Aditya Birla Real Estate Ltd · NSE:ABREL

Aditya Birla Real Estate — Century Textiles and Industries — Q3 FY2020 Earnings Presentation

46 slides from Aditya Birla Real Estate's earnings presentation, Feb 5, 2020

  1. Slide 1: Cover letter to exchanges: intimation of investor meeting

    CENTURY Textiles and Industries Limited REGD. OFFICE : "CENTURY BHAVAN", DR. ANNIE BESANT ROAD, WORLI, MUMBAI-400 030. INDIA. TEL.: +91-22-2495 7000 FAX:+91-22-2430 9491,+91-22-24361980 E-Mail: ctil.ho@birlacentury.com Website: www.centurytextind.com CIN-L17120MH1897PLC000163 OUR REF. : SHlXII/45112

  2. Slide 2: Q3 FY 2020 Investor Presentation

    Century Textiles & Industries Limited Real Pulp &Estate Paper Textiles Q3 FY 2020 INVESTOR PRESENTATION January, 2020 Stock Code : BSE : 500040 | NSE : CENTURYTEX | Reuters : CNTY.NS | Bloomberg : CENT:IN

  3. Slide 3: Table of Contents

    TABLE OF CONTENTS Financials Real Estate Pulp & Paper Textiles 2

  4. Slide 4: Performance at a Glance

    PERFORMANCE AT A GLANCE Figures in Rs. Crore Financials FY 19-20 Description FY 19-20 (Q3) FY 18-19 (Q3) FY 18-19 (9M) (9M)# Turnover 854 941 2,562 2,790 EBITDA 158 210 511 766 Real Estate Less : TDR Sales (One-time 160 income) Adjusted EBITDA 158 210 511 606 Pulp & Paper EBITDA %age 18.5% 22.3% 19.

  5. Slide 5: Key Highlights – During FY Q3

    KEY HIGHLIGHTS – DURING FY Q3 Financials Real Estate Real Estate Pulp & Paper Textiles 2 Projects launched & 1 Project to be Capacity Utilisation during Q3 FY 20 was at Capacity Utilization in Q3 is 95%, 2% higher launched in current financial year 104% as against Q3 FY 19 at 106% as compared to Q3

  6. Slide 6: Consolidated Performance at a Glance

    CONSOLIDATED PERFORMANCE AT A GLANCE Financials Quarterly 9 Months Q3 FY 19 Q2 FY 20 Q3 FY 20 9M FY 19 9M FY 20 2790 941 2561 854 851 Real Estate 766 210 534 511 161 158 137 357 278 161 88 87 77 50 42 Turnover EBITDA PBT PAT Turnover EBITDA PBT PAT Pulp & Paper Revenue Pie – Q3 FY 20 Revenue Pie – 9

  7. Slide 7: Trends in Realisation, Contribution and Input Prices

    TRENDS IN REALISATION, CONTRIBUTION AND INPUT PRICES (With Q1 FY 19 as base) Financials Particulars Units Q1 FY 19 Q2 FY 19 Q3 FY 19 Q1 FY 20 Q2 FY 20 Q3 FY 20 CPP 1. Net Sales Realisation (NSR) Domestic Rs.Per/T 100% 104% 99% 106% 103% 99% Export Rs.Per/T 100% 107% 110% 96% 91% 87% Total NSR Rs.Per

  8. Slide 8: Segmental Numbers

    SEGMENTAL NUMBERS Figures in Rs. Crore Particulars Q3 FY 19 Q3 FY 20 9M FY 19 9M FY 20 Financials CONTINUING OPERATIONS SALES Textiles 200 207 638 600 Pulp & Paper 698 606 2020 1842 Real Estate 39 37 120 107 Others 4 4 13 12 Real Estate Total Sales 941 853 2790 2561 EBITDA Textiles 24 22 84 67 Pulp

  9. Slide 9: Capital Employed – As on 31st Dec 2019

    CAPITAL EMPLOYED – AS ON 31st DEC 2019 *Figures in Rs. Crore Continued Operations Financials Particulars Dis Ops (Y&D) Grand Total Textiles Fabrics Rayon Pulp & Paper Birla Estates Total Net Block 415 282 2484 1,483 4664 4664 (i) Current Assets 352 11 527 207 1097 3 1100 (ii) Non-Current Assets 2 4

  10. Slide 10: Statement of Outstanding Loan

    STATEMENT OF OUTSTANDING LOAN *Figures in Rs. Crore Financials Particulars O/s as on O/s as on O/s as on 31-03-2019 30-09-2019 31-12-2019 Long Term Loans 109 34 68 Average Rate of Interest 7.60% 4.90% 7.04% Real Estate Short Term and Working Capital Loans 212 517 621 Average Rate of Interest 7.63% 7

  11. Slide 11: Tax Ordinance, 2019

    TAX ORDINANCE, 2019 Financials Irrevocable option can be exercised in any Tax Rate Old Regime New regime year Option 1 Option 2 Regular 34.94% 34.94% 25.17% Beneficial to move to new tax regime post Real Estate utilisation of : MAT 21.55% 17.47% NA  MAT credit Rs. Cr  Unabsorbed depreciation Parti

  12. Slide 12: 2.3 million sq. ft. under construction across 2 projects

    Financials Real Estate Pulp & Paper Textiles 2.3 million sq. ft. under construction across 2 projects 11

  13. Slide 13: Step Towards More Focus on Growing Business

    STEP TOWARDS MORE FOCUS ON GROWING BUSINESS Financials Real Estate Strengths Opportunities Strong Vision & Strategy Real Estate The Birla Brand Rapid urbanization and shrinking Deliver on exceptional experience and household sizes creating value for stakeholders Pulp & Paper Valuable portfolio of pr

  14. Slide 14: Branded Residential Developers Faring Well Despite Muted Market Conditions

    BRANDED RESIDENTIAL DEVELOPERS FARING WELL DESPITE MUTED MARKET CONDITIONS Financials RESIDENTIAL  Muted growth with fewer launches and stagnant sales across top real estate markets Real Estate  Economic slowdown coupled with liquidity crunch contributed to the muted demand in the sector  Branded

  15. Slide 15: Top Listed Real Estate Developers Beating the Housing Sector's Downturn

    TOP LISTED REAL ESTATE DEVELOPERS BEATING THE HOUSING SECTOR’S DOWNTURN BLUES Financials Top players FY 15 FY 17 FY 19 Demonetization Peak years Current period Housing sales in Rs. Cr. 14,000 8,800 22,800 Real Estate Market share 5% 4% 8% Housing sales in mn. sq. ft. 27 17 44 Launches in mn. sq. ft.

  16. Slide 16: Birla Estates Has Created Landmark Commercial Projects

    BIRLA ESTATES HAS CREATED LANDMARK COMMERCIAL PROJECTS Financials Birla Aurora, Worli  2.55 Lakh sq. ft. of commercial Overview of the Buildings space  Superior Quality  Unconventional elliptical design Real Estate  Strong execution abilities  22-storey building  Assets almost 100% leased, com

  17. Slide 17: Summary of Portfolio Under Development

    SUMMARY OF PORTFOLIO UNDER DEVELOPMENT Financials Land Area Area under Development Revenue Potential Location (in Acres) (in million sq. ft.) (in Rs. Cr.) Worli – Residential 20 3* 9,500 Kalyan 22 1.31* 1,125 Real Estate Total - Owned Parcels under 42 4.31 10,625 development Birla Alokya, Soukya Roa

  18. Slide 18: Birla Vanya Details

    BIRLA VANYA DETAILS Financials Location Kalyan Area 22 acres 13.12 lakh sq. ft. (Phase 1A – 5.24 lakh sq. ft., Real Estate Saleable Area Phase 1B – 1.94 lakh sq. ft. Phase 2 – 5.94 lakh sq. ft.) Architect Hafeez Contractor Revenue Potential Rs. 1,125 Cr. Pulp & Paper Residential – 1 BHK, 2 BHK, 3 BH

  19. Slide 19: Birla Vanya, Kalyan – Execution Update

    BIRLA VANYA, KALYAN – EXECUTION UPDATE Financials Activities Current Status  Launched: 534 units.  Cumulative sales: 467 units Sales  Sales Booking Value: Rs. 338 Cr. Real Estate  Achieved APR of Rs. 7,400/ sq. ft. Phase 1  Foundation and Substructure completed Pulp & Paper  Superstructure in

  20. Slide 20: Century Mills, Worli – Project Details

    CENTURY MILLS, WORLI – PROJECT DETAILS Financials Total Saleable Area Residential - 30 lakh sq. ft. Real Estate Revenue Potential Residential – Rs. 9,500 Cr. Residential – Product Type 2 BHK, 3 BHK, 4 BHK and 5 BHK Penthouse Pulp & Paper Project Launch Q1 FY 22 Est. Completion Q1 FY 31 Date Textiles

  21. Slide 21: Century Mills, Worli – Execution Update

    CENTURY MILLS, WORLI – EXECUTION UPDATE Financials Activities Current Status  Master Planning and Concept Design Design/ complete Real Estate Marketing  Schematic Design in progress  Obtained Layout approval from MCGM on 6th Approvals November 2019 Pulp & Paper  Handover of areas to MCGM in prog

  22. Slide 22: Birla Alokya Details

    BIRLA ALOKYA DETAILS Financials Location Soukya Road, Bengaluru Area 7.9 acres Saleable Area 5.47 lac sq. ft. Real Estate Architect Synergy Revenue Potential Rs. 388 Cr. Deal Summary Outright Purchase Initial Investment Rs. 72 Cr. for purchase of land Pulp & Paper Residential – 3-Bed and 4-Bed Produ

  23. Slide 23: Birla Alokya, Bengaluru – Execution Update

    BIRLA ALOKYA, BENGALURU – EXECUTION UPDATE Financials Activities Current Status  Launched: 218 units.  Cumulative Sales: 67 units Real Estate Sales  Sales Booking Value: Rs. 100 Cr.  Achieved APR of Rs. 6,400/ sq. ft.  Construction progressing as per schedule Construction  Excavation work is 1

  24. Slide 24: Magadi Road Project Details

    MAGADI ROAD PROJECT DETAILS Location Magadi Road, Bengaluru Financials Area 4.75 acres Saleable Area 5.97 lakh sq. ft. Architect RSP Real Estate Revenue Potential Rs. 526 Cr. Profit sharing basis (JV:BEPL – Deal Summary 60:40) Initial Investment Rs. 50 Cr. of refundable deposit Residential – 2 BHK,

  25. Slide 25: ARL Project Details

    ARL PROJECT DETAILS Location Sector 63 A, Gurugram, NCR Financials Area 65 acres Saleable Area 36.5 lakh sq. ft. Architect R Corp Revenue Potential Rs. 4,415 Cr. Real Estate Profit sharing basis (JV:BEPL – 50:50) + Deal Summary Development Manager fee Rs. 400 Cr. for acquiring 50% stake in the Initi

  26. Slide 26: Flag bearer in Paper Industry

    Financials Real Estate Pulp & Paper Textiles Flag bearer in Paper Industry 25

  27. Slide 27: About Century Pulp & Paper

    ABOUT CENTURY PULP & PAPER 35 years of Financials Established in 1984. Excellence The India’s only integrated Pulp and Paper mill that delivers comprehensive solutions in finest varieties of Writing & Printing Paper , Real Estate Virgin fiber grade fine tissue, Multilayer Packaging Board and Rayon G

  28. Slide 28: Our Journey

    OUR JOURNEY PM 5 (Tissue) Financials Technology/ Capacity: METSO/ 100 TPD PM 3 2012 Technology/ Capacity: VOITH SUZLER/ 250 TPD 2009 Real Estate 2007 RGP Technology/ Capacity: 1995 BM 6 (Board) MECHANO/ 87 TPD Technology/ Capacity: VOITH/ 500 TPD 1984 PM 4 Technology/ Capacity: VOITH SUZLER/ 250 TPD

  29. Slide 29: Our Products

    Textiles Pulp & Paper Real Estate Financials OUR PRODUCTS 28

  30. Slide 30: Century Pulp & Paper Mill – Capacities

    CENTURY PULP & PAPER MILL - CAPACITIES Financials Board Capacity– 500 ton per day Paper Capacity – 650 ton per day Tissue Capacity– 100 ton per day* Rayon Grade Pulp – 100 ton per day *New expansion in Tissue of 100 ton per day in August 2020 Real Estate Present Annual Production Capacity 4,45,000 t

  31. Slide 31: The Flag Bearer of Indian Paper Industry

    THE FLAG BEARER OF INDIAN PAPER INDUSTRY Products Global Presence Financials RGP - RAYON GRADE PAPER TISSUE BOARD PAPER Rayon Grade Pulp is a highly purified form of WRITING & PRINTING 19 Century board machine has 4 head boxes cellulose made from wood and used in a wide variety of consumer applicati

  32. Slide 32: Raw Material Flexibility

    RAW MATERIAL FLEXIBILITY Financials Captive Fiber Line Pulp Mill RGP Pulp Mill 160,000 36% 146,000 140,000 Real Estate 120,000 27% 108,000 100,000 Raw Material Storage and Chipping DIP Volume in MT 80,000 13% 60,000 54,000 Pulp & Paper 10% 8% 40,000 40,000 32,000 5% 21,000 20,000 Bagasse Pulp Mill F

  33. Slide 33: Industry Overview – Indian Paper Sector

    INDUSTRY OVERVIEW – INDIAN PAPER SECTOR Market facts Financials Industry Growth Industry Composition Per Capita Consumption Growth Drivers • Higher spends by Real Estate • India accounts for 4.5% • Highly fragmented, • India’s per capita of global paper cyclical and capital- consumption is very gove

  34. Slide 34: Segment-wise Consumption

    SEGMENT-WISE CONSUMPTION India vs World – Segment-wise consumption Financials 60% 51% 49% Global India 50% 40% 32% 30% 20% 20% 17% 16% 12% 10% 4% Real Estate 0% WPP Packaging Board Speciality Newsprint Paper board and tissue will increase their share of total paper consumption to be on par globally

  35. Slide 35: Competitive Landscape

    COMPETITIVE LANDSCAPE % Market share during FY20 - H1 Plant locations Financials Real Estate TISSUE MARKET SIZE (VIRGIN+RECYCLE) MILLS NZ EZ WZ SZ MARKET SHARE 39,000 3,500 33,800 36,600 CPP 12.6% 4.0% 4.5% 5.3% ORIENT 10.3% 45.7% 10.7% 8.7% OTHERS VIRGIN Pulp & Paper GRADE MILLS 0.0% 0.0% 1.8% 1.7%

  36. Slide 36: EBITDA Movement & Key Levers

    EBITDA MOVEMENT & KEY LEVERS RM Cost Reduction - Rs 40 Cr Capex Incurred - Rs 13 Cr Financials Volume Growth 55K MT - Rs 44 Cr 713 Cr Reduction in RM cost- Rs 43 Cr Improved Boiler Efficiency - Rs 12 Cr Other Income - Rs 29 Cr Capex Incurred - Rs 51 Cr 481 Cr FY 19 Real Estate Volume Growth 60K MT -

  37. Slide 37: Strategic Performance (2013-2019)

    STRATEGIC PERFORMANCE (2013-2019) Financial Performance Financials 800 21.9% 22.1% 25.0% 20.2% 700 EBITDA % as Total EBITDA in Crores 713 20.0% Sales Revenue 600 14.7% 500 15.0% 9.5% 10.2% 400 480.97 423.73 10.0% 300 Real Estate 200 288.88 5.0% 100 -1.3% 163.76 176.86 0.0% 0 -16.41 2012-13 2013-14 2

  38. Slide 38: Key Initiatives Planned

    KEY INITIATIVES PLANNED Tissue expansion 36k MT Financials Lean Senior Leadership Team New VAP products Workmen Optimization PM 3 & 4 Upgradation Re- Capacity Apprentice appointment structuring Expansion Increased speed Induct MT in sales and train them for Bharuch Plant 250 TPD direct sales rather

  39. Slide 39: World's 2nd and India's 1st LEED V4 certified textile mfg co.

    Financials Real Estate Pulp & Paper Textiles World’s 2nd and India’s 1st LEED V4 certified textile mfg co.

  40. Slide 40: Textiles

    TEXTILES Financials Real Estate Plant Overview Pulp & Paper Textiles Shirting Bottom Wear Finer Fabrics Bed Linen 39

  41. Slide 41: Step Towards More Focus on Growing Business – Textile

    STEP TOWARDS MORE FOCUS ON GROWING BUSINESS Textile Financials Strengths Growth Drivers Advantages Real Estate State-of-the-Art Vertically Integrated US-China trade war has increased demand Increased penetration of organised retail, Plant (Fibre to Finishing). of Indian products in USA better demogr

  42. Slide 42: Business – Overview & Capex Plan

    BUSINESS – OVERVIEW & CAPEX PLAN Financials Year of Installation 2008 Particulars Rs. Cr. Installed Capacity 37.50 Million Meters Total Amount to be Spent 46 Real Estate Actual Production for 9M FY 2019-20 27.38 Million Meters Spinning 6 Capacity Utilization 9M FY 2019-20 96.% Processing 4 Actual Tu

  43. Slide 43: Birla Century, Strategic Performance

    BIRLA CENTURY, STRATEGIC PERFORMANCE Financial Performance Sum of EBITDA in % Sum of EBITDA in Cr. Financials 80 EBITDA to Sales revenue (%) 9 70 9 7 8 8 60 EBITDA in Crores 60 58 50 53 50 51 40 Real Estate 30 20 10 0 2014-15 2015-16 2016-17 2017-18 2018-19 Pulp & Paper Capacity Utilisation Percenta

  44. Slide 44: Birla Century – Distribution Pattern

    BIRLA CENTURY - DISTRIBUTION PATTERN Financials Apparels Home Textiles - Exports/ Domestic 3% Sales Segment-wise 6% 34% 10% Trader 24% Brands Real Estate OTC RTS Exports 33% 35% 55% 5% Pulp & Paper Zone-wise 35% 35% North South Export ( USA, Australia, HK, Philippines, UK, Canada) West Converter Eas

  45. Slide 45: Birla Century – Journey of Business Sustainability

    BIRLA CENTURY- JOURNEY OF BUSINESS SUSTAINABILITY Financials Accreditation & Awards for sustainable business Environment Name of Certification Validity Impact of Business Sustainability 1 Oeko-Tex Standard 100 31-Mar-20 For assuring product safety that it is safe for use from 300 harmful chemicals N

  46. Slide 46: Disclaimer

    DISCLAIMER Financials No statement in this presentation is intended as a profit forecast or estimate for any period and no statement in this presentation should be interpreted to mean that cash flow from operations, free cash flow, earnings, earnings per share basis for any of parties, as appropriat

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