Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q3 FY23 Earnings Presentation
41 slides from Grasim Industries's earnings presentation, Feb 14, 2023
Slide 1: Exchange filing cover letter
Ref No. GIL/CFD/SEC/23/166/SE 14th February 2023 BSE Limited The National Stock Exchange of India Limited Dalal Street, Exchange Plaza, 5th Floor, Plot No. C/1, Phiroze Jeejeebhoy Towers, Fort G Block, Bandra - Kurla Complex, Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Scrip Code: 500300 Symbol
Slide 2: Grasim Industries Limited Q3FY23 Earnings Presentation
GRASIM INDUSTRIES LIMITED Q3FY23 EARNINGS PRESENTATION FEBRUARY 2023
Slide 3: Stronglomerate - Big In Your Life
STRONGLOMERATE - BIG IN YOUR LIFE STANDALONE BUSINESSES SUBSIDIARIES 57.27% 54.17% 100% ❖ Market leader in VISCOSE STAPLE FIBRE and VISCOSE # 1 Viscose FILAMENT YARN ❖ Focus on Innovation through SPECIALITY FIBRES ❖ Largest Pan-India player in CHLOR-ALKALI # 1 Chlor-Alkali ❖ One of the most SUSTAINA
Slide 4: Value Creation Strategy
VALUE CREATION STRATEGY PILLARS OF OUR STRATEGY LEADERSHIP ACROSS CAPITAL COST INNOVATION SUSTAINABILITY BUSINESSES ALLOCATION LEADERSHIP Attain Focus Conserve Investment in Continuous Leadership Premiumisation Environment Core and High Growth Cost Optimisation position in all our through innovation
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS Grasim Industries Limited | Earnings Presentation | Q3 FY23 |
Slide 6: Performance Highlights Q3FY23
PERFORMANCE HIGHLIGHTS Q3FY23 Consolidated Revenue up 17% YoY to ₹28,638 Cr.; EBITDA at ₹3,834 Cr. (down 7% YoY) • EBITDA down due to cost pressures in Standalone businesses and UltraTech Cement Standalone Revenue up 7% YoY to ₹6,196 Cr. and EBITDA stood at ₹580 Cr. (down 40% YoY) • EBITDA largely i
Slide 7: Consolidated Performance Highlights
CONSOLIDATED PERFORMANCE HIGHLIGHTS Q3FY23 Revenue (₹ Cr.) EBITDA^ (₹ Cr.) PAT^1* (₹ Cr.) 1,746 27,486 28,638 4,107 3,783 3,834 24,402 1,097 1,024 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 9MFY23 Revenue (₹ Cr.) EBITDA^ (₹ Cr.) PAT^1* (₹ Cr.) 26% 95,701 17,772 (2%) 7,481 (15%) 8
Slide 8: Standalone Performance Highlights
STANDALONE PERFORMANCE HIGHLIGHTS Q3FY23 Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT1 (₹ Cr.) 6,745 1,052 6,196 1,712 5,785 628* 628* 963 522 580 257 1,084 424 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 9MFY23 Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT1 (₹ Cr.) 12% 20,857 39% 4,111 3,120 20,194 3
Slide 9: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS ESG Rating upgradation by MSCI: MSCI has upgraded ESG rating of Grasim to ‘BBB’ from ‘BB’. MSCI ESG ratings measure company’s management of ESG risks and opportunities, assessing various data points covering 35 key issues across E, S and G, weighted according to impact and
Slide 10: Capex Plan
CAPEX PLAN Budgeted Capex Capex Spent Capex Spent Particulars (₹ Cr.) for FY23 for Q3FY23 till 9MFY23 Viscose Business Capacity Expansion (including debottlenecking) 691 152 318 Modernisation and Maintenance Capex 1,089 70 325 Chemicals Business Capacity Expansion - Chlor-Alkali & Chlorine Derivativ
Slide 11: Strong Balance Sheet
STRONG BALANCE SHEET Standalone (₹ Cr.) Consolidated (₹ Cr.) Net Debt/ 0.44 (0.13) 0.10 Net Debt/ 0.55 0.24 0.62 EBITDA EBITDA 5,575 25,879 4,163 4,304 19,111 15,727 4,857 5,090 17,249 8,500 3,249 11,427 8,630 10,611 914 485 4,300 (553) FY21 FY22 Dec'22 FY21 FY22 Dec'22 Debt Liquid Investments Net D
Slide 12: Viscose
VISCOSE Grasim Industries Limited | Earnings Presentation | Q3 FY23 |
Slide 13: Inter Fibre Dynamics
INTER FIBRE DYNAMICS GLOBAL INDIA Synthetic Cotton Viscose Synthetic Cotton Viscose 2% CAGR 10% CAGR 0.3% CAGR 1% CAGR 3% CAGR 4% CAGR CY15 CY22 CY15 CY22 Viscose demand in India is increasing at a faster pace led by intensive business development initiatives and support to textile value chain und
Slide 14: Macro Trends - Viscose
MACRO TRENDS - VISCOSE China Operating Rate (in Percentage) China Inventory (in Days) 2YR Average (73) 2YR Average (23) 26 27 81 76 66 66 66 22 19 18 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Global Prices Trend ($/Kg) Price YoY QoQ Dec Exit Price 4.10 Movement (%) (%) (D
Slide 15: Key Operational Metrics
KEY OPERATIONAL METRICS VSF Sales (KT) Sales Volume Mix (VSF) 22% Export Sales Standard Fibre 518 423 12% 80% 170 157 153 Q3FY23 Q3FY23 88% 20% Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 Domestic Sales Speciality Fibre VFY Sales (KT) 3% Share of speciality fibre sequentially increased 2 ppts to 20% in Q3FY2
Slide 16: Operating Performance - Viscose
OPERATING PERFORMANCE – VISCOSE Revenue (₹ Cr.) EBITDA (₹ Cr.) 35% (40%) 11,385 1,470 8,443 3,903 887 3,335 3,182 401 324 63 Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 Viscose business revenue stood at ₹3,182 Cr. and EBITDA at ₹63 Cr. in Q3FY23 VSF EBITDA margins are under
Slide 17: Chemicals
CHEMICALS Grasim Industries Limited | Earnings Presentation | Q3 FY23 |
Slide 18: Growth Across Chemicals Portfolio
GROWTH ACROSS CHEMICALS PORTFOLIO CHLOR-ALKALI Capacity Expansion (KTPA) Q2FY24 Q4FY26 Q2FY24 • Largest Caustic Soda producer in India. Market growing 1,530 1,164 246 at a steady pace with demand from Alumina, Organic & 219 Inorganic Chemicals, Textiles & FMCG industries 17% 273 31% 100% 123 • Maint
Slide 19: Focus On Speciality Chemicals
FOCUS ON SPECIALITY CHEMICALS Major End - use Applications Chlorine Integration Levels (%) SPECIALITY CHEMICALS* Integration includes chlorine consumption for HCL and pipeline sales for dedicated customers 60% CONSTRUCTION 58% 57% 57% RENEWABLES FY20 FY21 FY22 9MFY23 WATER TREATMENT Specialty Chemic
Slide 20: Key Operational Metrics - Chemicals
KEY OPERATIONAL METRICS - CHEMICALS CFR SEA Caustic Soda Prices ($/Ton) Grasim – ECU (₹/Ton) 41% 56% 724 694 707 49,503 49,885 657 46,689 42,381 502 32,058 Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 Caustic Soda Sales (KT) Revenue Break-up of Chemicals Business (%) 11% 16%
Slide 21: Financial Performance - Chemicals
FINANCIAL PERFORMANCE – CHEMICALS Revenue (₹ Cr.) EBITDA (₹ Cr.) 49% 84% 8,024 1,903 5,401 2,708 1,035 2,582 2,338 609 528 488 Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 Revenue for Q3FY23 up by 10% YoY led by volume growth and better ECU realisation • Sequentially, revenu
Slide 22: New High Growth Businesses
NEW HIGH GROWTH BUSINESSES (Paints & B2B E-commerce) Grasim Industries Limited | Earnings Presentation | Q3 FY23 |
Slide 23: Decorative Paints Industry
DECORATIVE PAINTS INDUSTRY Organised Decorative Paints Industry - FY22 Market Share Estimates (%) Key Drivers Indian Decorative Organised Paint market estimated at ₹40-45,000 Cr. HOUSING DEMAND and expected to grow at 8-10% CAGR 25-28% URBANISATION CHANGING ASPIRATIONS 72-75% Organised Unorganised P
Slide 24: Paints: Project Progress Update
PAINTS: PROJECT PROGRESS UPDATE Statutory approvals received and construction in progress at all six sites State of the art R&D facility working on developing innovative products for unique customer experiences Pan India go-to-market strategy developed, to achieve widest reach across various point o
Slide 25: B2B E-Commerce: Business Model
B2B E-COMMERCE: BUSINESS MODEL Value Proposition Product Categories COMPETITIVE PRICING CEMENT & STEEL SANITARYWARE, TILES, PIPES & ASSURED QUALITY FITTINGS GURANTEED DELIVERY PAINTS FINANCING SOLUTIONS DOORS, WINDOWS & KITCHEN Industry is estimated at ~$100 bn with current digital penetration of
Slide 26: B2B E-Commerce: Project Progress Update
B2B E-COMMERCE: PROJECT PROGRESS UPDATE A clear strategy of market entry and target customers has been developed based on multiple customer and supplier interviews Most of the Senior Leadership team have joined. Hiring for next level is in process Brand identity creation in the process of finalisati
Slide 27: Other Businesses
OTHER BUSINESSES (Textiles and Insulators) Grasim Industries Limited | Earnings Presentation | Q3 FY23 |
Slide 28: Financial Performance - Textiles & Insulators
FINANCIAL PERFORMANCE – Textiles & Insulators TEXTILES Revenue (₹ Cr.) EBITDA (₹ Cr.) 46% 1,773 96% 217 1,213 584 569 71 110 479 51 49 Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 Linen Brand • Very high brand equity value for Linen Fabric & Fabric • Largest market share in
Slide 29: Subsidiaries
SUBSIDIARIES Grasim Industries Limited | Earnings Presentation | Q3 FY23 |
Slide 30: Financial Performance - UltraTech
FINANCIAL PERFORMANCE - UltraTech Sales volume (Million Ton) Revenue (₹ Cr.) EBITDA (₹ Cr.) (1%) 12% 20% 15,521 2,490 2,462 25.86 23.13 12,985 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Commissioned cement capacity of 5.5 MTPA in Q3FY23, taking India capacity to 121.35 MTPA and global capacity to 126
Slide 31: Financial Performance - Aditya Birla Capital
FINANCIAL PERFORMANCE - Aditya Birla Capital Total Lending Book (₹ Cr.)* Revenue (₹ Cr.) PAT (₹ Cr.) 40% 25% 25% 530 85,869 6,894 416 5,535 61,411 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Strong quarterly performance with accelerated growth momentum across businesses NBFC loan book grew 40% YoY to
Slide 32: Financial Performance - Aditya Birla Renewables
FINANCIAL PERFORMANCE – Aditya Birla Renewables Aditya Birla Renewables Renewable Power Capacity (MWp) ₹ Cr. 132% Particulars Q3FY22 Q2FY23 Q3FY23 1,997 Revenue 56 55 70 EBITDA 43 37 50 860 551 650 EBIT 28 21 30 Capital Employed (Incl. 1,989 2,913 3,389 FY22 Q3FY23 FY23E FY24E CWIP) EBITDA increased
Slide 33: Appendix
APPENDIX Grasim Industries Limited | Earnings Presentation | Q3 FY23 |
Slide 34: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (₹ Cr.) Q3FY23 Q3FY22 9MFY23 9MFY22 Revenue from Operations 28,638 24,402 84,165 66,890 Other Income 217 122 637 641 EBITDA 3,834 4,107 12,850 13,126 EBITDA Margin (%) 13% 17% 15% 19% Finance Cost 340 260 982 982 Depreciation 1,139 1,026 3,344 3,033 Share in
Slide 35: Standalone Income Statement
STANDALONE INCOME STATEMENT Particulars (₹ Cr.) Q3FY23 Q3FY22 9MFY23 9MFY22 Revenue from Operations 6,196 5,785 20,194 14,480 Other Income 103 41 902 808 EBITDA 580 963 3,656 3,271 EBITDA Margin (%) 9% 17% 17% 21% Finance Cost 89 53 261 167 Depreciation 276 222 797 631 PBT 215 688 2,598 2,474 Tax Ex
Slide 36: Balance Sheet
BALANCE SHEET Standalone (₹ Cr.) Consolidated (₹ Cr.) 31st Dec'22 31st March'22 EQUITY & LIABILITIES 31st Dec'22 31st March'22 (Unaudited) (Audited) (Unaudited) (Audited) 48,624 48,616 Net Worth 79,091 75,698 - - Non Controlling Interest 43,149 40,476 - - Borrowings related to financial services 75,
Slide 37: Viscose Business Summary
VISCOSE BUSINESS SUMMARY % Change % Change Particulars Q3FY23 Q3FY22 Q2FY23 YoY QoQ Capacity VSF KTPA 824 591 39 824 - VFY KTPA 50 48 4 50 - Production VSF KT 147 167 -12 191 -23 VFY KT 12 11 3 12 -2 Sales Volume VSF KT 153 157 -3 170 -10 VFY KT 10 13 -17 12 -11 Revenue ₹ Cr. 3,182 3,335 -5 3,903 -1
Slide 38: Chemicals Business Summary
CHEMICALS BUSINESS SUMMARY % Change % Change Particulars Q3FY23 Q3FY22 Q2FY23 YoY QoQ Capacity* KTPA 1,311 1,147 14 1,311 - Production* KT 289 284 2 287 0.9 Sales Volume* KT 284 279 2 296 -4 Revenue ₹ Cr. 2,582 2,338 10 2,708 -5 EBITDA ₹ Cr. 488 528 -8 609 -20 EBIT ₹ Cr. 396 452 -12 519 -24 Capital
Slide 39: Grasim Group Structure
GRASIM GROUP STRUCTURE Grasim Industries Limited Chemicals Overseas UltraTech Cement Aditya Birla Capital Viscose Textiles (1,311K TPA) Pulp & VSF JVs (57.27%)** (54.17%)** VSF Vilayat Jayshree Textile AV Group NB Inc. Grey Cement India NBFC Broking (824K TPA) 365K TPA (Canada) Operations (100%)** (
Slide 40: Forward Looking And Cautionary Statement
FORWARD LOOKING AND CAUTIONARY STATEMENT Certain statements in this report may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to t
Slide 41: Thank You
THANK YOU Investor Relations Team grasim.ir@adityabirla.com +91 22 2499 5657 Grasim Industries Limited | Earnings Presentation | Q3 FY23 |