Any current/future capex/capital investment/strategic investment?

Pending capex of approximately Rs. 1350 Crores over the next two years, with around Rs. 600 Crores expected to be spent in FY2023. This includes both operating and growth capex. New grinding unit of about 1 million tons capacity planned in Karnataka, with a capex of Rs. 300-350 Crores, expected to be operational by FY2024. Revival of a small grinding unit in Mathodu, Karnataka, expected to start at 30-40% capacity utilization from 1st July. Cement plant at Kurnool to be fully commissioned before 30th June. Plans to add grinding capacity in Maharashtra are being considered but the site is not y

Future growth expectations in sales/revenue/volumes?

For FY2023, the company expects volume growth of minimum 12% to 15%. April-May growth has been very decent compared to last year; the company expects Q1 FY2023 volume to exceed 3 million tons. East market demand is expected to grow robustly, with minimum growth of 15% to 20% anticipated in the current year. The company plans to increase the share of premium products from 22% in FY2022 to 30% in FY2023, aiming for higher EBITDA per ton. New capacity expansions include a 1 million ton grinding unit in Karnataka expected to start by FY2024, with capex around ₹300-350 Crores. Government infrastruc

Future growth expectations in earnings/operating earnings/profits/EPS?

Ramco Cements expects volume growth of 12% to 15% for FY2023. Aim to increase the share of premium products from 22% in FY2022 to 30% in FY2023, which yields Rs.200-300 higher EBITDA per ton. Anticipate an EBITDA level around Rs.1300 per ton with Rs.40 per bag price hike. EBITDA per ton was Rs.1196 in FY2022; potential to surpass Rs.1200 depends on fuel cost volatility. Pending capex of Rs.1350 Crores over next two years with approx. Rs.600 Crores expected to be spent in FY2023. New grinding unit capacity of 1 million ton expected by FY2024 to support growth. Debt expected to reduce by Rs.500

Current/ Expected Orderbook/ Pending Orders?

The transcript from the provided pages does not explicitly mention the current or expected orderbook or pending orders for The Ramco Cements Limited as of May 23, 2022. However, it is indicated that the company is receiving orders from infrastructure companies due to increased government spending, especially in road construction, which is doubling expenditure. The management also highlighted robust demand in housing and commercial spaces, contributing positively to order inflows. There is a general positive outlook on demand growth, especially in the eastern region, supported by infrastructure

The Ramco Cements LtdQ4 FY22Cement & Cement Products

The Ramco Cements Ltd Q4 FY22 Earnings Call Analysis

Q: Any current/future new fundraising through debt or equity?

There is no mention of any new fundraising through equity. The company plans to reduce its debt by about Rs. 500 Crores in the financial year 2023, indicating a focus on debt repayment rather than raising new debt. Pending capex of around Rs. 1350 Crores is planned over the next two years, with around Rs. 600 Crores expected to be spent in the current year. No clear indication of raising new debt to fund the capex, and with efforts to reduce overall debt, it suggests capex might be funded through internal accruals or existing resources. Management stated that for the Link Logistics investment,

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹844P/E: 107.6Market Cap: ₹20.5K CrSector: Cement & Cement Products

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Order

N/A

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

For FY2023, the company expects volume growth of minimum 12% to 15%.
April-May growth has been very decent compared to last year; the company expects Q1 FY2023 volume to exceed 3 million tons.
East market demand is expected to grow robustly, with minimum growth of 15% to 20% anticipated in the current year.
The company plans to increase the share of premium products from 22% in FY2022 to 30% in FY2023, aiming for higher EBITDA per ton.
New capacity expansions include a 1 million ton grinding unit in Karnataka expected to start by FY2024, with capex around ₹300-350 Crores.
Government infrastructure spending is likely to double, benefiting demand in infrastructure-related segments.
Housing demand is strong, supported by highest-ever disbursements by housing finance companies and positive guidance from real estate developers.

Margin guidance

Category 3

Ramco Cements expects volume growth of 12% to 15% for FY2023.
Aim to increase the share of premium products from 22% in FY2022 to 30% in FY2023, which yields Rs.200-300 higher EBITDA per ton.
Anticipate an EBITDA level around Rs.1300 per ton with Rs.40 per bag price hike.
EBITDA per ton was Rs.1196 in FY2022; potential to surpass Rs.1200 depends on fuel cost volatility.
Pending capex of Rs.1350 Crores over next two years with approx. Rs.600 Crores expected to be spent in FY2023.
New grinding unit capacity of 1 million ton expected by FY2024 to support growth.
Debt expected to reduce by Rs.500 Crores in FY2023, improving financial health.
Infrastructure and housing demand growth, especially in East and South regions, support volume expansion and profit growth.

See what The Ramco Cements Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

- There is no mention of any new fundraising through equity. - The company plans to reduce its debt by about Rs. 500 Crores in the financial year 2023, indicating a focus on debt repayment rather than raising new debt. - Pending capex of around Rs. 1350 Crores is planned over the next two years, with around Rs. 600 Crores expected to be spent in the current year. - No clear indication of raising new debt to fund the capex, and with efforts to reduce overall debt, it suggests capex might be funded through internal accruals or existing resources. - Management stated that for the Link Logistics investment, no further capital infusion is planned from Ramco Cement. In summary, no explicit plans for new debt or equity fundraising were disclosed; focus remains on debt reduction and managing capex within current resources.

Order book

The transcript from the provided pages does not explicitly mention the current or expected orderbook or pending orders for The Ramco Cements Limited as of May 23, 2022.
However, it is indicated that the company is receiving orders from infrastructure companies due to increased government spending, especially in road construction, which is doubling expenditure.
The management also highlighted robust demand in housing and commercial spaces, contributing positively to order inflows.
There is a general positive outlook on demand growth, especially in the eastern region, supported by infrastructure and housing development.
No specific quantitative data on orderbook or pending orders is provided in the discussion on these pages.

See what The Ramco Cements Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes

Pending capex of approximately Rs. 1350 Crores over the next two years, with around Rs. 600 Crores expected to be spent in FY2023. This includes both operating and growth capex.
New grinding unit of about 1 million tons capacity planned in Karnataka, with a capex of Rs. 300-350 Crores, expected to be operational by FY2024.
Revival of a small grinding unit in Mathodu, Karnataka, expected to start at 30-40% capacity utilization from 1st July.
Cement plant at Kurnool to be fully commissioned before 30th June.
Plans to add grinding capacity in Maharashtra are being considered but the site is not yet finalized.
Won one limestone block in Karnataka at a very cheap base price for future raw material security.
No further capital infusion planned in Link Logistics; Ramco Cement to remain an investor only.

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The Ramco Cements Ltd Q4 FY22 Earnings Call Analysis

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