinding units Supplied material across longer distances to service demand I

  12. Slide 12: Enhanced liquidity in a weak environment

    UltraTech Enhanced liquidity in a weak environment CONTROLLED CAPITAL EXPENDITURE REDUCED WORKING CAPITAL ~ 65% OVER MARCH 16 REDUCED NET DEBT > RS. 3700 CR OVER MARCH 16 IMPACT: CONSOLIDATED NET DEBT / EBITDA AT (-) 0.04!

  13. Slide 13: Outperformance

    UltraTech Outperformance Lower costs + Increased off-take + Superior liquidity FY 16 12.3% ROCE! FY 17 13.4% EBITDA 1036 FY 16 PER TONNE (Rs.) 1094 FY 17

  14. Slide 14: Income Statement

    INCOME STATEMENT Rs. Crs Q4 FY Particulars CY LY % CY LY % 13.35 13.32 0.3 Domestic Sales (MnT) 47.62 47.13 1 14.07 13.96 1 Total Sales (MnT) 50.19 49.28 2 6500 6332 3 Revenues (net of excise duty) 23616 23440 1 240 140 71 Other Income 660 481 37 1518 1517 - EBITDA* 5629 5107 10 1079 1087 (1) EBITDA

  15. Slide 15: Financial Position

    FINANCIAL POSITION Rs. Crs Consolidated Standalone Particulars 31.03.17 31.03.16 31.03.17 31.03.16 35648 35008 Total Capital Employed 32955 32313 (215) 3523 Net Debt (2422) 1181 (373) 72 Net Working Capital (956) (574) Key Ratios: (0.01) 0.16 Net Debt : Equity (0.10) 0.05 (0.04) 0.66 Net Debt : EBIT

  16. Slide 16: Sectoral Outlook: Favorable Factors

    SECTORAL OUTLOOK FAVORABLE FACTORS AFFORDABLE HOUSING AND INTEREST SUBVENTION SCHEME INFRASTRUCTURE GROWTH IMPROVING DEMAND SENTIMENTS IN SOUTHERN MARKETS BETTERING OF RURAL HOUSING DEMAND DUE TO IMPROVED RURAL CASH FLOWS

  17. Slide 17: Sectoral Outlook: Challenging Factors

    SECTORAL OUTLOOK CHALLENGING FACTORS SLOWED GROWTH OF URBAN HOUSING & PRIVATE SECTOR CAPEX INDUSTRY CAPACITY UTILIZATION 70% INCREASE IN FUEL COSTS AFFECTING OPERATING MARGINS

  18. Slide 18: Disclaimer

    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. Import

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