Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q4 FY24 Earnings Presentation
42 slides from Grasim Industries's earnings presentation, May 22, 2024
Slide 1: Cover letter to stock exchanges on results presentation
Ref No. GIL/CFD/SEC/25/063/SE 22nd May 2024 BSE Limited National Stock Exchange of India Limited Scrip Code: 500300 / 890190 Symbol: GRASIM / GRASIMPP Dear Sir/Madam, Sub: Presentation on Annual Audited Standalone and Consolidated Financial Results of the Company for the financial year ended 31st Ma
Slide 2: Grasim Industries Limited Earnings Presentation Q4FY24
GRASIM INDUSTRIES LIMITED Earnings Presentation Q4FY24 May 2024
Slide 3: Grasim's leadership across key components of growing economy
GRASIM’s LEADERSHIP ACROSS KEY COMPONENTS OF GROWING ECONOMY • Cellulosic Staple Fibre • Grey Cement • Cellulosic Fashion Yarn • White Cement • Linen Textiles Infrastructure • Ready Mix Concrete • Premium Cotton Aspirational & Housing • Wall Putty Fabrics Consumption Demand • Decorative Paints • Chl
Slide 4: Track record of consistent growth
TRACK RECORD OF CONSISTENT GROWTH PILLARS OF OUR STRATEGY LEADERSHIP INNOVATION SUSTAINABILITY CAPITAL ALLOCATION COST LEADERSHIP Highest-ever Revenue (FY24) Highest-ever EBITDA (FY24) 5-YR^ CAGR growth 5-YR^ Growth Capex Over ₹ 1,30,978 Cr. ₹ 20,837 Cr. 15% 11% Revenue EBITDA ₹ 38,000 Cr. Consolida
Slide 5: Macro updates
MACRO UPDATES Grasim Industries Q4FY24 Earnings Presentation
Slide 6: Macro indicators
MACRO INDICATORS India Manufacturing – IIP Growth (% YoY) India Merchandise Exports ($bn) IIP (% growth YoY) Average 125 121.0 120.0 11.9 120 114.7 10.3 115 110.7 5.9 110 107.4 105.9 6.2 6.4 104.6 104.0 5.7 5.6 105 4.6 4.9 4.0 4.2 4.1 100 2.5 95 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-2
Slide 7: Financial highlights
FINANCIAL HIGHLIGHTS Grasim Industries Q4FY24 Earnings Presentation
Slide 8: Performance highlights Q4FY24
PERFORMANCE HIGHLIGHTS Q4FY24 Consolidated Revenue ₹37,727 Cr. up 13% YoY and 18% QoQ; EBITDA at ₹6,196 Cr. up 27% YoY and 20% QoQ • Consolidated performance was driven by Cement and Financial Services business Cellulosic Fibres: CSF sales volume growth of 8% YoY despite impact of MSME notification
Slide 9: Performance highlights - consolidated
PERFORMANCE HIGHLIGHTS - CONSOLIDATED Q4FY24 Revenue (₹ Cr.) EBITDA (₹ Cr.) Adjusted PAT* (₹ Cr.) 37,727 6,196 1,908 33,462 31,965 5,150 4,873 1,514 1,369 Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY24 FY24 Revenue (₹ Cr.) EBITDA (₹ Cr.) Adjusted PAT* (₹ Cr.) 1,30,978 20,837 1,17,627
Slide 10: Strong balance sheet
STRONG BALANCE SHEET Consolidated As on As on As on Particulars 31st Mar 2023 31st Dec 2023 31st Mar 2024 Net worth (₹ Cr.) 78,742 87,141 88,652 Debt - Equity Ratio 0.82 0.93 0.97 Net debt* (₹ Cr.) 6,978 16,397 15,436 Total debts to Total assets 0.30 0.32 0.33 Grasim raised its first Sustainability
Slide 11: Improving sustainability performance
IMPROVING SUSTAINABILITY PERFORMANCE* 11% 50% 8% Increasing 46% Increasing proportion of 44% Renewable 5% recycled water Power Share to freshwater consumption FY22 FY23 FY24 FY22 FY23 FY24 Awards & Achievements: ➢ Grasim received upgrade by one notch in Sustainalytics with ratings improvement of 9.6
Slide 12: Cellulosic Fibres
CELLULOSIC FIBRES (CELLULOSIC STAPLE FIBRE & CELLULOSIC FASHION YARN) Grasim Industries Q4FY24 Earnings Presentation
Slide 13: Cellulosic fibres: fastest growing in the fibre basket
CELLULOSIC FIBRES: FASTEST GROWING IN THE FIBRE BASKET GLOBAL INDIA INDIA CELLULOSIC 12.8% CAGR FIBRE GROWING 4.0% CAGR FASTEST WITH CAGR >2x 0.3% CAGR (0.8%) CAGR OF OTHER FIBRES 3.8% CAGR 4.5% CAGR CY15 CY23 CY15 CY23 Synthetic Cotton Cellulosic Fibres Synthetic Cotton Cellulosic Fibres GROWTH 6%
Slide 14: Macro trends - cellulosic fibres
MACRO TRENDS - CELLULOSIC FIBRES China Operating Rate (in Percentage) China Inventory (in Days) 88 85 85 24 22 69 69 12 13 10 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Global Prices Trend ($/Kg) Price Movement 3.62 YoY QoQ Mar Exit Price Fibres (%) (%) (D over Q4FY24) 2.16 2.14 1
Slide 15: Key operational metrics
KEY OPERATIONAL METRICS CSF Sales (KT) Sales Volume Mix (CSF) Export Sales Standard Fibre 810 80% 205 208 9% 192 711 Q4FY24 Q4FY24 91% 20% Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Domestic Sales Speciality Fibre CFY Sales (KT) CSF sales volumes for FY24 stood at highest levels of 810 KT 11.0 10.3 10.8 43.7 41
Slide 16: Operating performance - cellulosic fibres
OPERATING PERFORMANCE – CELLULOSIC FIBRES Revenue (₹ Cr.) EBITDA (₹ Cr.) 15,149 14,949 462 1,722 3,764 3,715 3,762 402 1,031 144 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Revenue flattish due to subdued domestic downstream demand on account of new MSME policy guidelines EBITDA gr
Slide 17: Chemicals
CHEMICALS (CHLOR-ALKALI, CHLORINE DERIVATIVES & SPECIALITY CHEMICALS) Grasim Industries Q4FY24 Earnings Presentation
Slide 18: Diversified chemicals portfolio
DIVERSIFIED CHEMICALS PORTFOLIO 1,530 Q3FY25 1,168 Q1FY27 CHLOR-ALKALI 172 13% 139 15% ➢ Largest Caustic Soda player in India. Market growing at a steady pace with demand from Alumina, Organic & Inorganic Chemicals, Textiles & FMCG industries 1,359 1,029 246 ➢ Maintaining Market leadership position
Slide 19: Focus on speciality chemicals
FOCUS ON SPECIALITY CHEMICALS MAJOR END-USE APPLICATIONS CHLORINE INTEGRATION LEVELS (%) Integration includes chlorine SPECIALITY CHEMICALS* consumption for HCL and pipeline 62% CONSTRUCTION sales for dedicated customers 60% 58% 57% RENEWABLES FY21 FY22 FY23 FY24 CHEMICALS REVENUE BREAK-UP (FY24) WA
Slide 20: Key operational metrics - chemicals
KEY OPERATIONAL METRICS - CHEMICALS CFR SEA Caustic Soda Prices ($/Ton)# Grasim – ECU (₹/Ton) 659 518 47,951 444 451 432 42,136 31,383 30,427 32,109 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Caustic Soda Sales (KT) Revenue Break-up of Chemicals Business (%) 308 299 1,205 18% 21%
Slide 21: Financial performance - chemicals
FINANCIAL PERFORMANCE – CHEMICALS Revenue (₹ Cr.) EBITDA (₹ Cr.) 10,422 2,271 368 2,397 8,213 1,996 2,083 264 195 1,054 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 International average Caustic soda prices (CFR-SEA) remained range bound ~USD 451/MT, however domestic markets experie
Slide 22: Building materials
BUILDING MATERIALS (CEMENT, PAINTS & B2B E-COMMERCE) Grasim Industries Q4FY24 Earnings Presentation
Slide 23: India cement industry
INDIA CEMENT INDUSTRY India is the second largest cement producer in the world, but remains a highly underpenetrated market Global Cement Production Per Capita Cement Consumption (in kg) 1430- 1480 32.3% 1170-1220 950-1000 51.7% 600-650 World average: 500-550 1.6% 420-470 400-450 380-430 1.1% 280-33
Slide 24: Cement: progress update
CEMENT: PROGRESS UPDATE Grey Cement India sales volume stood at 33.91 MT up by 31% QoQ and 11% YoY, however realizations stood at ₹5,170/MT down 6% QoQ and 4% YoY During the year, UltraTech added 13.8 mtpa grey cement capacity across locations, taking India grey cement capacity to 140.8 mtpa. Target
Slide 25: Growing India decorative paints market
GROWING INDIA DECORATIVE PAINTS MARKET INDUSTRY SIZE – FY25 Estimated CAGR of UN-ORGANISED MARKET PER-CAPITA CONSUMPTION ~₹78,000 Cr. ~25% 3.5 kg (Global average of 10 kg/annum) >10% over the next decade Housing Urbanisation Demand 2nd Largest Player* in Indian Decorative Paints Industry MANUFACTURI
Slide 26: Birla Opus: progress update
BIRLA OPUS: PROGRESS UPDATE Capex spent for Q4FY24 ₹1,067 Cr, total capex since inception at ₹7,063 Cr. (~70% of planned capital outlay) Commercial production commenced at three plants in Apr-24, construction of the other three plants is progressing as per schedule Multiple Dealer Meets and Expos be
Slide 27: Digitisation of construction materials trade
DIGITISATION OF CONSTRUCTION MATERIALS TRADE Digital shifting of Construction Materials market with end-to-end solutions (Demand prediction, Product assortment, Sourcing, Logistics and Financing) VALUE PROPOSITION PRODUCT CATEGORIES CEMENT & STEEL SANITARYWARE COMPETITIVE PRICING ASSURED QUALITY PIP
Slide 28: Birla Pivot: progress update
BIRLA PIVOT: PROGRESS UPDATE Crossed milestone of ₹1,000 Cr. revenue in first year of operations; crossed monthly revenue of ₹200 Cr. during the quarter Expanded offerings across 35 product categories comprising 18,000+ SKUs sourced from 150+ Indian and International brands Delivered orders to over
Slide 29: Financial performance - building materials
FINANCIAL PERFORMANCE – BUILDING MATERIALS Revenue (₹ Cr.) EBITDA (₹ Cr.) 4,150 13,164 71,953 20,919 3,359 10,919 18,803 63,381 3,261 17,011 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Revenue grew by 23% QoQ to ₹20,919 Cr. with major share from Cement business Cement revenue grew
Slide 30: Financial services
FINANCIAL SERVICES Grasim Industries Q4FY24 Earnings Presentation
Slide 31: Financial performance - financial services
FINANCIAL PERFORMANCE – FINANCIAL SERVICES Revenue# (₹ Cr.) Total Lending Book (₹ Cr.)* 34,008 1,24,059 10,484 1,15,139 8,786 27,365 94,364 8,095 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Q4FY23 Q3FY24 Q4FY24 Consolidated Revenue stood at ₹10,484 Cr. largely driven by growth in NBFC and life insurance business
Slide 32: Others
OTHERS (TEXTILES, INSULATORS & RENEWABLES) Grasim Industries Q4FY24 Earnings Presentation
Slide 33: Financial performance - others
FINANCIAL PERFORMANCE – OTHERS Revenue (₹ Cr.) EBITDA (₹ Cr.) 3,092 3,087 108 494 782 790 99 105 745 445 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Textiles business revenue grew by 3% YoY to ₹534 Cr., Linen business expanded its retail presence with no of EBOs at 231 stores and M
Slide 34: Appendix
APPENDIX Grasim Industries Q4FY24 Earnings Presentation
Slide 35: Consolidated income statement
CONSOLIDATED INCOME STATEMENT Particulars (₹ Cr.) Q4FY24 Q4FY23 % Change FY24 FY23 % Change Revenue from Operations 37,727 33,462 13 1,30,978 1,17,627 11 Other Income 427 220 94 1,264 858 47 EBITDA* 6,196 4,873 27 20,837 17,723^ 18 EBITDA Margin (%) 16% 14% 16% 15% Finance Cost 463 338 37 1,655 1,32
Slide 36: Standalone income statement
STANDALONE INCOME STATEMENT Particulars (₹ Cr.) Q4FY24 Q4FY23 % Change FY24 FY23 % Change Revenue from Operations 6,768 6,646 2 25,847 26,840 -4 Other Income 260 116 124 1,257 1,018 23 EBITDA 787 542 45 3,573 4,198 -15 EBITDA Margin (%) 11% 8% 13% 15% Finance Cost 121 107 13 440 368 20 Depreciation
Slide 37: Performance highlights - standalone
PERFORMANCE HIGHLIGHTS - STANDALONE Q4FY24 Revenue (₹ Cr.) EBITDA (₹ Cr.) Adjusted PAT# (₹ Cr.) 6,646 6,400 6,768 275 787 236 643 542 94 Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY24 FY24 Revenue (₹ Cr.) EBITDA (₹ Cr.) Adjusted PAT# (₹ Cr.) 26,840 25,847 2,247 2,212 4,111 4,198 20,8
Slide 38: Capex plan - standalone
CAPEX PLAN - STANDALONE Planned Capex Capex Spent Capex Spent Particulars (₹ Cr.) FY24 Q4FY24 FY24 Cellulosic Fibres Business 663 136 530 Capacity Expansion (including debottlenecking) 225 37 195 Modernisation and Maintenance Capex 438 99 335 Chemicals Business (A+B+C) 797 186 741 (A) Capacity Expan
Slide 39: Balance sheet
BALANCE SHEET Standalone (₹ Cr.) Consolidated (₹ Cr.) 31st Mar'24 31st Mar'23 EQUITY & LIABILITIES 31st Mar'24 31st Mar'23 (Audited) (Audited) (Audited) (Audited) 52,115 46,955 Net Worth 88,652 78,742 - - Non Controlling Interest 50,286 44,171 - - Borrowings related to Financial Services 1,08,322 83
Slide 40: Grasim group structure
GRASIM GROUP STRUCTURE Grasim Industries Limited Cellulosic Fibres Chemicals New Businesses Textiles Overseas Pulp & CSF JVs Subsidiaries AV Group NB Inc. (Canada) CSF Vilayat Paints Rishra UltraTech Cement (57.27%)** (45.0%)* Domsjo (Sweden) Grey Cement Vilayat Nagda Panipat Malanpur (33.3%)* o Ind
Slide 41: Forward looking and cautionary statement
FORWARD LOOKING AND CAUTIONARY STATEMENT This presentation is issued by Grasim Industries Limited (the “Company”) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constit
Slide 42: Thank you
THANK YOU Investor Relations Team grasim.ir@adityabirla.com +91 22 2499 5657 Grasim Industries Q4FY24 Earnings Presentation