Shri Keshav Cement Infra Limited

SHRI KESHAV CEMENT INFRA LIMITEDINVESTOR PRESENTATIONQ4 FY22

COMPANY OVERVIEW

Shri Keshav Cement @ A GlanceIncorporated in the year 1993 Shri Keshav Cement & Infra Limited (KCIL), formerly Katwa Udyog Limited) is engaged in themanufacturing of Cement and Solar Power Generation and Distribution in the state of Karnataka India.The cement plants are located at Bagalkot district, Karnataka and the Solar power plant is located at Koppal, Karnataka. The companysupplies cement in North Karnataka, Coastal Karnataka, Goa and some parts of MaharashtraThe company owns three very renowned regional brands of cement "Jyoti Power" "Jyoti Gold" & "Keshav Cement". Keshav Cement" is apremium brand of the company.MISSION“ To Provide QualityCement with TimelyDelivery”25 YEARSEXPERIENCE1,100 TPD CEMENTCAPACITY37 MWSOLAR PLANT100 % USE OF GREENPOWER200 EMPLOYEESVISION600 RETAIL TOUCHPOINTSSHRI KESHAV CEMENT INFRA LIMITEDREASONABLEPRICINGSTRONG PRESENCE INNORTH KARNATAKAFY22REVENUE – 114 CREBITDA – 38 CRPAT – 9 CR5 YEAR CAGRREVENUE – 23%EBITDA – 48%“ Grow and continue tomodernize every year”3

Management TeamSHRI VENKATESH KATWASHRI VILAS KATWASHRI DEEPAK KATWA(EXECUTIVE DIRECTOR AND CHAIRMAN)(MANAGING DIRECTOR)(EXECUTIVE DIRECTOR AND CFO)oooAged 48, is a graduate MBA from theUniversity of Oklahoma, USA.He has a wide experience in Cementindustry along with InternationalBusiness and Healthcare ServiceAutomations.He is responsible for executing projectsof business expansion and enhancingpower projects.SHRI KESHAV CEMENT INFRA LIMITEDoooAged 46, is a graduate MBA from theUniversity of Massachusetts, Boston.He initiated many IT drives that gavegood control over the production, qualityand management parameters.under his leadership, KCIL is movingahead with a high level of automationthat gives good control over productionand quality.oooAged 44, is a graduate MBA from theUniversity of Oklahoma, United States.He is actively involved in setting up thepower plant to reduce the overall powercost for the cement plant.He looks after public relations, finance,operations and management.4

Company Journey1993Capex Expansionfrom 20 TPD to100 TPD viaPublic Issue in1995Purchased in 20Tons per DayCement(TPD)plant PublicAuction1995SHRI KESHAV CEMENT INFRA LIMITED2001Capex Increased GrindCapacity to150TPDAcquired 200TPD CementPlant in PublicAuction @ 12.3Crores2007Expanded theplant from450TPD to 800TPD (Funded Sy.Bank)2014Increased theCapacity to450TPDEstablished 22MW Solar PlantCap Cost 120Crores20182019Raised Capitalthrough RightsIssue - Rs. 28Crores.Added 3 MWCap Cost - 12Crores20202021Added another12 MW solarplant - Cap Cost58 Crores5

Competitive StrengthsStrategiclocation of ourmanufacturingfacilityStrong sales andmarketingnetwork{Proven andexperiencedmanagementteamSHRI KESHAV CEMENT INFRA LIMITEDPopular brand inregional marketLow cost ofProduction dueto installation ofsolar powerplant6

Key Financial HighlightsTOTAL INCOME (In Cr)EBITDA (In Cr) & EBITDA MARGIN 02523154025242060OPERATING CASH FLOW (In Cr)1037.6527.0926.6820190018FY22FY20BOOK VALUE PER SHARE (In )2018161412108642018.0817.5610.54FY20FY21Book ValueSHRI KESHAV CEMENT INFRA LIMITEDFY21EBITDAFY228.31ROCEFY22IMPROVING LEVERAGE RATIOS (In Times)11.18FY21FY21CFO13.50FY20FY20FY22EBITDA (%)ROCE (In FY21Total 730.890.641.39FY20FY21FY22Debt To EquityIntrest Coverage Ratio7

Stock DataBSE: 530977 ISIN: INE260E01014As on 13-05-2022Share Price ( )67.45Market Capitalization ( Cr)80.91No. of Shares Outstanding1,19,95,752Face Value ( )1052 week High-Low ( )82.60 – 33.50SHARE HOLDING PATTERN26.97As on 31-03-2022Promoter & Promoter GroupNon Institutional Investor73.03SHARE PERFORMANCE FROM 1ST JANUARY 40.0030.00Price3000029.0020.0010.000.00SHRI KESHAV CEMENT INFRA LIMITED200001000008

BUSINESS OVERVIEW

Products & End UsageCEMENT IS DESIGNED WITH CHEMICAL AND PHYSICAL CHARACTERISTICS TO CONSTRUCT ANY OF THEFOLLOWING:HEAVY DUTY CONSTRUCTIONCONCRETE SLABS, FOUNDATIONAND WALLS.53 GRADE OPCFOR DAMS, CANALS, BRIDGES,CONCRETE ROADS AND OTHERPUBLIC UTILITIES.ORDINARY PORTLAND CEMENTThis grade of cement is widely used in plain and reinforced cement concrete, masonryand plastering, for bridge piers, pre- stressed girders and electric poles, concrete pipes,pre- cast concrete, pre- stressed concrete, slip formed concrete, tall building andstructures, R.C.C bridges, for cement concrete roads, for structural repairs and grouting,pre- stressed works, precast element, bridges, atomic power stations, railway sleepers,silos RCC pipe etc.ALL PURPOSE IN HIGH RISEBUILDINGS43 Grade OPCThis grade of cement is widely used for all general and semi-specialized constructionslike columns, beams, slabs and all structural works, manufacture of concrete blocksand tiles, brick and stone masonry, plastering and flooring, plain and RCC, precast, prestressed slip formed concrete jobs, and commercial buildings, industrial constructions,multi- storied complexes, cement concrete roads, heavy duty floors etc.STRONG REGIONAL BRANDSJYOTI GOLD (43 GRADE)Mainly used in infrastructureproject constructionSHRI KESHAV CEMENT INFRA LIMITEDJYOTI POWER (53 GRADE)o Jyoti power is a fast moving product.o Mainly used in residential / domesticconstructionKESHAV CEMENTPremium brand catering to NorthKarnataka and South Maharashtra10

Strategically Located Plants With Proximity to Markets & Raw MaterialsWith modern instrumentation technology such as Electronic weigh feeders, Centralized controlsystems and one point control process, the product achieved is constant and superior.Due to availability and usage of high CaO content limestone around the manufacturing facility,the cement produced naturally carries these vital minerals resulting in optimum physicalstrength and chemical characteristics.Cement Plant1 at Kaladgi-Bagalkot KarnatakaSHRI KESHAV CEMENT INFRA LIMITEDCement Plant2 at Lokapur11

Direct Marketing To Target GroupsSKCIL’s Marketing strategy is based on relationship management and continuous meetings with local Dealers, Builders and EngineersSHRI KESHAV CEMENT INFRA LIMITED12

Solar Power PlantSINCE APRIL 2018, SKCIL MEETING 100% OF ENERGY REQUIREMENTS THROUGH RENEWABLE SOLAR ENERGY.37 MWCAPACITY SOLAR POWERPLANTSOLAR PLANT SITUATEDAT KOPPAL, KARNATAKAHELP IN POWER COSTREDUCTION BY 75%12 MW USED FORCAPTIVE CONSUMPTION25 MW SOLD IN THEMARKETThe Company is contemplating working on alternate fuels like Municipal Waste, Bagasse and others.25 MW Solar Plant at Koppal12 MW Solar Plant at KoppalCement plants of SKCIL are probably the only Cement plants in India to run on 100% green power energy.SHRI KESHAV CEMENT INFRA LIMITED13

Capacity UtilisationCEMENTInstalled Capacity (TPPA)Utilization levelsSOLARInstalled Capacity (MWH PA)Utilization levelsSHRI KESHAV CEMENT INFRA 2224.753299%102%97%99%14

Business Segment Wise Revenue BreakupTOP CLIENT CONTRIBUTION 00%42.4731.30%RETAIL SALES 5.0010.00%0.000.00%FY20FY21CementSHRI KESHAV CEMENT INFRA LIMITEDSolar Power600 FY2214SOLAR POWERCONSUMERS% Of Total Sales15

INDUSTRY OVERVIEW

Indian Cement IndustryTOP CEMENT PRODUCERS IN INDIA (MARKET SHARE IN 2020)As of 2020 India is the world’s second largest cement market, both inproduction and consumptionIndia’s cement market accounts for 7 of the global installedCapacity5%4% 4%INSTALLED CAPACITY & KEY MARKETS IN EACH OF THEGEOGRAPHIC REGIONS5%31%8%North (Rajasthan,Punjab, Haryana)107.14MTPA10%12%Central (Uttar Pradesh,Madhya Pradesh)63.31 MTPA21%UltraTech CementAmbuja CementACCShree Cement Ltd.Dalmia BharatBirla Corporation Ltd.India Cement Ltd.The Ramco CementOthersSource: Cement Manufacturers Association, USGS Mineral Commodities Summary 2020,Crisil, Savills India, News ArticlesWest (Gujarat,Maharashtra)63.31 MTPAEast (West Bengal,Chhattisgarh, Odisha,Jharkhand)92.53 MTPASouth (Tamil Nadu,Andhra Pradesh, Karnataka)160.71 MTPASource: Indian Minerals Yearbook by Indian Bureau of Mines; Ultratech CementSHRI KESHAV CEMENT INFRA LIMITED17

Cement Industry Competition OverviewTIER I BRANDSooooPAN India BrandsMarket LeadersCommands 64% Market SharePricing - PremiumSHRI KESHAV CEMENT INFRA LIMITEDTIER II BRANDSoooRegional Level BrandsCommands 32% Market SharePricing – 20% to 30% Cheaper then PAN IndiaplayersTIER III BRANDSoooLocal BrandsStrong Local Presence (100-200 KM)Commands 4% Market Share Pricing – 10% to15% Cheaper Then Regional Players18

Cement Consumption & ProductionCEMENT CONSUMPTION IN INDIA (MILLION TONNES)400379CAGR thFY18CentralSHRI KESHAV CEMENT INFRA 563381CAGR EMENT PRODUCTION IN INDIA (MILLION 22ESouthern19

Growth Drivers & OpportunitiesThe demand of Cement industry is expected to achieve 550 600 million tonnes per annum constantly by 2025 because of theexpanding requests of different divisions i e housing, commercial construction and industrial constructionHOUSING AND REAL ESTATEo Government initiatives like Housing for All will pushdemand in the sectoro Real estate market in India is expected to reachUS 1 trillion by 2023 Strong growth in ruralhousing and low cost housing to amplify demandPUBLIC INFRASTRUCTUREo As per Budget 2022 23 a spending of over Rs 10lakh crore (US 134.34 billion) on infrastructure isproposedo As per the Union Budget 2022 23 the governmentapproved an outlay of 1 99 107 crore (US 26.74billion) for the Ministry of Road Transport andHighwayso In October 2021 Prime Minister, Mr Narendra Modi,launched ‘PM Gati Shakti National Master Plan ( formultimodal connectivity Gati Shakti will bringsynergy to create a world class, seamlessmultimodal transport network in India This willboost the demand for cement in the futureINDUSTRIAL DEVELOPMENTo Strong economic growth is expected to lead togrowth of the industrial sector and in turn increasein demand in the long runo Implementation of PLI scheme to boost domesticdemando Demand for warehousing space to be strong onback of e-commerce and retail growtho Fresh capex uptick in mature capital intensivesectors (steel and cement)o As per the Invest India, National InfrastructurePipeline (NIP) (expanded to 9,305 projects from7,400 projectsSHRI KESHAV CEMENT INFRA LIMITED20

FINANCIAL OVERVIEW

Profit & Loss StatementIn ther Income0.500.302.30Total Income68.5180.74116.09Raw Material costs29.3340.8964.67Employee costs3.453.313.72Other expenses8.659.8610.05Total DTA(%)39.8333.1732.43%Finance -1.87-5.757.46Tax5.772.681.65Reported Net Profit-7.64-8.449.10NANA7.84NPM(%)SHRI KESHAV CEMENT INFRA LIMITED22

Balance SheetIn CrEquities & LiabilitiesIn CrAssetsFY20FY21FY22181.80184.74215.53Non-current investments0.000.000.00Other Non-Current Financial Assets1.731.913.21Other non-current assets0.090.000.000.29Total Non Current Assets183.63186.64218.740.000.00Current Assets175.05226.25Inventories19.6424.7628.05Trade receivables9.514.295.47Cash & Bank Balance2.207.528.38Other Current Financial Assets2.531.470.06Current Tax Assets (Net)0.000.000.00Other current 00Non Current AssetsReserves9.070.659.69Fixed assetsNet Worth21.0712.6421.69Long-term borrowing94.27145.13199.05Deferred tax Liabilities27.1329.8226.91Other long terms Liabilities3.110.10Long-term provision0.00124.51Non-current LiabilitiesTotal Non Current LiabilitiesCurrent LiabilitiesShort-term borrowings47.4448.2117.14Trade payables6.724.441.76Other Current FinancialLiabilities0.005.264.16Other current liabilities18.6319.951.46Short-term provision0.290.241.47Total Current Liabilities73.0872.8326.00Total Current Assets35.0345.2155.19Total Liabilities218.66231.85273.93Total Assets218.66231.85273.93SHRI KESHAV CEMENT INFRA LIMITED23

Last 5 Quarters PerformanceIn CrDESCRIPTIONQ4 FY22Q3 FY22Q2 FY22Q1 FY22Q4 FY21Revenue36.3627.9722.7426.7225.67Other operating income0.450.910.930.020.16Total Income36.8128.8823.6726.7425.83Raw material Consumed21.5416.2413.7413.1512.81Employee Cost0.980.920.920.900.89Operating & Manufacturing Expenses2.972.211.753.122.84Total .58Profit After TDA (%)Profit After Tax (%)SHRI KESHAV CEMENT INFRA LIMITED24