Investors Presentation FY2016 -17 GROWTH CHART CAPACITY & - - PowerPoint PPT Presentation

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Investors Presentation FY2016 -17 GROWTH CHART CAPACITY & - - PowerPoint PPT Presentation

Oct 17, 2023 237 likes •522 views

Investors Presentation FY2016 -17 GROWTH CHART CAPACITY & PRODUCTION JKLC Mn. MT. As on 31 st March 2013 2014 2015 2017 Mar18(E) 2011 2012 2016 4.13 6.27 6.60 6.77 4.62 6.27 4.29 Clinker Capacity * 3.96 4.75

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SLIDE 1

Investor’s Presentation FY’2016-17

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SLIDE 2

GROWTH CHART – CAPACITY & PRODUCTION – JKLC

  • Mn. MT.

2011 2012 Clinker Capacity Cement Capacity Production 2013 2014 2015

JKLC CAGR during FY’12 to FY’17 – 20%

2016 4.75 4.75 5.29 4.31 4.72 5.00 5.23 3.96 4.13 4.29 4.62 6.64 6.27 8.30 6.27 8.65

*Without considering 1.60 Mn. MT of Udaipur Cement Works Ltd., a 71% subsidiary of JK Lakshmi Cement Ltd.

5.47 2017 6.60 10.90 As on 31st March 6.88 Mar’18(E) 6.77 11.50 PRODUCTION (Lac. MT) SALES (Lac. MT) 3 Months Ended 31.03.2017 31.03.2016 21.77 20.51 6% 12 Months Ended 31.03.2017 31.03.2016 74.78 68.83 9% 3 Months Ended 31.03.2017 31.03.2016 22.90 21.59 6% 12 Months Ended 31.03.2017 31.03.2016 79.49 73.24 9% 7.48 12

* * *

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SLIDE 3

Industry Growth Vs JKLC

Particulars Apr.12 - Mar.13 Apr.13 - Mar.14 Apr.14 - Mar.15 Apr.15 - Mar.16 Apr.16 - Mar.17 (12M) (12M) (12M) (12M) (12M) All India 5% 3% 5% 5%

  • 1%

North + Gujarat Zone 4%

  • 3%

2%

  • 4%

JK Lakshmi Cement - Existing 8% 7% 6% 3% 1% East Zone 5% 5% 1% JK Lakshmi Cement - including East Zone 23% 9% % Growth

13

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SLIDE 4

Capacity Utilisation – Year (Apr.-Mar.)

Particulars Apr.12 - Mar.13 Apr.13 - Mar.14 Apr.14 - Mar.15 Apr.15 - Mar.16 Apr.16 - Mar.17 (12M) (12M) (12M) (12M) (12M) All India 70% 68% 66% 66% 62% North + Gujarat Zone 86% 83% 78% 72% 67% JK Lakshmi Cement - Existing 94% 99% 82% 85% 76% East Zone 80% 74% 69% JK Lakshmi Cement - Durg 69% 92% JK Lakshmi Cement - including East Zone 82% 79%

14

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SLIDE 5

Jaykaypuram Durg Kalol

(Grinding Unit)

Jharli

(Grinding Unit & AAC Block)

Odisha

(Grinding Unit)

Mother Plants – Cement (Clinker) - Mn.MT

Udaipur Surat

(Grinding Unit)

UCWL 1.60(1.20) 1.30 4.65(4.79) 0.90 1.35 2.70(1.98) 0.60

15

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SLIDE 6

Markets

Rajasthan (26%) Gujarat (34%) Haryana Delhi Mumbai (4%) Punjab J&K H.P.

W.U.P. & Utt.

(36%)

Madhya Pradesh (9%) Maharashtra (10%) Andhra Pradesh (2%)

Odisha (17%)

W.Bengal (1%)

16

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SLIDE 7

Region-wise Cement Sales - Sirohi

Regions 2012-13 2013-14 2014-15 2015-16 (12M) 2016-17 (12M) % sales % sales % sales % sales % sales Rajasthan / MP 23 26 27 26 26 Gujarat 34 35 36 35 34 Maharashtra 8 7 8 6 4 North 35 32 29 33 36

17

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SLIDE 8

Region-wise Cement Sales - Durg

Regions 2015-16 (12M) 2016-17 (12M) % sales % sales Chhattisgarh 57 54 Odisha 21 17 West Bengal 6 1 Madhya Pradesh 5 9 Maharashtra 4 10 Jharkhand 3 4 Bihar 2 3 Others 2 2

18

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SLIDE 9

Financial Highlights – For 3 Months ended 31.03.2017

19

  • Sr. Particulars

Unit For the IVth Qtr. ended No. 31.03.17 31.03.16 Existing Durg Total Existing Durg Total Figures % 1 Production (Incl. Clinker Sale) Lac MT 16.44 5.33 21.77 15.90 4.61 20.51 1.26 6% 2 Sales Lac MT 17.58 5.32 22.90 16.94 4.65 21.59 1.31 6% 3 Turnover

  • Rs. Cr.

710 194 904 662 163 825 80 10% 4 Net Sales

  • Rs. Cr.

636 171 807 596 140 735 72 10% 5 PBIDT (before other Income)

  • Rs. Cr.

67 4 72 80 5 85

  • 14
  • 16%

6 PBIDT (after other Income)

  • Rs. Cr.

94 4 98 93 5 98 0% 7 Interest

  • Rs. Cr.

26 21 47 26 24 50

  • 4
  • 7%

8 PBDT

  • Rs. Cr.

68

  • 16

51 66

  • 19

47 4 8% 9 Depreciation

  • Rs. Cr.

32 14 46 28 13 40 6 14% 10 PBT (before exceptional items)

  • Rs. Cr.

36

  • 30

6 39

  • 32

7

  • 2
  • 11 Exceptional Items
  • Rs. Cr.
  • 12 PBT
  • Rs. Cr.

36

  • 30

6 39

  • 32

7

  • 2
  • 13 PAT
  • Rs. Cr.

41

  • 20

21 47

  • 21

26

  • 5
  • 14 OCI after Tax
  • Rs. Cr.
  • 1
  • 1

1 1

  • 2
  • 15 Total CI after Tax
  • Rs. Cr.

40

  • 20

20 47

  • 21

27

  • 7
  • 16 Basic EPS (After Tax)

Rs. 1.77 2.20

  • 0.43
  • 17 OPM (On Net Sales)

% 11% 2% 9% 13% 4% 12%

  • 3%
  • Incr. / Decr. (-) in
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SLIDE 10

Financial Highlights – For 12 Months ended 31.03.2017

20

  • Sr. Particulars

Unit For Twelve Months ended No. 31.03.17 31.03.16 Existing Durg Total Existing Durg Total Figures % 1 Production (Incl. Clinker Sale) Lac MT 56.85 17.93 74.78 56.44 12.39 68.83 5.95 9% 2 Sales Lac MT 61.46 18.03 79.49 61.00 12.24 73.24 6.25 9% 3 Turnover

  • Rs. Cr.

2598 662 3260 2479 461 2939 321 11% 4 Net Sales

  • Rs. Cr.

2332 579 2910 2223 397 2620 291 11% 5 PBIDT (before other Income)

  • Rs. Cr.

350 15 365 282

  • 10

272 93 34% 6 PBIDT (after other Income)

  • Rs. Cr.

420 15 435 331

  • 10

321 115 36% 7 Interest

  • Rs. Cr.

98 91 189 101 96 197

  • 8
  • 4%

8 PBDT

  • Rs. Cr.

322

  • 76

247 230

  • 106

124 123 99% 9 Depreciation

  • Rs. Cr.

116 56 172 108 54 163 9 6% 10 PBT (before exceptional items)

  • Rs. Cr.

206

  • 132

74 121

  • 160
  • 39

113

  • 11 Exceptional Items
  • Rs. Cr.

5 6 11

  • 11
  • 100%

12 PBT

  • Rs. Cr.

206

  • 132

74 117

  • 166
  • 50

124

  • 13 PAT
  • Rs. Cr.

168

  • 86

82 102

  • 109
  • 7

89

  • 14 OCI after Tax
  • Rs. Cr.
  • 1
  • 1
  • 1
  • 1
  • 15 Total CI after Tax
  • Rs. Cr.

168

  • 86

81 101

  • 109
  • 8

89

  • 16 Basic EPS (After Tax)

Rs. 6.97

  • 0.56

7.53 0% 17 OPM (On Net Sales) % 15% 3% 13% 13%

  • 3%

10% 3%

  • Incr. / Decr. (-) in
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SLIDE 11

Major Performance Indicators

Power Consumption (Kwh./ MT of cement)

21

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Sirohi 2016-17 Durg

79 79 78 75 73 74 75 74 71

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SLIDE 12

Major Performance Indicators

Fuel Consumption (K.Cal./Kg.of clinker)

22

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Sirohi 2016-17 Durg

763 746 742 738 726 704 703 700 703

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SLIDE 13

KEY FINANCIAL RATIOS

24

Particulars Unit 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Operating Profit Margin ( net of Excise) % 19 21 15 15 10 13 Interest Coverage Times 5 6 4 4.16 1.63 2.31 Total Debt / Equity Times 0.96 1.09 1.27 1.41 1.47 1.57 Net Debt / Equity Times 0.48 0.77 0.97 1.18 1.26 1.20 EV per Ton (1US$ = Rs. 67) US $/MT 36 63 78 125 100 103

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SLIDE 14

7 MW WHR at Durg

Sl No. Particulars

  • Rs. Cr.

1 Capacity (MW) 7 2 Project Cost 90 3 Debt 60 4 Internal Accruals 30 5 Debt : Equity Ratio 2.00 6 CAPEX upto Mar.'17 79 Expected Commissioning - Qtr.ending Dec'17

29

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SLIDE 15

20 MW TPP at Durg

S.No. Particulars

  • Rs. Cr.

1 Capacity (MW) 20 2 Project Cost 135 3 Debt 100 4 Internal Accruals 35 5 Debt : Equity Ratio 2.86 Expected Commissioning - Oct'18

30

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SLIDE 16

Split Grinding Unit at Odisha

31

S.No. Particulars

  • Rs. Cr.

1 Capacity (Mn. MT) 0.60 2 Project Cost 150 3 Debt 100 4 Internal Accruals 50 5 Debt : Equity Ratio 2.00 6 CAPEX upto Mar.'17 45

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SLIDE 17

Revival & Rehabilitation of UCWL

32

S.No. Particulars

  • Rs. Cr.

1 Capacity (Mn. MT) 1.60 2 Project Cost - Rs.Cr. 815

  • Rs/MT

5,094 3 Term Loan from Bank/MFs 525 4 Promoters Contribution 290 5 Debt : Equity Ratio 1.91 Commissioned - Mar'17

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SLIDE 18

Means of Finance for UCWL

Means of Finance A.Equity 1.Equity/other instruments from JKLC 205

  • 2. Equity

10

  • 3. Internal Accruals

65

  • 4. Unsecured Loan from JKLC

10 Total Equity 290 B.Term Loan from Bank/MFs 525 Total (A+B) 815

  • Rs. Cr.

33

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SLIDE 19

Advantages to JKLC from UCWL

  • 1. Commissioned in Mar’2017.
  • 2. Investment cost in UCWL is US $ 72 per MT as against the

cost of US $ 120 per MT for a new Green field Cement Plant i.e., about 40% cheaper.

  • 3. The plant has an excellent location, well connected by Road,

Rail & Air and is close to the National Highway.

  • 4. The plant is having railway siding – easy movements of

goods.

  • 5. Plant has the benefit of 50% Sales Tax Incentive of about Rs.

140 /MT

  • 6. Proximity of the Plant to the Consumption Centers has

freight advantage.

34

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SLIDE 20
  • 7. The accumulated tax losses of UCWL of over Rs.100 Cr.

will result in tax savings in future years.

  • 8. The combined capacities of JKLC & UCWL would increase

the market share and consolidation of capacities would give benefits of synergy & logistics. 9. Availability of surplus land for commercial use and further expansion. 10.JKLC’s holding is already 71% & Group holding is 74%.

  • 11. Future option for JKLC :

Merger/Dilution in Stake for future Growth in JKLC. Advantages of UCWL Revival

35

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SLIDE 21

Shareholding Pattern of JKLC as on 31st Mar’2017

36

I Promoters & Promoter Group 45.94% II FIIs,MFs,Banks etc. 33.47% III Public 20.59% Total 100.00% I Total Share Capital (Rs. Cr.) 58.85 II Total No. of Shares (Cr.) (Face Value Rs. 5/- each) 11.77

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SLIDE 22

1. Buy-back upto Rs. 97.5 Cr. at a Cap of Rs. 70/- per share in Feb’2012. 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. 30.47 Cr. for the Buy-back
  • 2. Share Split from - Rs. 10/- per share into 2 Shares of Rs. 5/- each.

Shareholder’s friendly Initiatives

37

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SLIDE 23

3. Consistent Dividend Payout Ratio 13% for FY 2017. 56% for FY 2016. 30% for FY 2015.

  • 30 % for FY 2014.

20% for FY 2013. 25% for FY 2012. 30% for FY 2011. 29% Average for last 7 Years

Shareholder’s friendly Initiatives (Contd..)

38

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SLIDE 24

JKLC among Best Performers on the bourses

Annualised Stock Price Return since January 2003

55.5 39.4 36.8 33.8 30.0 29.6 25.4 24.9 24.9 24.0 22.8 22.3 19.9 18.3 16.5 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

Company CAGR return (%)

Source : Capitaline, BSE, BCCI Annual Report/Business Standard 30.05.13

39

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SLIDE 25

Setting up WHR Plant of 7MW at Durg. Setting up TPP Plant of 20 MW at Durg. At Durg in 2016-17 the Company has achieved 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. Pro+ Cement sale to increase in Northern Markets too. The Company has penetration in rural markets.

Way Forward

40

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SLIDE 26

Increasing volumes through split location Grinding unit and outsourcing Grinding Arrangement. Short Term rating continues at A1+ (highest possible rating). Long Term rating is ‘AA’.

Way Forward

41

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SLIDE 27

JKLC became a 11 Mn MT Cement Company in Mar’2017. Cement Capacity (including UCWL) has gone up from 9.35 Mn. MT in Mar’16 to 13 Mn. MT in Mar’2017. Efficiency Parameters amongst best in Industry. Key Financial Ratios well within accepted Norms. Become PAN India Player (Barring South). JKLC has breached 10 Mn MT in Oct’16.

42

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SLIDE 28

Thank You