Investor s Meet June 16

Transcription

1 Investor s Meet June 16

2 GROWTH CHART CAPACITY & PRODUCTION JKLC* Mn. MT. As on 31 st March Jun 17(E) Sept 18(E) Clinker Capacity Cement Capacity Production JKLC CAGR during FY 12 to FY 16 16% *Without considering 1.60 Mn. MT of Udaipur Cement Works Ltd., a 72% subsidiary of JK Lakshmi Cement Ltd. PRODUCTION (Mn. MT) SALES (Mn. MT) Qtr Ended 12 Months Ended Qtr Ended 12 Months Ended % 26% 39% 23 % 1

3 Industry Growth Vs JKLC Demand/Despatches Particulars % Growth Apr.11 - Mar.12 Apr.12 - Mar.13 Apr.13 - Mar.14 Apr.14 - Mar.15 Apr.15 - Mar.16 (12M) (12M) (12M) (12M) (12M) All India 6% 5% 3% 4% 5% North + Gujarat Zone 11% 4% - 3% 3% JK Lakshmi Cement - Existing 14% 8% 7% 6% 3% East Zone 5% 5% JK Lakshmi Cement - including East Zone 23% 2

4 Capacity Utilisation Year (Apr.-Mar.) Particulars Apr.11 - Mar.12 Apr.12 - Mar.13 Apr.13 - Mar.14 Apr.14 - Mar.15 Apr.15 - Mar.16 (12M) (12M) (12M) (12M) (12M) All India 72% 70% 68% 66% 66% North + Gujarat Zone 84% 86% 83% 77% 73% JK Lakshmi Cement - Existing 100% 94% 99% 82% 85% East Zone 80% 76% JK Lakshmi Cement - Durg 69% JK Lakshmi Cement - including East Zone 82% 3

5 4 Mother Plants Cement (Clinker) - Mn.MT 4.65(4.79) UCWL 1.60(1.20) Udaipur Jaykaypuram Kalol (Grinding Unit) Surat (Grinding Unit) Jharli (Grinding Unit & AAC Block) Durg Odisha (Grinding Unit) (2.0) 0.60

6 Markets J&K Punjab Haryana H.P. (33%) Rajasthan (26%) Delhi W.U.P. & Utt. Gujarat (35%) Madhya Pradesh (5%) W.Bengal (6%) Mumbai (6%) Maharashtra (5%) Odisha (21%) Andhra Pradesh (2%) 5

7 Region-wise Cement Sales - Sirohi Regions (12M) % sales % sales % sales % sales Rajasthan / MP Gujarat Maharashtra North

8 Region-wise Cement Sales - Durg Regions (12M) % sales Chhattisgarh 57 Odisha 21 West Bengal 6 Madhya Pradesh 5 Maharashtra 4 Jharkhand 3 Bihar 2 Others 2 7

9 Financial Highlights For 3 Months ended Sr. Particulars Unit For the IVth Qtr. ended No Incr. / Decr. (-) in Figures % 1 Production (Incl. Clinker Sale) Mn. MT % 2 Sales Mn. MT % 3 Turnover Rs. Mn % 4 Net Sales Rs. Mn % 5 PBIDT (before other Income) Rs. Mn % 6 PBIDT (after other Incom e) Rs. Mn % 7 Interest Rs. Mn % 8 PBDT Rs. Mn % 9 Depreciation Rs. Mn % 10 PBT (before exceptional items) Rs. Mn % 11 Exceptional Items Rs. Mn % 12 PBT Rs. Mn % 13 PAT Rs. Mn % 14 Basic EPS (After Tax) Rs % 15 OPM (On Net Sales) % 12% 12% 0% 8

10 Financial Highlights For 12 Months ended Sr. Particulars Unit For Twelve Months ended No Incr. / Decr. (-) in Figures % 1 Production (Incl. Clinker Sale) Mn. MT % 2 Sales Mn. MT % 3 Turnover Rs. Mn % 4 Net Sales Rs. Mn % 5 PBIDT (before other Income) Rs. Mn % 6 PBIDT (after other Incom e) Rs. Mn % 7 Interest Rs. Mn % 8 PBDT Rs. Mn % 9 Depreciation Rs. Mn % 10 PBT (before exceptional items) Rs. Mn % 11 Exceptional Items Rs. Mn % 12 PBT Rs. Mn % 13 PAT Rs. Mn % 14 Basic EPS (After Tax) Rs % 15 OPM (On Net Sales) % 10% 15% -5% 9

11 Balance Sheet Sl. Particulars Rs.Mn. No. As at As at A EQUITY &LIABILITIES 1 Share Capital Reserves and Surplus Net Worth (1 + 2 ) Loans a Long-Term b Short-Term Sub-Total (3) Deferred Tax Liabilities (net) Current Liabilities Total (A) B ASSETS 1 Net Fixed Assets Investments - Non Current Current Current Assets Total (B)

12 80 Major Performance Indicators Power Consumption (Kwh./ MT of cement)

13 Major Performance Indicators Fuel Consumption (K.Cal./Kg.of clinker)

14 Comparative Power Consumption Kwh/MT of Cement JKLC Shree JK Cement Ambuja ACC Ultra Tech 13

15 KEY FINANCIAL RATIOS Particulars Unit Operating Profit Margin ( net of Excise) % Interest Coverage Times Total Debt / Equity Times Net Debt / Equity Times EV per Ton (1US$ = Rs. 67) US $/MT

16 Sl No. Split Grinding Unit - Surat Particulars Rs. Mn. 1 Capacity (Mn. MT) Project Cost 2,300 3 Debt 1,600 4 Internal Accruals Debt : Equity Ratio CAPEX upto Mar.'16 1,760 Expected Commissioning - July'16 - Sept'16 15

17 Split Grinding Unit - Odisha Sl No. Particulars Rs. Mn. 1 Capacity (Mn. MT) Project Cost 1,250 3 Debt Internal Accruals Debt : Equity Ratio CAPEX upto Mar.' Expected Commissioning - 16 Sept'17

18 Durg Project Rs. Mn. Sl No. Particulars Phase -I Phase -II Phase -III Total Durg Durg Odisha 1 Capacity - Clinker (Mn.MT) Capacity - Cement (Mn.MT) Project Cost 16, ,250 17,750 4 Debt 11, ,750 5 Internal Accruals 5, ,000 6 Debt : Equity Ratio Expected Commissioning - Mar'15 Jun'17 Sept'17 Sept'17 17

19 Sl No. 7 MW WHR at Durg Particulars Rs. Mn. 1 Capacity (MW) 7 2 Project Cost Debt Internal Accruals Debt : Equity Ratio 2.00 Expected Commissioning - Qtr.ending Sept'17 18

20 Growth Opportunity - UCWL S.No. Particulars Rs. Mn. 1 Capacity (Mn. MT) Project Cost - Rs.Mn 7,000 - Rs / MT 4,375 3 Term Loan from Bank/FI's 4,750 4 Internal Accruals (JKLC's 2,250 Contribution Rs Mn. 5 Debt : Equity Ratio 2.11 Expected Commissioning - 19 Dec'16

21 Growth Opportunity - UCWL Revival of M/s Udaipur Cement Works Limited (UCWL) Means of Financing for Revival & Rehabilitation : Means of Finance A.Equity Rs. Mn. 1.Equity/other instruments from JKLC Equity Internal Accruals 650 Total Equity 2250 B.Term Loan from Bank/FI s 4750 Total (A+B)

22 Advantages to JKLC from UCWL 1. Land and Limestone Mines are available. 2. Environmental clearances are in place. 3. Major Plants orders released in March-April Can commence operations in about 2 years as compared to 4 to 5 years required for new cement project. To be fully operational by Dec Investment cost in UCWL will be US $ 70 per MT as against the cost of US $ 120 per MT for a new Green field Cement Plant i.e., about 42% cheaper. 6. The plant has an excellent location, well connected by Road, Rail & Air and is close to the National Highway. 7. The plant is having railway siding easy movements of goods. 21

23 Advantages of UCWL Revival 8. Plant has the benefit of 50% Sales Tax Incentive of about Rs. 100 /MT. 9. Proximity of the Plant to the Consumption Centres has freight advantage. 10.The accumulated tax losses of UCWL of over Rs.1000 Mn. will result in tax savings in future years. 11. The combined capacities of JKLC & UCWL would increase the market share and consolidation of capacities would give benefits of synergy & logistics. 10. Availability of surplus land for commercial use and further expansion. 11.JKLC s holding is already 72% & Group holding is 75%. 12. Future option for JKLC : Merger/Dilution in Stake for future Growth in JKLC. 22

24 Shareholding Pattern of JKLC as on 31st March I Promoters & Promoter Group 45.94% II Financial Institutions and Banks 32.86% III Public 21.20% Total % I Total Share Capital (Rs. Cr.) II Total No. of Shares (Cr.) (Face Value Rs. 5/- each)

25 Shareholder s friendly Initiatives 1. Buy-back upto Rs. 975 Mn. at a Cap of Rs. 70/- per share in Feb Cap of Rs. 70/- per share represents : 57% Premium over 12 months average price. 68% Premium over 6 months average price. 67% Premium over 3 months average price. 66% Premium over 1 months average price. 43% Premium over 15 days average price. The Company Utilised only Rs Mn. for the Buy-back 2. Share Split from - Rs. 10/- per share into 2 Shares of Rs. 5/- each. 24

26 Shareholder s friendly Initiatives (Contd..) 3. Consistent Dividend Payout Ratio 56% for FY % for FY % for FY % for FY % for FY % for FY

27 JKLC among Best Performers on the bourses Annualised Stock Price Return since January 2003 Company Shree cement JK lakshmi Cement Chettinad Cement Birla Corp Mangalam Cement Madras Cement Ambuja Cement Grasim Inds ACC Prism Cement Century Textiles Heidelberg Cement Sensex India Cements Kesoram Industries CAGR return (%) Source : Capitaline, BSE, BCCI Annual Report/Business Standard

28 Way Forward Setting up WHR plant of 7MW at Durg. Durg plant has reached efficiencies in 4 th Qtr. of In the Company will have much improved efficiencies. Premium Brands Pro+, Platinum Cement is sold from Durg Plant. Reduction in Borrowing Cost on LT Loans through annual resetting. Purchase of Power at Cheaper rate through Exchange. Negotiation are on for Buying power from private player in Chhattisgarh to save on power & fuel Cost. Pro+ Cement sale to increase in Northern Markets too. The Company has penetration in rural markets. Good monsoon will be much favorable for the Company. 27

29 Way Forward Increasing volumes through split location Grinding unit and outsourcing Grinding Arrangement. Short term rating continues at A1+ (highest possible rating). JKLC s rating has been upgraded from AA- to AA. 28

30 JKLC to breach 10 Mn MT by Jun 16. Would become a 11 Mn MT Cement Company during Cement Capacity (including UCWL) to go up from 9.35 Mn. MT in Mar 16 to over 13 Mn. MT during Efficiency Parameters amongst best in Industry. Key Financial Ratios well within accepted Norms. Become PAN India Player (Barring South). 29

31 Thank You