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Conference Call Details • Date: August 6, 2024 • Disclosure: Transcript released on August 12, 2024, in compliance with SEBI regulations. • Host: ICICI Securities • Key Speaker: Desh Deepak Khetrapal, Managing Director and CEO
Company Achievements • Certified as a "Great Place to Work" for the fifth consecutive year with a trust score of 93. • Awarded "Most Trusted Leader" for the second consecutive year.
Market Challenges • Noted flat growth in national cement demand and declines in specific markets due to extreme weather and national elections. • Emphasis on maintaining profitability over sales volume; resisted lowering prices despite a 15% decline in sales volume.
Strategic Focus • Commitment to premium cement sales, with 23% of total sales from premium products. • Focus on quality and brand integrity in a competitive B2B market. • Increased EBITDA per ton year-over-year despite industry pressures.
Operational Updates • Significant green power component (24%) achieved through waste heat recovery and solar initiatives. • Power and fuel costs decreased to INR 1,337 per metric ton. • Expansion of solar power capacity and updates on environmental clearances for projects.
Capacity Expansion Plans • Advanced stage for forest clearance at Devapur mines; focus on expanding capacity at Chittapur and Sarni. • Estimated capital expenditure for FY '25 around INR 200-300 crores, with major investments likely postponed to the next year.
Demand and Growth Outlook • Concerns about weak demand in Telangana, with potential struggles to meet earlier volume growth guidance of 8%. • Anticipation of demand recovery post-monsoon due to construction needs.
Capital Expenditure Details • Budget of INR 150 crores for current year, with plans for brownfield expansions. • Total projected capital expenditure for Chittapur and Sarni expected to exceed INR 2,000 crores.
Closing Remarks • Khetrapal expressed gratitude for participant engagement and reaffirmed the company's commitment to transparency and long-term interests. • The call concluded with no further questions from participants.
Conference Call Details • Date: May 2, 2024 • Transcript Availability: On company website, compliant with SEBI regulations • Moderator: Mr. Naveen Sahadeo (ICICI Securities) • Key Speaker: Mr. Deepak Khetrapal (Managing Director)
Financial Performance Highlights • Q4 Results: • Flat volumes; slight increase in net revenues to ₹895 crores • 24% sequential volume growth compared to Q3, but realizations fell by 5% • EBITDA for the year grew by 23% to ₹465 crores despite only a 6% volume increase • Challenges: • Lack of expected demand growth, particularly in March • Pricing decline in March affected EBITDA • Competition and underperformance in key markets (Telangana)
Sales and Market Insights • B2B Sales: Increased, particularly in Maharashtra (55% of Q4 sales) • Premium Cement Brands: Grew by 31% year-on-year, now 22% of total trade sales • Geographical Performance: Western region accounted for 67% of total sales in Q4
Operational Developments • Waste Heat Recovery Project: Phases 1 and 2 commissioned, expected annual savings of ₹50-55 crores • Solar Power Projects: Enhancing green energy usage • Capacity Utilization: Devapur plant struggled; Chittapur plant exceeded 100% capacity
Future Outlook • Volume Guidance for FY’25: Target of 8% growth, contingent on market conditions • Capital Expenditure Plans: Estimated ₹1,000 crores for FY’25, primarily for expansion projects • Debt Management: Current manageable debt of ₹600 crores against a net worth of ₹1,800 crores
Pricing and Market Conditions • Pricing Trends: Weak pricing expected to continue; cautious outlook for May • Industry Growth: Projected at 6-8%, with hopes for improved demand post-monsoon
Long-term Strategy • Renewable Energy Goals: Aim for 50% renewable energy usage by 2030 • Clinker Production: 4.7 million tons for FY'24, with a clinker utilization rate of 90% • Future Projects: Focus on Chittapur and Madhya Pradesh, with challenges in land acquisition for Rajasthan
Conclusion • Final Remarks: Khetrapal thanked participants and emphasized the company's focus on efficiency, cost management, and premium product growth to navigate market challenges.
Conference Call Details • Date: February 6, 2024 • Hosted by: ICICI Securities • Speaker: Shri Desh Deepak Khetrapal, Managing Director and CEO • Transcript available on the company's website • Format: Listen-only mode with a Q&A session
Financial Performance • EBITDA: • Rs. 117 crores for the quarter • Rs. 309 crores, a 28% year-over-year increase • Realization: • Rs. 5,400 per ton • Improved by Rs. 200 per ton compared to last year • Sales Volume: • 3% decline year-over-year • 29% drop in B2C sales in Telangana due to elections and competition • Growth: • Year-to-date growth of 9% • Shift towards B2B sales (56% of total volumes)
Cost Management • Power and Fuel Costs: • Decreased by Rs. 157 per ton year-over-year • 25% of total fuel from alternative sources • 50% of power at Jalgaon unit from solar energy • Freight Costs: • Increased by 4.5% year-over-year due to transportation distances
Expansion Plans • Projects: • Four significant projects in progress • Chittapur plant expansion public hearing on February 17, 2024 • New grinding unit in Madhya Pradesh received conditional approval • Rajasthan mines secured lease deed for land acquisition
Q&A Highlights • B2C Market in Telangana: • South India accounts for 30% of business • Pricing Trends: • Stable prices since December • Debt and Volume Guidance: • Reduced debt; targeting 6.2 million tons for FY'24 • CAPEX Guidance: • Estimated total of Rs. 2,000 crores for FY'24 and FY'25 • Grinding Capacity in Rajasthan: • Projected at 3.2 million tons
Conclusion • The call concluded with Khetrapal thanking participants for their engagement and support, emphasizing the company's commitment to its premiumization strategy and expansion plans.
Orient Cement Limited Investor Conference Call Summary
Date and Context • Date of Call: November 10, 2023 • Disclosure Date: November 16, 2023 • Host: ICICI Securities • Key Speaker: Mr. Deepak Khetrapal, Managing Director and CEO • Compliance: Transcript available on the company website, submitted per SEBI regulations.
Financial Performance • Q2 Sales Volume: 14.25 lakh tonnes, 15% YoY growth. • Revenue: INR 720 crores, 17% YoY increase, 12% sequential decline. • EBITDA: INR 88 crores, up from INR 37 crores YoY; EBITDA per tonne at INR 620. • Product Mix: 59% blended cement sales; premium products account for 21-22% of trade sales.
Operational Highlights • Cost Reduction: Waste heat recovery plant expected to reduce costs by over INR 60 per tonne. • Market Challenges: Low demand and depressed prices in South Indian markets (Telangana, Karnataka, Andhra Pradesh). • Market Share: 27% in South, 9% in Madhya Pradesh.
Expansion and Capital Expenditure • Devapur Expansion: Delays due to pending forest clearance; total cost estimated at INR 1,950 crores. • New Grinding Unit in MP: Awaiting state electricity board approval. • Fuel Mix Improvement: Plans to utilize 50% renewable energy; target thermal substitution rate of 12-13%.
Future Outlook • Sales Target: Aim to sell 63-65 lakh tonnes for the fiscal year. • Growth Guidance: Targeting 10% growth for FY '25, aiming for volumes beyond 6.5 million tonnes.
Challenges and Considerations • Maintenance Costs: Kiln shutdowns incur around INR 10 crores each. • Fuel Costs: Decreased power and fuel costs, but rising international pet coke prices may offset savings. • Waste Heat Recovery: Ongoing initiatives to improve efficiency and reduce costs.
Closing Remarks • Festive Greetings: Khetrapal concluded the call with Diwali wishes to participants.
Orient Cement Limited Q1 FY2024 Earnings Call Summary
Conference Call Overview • Date: August 3, 2023 • Hosted by: ICICI Securities • Key Speaker: Mr. Deepak Khetrapal, MD and CEO • Transcript available on company website and shared with stock exchanges.
Financial Performance • Quarter Ending: June 30, 2023 • Volume Growth: 15% year-over-year; 7% sequential decline from Q4. • Revenue Growth: 15% year-over-year; stable realizations at under Rs. 5200/ton. • EBITDA: Flat compared to previous year due to maintenance shutdown and logistics costs.
Operational Challenges • Maintenance Shutdown: Chittapur kiln shutdown impacted operations; last shutdown was nearly two years prior. • Transportation Costs: Increased costs for clinker transport from Devapur to Chittapur; one-off expense. • Fuel Pricing: Domestic coal prices rose by 17-18%; international fuel prices decreased. • Power Costs: Increased due to changes in grid pricing; investments in solar power noted.
Sales and Market Trends • Sales Mix Shift: B2C sales decreased from 56% to 47%; B2B sales increased from 44% to 53%. • Premium Products: StrongCrete and OrientGreen saw 34% year-over-year growth. • Regional Sales: 62% of sales now from the western market.
Future Outlook • Demand Expectations: Anticipated improvement post-heavy rains; energy prices softening. • New Projects: Progress on grinding unit in Madhya Pradesh and mining lease in Rajasthan. • Capex Plans: Approximately ₹1000 Crores for FY2024 covering multiple projects.
Q&A Highlights • Waste Heat Recovery System: Expected savings of ₹3 Crores/month by FY2025. • Fuel Costs: Current costs per million Kcal discussed; optimism for stabilization in coal prices. • Annual Sales Target: Remains at 6.3-6.4 million tonnes. • Project Prioritization: Chittapur expansion prioritized due to increased demand for OPC.
Conclusion • The call concluded with appreciation for participant engagement and insightful questions.
Orient Cement Limited Conference Call Summary (May 10, 2023)
Conference Call Overview • Date: May 3, 2023 • Purpose: Discuss audited financial results for the fiscal year ending March 31, 2023 • Host: ICICI Securities • Key Participants: • Mr. Deepak Khetrapal (Managing Director and CEO) • Prakash Jain (CFO) • Manish Aggarwal
Financial Performance Highlights • Q4 EBITDA: Approximately INR 840 per ton • Volume: 17.2 lakh tons (up 6% YoY, 20% QoQ) • Shift from B2C to B2B sales: • B2B sales increased by 29% • B2C sales decreased by 9% • Clinker utilization: 98% in Q4 • Year-over-year realizations increased by 3% • Total cost: INR 570 per ton, with rising power and fuel costs
Renewable Energy Initiatives • Investment in solar power projects in Jalgaon and Chittapur • Goal: Increase renewable energy usage from 15% to over 35% by FY '25 • Challenges with Telangana's renewable power policies
Market Focus and Sales • Increased sales in Western India to 61% in Q4 • Achieved "plastic-positive" status by burning more plastic than consumed
Operational Efficiency and Debt Management • Reduced project debt to INR 240 crores • Strong kiln operations with Chittapur kiln running for 23 months without maintenance • Clinker stock management due to strong market demand
Future Plans and Capital Expenditure • Production target: 6.3 to 6.5 million tons (up from 5.8 million tons) • Planned capex for Chittapur expansion: INR 1,550 to 1,600 crores • Additional capex for projects in Devapur and Rajasthan: INR 1,000 to 1,050 crores • Focus on increasing clinker capacity and grinding capacity
Expansion and New Projects • Chittapur expansion to increase total capacity to 11.5 million tons • New site negotiations for Tiroda grinding unit in Madhya Pradesh • Estimated timelines for new projects and expansions discussed
Market Conditions and Competitive Pressures • Cost of debt influenced by market interest rates • Optimism for demand recovery in Telangana due to upcoming elections • Competitive pressures affecting pricing strategies, particularly in Jalgaon
Conclusion • The call concluded with acknowledgments from Khetrapal and the moderator, emphasizing the company's strategic focus on growth and operational efficiency.
Conference Call Overview • Date: February 2, 2023 • Host: ICICI Securities • Speaker: Mr. Deepak Khetrapal, Managing Director and CEO • Purpose: Discuss unaudited financial results for Q3 and nine months ending December 31, 2022 • Format: Presentation followed by Q&A session
Company Performance Highlights • Demand Recovery: Noted recovery in demand after a slow start due to monsoons and festivals. • Sales Growth: • Cement industry growth: 10% year-over-year • Orient Cement sold volumes: 14.30 lakh tons (17% increase) • Capacity utilization: Improved to over 70% • Challenges: • High inflation in power and fuel costs (35% increase year-over-year) • Marginal increase in selling prices • Shift towards B2B sales (51% of total sales)
Financial Metrics • Sales Target: Aiming for 5.8 million tons for the year, down from an initial target of 6 million tons. • Fuel Mix: • 40% domestic coal • 41% imported petcoke • 17% alternative fuels (AFR) • Cost Management: • Total cost: INR 1,578 per ton (35% higher than previous year) • EBITDA for Q3: INR 91 crores (down 25% year-over-year) • Debt Management: Total debt at INR 403 crores, with INR 365 crores interest-bearing.
Future Outlook • Market Demand: Optimism for sustained demand due to government investments in infrastructure and affordable housing. • Capex Plans: Limited to INR 150 crores for FY '24, with a detailed outlook expected in April. • Volume Projections: Q4 volumes expected between 1.7 to 1.8 million tons.
Strategic Insights • Pricing Strategy: Focus on maintaining profitability in B2B sales despite competitive pressures. • Cost Management: Aiming for an EBITDA of INR 1,000 per ton through effective cost management. • Coal Supply: Challenges in sourcing higher-grade coal, but adequate supplies of lower grades confirmed.
Closing Remarks • Mr. Khetrapal expressed gratitude to participants and acknowledged their contributions to the discussion. • The call concluded with an invitation for attendees to disconnect.