sagar cements limited - wordpress.com · 2015. 5. 29. · fy 2015 fy2014 fy2013 fy2012 markets...

Sagar Cements Limited

Corpora te P resen ta t i on

@ MAY 2015

Corporate Presentation 2

Experienced cement player with over 25 Years in business

Strong Sales and Distribution Network

One of the most Efficient Cement Players in the Country

Market Leader in South India for Sulphate Resistant Cement (SRC)

Capacity increased nearly 10 times since inception 1985 primarily

through debottlenecking and up gradation.

Current Clinker Capacity : 2.20 MTPA; Cement Capacity : 2.65 MTPA Bri

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Company Snapshot

• Plant is Located at Mattampally, Nalgonda District,Andhra Pradesh • Part of Nalgonda Cement Cluster • Head Office based out of Hyderabad


Efficient Cement Producer

Strategically Located in proximity to Major Markets and Raw Material Sources

Major Markets Coal Mines

Plant Location Fly Ash Source

Plant located in close proximity to Major Markets.

Average Lead Distance of only 700 kms

Very well connected to various Locations and Ports .

Proximity to Major Markets

Proximity to Major Markets

Adequate Limestone reserves with over 1000 million Tons of proven Reserves

- Company has Mining Lease on 1158 Acres

- Company also has Prospecting License for 1967 Acres.

Coal Mines (Major Fuel) are less than 150 kms from the Plant . Company has over 75% Coal Linkage from Singareni Collieries Company Limited and balance is sourced from overseas.

Other Additives are also available abundantly nearby .

Company sources 70% of its Electrical Power from the Grid, 15% from its group company & 10% from Energy Exchange.

Packing Material is mostly sourced from its Group Company – Panchavati Polyfibres Limited


Strong Sales & Distribution Network

Balanced Product Mix & Strong Brand Equity

Proximity to Major Markets Good Brand Equity

Dealers – 575 Sub Dealers – 1500 Wholesalers – 25 Distribution / Consignment Agents - 10

Bus Panel

Bus Shelter Bus Paintings

Shop Paintings

Wall Paintings Cab Paintings


Strong Sales & Distribution Network

New Railway Line

Total Investment for new railway line – ` 123 crore

Completion of the new railway line will lead to better efficiencies and savings in costs

Dispatches by rail expected to go up by 20%

Project Completion – H1 FY 2016

DESPATCH DETAILS

Mode Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 TOTAL

ROAD 391,173 366,627 350,200 441,557 1,549,557

RAIL 13,226 5,050 2,669 18,504 39,449

TOTAL 404,399 371,677 352,869 460,061 1,589,006


ROAD 361,042 277,970 324,774 450,710 1,414,496

RAIL - 2,688 2,645 - 5,333

TOTAL 361,042 280,658 327,419 450,710 1,419,829


ROAD 405,886 331,912 334,103 471,057 1,542,958

RAIL - 0 0 2,656 2,656

TOTAL 405,886 331,912 334,103 473,713 15,45,614

FY 2015 FY2014 FY2013 FY2012

Markets Quantity % of Total

Sales Quantity % of Total



Sales (in Tonnes) (in Tonnes) (in Tonnes) (in Tonnes)

Andhra & Telengana

6,01,668 38.82 6,86,251 48.33 8,08,687 51.02 8,76,122 53.71

Karnataka 2,34,105 15.10 1,76,186 12.41 2,21,725 13.99 2,27,317 13.93

Tamil Nadu 2,49,853 16.12 1,94,721 13.71 2,11,461 13.34 1,92,478 11.8

Maharashtra 3,10,487 20.03 2,28,433 16.09 2,14,071 13.51 1,92,713 11.81

Orissa 1,09,487 7.06 77,094 5.43 61,782 3.9 61,499 3.77

Others 44,498 2.87 57,172 4.03 77,277 4.24 20,284 4.98

Total 15,50,098 100.00 14,19,857 100.00 15,85,003 100 16,31,393 100

OPC, 64%

PPC, 35%

SRC, 1 PRODUCT MIX

43

57

SALES MIX

Trade

Non-Trade


Strong & Experienced Team

Experienced & Technical Knowhow Process

Professional and Experienced Management

Over Three Decades of Experience

In-depth understanding and knowledge of Market and Customer behavior

Ability to acquire and integrate Plants and Processes

Proven track record of setting-up Greenfield plants at Optimum cost/time.

Most of the Senior Management have been with the Company for more than 15 Years

Continuous improvement in Operating Efficiency

Constant focus on Debottlenecking and upgrading to enhance capacity at minimal cost

Company is Certified as

ISO 9001 : 2000 QMS ISO 14001 : 2004 EMS OHSAS 18001 : 2005 RMF & ICD for SOX Compliance

Name Qualification Experience

Shri O. Swaminatha Reddy Chairman & Independent Director

B.Com.(Hons) ACA A Financial and Management consultant, known for his acumen in corporate finance. He has been associated with the Board since 1983.

Earlier he had served as Chairman of Andhra Bank and AP State Finance Corporation. He is on the Board of several reputed companies.

Shri S.Veera Reddy Managing Director

Studied up to BA

An agriculturalist turned industrialist. Was a co-promoter of well known Priyadarshini Group of Companies. He was appointed as Managing

Director in 1991 and has played a key role in steering the company to its present status.

He also acquired a sick unit, viz Amareshwari Cements Limited, and successfully turned it around.

Dr.S.Anand Reddy Joint Managing Director

MBBS Inducted on the Board on 23rd November 1991, was later appointed as a Whole-time Director (Marketing and Projects) in 1992. He has

been instrumental for promoting the subsidiary company Sagar Power Limited, of which he is presently the Managing Director.

Shri S. Sreekanth Reddy Executive Director

B.E.

PG Dip in Cement Technology

After having gained industrial experience of over 15 years, he joined Sagar Cements as its Technical Consultant in 2002 and was inducted in

the Board as a Whole-time Director.

Shri K. Thanu Pillai Independent Director

M.B.A. , CAIIB Appointed as Director on 27th February 1997. He has more than 30 years of experience in Banking and retired as Managing Director of State

Bank of Hyderabad. He is also on the Board of several well known companies.

Shri. John-Eric Bertrand Director

Commercial Engineer & MBA Mr. John-Eric Bertrand is an Investment Manager at Ackermans & van Haaren NV. Before joining AVH, he worked as Senior Consultant at

Roland Berger Strategy Consultants.

Shri Rajendra Prasad Nominee Director

M.Com ,LL.B Nominee Director of APIDC

Shri.V.H.Ramakrishnan Independent Director

ACA, ACMA Appointed as Director on 30th March 2015, he has more than 35 years experience both domestic and international banking and retired as

General Manager (International0 of Bank of India. He is also on the Board of several well known companies.

Board of Directors


Financials

28 38

8

50

0

25

3

29

8

22

7

64

6

10

9

-37

3

37

83

28 27

7

30

9

16

5

19

1

17

4

44

1

88 -25

6

29

66

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

In R

s. M

illio

n

Profit before Taxes Profit after Taxes

85

438 576 599

865 814

1,247

682

191

566

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 In

Rs.

Mill

ion

Sales EBIDTA Profit

1,5

38

2,4

71

2,7

46

3,3

43

5,2

30

5,3

47

6,6

91

6,3

90

5,6

11

6,6

27

75

9

1,2

76

1,5

03

2,0

57

3,7

71

4,1

33

5,9

48

5,5

85

4,8

89

5,7

56


In R

s. M

illio

n

Gross Sales Nett Sales

Net worth Debt Capital Employed

249

737

1,05

3 1,92

2

2,07

1

2,21

7

2,59

7

2,66

4

2,40

9

5,21

3


In R

s. M

illio

n

12

141

1,85

2

1,93

0

1,50

2

1,59

5

1,1

50 1,43

1

1,23

3

1,44

6


In R

s. M

illio

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260

877

2,90

5

3,85

2

3,57

3

3,81

1 5,13

4

5,30

5

5,20

6 6,42

9


In R

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Net worth of the company expands more than 10 times in 7 Years

Debt-Equity Ratio ROCE % ROE %

0.1 0.2

1.8

1.0

0.7 0.7

0.4 0.5 0.5

0.3


21

46

18 11

16 14 19

8

-2

66


11

38 29

9 9 8 17

3

-11

57



14,674 19,071

0

5,000

10,000

15,000

20,000

25,000

Q4 FY14 Q4 FY15

` In

lakh

(1,135)

2,170

(2,000)

(1,000)

-

1,000

2,000

3,000

Q4 FY14 Q4 FY15

(462)

4,158

-2,000

0

2,000

4,000

6,000

Q4 FY14 Q4 FY15

Financials – Current Financial Year

Net Income EBIDTA Profit

Q4 FY 2015

• Total Income increased by 30% to ` 19,071 lakh from ` 14,674 lakh in Q4 FY15 • EBITDA increased to ` 4158 lakh from ` -462 lakh in Q4 FY15

• Operating margins for the quarter at 21.80% • Net Profit stood at ` 2170 lakh compared to a loss of ` 1135 lakh in a corresponding quarter last year • Diluted EPS (not annualized) at ` 12.48 for Q4 FY15

48,894 57,557

0

9,000

18,000

27,000

36,000

45,000

54,000

63,000

FY14 FY15

(2,558)

29,665

(10,000)

-

10,000

20,000

30,000

40,000

FY14 FY15

131

5,662

0

1,000

2,000

3,000

4,000

5,000

6,000

FY14 FY15

Net Income EBIDTA Profit

FY 2015

` In

lakh

• Total Income from operations stood at Rs. ` 57,557 lakhs as against ` 48,894 lakh in FY15

• EBITDA increased to 5662 lakh from ` 131 lakh in FY15

• Operating margins for the period stood at 9.84%

• Net Profit at ` 29665 lakh compared to ` -2558 lakh Profit in FY 15

• Diluted EPS (not annualized) at ` 170.61 for FY15


Sl.No Year Production Equity Reserves Total Turnover PBID Interest PBD Dep. PBT Tax NPAT Cash Dividend

% Term Loan D/E Ratio EPS

Book Value Per Share

1 Dec-85 75919 284.89 89.87 374.76 941.47 242.81 80.24 162.57 74.88 87.69 0.00 87.69 162.57 10 578.00 1.54 3.08 12.78

2 Dec-86 111389 284.93 259.94 544.87 1307.43 338.09 82.59 255.50 88.60 166.90 0.00 167.20 255.80 10 578.00 1.06 5.87 18.79

3 Dec-87 111890 284.93 299.40 584.33 1275.74 322.29 87.19 235.10 176.86 58.24 14.00 46.89 223.75 12 590.20 1.01 1.65 20.21

4 Mar-89 150813 284.93 309.06 593.99 1626.02 281.69 103.67 178.02 137.91 40.11 7.15 32.96 170.87 10 711.95 1.20 1.16 20.59

5 1989-90 122074 284.93 311.59 596.52 1340.03 254.30 95.89 158.41 121.38 37.03 6.00 31.03 152.41 10 579.36 0.97 1.09 20.72

6 1990-91 120633 284.98 412.52 697.50 1604.76 393.03 105.90 287.13 120.54 166.59 20.00 143.68 264.22 15 418.04 0.60 5.04 24.31

7 1991-92 130407 284.98 468.62 753.60 1828.60 388.08 103.79 284.29 139.61 144.68 45.00 101.71 241.32 16 255.12 0.34 3.57 26.31

8 1992-93 154878 779.04 1055.01 1834.05 2488.16 542.94 213.30 329.64 178.19 151.45 0.00 151.10 329.29 16 1108.80 0.60 1.94 21.81

9 1993-94 180973 800.74 985.41 1786.15 2826.58 250.96 178.39 72.57 160.07 -87.50 0.00 -85.37 74.70 - 1376.00 0.77 -1.07 21.31

10 1994-95 256901 809.55 1141.93 1951.48 4201.63 705.71 346.47 359.24 208.97 150.27 0.00 153.64 362.61 - 1783.63 0.91 1.90 23.43

11 1995-96 256691 809.87 1540.04 2349.91 6260.26 1188.51 398.32 790.19 238.73 551.46 0.00 551.37 790.10 20 1488.09 0.63 6.81 28.39

12 1996-97 278827 809.89 1859.51 2669.40 7078.94 1111.00 334.23 776.77 251.39 525.38 70.17 455.22 706.61 16 1405.49 0.53 5.62 32.38

13 1997-98 305541 809.89 2087.66 2897.55 7380.83 915.66 296.22 619.44 253.33 366.11 50.17 297.23 550.56 16 1379.04 0.48 3.67 35.25

14 1998-99 296109 809.91 2205.67 3015.58 6766.06 707.90 272.75 435.15 268.18 166.97 17.24 123.95 392.13 - 1255.98 0.42 1.53 36.77

15 1999-00 340107 1121.00 2249.75 3370.75 7574.53 542.99 236.77 306.22 252.75 53.47 2.00 50.01 302.76 - 2178.87 0.65 0.45 37.77

16 2000-01 393509 1126.05 2498.10 3624.15 9553.18 1153.73 458.38 695.35 313.40 381.95 35.37 346.58 659.98 12 1877.25 0.52 3.08 32.18

17 2001-02 386545 1115.23 2752.83 3868.06 10073.54 1073.55 433.44 640.11 356.07 284.04 61.10 222.94 579.01 0 1991.43 0.51 2.00 34.68

18 2002-03 312887 1115.23 1891.36 3006.59 8119.64 -16.52 459.61 -476.13 385.65 -861.78 -134.82 -726.96 -341.31 0 2212.03 0.74 -6.52 26.96

19 2003-04 355004 1115.23 1903.43 3018.66 11134.26 950.10 569.24 380.86 368.79 12.07 -52.51 64.58 433.37 0 2214.82 0.73 0.58 27.07

20 2004-05 341118 1115.23 2055.06 3170.29 12377.68 1089.07 464.71 624.36 321.60 302.76 130.35 172.41 494.01 10 592.79 0.19 1.55 28.43

21 2005-06 279500 1115.23 2183.96 3299.19 15443.46 848.04 260.91 587.13 302.18 284.95 1.60 283.35 585.53 10 117.79 0.04 2.54 29.58

22 2006-07 276400 1376.83 6833.72 8210.55 24802.14 4383.73 160.38 4223.35 341.43 3881.92 1115.24 2766.68 3108.11 25 1407.35 0.17 24.52 59.63

23 2007-08 282242 1388.26 10294.34 11682.60 27561.42 5759.05 340.09 5418.96 413.46 5005.50 1909.94 3095.56 3509.02 25 18521.42 1.80 23.70 84.15

24 2008-09 431250 1500.23 19742.85 21243.08 33511.06 5985.54 1589.88 4395.66 1872.25 2523.41 877.74 1645.67 3517.92 20 19300.32 1.00 11.48 141.60

25 2009-10 1120351 1500.23 22245.57 23745.80 52979.04 8645.92 2895.07 5750.85 2768.85 2982.00 1069.65 1912.35 4681.20 25 15024.00 0.73 12.75 158.28

26 2010-11 1490662 1738.80 20425.94 22164.74 55394.89 8139.19 3113.95 5025.24 2759.79 2265.45 524.25 1741.20 4500.99 20 15952.97 0.72 10.01 148.16

27 2011-12 1625336 1738.80 24231.3 25970.1 75468.8 12469.2 3418.2 9051 2589.7 6461.3 2049.7 4411.6 7001.3 30 11505.2 0.44 25.37 149.36

28 2012-13 1587419 1738.80 24905.85 26644.65 72120.29 6822.15 3055.38 3766.77 2674.39 1092.38 214.40 877.98 3552.37 10 14307.18 0.54 5.05 153.24

29 2013-14 1419943 1738.80 22347.75 24086.55 63071.16 1912.94 2954.75 -1041.81 2693.40 -3735.20 1177.09 -2558.11 135.29 0 12327.79 0.51 -14.71 138.52

30 2014-15 1551598 1738.80 50394.47 52133.27 73738.81 42265.6 2308.23 39957.4 2150.47 37806.9 8141.70 29665.2 83.82 75 14456.08 0.27 170.6 299.82

Past Years Financial Performance ` In lakh

(except Dividend,D/E Ratio,EPS,Book Value per Share)


Shareholding

Shareholding Pattern

Promoters 57%

FIIs & MFs 9%

Bodies Corporate 25%

Public 9%

2.5 24.5 23.7

11.5 12.8 10.0 25.4

5.1 -14.7

170.6


as on 31st March 2015

Few Key Investors

FIIs & MFs

S.No Name of the Shareholder % of Holding

1 SBI Mutual Funds 7.20

2 Kotak Mutual Funds 2.16

Bodies Corporate

1 Twinvest Financial Services Limited 4.68

2 AVH Resources India Private Limited 18.55

3 Sagar Priya Housing & Industrial Enterprises Ltd 4.94

Particulars Nominal Amount

Authorised Share Capital 22,00,00,000

Issued, Subscribed and Paid up Share Capital 17,38,80,140

Capital Structure

Earnings per Share (EPS)

In `

In `


Incorporated on 23rd June 1994 . Authorized capital : INR 150 Millions . Paid up capital : INR 108.60 Millions

Hydro Power : 8.30 MW ( 4.30 MW plant at Guntur branch Canal , Guntur Dist. & 4.00 MW at Lock-in-sula , Kurnool Dist. , Andhra Pradesh , India)

Wind Power : 1.65 MW capacity Turbine from Vestas commissioned on June 2nd 2009 at Theni Dist. , Tamil Nadu and expected PLF is 32%

The company is holding 100% stake in Super Hydro Electric Private Limited which is implementing 28.30 MW Hydro Power Generation in Uttarakhand

Turnover : INR 158.90 Million in FY 2014 and expected turnover for next year is INR 160 Million

PANCHAVATI POLYFIBRES LIMITED

Incorporated on 15th Nov 1984. Authorized capital : INR 40 Millions . Paid up capital : INR 15.68 Millions

Manufacturing of Woven Sacks with a capacity of 58.50 Million sacks with 90 Looms

Major Customers are Sagar Cements , My Home Cements , Penna Cements and other Cement Industries in Andhra Pradesh

Turnover : INR 400.20 Million in FY 2014 and expected turnover for next year is INR 440 Million.

Turn Key Solutions provider (Design, Engineering & Project Management) to Cement Industry & Small Hydro Power Projects .

Major Customers are :

Bharathi Cement Corporation Limited Vicat Sagar Cement Private Limited Maruthi Cements Limited, Nepal Keerthi Industries Limited, Hyderabad Super Hydro Electric Private Limited Syrian Cement Co., Aleppo Alchaba Cement, Syria Trotus Cement, Syria Amrit Cement, Meghalaya

Group & Associated Companies


Share Purchase Agreement entered for acquisition of BMM Cements Limited at an enterprise value of ₹ 540 Crore

Acquisition to provide scale and locational advantage

BMM owns 1 MTPA Cement unit along with Captive Power Plant (Coal based) of 25 MW with a firm PPA of selling 15 MW

to AP GENCO

Located at Anantpur district in Andhra Pradesh, close to important markets of Karnataka, Tamil Nadu.

BMM cements has limestone reserves of ~ 155 Million tons,

Acquisition to enable Sagar Cements tap key regions of Tamil Nadu, Karnataka and Rayalaseema of AP.

Sagar Cements Group’ Total Cement Capacity to go upto 3.75 million TPA from existing 2.75 million TPA

Expecting the completion of acquisition by end of June 2015

Presently Sagar buying Cement from BMM and selling as Traded Cement in the Markets.

Group & Associated Companies


Strong and Experienced Management Team

Continuous focus on cost control and improvement in Operating Efficiency

Well positioned to capitalize on growth .

Strong Sales and Distribution Network

To sum it up…..


This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sagar Cements Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation, may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the cement industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

Disclaimer

sagar cements limited - wordpress.com · 2015. 5. 29. · fy 2015 fy2014 fy2013 fy2012 markets...

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