Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q1 FY2014-15 Earnings Presentation
37 slides from Grasim Industries's earnings presentation, August 2014
Slide 1: Performance Review Quarter 1: 2014-15
Performance Review Quarter 1 : 2014-15 Grasim Industries Limited A VSF and Cement Major
Slide 2: Cautionary Statement
Cautionary Statement Statements in this “Presentation” describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or impl
Slide 3: Contents
Contents Highlights Business Review Financial Performance Capex Plan Summary 3
Slide 4: Highlights – Quarter 1
Highlights – Quarter 1 Business Environment The overall environment for our key businesses continue to be challenging Indian Economy registered low growth of 4.6% in Q4 FY 13-14 Early signs of recovery with IIP for April – May’ 14 showing growth of 4% against degrowth (0.5%) in Q4 FY13-14 Ce
Slide 5: Highlights – Quarter 1: Strategic Action / Projects
Highlights – Quarter 1 Strategic Action / Projects: VSF Greenfield project at Vilayat 2 lines (capacity 77k TPA) successfully commissioned Trial run for remaining two lines to start in next 3 months Acquisition of the Gujarat units of Jaypee Cement completed; merged with UltraTech w.e.f. 12t
Slide 6: Business Review
Business Review VSF Chemical Cement Subsidiary 6
Slide 7: Viscose Staple Fibre : Highlights
Viscose Staple Fibre : Highlights Quarter 1 % Global Industry Scenario Quarter 4 Change 2013-14 2014-15 2013-14 (YoY) Overcapacity in China continue to affect business 377,775 Capacity - Annual (MT) 377,775 377,775 -- environment 94,444 Capacity - Quarter (MT) 94,444 92,185* 2 Surplus DG pulp ca
Slide 8: Viscose Staple Fibre : Highlights (Contd….)
Viscose Staple Fibre : Highlights (Contd….) Quarter 1 % Performance impacted by higher input price, Quarter 4 Change 2013-14 2014-15 2013-14 (YoY) mainly pulp and caustic, on YoY basis Standalone Business: Cost maintained sequentially 128 PBIDT (` Cr.) 81 187 (57) 10.0% PBIDT Margin (%) 7.3% 18.
Slide 9: Viscose Staple Fibre : Outlook
Viscose Staple Fibre : Outlook Realisations expected to remain range bound in near term Change in Chinese cotton pricing policy likely to further impact cotton prices The present high growth rate may not be sustainable with slowdown in China/ change in cotton policy New capacity additions to
Slide 10: Chemical : Highlights
Chemical : Highlights Quarter 1 Industry Scenario Quarter 4 % Change Caustic demand records growth of ~5% 2013-14 (YoY) 2014-15 2013-14 Caustic prices remained firm though chlorine 452,500 Capacity - Annual (MT) 452,500 440,500 3 prices have declined 102,630* Capacity - Quarter (MT) 113,125 71,7
Slide 11: Cement : Highlights
Cement : Highlights Quarter 4 Quarter 1% Industry Scenario Change 2013-14 2014-15 2013-14 (YoY) Sector witnessed improved cement demand Grey Cement (Mn. MT) Industry growth estimated at ~5%-6% led by 46.10 Clinker capacity - Annual 49.70 41.80 19 increase in construction activities and delayed 5
Slide 12: Cement : Financials
Cement : Financials Quarter 1 Prices remained under pressure Quarter 4 % Change Marginal recovery on sequential basis 2013-14 2014-15 2013-14 (YoY) Variable cost of production up by 3% 6,316 Net Revenue (` Cr.) 6,032 5,296 14 Increase in petcoke cost by ~18% impacted overall 1,389 PBIDT (` C
Slide 13: Cement : Outlook
Cement : Outlook Renewed focus on infrastructure and initiatives as announced in Union Budget to accelerate demand growth Cement demand likely to grow 7-8% with expected double digit growth in H2FY15 However, indirect entry barriers may restrict future capacity additions Land acquisition, hi
Slide 14: Financial Performance
ADITYA BIRLA GRASIM Financial Performance 14
Slide 15: Consolidated Revenue
Consolidated Revenue 16% (14) 736 189 195 7,000 6,032 6,000 5,296 5,000 4,000 8044 ` Crore 3,000 6938 2,000 1,559 1,364 1,000 224 413 54 40 - VSF & E Pulp JVs Chemical Cement Others Q1FY14 Q1FY15 Q1 VSF & JVs Chemical Cement Inter Co. Q1 FY2013-14 Eliminations & FY 2014-15 Others 6,938 195 189 736 (
Slide 16: Financial Performance – Consolidated
Financial Performance – Consolidated (` Crore) Quarter 1 % Change Quarter 4 2014-15 2013-14 YoY 2013-14 Revenue 8,044 6,938 16 8,419 Operating Costs 6,826 5,622 21 6,892 PBIDT 1,488 1,549 (4) 1,655 Finance cost 126 95 33 108 Depreciation 358 344 4 389 PBT 1,004 1,110 (10) 1,158 Tax Expenses 304 259
Slide 17: Consolidated PBIDT
Consolidated PBIDT (95) 28 41 (35) 1,400 1,296 1,268 1,200 1,000 800 ` Crore 1549 600 1488 400 161 200 91 66 50 70 35 - VSF & Pulp JVs Chemical Cement Others Q1FY14 Q1FY15 Qtr. 1 VSF & JVs Chemical Cement Others incl. Qtr. 1 2013-14 Inter Co. 2014-15 Eliminations 1,549 (95) 41 28 (35) 1,488 17
Slide 18: Net Profit
Net Profit (` Crore) Quarter 4 Quarter 1 2013-14 2014-15 2013-14 % Grasim's Grasim's Grasim's Change Total Co. Total Co. share share share 130 Standalone PAT 106 226 (53) 521 UltraTech Cement 627 378 666 402 (6) 7 Grasim Bhiwani Textiles 3 3 2 2 (3) Fibre and Pulp JVs (139) (54) (117) (44) 31 Idea C
Slide 19: Balance Sheet : Grasim
Balance Sheet : Grasim Standalone Consolidated (` Crore) As on As on As on As on th st EQUITY & LIABILITIES th st 30 June'14 31 Mar'14 30 June'14 31 Mar'14 Shareholders' Funds 10,930 10,828 Net Worth 22,193 21,614 - - Minority Interest 7,201 6,936 Non Current Liabilities 1,007 1,004 Long Term Borrow
Slide 20: Strong Financials
Strong Financials Standalone Consolidated Q1 Full Year Q1 Full Year (` Crore) 2014-15 2013-14 2014-15 2013-14 Net Worth 10,930 10,828 22,193 21,614 Debt 1,192 1,302 12,093 9,681 Net Debt (+) over liquid funds (-) (105) (56) 6,167 3,442 Capital Employed 12,611 12,592 44,206 41,035 Debt:Equity (x) 0.1
Slide 21: Capex
ADITYA BIRLA GRASIM Capex
Slide 22: Capex plan
Capex plan (` Crore) Capex Work in Cash Outflow Capex under Progress Net FY15 FY16 spent Implemen as on Capex onward during -tation $ 01-04-14 Q1 Standalone VSF Expansion : Vilayat (120K TPA) 2,086 Chemical : Vilayat 100 Nagda Revamp 272 Normal Capex : VSF 360 : Chemical & Others 222 Standalone Cape
Slide 23: Summary
ADITYA BIRLA GRASIM Summary 23
Slide 24: Summary
Summary VSF business performance impacted due to subdued global pricing scenario The environment continues to remain challenging VSF expansion at Vilayat partially commissioned leading to higher volumes Specialty fibre to improve product mix and realisations Cement business records improve
Slide 25: Organizational Structure
Organizational Structure Pulp, Fibre & Allied Chemical UltraTech Cement * Others (60.26%) VSF Overseas VSF Pulp Domestic Overseas 377K TPA JV 70 K TPA Pulp JVs Chemicals 3 Mn. TPA, (UAE, Bangladesh, Sri Lanka) Grasim Nagda Birla Jingwei $ AV Cell $ Grey Cement Bhiwani Caustic Textiles * 162K TPA 72K
Slide 26: Plant Locations– Grasim & its subsidiaries
Plant Locations– Grasim & its subsidiaries Bathinda(G) Panipat Bhiwani Dadri T Kotputli Aligarh Jodhpur P T Malanpur Shambhupura Jawad P Katni Sewagram Bharuch Durgapur(G) UltraTech Cement Plants Wanakbori F Jafrabad F Vilayat UltraTech Grinding Units (G) F C Pipavav Nagda Hirmi Raipur Magdalla (G)
Slide 27: Thank You
Thank You Contacts: Grasim Industries Limited (Corporate Finance Division) Aditya Birla Centre, S.K. Ahire Marg, Worli, Mumbai - 400 030 CIN: L17124MP1947PLC000410 Sharad Agarwal +91-22-66525062 grasim.ir@adityabirla.com Shirin Sancheti +91-22-66525097 grasim.ir@adityabirla.com 27
Slide 28: Annexure
Grasim Industries Limited Annexure 28
Slide 29: Annexure
Annexure Consolidated Financial Performance Standalone Financial Performance Consolidated and Standalone Profitability Revenue & PBIDT Chart VSF Summary Chemical Summary Cement Summary 29
Slide 30: Consolidated Financial Performance
Consolidated Financial Performance (` Crore) Quarter - 1 % Full Year 2014-15 2013-14 Change 2013-14 Net Sales & Op. Income 8,044.3 6,938.0 16 29,324.0 Other Income 269.8 233.4 16 576.6 PBIDT 1,487.8 1,549.2 (4) 5,491.0 PBIDT Margin (%) 17.9% 21.6% 18.4% Finance Cost 126.5 94.9 33 447.3 Depreciation
Slide 31: Standalone Financial Performance
Standalone Financial Performance (` Crore) Quarter 1 Full Year % Change 2014-15 2013-14 2013-14 Net Sales & Op. Income 1,438.8 1,163.1 24 5,603.5 Other Income 55.1 81.6 (32) 384.8 PBIDT 196.0 298.3 (34) 1,246.1 PBIDT Margin (%) 13.1% 24.0% 20.8% Finance Cost 5.6 7.8 (28) 41.5 Depreciation 52.9 48.4
Slide 32: Profitability Snapshot
Profitability Snapshot Standalone Consolidated (` Crore) FY FY FY Q1 FY FY FY Q1 2011-12 2012-13 2013-14 2014-15 2011-12 2012-13 2013-14 2014-15 Net Turnover & Op. Income 4,974 5,255 5,604 1,439 25,244 27,909 29,324 8,044 PBIDT 1,722 1,523 1,246 196 6,321 6,543 5,491 1,488 PBIDT Margin (%) 31.7 26.8
Slide 33: Revenue Chart
Revenue Chart (` Crore) Quarter 1 % Quarter 4 Net Revenue 2014-15 2013-14 Change 2013-14 Viscose Staple Fibre 1,094 980 12 1,274 Chemical 413 224 84 337 Others 26 23 22 Eliminations (Inter Segment) (95) (64) (84) Standalone Net Revenue 1,439 1,163 24 1,549 Subsidiaries Cement 6,032 5,296 14 6,316 Te
Slide 34: PBIDT – Chart
PBIDT – Chart (` Crore) PBIDT Quarter 1 % Quarter 4 2014-15 2013-14 Change 2013-14 Viscose Staple Fibre 81 187 (57) 128 Chemical 91 50 81 55 Others 24 61 (61) 38 Standalone PBIDT 196 298 (34) 222 Subsidiaries Cement 1,296 1,268 2 1,389 Textiles 8 6 32 12 Pulp JVs and Fibre JVs (Pro Rata) (28) (24) 3
Slide 35: Viscose Staple Fibre : Summary
Viscose Staple Fibre : Summary Quarter 1 % Full Year 2014-15 2013-14 Change 2013-14 Capacity TPA 94,444 92,185* 2 3,75,517 Production MT 89,827 87,692 2 3,61,012 Sales Volumes MT 86,389 77,518 11 3,66,978 Net Revenue ` Cr. 1,094 980 12 4,714 PBIDT ` Cr. 81 187 (57) 724 PBIDT Margin % 7.3% 18.8% -- 1
Slide 36: Chemical : Summary
Chemical : Summary Quarter 1 Full Year % Change 2014-15 2013-14 2013-14 Capacity* TPA 1,13,125 71,750 58 3,51,790 Production MT 1,00,163 71,035 41 3,13,479 Sales Volumes MT 96,093 72,028 33 3,14,488 Net Revenue ` Cr. 413 224 84 1,075 PBIDT ` Cr. 91 50 81 225 PBIDT Margin % 22.0% 22.4% -- 20.9% PBIT
Slide 37: Cement : Summary
Cement : Summary Quarter 1 % Full Year 2014-15 2013-14 Change 2013-14 Grey Cement Capacity Mn. TPA 15.43 13.48 14 54.76 Production Mn. MT 12.04 10.67 13 43.60 Cement Sales Volumes $ Mn. MT 12.17 10.79 13 44.06 Clinker Sales Volumes Mn. MT 0.25 0.09 0.60 White Cement & Putty Sales Volumes $$ Lac MT 2
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