September19 GROWTH CHART CAPACITY & PRODUCTION JKLC Mn. MT. - PowerPoint PPT Presentation

Investor’s Meet September’19

GROWTH CHART – CAPACITY & PRODUCTION – JKLC Mn. MT. Consolidated* As on 31 st March 2015 2016 2018 2020 (E) 2017 2019 2020(E) 6.88 6.27 6.60 6.60 6.60 6.27 8.12 Clinker Capacity 10.90 Cement Capacity 10.90 13.30 8.65 10.90 8.30 11.70 9.31 5.47 6.88 11.48 7.48 8.05 Production 9.82 JKLC CAGR during FY’15 to FY’19 – 14% *After considering 1.60 Mn. MT of Udaipur Cement Works Ltd., a 73% subsidiary of JK Lakshmi Cement Ltd. PRODUCTION (Lac. MT.) SALES (Lac. MT) 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 30.06.2019 30.06.2018 31.03.2019 31.03.2018 30.06.2019 30.06.2018 31.03.2019 31.03.2018 21.86 22.24 93.07 80.48 23.30 22.87 96.58 85.16 -2% 16% 2% 13% 1

Capacity Utilisation Particulars Apr.16 - Mar.17 Apr.17 - Mar.18 Apr.18 - Mar.19 (12M) (12M) (12M) All India 62% 64% 70% North + Gujarat Zone 67% 69% 75% JK Lakshmi Cement - Existing 76% 71% 81% East Zone 68% 67% 74% JK Lakshmi Cement - Durg 92% 83% 99% JK Lakshmi Cement -Overall 79% 74% 85% 2

% Growth Particulars % Growth Apr.16 - Mar.17 Apr.17 - Mar.18 Apr.18 - Mar.19 Apr.19 - Jun.19 (12M) (12M) (12M) (3M) All India -1% 6% 12% -2% North + Gujarat Zone -4% 5% 9% -10% JK Lakshmi Cement - Existing 1% 2% 11% 3% East Zone 1% 8% 14% -11% JK Lakshmi Cement - Durg 47% 24% 19% -2% JK Lakshmi Cement - Overall 9% 7% 13% 2% 3

Mother Plants – Cement (Clinker) - Mn.MT 1.30 1.60 (1.24) Jharli (Grinding Unit & AAC Block) 4.65 (4.88) UCWL Jaykaypuram Kalol (Grinding Unit) 0.90 Surat (Grinding Unit) Durg 2.70 (2.00) 1.35 Odisha (Grinding Unit) 0.80 Capacity (Mn. MT) Zone Cement Clinker JKLC North 8.20 4.88 East 3.50 2.00 Sub-Total 11.70 6.88 UCWL 1.60 1.24 Total 13.30 8.12 4

Markets J&K Punjab H.P. (29%) Haryana Delhi W.U.P. & Utt. Rajasthan (28%) Gujarat (41%) Madhya Pradesh W.Bengal (10%) (1%) Odisha Maharashtra Mumbai (2%) (19%) (10%) 5

Region-wise Cement Sales - Sirohi Regions 2015-16 (12M) 2016-17 (12M) 2017-18 (12M) 2018-19 (12M) 2019-20 (3M) % sales % sales % sales % sales Apr'19-Jun'19 % sales Rajasthan / MP 26 26 26 28 40 Gujarat 35 34 35 41 37 Maharashtra 6 4 4 2 1 North 33 36 35 29 22 6

Region-wise Cement Sales - Durg Regions 2015-16 (12M) 2016-17 (12M) 2017-18 (12M) 2018-19 (12M) 2019-20 (3M) % sales % sales % sales % sales Apr'19-Jun'19 % sales Chhattisgarh 57 54 56 54 58 Odisha 21 17 17 19 16 West Bengal 6 1 2 0 0 Madhya Pradesh 5 9 9 10 10 Maharashtra 4 10 8 8 7 Jharkhand 3 4 5 5 5 Bihar 2 3 1 1 1 Others 2 2 2 3 3 7

Major Performance Indicators Power Consumption (Kwh./ MT of cement) 75 75 73 71 70 68 66 2015-16 2016-17 Sirohi 2016-17 Durg 2017-18 Sirohi 2017-18 Durg 2018-19 Sirohi 2018-19 Durg 8

Major Performance Indicators Fuel Consumption (K.Cal./Kg.of clinker) 710 710 703 703 700 698 697 2015-16 2016-17 Sirohi 2016-17 Durg 2017-18 Sirohi 2017-18 Durg 2018-19 Sirohi 2018-19 Durg 9

Financial Highlights – For 3 Months ended 30.06.2019 Sr. Particulars Unit For the Ist Qtr. ended No. 30.06.19 30.06.18 Incr. / Decr. (-) in Figures % 1 Net Sales Rs. Cr. 1042 923 118 13% 2 PBIDT (after other Income) Rs. Cr. 176 105 71 68% 3 PBDT Rs. Cr. 136 60 76 127% 4 PBT (before exceptional items) Rs. Cr. 91 15 75 497% 5 PBT (after exceptional items) Rs. Cr. 60 15 45 297% 6 PAT Rs. Cr. 39 14 26 187% OPM (On Net Sales) 8 % 16% 10% 6% 10

Financial Highlights – For 12 Months ended 31.03.2019 Sr. Particulars Unit For Twelve Months ended No. 31.03.2019 31.03.2018 Incr. / Decr. (-) in Figures % 1 Net Sales Rs. Cr. 3882 3412 470 14% 2 PBIDT (after other Income) Rs. Cr. 471 479 -8 -2% 3 PBDT Rs. Cr. 284 282 2 1% 4 PBT Rs. Cr. 104 103 2 2% 5 PAT Rs. Cr. 80 82 -2 -2% 6 OPM (On Net Sales) % 11% 12% -1% 11

Financial Highlights – Balance Sheet Rs. in Crore Particulars Sl. As at As at No. 31.03.2018 31.03.2019 A ASSETS (1) Non-current Assets (a) Net Fixed Assets 3022 3050 (b) Investments 354 357 (c) Other Non-Current Assets 108 109 3484 3516 (2) Current Assets (a) Current Assets 553 559 (b) Treasury Surplus Corpus 452 380 1005 939 TOTAL ASSETS 4489 4455 B EQUITY AND LIABILITIES (1) EQUITY (NET WORTH) 1453 1523 (2) LIABILITIES (I) Borrowings (a) - Long Term 1580 1526 (b) - Short Term 441 87 - Total 2020 1613 (II) Other Liabilities 1015 1320 TOTAL EQUITY AND LIABILITIES 4489 4455 12

KEY FINANCIAL RATIOS Particulars Unit 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Operating Profit % 15 15 10 13 12 11 Margin ( net of Excise) Interest Coverage Times 4 4 2 2 2 3 Total Debt / Equity Times 1.27 1.41 1.47 1.57 1.39 1.06 Net Debt / Equity Times 0.97 1.18 1.26 1.20 1.08 0.81 EV per Ton US $/MT 81 129 104 105 82 79 (1US$ = Rs. 65) 13

Shareholding Pattern of JKLC as on 30th Jun.2019 I Promoters & Promoter Group 45.93% II FIIs,MFs,Banks etc. 29.30% III Public 24.77% Total 100.00% I Total Share Capital (Rs. Cr.) 58.85 II Total No. of Shares (Cr.) (Face Value Rs. 5/- each) 11.77 14

Shareholder’s friendly Initiatives 1. Buy-back upto Rs. 97.5 Cr. at a Cap of Rs. 70/- per share in Feb’ 2012. Cap of Rs. 70/- per share represents : 57% Premium over 12 months average price. ➢ ➢ 68% Premium over 6 months average price. 67% Premium over 3 months average price. ➢ ➢ 66% Premium over 1 months average price. 43% Premium over 15 days average price. ➢ ➢ The Company Utilised only Rs. 30.47 Cr. for the Buy-back 2. Share Split from - Rs. 10/- per share into 2 Shares of Rs. 5/- each. 15

Shareholder’s friendly Initiatives (Contd..) 3. Consistent Dividend Payout Ratio 13% for FY 2019. 13% for FY 2018. 13% for FY 2017. 56% for FY 2016. 30% for FY 2015. 30% for FY 2014. 20% for FY 2013. 25% for FY 2012. 25% Average for last 8 Years 16

JKLC among Best Performers on the bourses Annualised Stock Price Return since January 2003 Company CAGR return (%) Shree cement 55.5 JK lakshmi Cement 39.4 Chettinad Cement 36.8 Birla Corp 33.8 Mangalam Cement 30.0 Madras Cement 29.6 Ambuja Cement 25.4 Grasim Inds 24.9 ACC 24.9 Prism Cement 24.0 Century Textiles 22.8 Heidelberg Cement 22.3 Sensex 19.9 India Cements 18.3 Kesoram Industries 16.5 Source : Capitaline, BSE, BCCI Annual Report/Business Standard 30.05.13 17

Way Forward Improved Power Cost at Durg Plant after setting up WHR Plant of 7.50 MW in Dec’ 2017. TPP Plant of 20 MW at Durg is commissioned in June’ 2019. Odisha Grinding Unit with Capacity of 0.80 Mn.MT is expected to be commissioned by Sep’ 19. At Durg in 2018-19 the Company has achieved much improved efficiencies. Logistic Optimization with Group Company UCWL. % of Premium Products continuously increase. Reduction in Borrowing Cost on LT Loans through annual resetting. 18

Way Forward Pro+ Cement sale to increase in Northern Markets too. Introduction of New Brand SIXER with new Dealer / Stockiest. The Company has deep penetration in rural markets. Increasing volumes through split location Grinding unit and outsourcing Grinding Arrangement. Short Term rating continues at A1+ (highest possible rating) (CRISIL & CARE). Long Term rating is ‘ AA- ’ . 19

JKLC has reached 13 Mn MT in Mar’17. JKLC became a 11 Mn MT Cement Company in Mar’2017. Cement Capacity (including UCWL) has gone up from 9.35 Mn . MT in Mar’16 to 13 Mn . MT in Mar’2017. Efficiency Parameters amongst best in Industry. One of the Least Cost Producer of Cement in Industry. Key Financial Ratios well within accepted Norms. Has Become a PAN India Player (Barring South). 20

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