Dcm Shriram Limited · NSE:DCMSHRIRAM
Dcm Shriram — Q2 FY2023 Earnings Presentation
29 slides from Dcm Shriram's earnings presentation, Oct 19, 2022
Slide 1: DCM Shriram Ltd. Q2 2023 Results Presentation
DCM Shriram Ltd. Q2 2023 - Results Presentation October 19, 2022
Slide 2: Safe Harbour
Certain statements in this document may be forward-looking. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, Safe Harbour technological risks, and many other factors that could cause our actual results t
Slide 3: Table of Contents
Table of Contents Management Message & Q2 FY23 YTD FY23 Segments Financial Snapshot 4 Financial Snapshot 9 Management’s Message 13 Revenue Drivers 5 Revenue Drivers 10 Our Businesses 14 PBDIT Drivers 6 PBDIT Drivers 11 Chloro-Vinyl Businesses 15-19 Returns & Leverage 7 Segment Performance 12 Sugar 2
Slide 4: Financial Snapshot – Q2 FY23
Financial Snapshot – Q2 FY23 Revenue (Net) PBDIT PAT 28% -3% -19% 2,740 311 302 2,145 158 128 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 PBIT Finance Cost Depreciation 6% -5% -51% 252 23 63 11 59 239 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Surplus net of Debt as on 30th September, 2022 is Rs. 35 crs vs net d
Slide 5: Revenue Drivers – Q2 FY23
Revenue Drivers – Q2 FY23 Chemicals Vinyl Sugar -53% 5% 62% 781 332 617 483 155 590 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 • ECU prices up 74% YoY. • PVC Volumes lower by 45% and prices by 32% • Sugar & Ethanol prices were higher YOY • Volumes were stable • Carbide prices declined by 9% • Sugar volumes
Slide 6: PBDIT Drivers – Q2 FY23
PBDIT Drivers – Q2 FY23 Chemicals Vinyl Sugar -145% 133% -106% 33 156 250 108 -10 -15 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 • PVC negative at EBIDTA level, with lower prices • Higher domestic sugar and ethanol prices • Led by higher ECU prices and high energy costs. contributed to the earnings though
Slide 7: Returns & Leverage
Returns & Leverage PBDIT/ Net Sales (%) Gross Debt (GD) & Cash Surplus (CS) (Rs Cr) GD CS GD CS GD CS -3.5 2,093 19.6 1,338 1,471 1,506 1,509 1,505 14.5 11.0 Q2'22 Q2'23 FY'22 Q2'22 Q2'23 FY'22 ROCE (%) Capital Employed (Rs Cr) 9.9 824 36.0 33.7 5,064 26.1 3,858 4,681 Q2'22 Q2'23 FY'22 Q2'22 Q2'23 F
Slide 8: Segment Performance – Q2 FY23
Segment Performance – Q2 FY23 Revenues PBIT PBIT Margins % Segments YoY % YoY % Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Change Change Chloro-Vinyl 936 814 15 214 238 -10 23 29 Sugar 617 590 5 -35 14 - - 2 SFS 238 178 33 36 21 69 15 12 Bioseed 88 77 13 -3 -16 - - - Fertilizer 585 293 99 35 14 152 6 5 Oth
Slide 9: Financial Snapshot – HY FY23
Financial Snapshot – HY FY23 Revenue (Net) PBDIT PAT 25% 21% 36% 611 766 5,591 4,102 316 382 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 PBIT Finance Cost Depreciation 30% 6% -44% 51 124 643 495 28 117 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 * Net revenue includes operating income. Net o
Slide 10: Revenue Drivers – HY FY23
Revenue Drivers – HY F23 Chemicals Vinyl Sugar 87% -23% 15% 1,678 518 1,327 398 895 1,153 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 • ECU prices up 89% YoY. Product prices across • PVC volumes lower by 22% and prices lower by • Sugar volumes up 10% YoY. categories were also up YoY. ~14% on an
Slide 11: PBDIT Drivers – HY FY23
PBDIT Drivers – HY FY23 Chemicals Vinyl Sugar 181% -75% -91% 246 619 76 220 61 7 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 • Led by higher ECU prices • PVC marginally positive at PBDIT level, with • Higher domestic sugar and ethanol prices lower prices and high energy costs contributed to the
Slide 12: Segment Performance – HY FY23
Segment Performance – HY FY23 Revenues PBIT PBIT Margins % Segments YoY % YoY % H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 Change Change Chloro-Vinyl 2,076 1,413 47 627 416 51 30 29 Sugar 1,327 1,153 15 -33 38 - - 3 SFS 456 391 17 53 37 45 12 9 Bioseed 293 266 10 15 9 68 5 3 Fertilizer 907 513
Slide 13: Management’s Message
Management’s Message Commenting on the performance for the quarter and period ending September 2022, in a joint statement, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managing Director, said: We are glad to report a good overall performance during t
Slide 14: Our Businesses
Our Businesses Chloro-Vinyl Agri Other Businesses Businesses Businesses Fenesta Caustic Sugar Building Soda (1,845 (38,000 Systems TPD) TCD) (8,600 TPA) Aluminum Cement Co-Gen Chloride (400,000 (155 MW) (75 TPD) TPA) PVC Resins Distillery Polymer India (220 TPD) (350 KLD)* Compounds Calcium Hariyali
Slide 15: Chloro Vinyl Business
Chloro Vinyl Business Revenues (Rs. PBIT Cap. Employed Particulars Cr.) (Rs. Cr.) (Rs. Cr.) Q2 FY23 936.2 214.2 2,531.0 Q2 FY22 814.3 238.2 1,682.4 % Shift 15.0 (10.1) 50.4 H1 FY23 2,075.8 626.9 2,531.0 H1 FY22 1,412.7 416.1 1,682.4 % Shift 46.9 50.7 50.4 Capital employed includes CWIP of Rs 923 crs
Slide 16: Chemicals
Chemicals Operational Financial Caustic Sales ECU Revenues PBIT Particulars PBIT Margin % (MT) Realisations (Rs Cr.) (Rs. Cr.) Q2 FY23 1,46,801 43,463 781.4 227.9 29.2 Q2 FY22 1,48,986 24,924 482.6 85.9 17.8 % Shift (1.5) 74.4 61.9 165.3 63.9 H1 FY23 2,98,508 46,518 1,677.6 574.4 34.2 H1 FY22 2,83,5
Slide 17: Chemicals
Chemicals Supply constraints due to underutilization of capacities globally led by high energy costs and slow down in Industry construction activities Overview Exports up – Q2 FY23 at 1.27 vs 0.71 lac MT LY. Indian Imports down – Q2 FY23 at 0.41 vs 0.54 lac MT LY. H1 FY23 at 1.92 vs 1.20 lac MT
Slide 18: Vinyl
Vinyl Operational Financial PVC Sales PVC XWR Carbide Sales Carbide XWR Revenues PBIT Particulars PBIT Margin % (MT) Realisations (MT) Realisations (Rs Cr.) (Rs. Cr.) Q2 FY23 11,523 89,964 5,183 87,929 154.9 -13.7 -8.9 Q2 FY22 20,771 1,32,023 4,901 96,923 331.7 152.3 45.9 % Shift (44.5) (31.9) 5.7 (
Slide 19: Vinyl
Vinyl Industry Fall in construction activities globally & recession worries continue to impact PVC demand & the same has been Overview reflected in global prices. Capacity utilization for Q2 FY23 at 66% vs 92% LY. o Lower power availability due to breakdown in captive power plant at Kota, now re
Slide 20: Sugar
Sugar Cap. Employed Revenues (Rs. Particulars PBIT (Rs. Cr.) PBIT Margin % (Rs. Cr.) Cr.) Q2 FY23 617.1 -34.8 -5.6 2,406.5 Q2 FY22 589.9 14.2 2.4 1,800.1 % Shift 4.6 - - 33.7 H1 FY23 1,326.9 -32.8 -2.5 2,406.5 H1 FY22 1,153.4 37.5 3.3 1,800.1 % Shift 15.0 - - 33.7 * Net of excise duty on country liq
Slide 21: Sugar
Sugar Operational Sugar Sugar Sales Sugar Power XWR Distillery XWR - Distillery XWR - Distillery XWR - Production Power Sales Distillery Sales Particulars (Domestic) (Domestic) (Rs/ unit) Cane Juice B Heavy C Heavy (Rs/ (Lac Qtls) (Lac Units) (Lac Ltrs) (Lac Qtls) XWR (Rs/Qtl) (Lac Units) (Rs/ Ltrs)
Slide 22: Sugar
Sugar Revenues for Q2 FY23 up 5% YoY (H1 FY23 up 15%) o Domestic prices for Q2 FY23 up at Rs/ qtl 3,558 vs 3,452 LY and for H1 FY23 up at Rs/ qtl 3,561 vs 3,390 LY. o Sugar volumes for Q2 at 12.5 vs 12.4 lac qtl ; H1 FY23 at 25.3 lac qtl vs 23.1 lac qtl o Ethanol volumes were lower during the quar
Slide 23: Shriram Farm Solutions
Shriram Farm Solutions Revenues PBIT Cap. Employed Particulars PBIT Margin % (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) Q2 FY23 237.9 35.6 15.0 -31.1 Q2 FY22 178.3 21.1 11.8 -56.2 % Shift 33.4 69.1 26.8 - H1 FY23 455.8 53.4 11.7 -31.1 H1 FY22 390.7 36.9 9.4 -56.2 % Shift 16.7 44.9 24.2 - The products includes Se
Slide 24: Bioseed
Bioseed Revenues (Rs. Cr.) PBIT Cap. Employed Particulars PBIT Margin % India International Total (Rs. Cr.) (Rs. Cr.) Q2 FY23 59.5 28.0 87.5 (3.1) (3.5) 517.9 Q2 FY22 55.1 22.3 77.4 (16.1) (20.7) 498.0 % Shift 7.9 25.7 13.0 - - 4.0 H1 FY23 237.4 55.6 293.0 15.2 5.2 517.9 H1 FY22 191.0 74.8 265.9 9.0
Slide 25: Fertilizers (Urea)
Fertilizers (Urea) Operational Financial Sales Realisations Revenues PBIT Cap. Employed Particulars PBIT Margin % (MT) (Rs./MT) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) Q2 FY23 1,10,450 51,609 585.3 34.8 5.9 712.9 Q2 FY22 1,02,296 27,396 293.5 13.8 4.7 289.7 % Shift 8.0 88.4 99.4 152.4 26.6 146.1 H1 FY23 1,74,
Slide 26: Other Businesses
Other Businesses The ‘Others’ Segment in the financial results, includes Cement, Fenesta Building Systems, Vinyl compounding business and Hariyali Kisaan Bazaar. Revenues under ‘Others’ stood at Rs 300 crs in Q2 FY23 from Rs. 209 crs in LY. PBIT for the quarter stood at Rs. 19 crs vs. Rs. 10 crs
Slide 27: Fenesta Building Systems
Fenesta Building Systems Operational Financial Order Book (Rs Crores) Revenues PBIT Particulars PBIT Margin % Retail Projects Total (Rs. Cr.) (Rs. Cr.) Q2 FY23 102.6 103.0 205.6 177.6 30.9 17.4 Q2 FY22 98.7 94.8 193.4 130.1 14.7 11.3 % Shift 4.0 8.7 6.3 36.5 109.5 53.4 H1 FY23 197.9 192.5 390.5 344.
Slide 28: Cement
Cement Operational Financial Sales Realisations Revenues PBIT PBIT Margin % Particulars (MT) (Rs./MT) (Rs. Cr.) (Rs. Cr.) Q2 FY23 75,295 3,917 38.5 (14.0) (36.4) Q2 FY22 1,01,232 3,640 44.9 (4.0) (9.0) % Shift (25.6) 7.6 (14.3) - - H1 FY23 1,59,156 4,093 81.7 (33.4) (40.8) H1 FY22 2,08,814 3,631 91.
Slide 29: About Us & Investor Contacts
DCM Shriram Ltd. is an integrated business entity, with extensive and growing presence across the entire Agri value chain and Chloro-Vinyl industry. The Company has added innovative value- added businesses in these domains primarily Bioseed and Fenesta. Access to captive power at all key manufacturi