Agreed. I missed out on the cement part of the business. I initially did not comment as i thought they weren’t generating enough revenue to move the topline needle of the company and considered it as a minor business of the company.
TCL manufactured 362 Kt in 2019-20 and 440 Kt in 2018-19. Since i could not find any individual figures for cement revenue in their AR, i looked up at Indiamart to see similar prices of its peers such as JK, Ambuja, etc. It usually fluctuates around Rs 300 per bag of 50 Kg. Sometimes it goes to the Rs 380 - 400 per bag too but i am taking here Rs 300 for calculations.
So in 2018-19, they manufactured 440 Kt of cement. Assuming Rs 300 per bag of 50 Kg, they generate around Rs 264 crore of revenues (mind you that i took a lot of assumptions and this year production was down more than 20%) . The division roughly translates around less than 3% of revenue of the company. Also in AR, it is written that they have capacity around 500 Kt.
From their latest AR-
" To serve this growing demand, we have planned to further augment our
production capacity by 0.3 MMT by FY 2021-22"
So, it seems that this division can clock a turnover of more than 500 crores by FY22 if there is high capacity utilization and stable cement prices. It would translate to roughly 5% of their revenue in FY20 terms. I could not find their OPM or net profit figures for this division. Neither do they mention much about it in their Investor presentations or last few concalls (would be great if someone could gather some information about it) . I believe that this division is not the core focus of the company. And neither have i seen any Tata cement bag commercially or in advertisements. I wouldn’t expect it to be a major focus or high revenue generator for the company.