Post on 29-Dec-2015
transcript
Contents Industry Highlights
Demand Drivers
Gujarat Ambuja Cements Limited – An Overview
Key Financials - Quarterly Results & YTD
Consolidated Results (YTD)
Sales Volume
Sales Realisation
Direct cost of Production
Peers Quarterly Performance
Future Growth Plans
Status on the merger of ACEL
Cement Industry – At a GlanceCement Industry – At a Glance
Cement Capacity164.7 Mil.T. (As of Sep-06)
Clinker Production118.4 Mil.T. (2006 Est.)
Cement Production151.4 Mil.T. (2006 Est.)
YOY Growth
3.0%
10.1%
10.8%
2.8%
Cement Demand (Domestic)
144.3 Mil.T. (2006 Est.)
2
Rising Capacity Utilisation
3
79.56
79.2477.00
85.1085.07
78.19
80.6380.92
83.60
87.64 92.82
0
20
40
60
80
100
120
140
160
180
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
mn
. to
nn
es
0
10
20
30
40
50
60
70
80
90
100
Capacity installed Cement Production Capacity utilisation (%)
Industry Highlights (Jan – Sept 2006)
* Growth rate
3%
12%
4
2005 2006Clinker Production 85.44 88.79Cement Production 101.39 113.55Cement Despatches 101.20 113.24
Industry Highlights (mn. Tonnes)
101.
20
101.
39
85.4
4
113.
24
113.
55
88.7
9
Clinker Production Cement Production Cement Despatches
2005
2006
12%
Development of New Urban Cities
Hedge against Inflation - Property
Increasing Housing Mortgage Penetration
Retail Sector Development – Malls & Multiplexes
Growth in IT / IT Enabled Services
Emphasis on Infrastructure
Demand Drivers
Increased Construction will lead to
higher cement demand
6
Demand expected to grow by over 10%, on a back of
strong GDP growth
Fresh Supply is limited in the near future
Demand to outstrip supply.
Consolidation drive has changed the face of industry.
The way forward
Result – Prices to remain Firm
7
HP
Gujarat
Rajasthan
Chattisgarh WB
Maharashtra
PunjabSubstantial Presence in West & North India
Cement Plant
Grinding Station
Terminal
Port
Clinker
Capacity
Cement
Capacity
Western India
Northern India
Eastern India
7.0
4.1
1.4
8.0
6.0
2.0
Total Capacity 12.5 16.0
Our Operations (Post Merger with ACEL)
9
Mn. Tonnes
Gujarat Ambuja Cements Limited
10
Capacity built up from 0.7 mn. Tonnes in 1986 to 16.0 mn. Tonnes today (including acquisitions).
Sea transportation of bulk cement from Gujarat to 3 terminal ports at Surat, Mumbai & Sri Lanka.
A captive port at Muldwarka (Gujarat) for inward / outward movement of goods.
Captive Infrastructure: Ports & Power Plants
Presence in the growing markets of North & West
Retail Focus – Premium pricing
Largest Exporter of cement
35% Cement transport by sea - Cheapest Mode
One of the Lowest Cost Cement Producer
Our Strategy
11
7 Owned Cement Ships for transporting Cement by Sea.
Port at Muldwarka (Gujarat) to handle import/export of
material.
3 Cement receiving terminals.
Over 250 MW of Captive Power Plants at various
cement plants to give reliable and cheap power.
Own Infrastructure
12
India - A bagged market Individual home builder - key driver of demand
Our focus :
Best quality cement
Good packaging
Logistic management - strong distribution network
Customer service
Ambuja Cement - A preferred brand
- Fetching higher realisation
Strong Brand
13
Key Financials – Latest Quarter(July – Sept 2006)
2006 2005
Clinker Production (mn.t) 2.50 2.46
Cement Production (mn.t) 3.15 2.89
Sales volume (mn.t) 3.21 2.93
Sales value (Rs. Crores) 984.1 647.3
EBITDA (Rs. Crores) 381.4 171.6
PBT 323.0 101.0
PAT 244.7 75.3
EBITDA per ton (Rs.) 1188 586
EBITDA per ton (US$) 26 13
EBITDA Margin 39% 27%
GACL
Rs. Crores
15
GACL standalone (YTD)GACL standalone (YTD)
Mar-06 Jun-06 Sep-06 YTD
Clinker Production (mn.t) 2.76 2.73 2.50 7.99
Cement Production (mn.t) 3.65 3.85 3.15 10.65
Sales Volume (Mn. T) 3.65 3.77 3.21 10.63
Net Sales 924.3 1134.2 984.1 3042.6
EBITDA 339.3 451.9 381.4 1172.6
PBT 313.7 371.4 323.0 1008.1
PAT 298.6 303.9 244.7 847.1
EBITDA Margin 37% 40% 39% 39%
EBITDA per ton (Rs.) 930 1199 1188 1103
EBITDA per ton (US$) 20 26 26 24
Rs. Crores
16
Consolidated Results (YTD)
Mar-06 Jun-06 Sep-06 YTD
Net Sales 945.8 1154.6 1006.2 3109.6
EBITDA 392.8 489.5 416.7 1299.0
Share of Associates 26.6 56.5 37.0 120.1
PBT 331.1 427.6 358.3 1117.0
PAT 315.8 360.1 280.0 955.9
18
Rs. Crores
Sales VolumeSales Volume(Including ACEL)(Including ACEL)
Mn. Tonnes
Plant wise Mar-06 Jun-06 Sep-06 YTD
Gujarat * 1.28 1.25 0.99 3.52
HP/Punjab 0.9 1.07 1.04 3.01
Maharashtra 0.89 0.88 0.64 2.41
Rajasthan 0.58 0.57 0.54 1.69
East 0.54 0.55 0.45 1.54
GACL + ACEL 4.19 4.32 3.66 12.17
% of Total Despatches 11 11 10 11
* Includes Exports
20
Sales RealisationSales Realisation
22
Sep 05 Sep 06100
150
200
250
Rs.
per
50
Kg
Bag
Mumbai 217 214 193 172 171
Ahmedabad 193 188 167 155 152
Delhi 201 202 178 156 156
Jaipur 178 174 162 144 138
Kolkatta 194 192 178 171 172
Sep-06 Jun-06 Mar-06 Dec-05 Sep-05
Direct cost of ProductionDirect cost of Production
0
200
400
600
800
1000R
s. p
er t
onne
of
cem
ent
Power 271 258
Coal 290 269
Raw Material 223 222
Consumables 64 55
July - Sep 2006 Apr - Jun 2006
848804
24
Peers Quarterly Performance(July – Sept 2006)
Particulars ACC GACL* Grasim Ultra Tech
Sales Volume (mn.T) 4.27 3.66 3.38 3.68
Sales Value (Rs. Crore) 1391.6 1131.0 1141.2 1004.5
EBITDA (Rs. Crore) 391.2 425.6 356.0 266.4
EBITDA (US$ / Tonne) 20 25 23 16
EBITDA Margin 28% 38% 31% 27%
PBT (Rs. Crore) 315.8 359.3 N/A 187.9
PAT (Rs. Crore) 225.3 278.2 N/A 127.4
* Including full results of ACEL for better comparison
Grasim has other substantial businesses hence PBT & PAT not applicable.
26
Future Growth PlansFuture Growth Plans
Projects Expected Year of completion
60 MW Power plant at Ambujanagar
Phase IPhase II
Expansion at Rabriyawas – 0.5mn. Tonnes clinker Grinding station at:
Farraka - 1 mn. Tonnes
Roorkie - 1 mn. Tonnes
2.3 mn. Tonnes clinkerisation plant at Chattisgarh Power plants of 81 MW at various locations
1st Quarter 2007
2nd Quarter 2007
June, 2007
January 2007
March 2007
December, 2008
December, 2008
Total Capital Outlay of Rs. 1600 Crores
28
Status on the Merger of ACEL
Scheme of Arrangement filed with High Courts
Shareholder’s & Creditor’s meeting completed.
Process expected to be completed by end of
November 2006
30
Founder Promoters8%
Domestic Pension & Mutual Funds
17%GDR's
4%
FII's 32%
Retail Shareholding16% Holcim*
23%
* Includes indirect holding of approx. 10% through Ambuja Cement India Private Limited
Our Shareholders ( Post Merger )Our Shareholders ( Post Merger )
31
Cement…
A Growth Story
A Proxy on Indian Economy
A business with least challenges
Industry at Maturity Levels
Synopsis
Ambuja the Most Profitable Cement Play
With Growth and Value
32