Slice of Pie-Cement

Sector Performance Sector Performance

In October, there was a notable increase in cement prices across India. This was mainly
due to the rise in demand for cement and the end of the monsoon season, except for the
eastern region. The average cost of cement increased by 1.26% or Rs. 5 per bag. Among
all the regions, the southern region experienced the most significant price hike of 6.55%.

Region Wise Cement Prices (per 50kg Bag) Sector Updates

Ø The cement sector experienced increased
440
420
demand in October 2023 due to increase
400 in infrastructure spending, urban housing
380
360
sector demand and real estate recovery.
340 Ø Pet coke prices have decreased by 4.66%
320
300
from 14,329 to 13,660 per tonne as
23 3 3 3 3 3 3 3 3 3 compared to the previous month.
n- -2 -2 -2 y -2 n-2 -2 g -2 p-2 -2
Ja
b ar Apr a ul ct Ø Cement Production in the country
Fe M M J u J Au Se O
North West East South Central reduced by 2906k tonnes i.e. 4.66% on
MoM basis.
Source : Crisil Research

Pet coke Prices Latest News

(MoM Growth) Ø JSW Cement is in preliminary talks to buy
Oct-23 13660
Heidelberg Materials' India business.
Sep-23 14329
Ø The Adani Group is preparing to
Aug-23
refinance the $3.5 billion debt that it had
13182
taken for ACC-Ambuja deal.
Jul-23 11856
Ø Ultratech Cement has announced that it
Jun-23 13230
will invest Rs 13,000 crores to increase
May-23 14639
capacity by another 21.9 MTPA.
Apr-23 16511 Ø UltraTech Cement reported a significant
0 5000 10000 15000 20000 increase of 15% in sales during Q2,
Source : Crisil Research *in MTPA reaching 26.69 million tonnes.
End-Use Sector Mix Global Outlook
Ø Cement prices have risen globally due to
14%
supply chain disruptions and high energy
28%
costs in China and Europe.
24% Ø GCCA, in its latest report predicts slow
34%
down in global cement demand in 2024
due to high interest rates and slowing
economy.
Industrial and commercial Urban Housing Ø Holcim, Lafarge, and Heidelberg Cement
Rural Housing Infrastructure have pledged to reduce carbon emissions
by 40% by 2030 and achieve net-zero
Source : Crisil Research
SourceRBI emissions by 2050.
 Company of the Month- UltraTech Cement
Stock Price Moment
About the Company
8422
Ø UltraTech Cement Ltd is the largest
manufacturer of grey cement as per
installed production capacity in India.
Ø The higher capacity and all-India
presence are Ultratech Cement’s major
7077 competitive advantages.
Ø It is the third largest cement producer
Jan-23

Apr-23

May-23
Mar-23

Aug-23
Feb-23

Sep-23
Jun-23

Oct-23
Jul-23
Nov-22

Dec-22

in the world, excluding China.

Revenue and Net Profit Margin
Ø Ultratech is the founding member of
Revenue in Cr.
Net Profit GAAC, with operations spanning India,
Margin
12,000 9.52% 10%
UAE, Bangladesh, Sri Lanka, and
8.21%
10,000 9,720 8%
Bahrain.
6.25% 7,990
8,000
6,606 7.32% 6% Ø It is the second largest Asian company
6,000 5,801
4% to issue sustainability-linked bonds.
4,000
2,000 2%
0 0% Recent Performance
Jan-20 Jan-21 Jan-22 Jan-23
Ø UltraTech Cement Ltd reported a profit
Revenue Net Profit Margin
of Rs 1,205 crore in Q2, an increase of
Share of regions in Total capacity 67.83% compared to Q2 of last year
(FY22).
23% 20% Ø The Revenue for the Q2 FY23 stood at
15517 crore with an EBITDA margin of
15.1%.
16%
18% Ø Ultratech Cement's sales in rural areas
during Q2 increased by 15%, which
23% constitute 63% of its total sales.
North South West East Central
Future Plans of the Company
Key Financials Ø The company outlined its expansion
2023 2022 plans and has also allocated 5,831
Revenue (in Cr) 62,015.93 51,275.29
crore for maintenance capex, growth
and WHRS implementation.
PAT (in Cr) 4,916.88 7,066.54 Ø UltraTech Cement is aiming to achieve
EV (in Cr) 2,27,715.01 2,00,215.51 a production capacity of 200 million
tonnes per annum to become one of
EBITDA (in Cr) 11,117.52 12,022.16 the world's largest cement companies.
ROCE(%) 12.37 14.78 Ø The company aims to reduce carbon
intensity by 27% by 2032 as part of its
D/E 0.17 0.20 sustainability target.
EPS (Basic) 170.53 245.00