investor’s meet june’16

Investor’s Meet

June’16

GROWTH CHART – CAPACITY & PRODUCTION – JKLC*

1

Mn. MT.

2011 2012

Clinker Capacity

Cement Capacity

Production

2013 2014 2015

JKLC CAGR during FY’12 to FY’16 – 16%

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 72% subsidiary of JK Lakshmi Cement Ltd.

5.47

Jun’17(E)

6.60

10.90

As on 31st March

PRODUCTION

(Mn. MT)

SALES

(Mn. MT)

Qtr Ended

31.03.2016 31.03.2015

2.05 1.44

12 Months Ended

31.03.2016 31.03.2015

6.88 5.47

Qtr Ended

31.03.2016 31.03.2015

2.16 1.55

12 Months Ended

31.03.2016 31.03.2015

7.32 5.96

42 % 39% 23 %26%

6.88

Sept’18(E)

6.79

11.50

Industry Growth Vs JKLC

2

Demand/Despatches

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 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%

% Growth

Capacity Utilisation – Year (Apr.-Mar.)

3

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%

Jaykaypuram

Durg

Kalol(Grinding Unit)

Jharli(Grinding Unit

& AAC Block)

Odisha(Grinding Unit)

Mother Plants – Cement (Clinker) - Mn.MT

4

Udaipur

Surat(Grinding Unit)

UCWL1.60(1.20)

1.30

4.65(4.79)

0.90

1.352.70(2.0)

0.60

Markets

Rajasthan (26%)

Gujarat (35%)

Haryana

Delhi

Mumbai (6%)

Punjab

J&K

H.P.

W.U.P.&

Utt.

5

(33%)

Madhya Pradesh(5%)

Maharashtra(5%)

Andhra Pradesh(2%)

Odisha(21%)

W.Bengal(6%)

Region-wise Cement Sales - Sirohi

6

Regions 2012-13 2013-14 2014-15 2015-16 (12M)

% sales % sales % sales % sales

Rajasthan / MP 23 26 27 26

Gujarat 34 35 36 35

Maharashtra 8 7 8 6

North 35 32 29 33

Region-wise Cement Sales - Durg

7

Regions 2015-16 (12M)

% sales

Chhattisgarh 57

Odisha 21

West Bengal 6

Madhya Pradesh 5

Maharashtra 4

Jharkhand 3

Bihar 2

Others 2

Financial Highlights – For 3 Months ended 31.03.2016

8

Sr. Particulars Unit For the IVth Qtr. ended For Twelve Months ended

No. 31.03.16 31.03.15

Figures %

1 Production (Incl. Clinker Sale) Mn. MT 2.05 1.45 0.61 42%

2 Sales Mn. MT 2.16 1.55 0.61 39%

3 Turnover Rs. Mn. 8247 6433 1814 28%

4 Net Sales Rs. Mn. 7351 5782 1569 27%

5 PBIDT (before other Income) Rs. Mn. 859 715 144 20%

6 PBIDT (after other Income) Rs. Mn. 1201 892 309 35%

7 Interest Rs. Mn. 495 256 239 94%

8 PBDT Rs. Mn. 706 637 70 11%

9 Depreciation Rs. Mn. 401 270 131 49%

10 PBT (before exceptional items) Rs. Mn. 305 367 -61 -17%

11 Exceptional Items Rs. Mn. 0 318 -318 -100%

12 PBT Rs. Mn. 305 49 256 523%

13 PAT Rs. Mn. 484 61 423 700%

14 Basic EPS (After Tax) Rs. 4.12 0.51 3.61 708%

15 OPM (On Net Sales) % 12% 12% 0%

Incr. / Decr. (-) in

Financial Highlights – For 12 Months ended 31.03.2016

9

Sr. Particulars Unit For Twelve Months ended

No. 31.03.16 31.03.15

Figures %

1 Production (Incl. Clinker Sale) Mn. MT 6.88 5.47 1.41 26%

2 Sales Mn. MT 7.32 5.96 1.37 23%

3 Turnover Rs. Mn. 29394 25685 3709 14%

4 Net Sales Rs. Mn. 26199 23071 3128 14%

5 PBIDT (before other Income) Rs. Mn. 2701 3495 -793 -23%

6 PBIDT (after other Income) Rs. Mn. 3304 3777 -472 -13%

7 Interest Rs. Mn. 1923 907 1016 112%

8 PBDT Rs. Mn. 1381 2869 -1488 -52%

9 Depreciation Rs. Mn. 1629 1119 510 46%

10 PBT (before exceptional items) Rs. Mn. -248 1750 -1998 -114%

11 Exceptional Items Rs. Mn. 107 633 -525 -83%

12 PBT Rs. Mn. -355 1118 -1473 -132%

13 PAT Rs. Mn. 63 956 -893 -93%

14 Basic EPS (After Tax) Rs. 0.53 8.12 -7.59 -93%

15 OPM (On Net Sales) % 10% 15% -5%

Incr. / Decr. (-) in

Balance Sheet

10

Sl. Particulars Rs.Mn.

No.

A EQUITY &LIABILITIES

1 Share Capital 589 589

2 Reserves and Surplus 12746 12719

Net Worth (1 + 2 ) 13334 13307

3 Loans

a Long-Term 16201 16661

b Short-Term 2978 2331

Sub-Total (3) 19179 18992

4 Deferred Tax Liabilities (net) 867 1284

5 Current Liabilities 9040 7820

Total (A) 42419 41404

B ASSETS

1 Net Fixed Assets 30668 29440

2 Investments - Non Current 1663 1688

3 - Current 2343 2540

4 Current Assets 7746 7736

Total (B) 42419 41404

As at

31.03.2016

As at

31.03.2015

Major Performance IndicatorsPower Consumption (Kwh./ MT of cement)

11

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

80 79 7978

75

7374

75

Major Performance IndicatorsFuel Consumption (K.Cal./Kg.of clinker)

12

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

762 763

746742

738

726

704 703

Comparative Power Consumption 2014-15

13

Kwh/MT of Cement

JKLC Shree JK Cement Ambuja ACC Ultra Tech

74 74

8480 80 79

KEY FINANCIAL RATIOS

14

Particulars Unit 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Operating Profit

Margin ( net of Excise)% 14 19 21 15 15 10

Interest Coverage Times 4 5 6 4 4 2

Total Debt / Equity Times 0.97 0.96 1.09 1.27 1.43 1.44

Net Debt / Equity Times 0.37 0.48 0.77 0.97 1.22 1.25

EV per Ton

(1US$ = Rs. 67)US $/MT 30 36 63 78 126 85

Split Grinding Unit - Surat

15

Sl

No.

Particulars Rs. Mn.

1 Capacity (Mn. MT) 1.35

2 Project Cost 2,300

3 Debt 1,600

4 Internal Accruals 700

5 Debt : Equity Ratio 2.29

6 CAPEX upto Mar.'16 1,760

Expected Commissioning - July'16 - Sept'16

Split Grinding Unit - Odisha

16

Sl

No.

Particulars Rs. Mn.


2 Project Cost 1,250

3 Debt 750



6 CAPEX upto Mar.'16 350

Expected Commissioning - Sept'17

Durg Project

17

Rs. Mn.Sl No. Particulars Phase -I Phase -II Phase -III Total

Durg Durg Odisha

1 Capacity - Clinker (Mn.MT) 1.50 0.50 - 2.00

2 Capacity - Cement (Mn.MT) 1.80 0.90 0.60 3.30

3 Project Cost 16,000 500 1,250 17,750

4 Debt 11,000 - 750 11,750

5 Internal Accruals 5,000 500 500 6,000

6 Debt : Equity Ratio 2.20 - 1.50 1.96

Expected Commissioning - Mar'15 Jun'17 Sept'17 Sept'17

7 MW WHR at Durg

18

Sl

No.

Particulars Rs. Mn.

1 Capacity (MW) 7

2 Project Cost 900

3 Debt 600



Expected Commissioning - Qtr.ending Sept'17

Growth Opportunity - UCWL

19

S.No. Particulars Rs. Mn.


2 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. 1500 Mn.


Expected Commissioning - Dec'16

Means of Financing for Revival & Rehabilitation :

Revival of M/s Udaipur Cement Works Limited (UCWL)

Growth Opportunity - UCWL

Means of Finance

A.Equity

1.Equity/other instruments from JKLC 1500

2. Equity 100

3. Internal Accruals 650

Total Equity 2250

B.Term Loan from Bank/FI’s 4750

Total (A+B) 7000

Rs. Mn.

20

Advantages to JKLC from UCWL

21

1. Land and Limestone Mines are available.

2. Environmental clearances are in place.

3. Major Plants orders released in March-April’14 .

4. 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’2016.

5. 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.

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.

Advantages of UCWL Revival

22

Shareholding Pattern of JKLC as on 31st March. 2016

23

I Promoters & Promoter Group 45.94%

II Financial Institutions and Banks 32.86%

III Public 21.20%

Total 100.00%

I Total Share Capital (Rs. Cr.) 58.85

II Total No. of Shares (Cr.)

(Face Value Rs. 5/- each) 11.77

1. Buy-back upto Rs. 975 Mn. at a Cap of Rs. 70/- per share inFeb’2012.

Cap of Rs. 70/- per share represents :

57% Premium over 12 months average price.




43% Premium over 15 days average price.

The Company Utilised only Rs. 304.7 Mn. for the Buy-back

2. Share Split from - Rs. 10/- per share into 2 Shares of Rs. 5/- each.

Shareholder’s friendly Initiatives

24

3. Consistent Dividend Payout Ratio

56% for FY 2016.

30% for FY 2015.

30 % for FY 2014.

20% for FY 2013.

25% for FY 2012.

30% for FY 2011.

Shareholder’s friendly Initiatives (Contd..)

25

26

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

CompanyCAGR return (%)

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

Setting up WHR plant of 7MW at Durg.

Durg plant has reached efficiencies in 4th Qtr. of 15-16. In 16-17 theCompany 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 willbe much favorable for the Company.

Way Forward

27

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’.

Way Forward

28

Would become a 11 Mn MT Cement Company during 2016-17.

Cement Capacity (including UCWL) to go up from 9.35 Mn. MT in Mar’16 to over 13 Mn. MT during 2017-18.

Efficiency Parameters amongst best in Industry.

Key Financial Ratios well within accepted Norms.

Become PAN India Player (Barring South).

JKLC to breach 10 Mn MT by Jun’16.

29

Thank You

investor’s meet june’16

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