Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q4 FY2018 Earnings Presentation
35 slides from Grasim Industries's earnings presentation, May 23, 2018
Slide 1: India's New Growth Story: Q4 FY18 Performance Review
Grasim Industries Limited India’s New Growth Story Q4 FY18 Performance Review 23rd May, 2018
Slide 2: Our Leadership Businesses
Our Leadership Businesses Viscose Chemicals No. 1 No. 1 VSF producer in India Caustic Soda producer in India Pulp & Fibre UltraTech Aditya Birla Idea JVs Cement Capital Cellular No. 4 No. 1 amongst Top 5 Global Cement producer in Private Diversified amongst Top 3 India NBFCs DG pulp wireless operato
Slide 3: Notable milestones for FY18
Notable milestones for FY18 Chemicals Acquisition Merger brownfield of rights of ABNL with expansion to operate and manage Grasim At Vilayat nearing VFY business of completion Century Textiles Listing Cement #3 of Financial services Mutual Fund Acquisition of business - Aditya Birla in India Jaypee
Slide 4: Notable milestones for FY18
Notable milestones for FY18 Standalone Standalone Standalone Net Revenue EBITDA PAT* over over around Rs. 15,000 Cr Rs. 3,500 Cr Rs. 2,000 Cr Consolidated Consolidated Consolidated Net Revenue EBITDA PAT* over around around Rs. 55,000 Cr Rs. 11,000 Cr Rs. 3,000 Cr * Excluding exceptional items 4
Slide 5: Contents
CONTENTS Content Financial Business Highlights Performance Performance Glossary ABCL: Aditya Birla Capital Ltd., ABNL: Aditya Birla Nuvo Ltd., FCF: Free Cash Flow, NBFC: Non Banking Finance Company, VSF: Viscose Staple Fiber, VFY: Viscose Filament Yarn, MT : Metric Ton, K: One Thousand, TPA : Tons P
Slide 6: Key Highlights Q4FY18
Key Highlights Q4FY18 ► Outstanding Standalone performance: Net Revenue up 60% and EBITDA up 70% ► Standalone Revenue and EBITDA are up 26% and 35% on YoY basis excluding ABNL ₋ Cash profit for the quarter (excluding exceptional items) at Rs.711 Cr. is up by 74% ₋ Viscose Business record Revenue gro
Slide 7: Results Snapshot Q4FY18
Results Snapshot Q4FY18 Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT* (Rs. Cr.) Standalone performance 60% 70% 67% Consolidated performance 74% 38% 18% * PAT before exceptional items 7
Slide 8: Financial Performance
Content Financial Business Highlights Performance Performance 8
Slide 9: Income statement Q4 FY18
Income statement Q4 FY18 Standalone % Consolidated % Particulars (Rs. Cr.) Q4FY18 Q4FY17 Change Q4FY18 Q4FY17 Change Revenue from Operations 4,606 2,876 60 17,438 9,995 74 Other Income 102 30 235 254 269 -6 EBITDA 947 556 70 2,961 2,142 38 EBITDA Margin (%) 20% 19% - 17% 21% - Finance Cost 49 8 487
Slide 10: Income statement FY18
Income statement FY18 Standalone % Consolidated % Particulars (Rs. Cr.) FY18 FY17 Change FY18 FY17 Change Revenue from Operations 15,788 10,346 53 56,198 36,068 56 Other Income 461 474 -3 990 948 4 EBITDA 3,542 2,629 35 10,881 8,333 31 EBITDA Margin (%) 21.8% 24.3% - 19.0% 22.5% - Finance Cost 128 5
Slide 11: Strong Balance Sheet and Financial Ratios
Strong Balance Sheet and Financial Ratios Consolidated Financial Ratios Consolidated Debt / Surplus ( Rs. Cr.) 22402 31 March 31 March 11651 2017 2018 9213 14165 Net Worth (Rs. Cr.) 31,387 57,362 8237 2438 Debt:Equity 0.22 0.27 Mar-17 Mar-18 Standalone Debt / Surplus ( Rs. Cr.) Net Debt: Equity - 0.
Slide 12: Capex Plan
Capex Plan Capex Cash Outflow Capex spent (Net of CWIP Particulars (Rs. Cr.) FY20 as on FY19 YTD Mar'18 1/4/2018) Onwards VSF: Brownfield Expansion (including debottlenecking) 4,257 Normal Capex (Water supply augmentation & usage 780 reduction, R&D, Environment and Others) Chemical: Brownfield Expan
Slide 13: Our Top Priorities
Our Top Priorities Cost Focus Maintain and Leadership Asset Position Sweating Growing Robust Risk Consumer and Facing Governance and High Framework Growth Businesses 13
Slide 14: Business Performance
Content Financial Business Highlights Performance Performance 14
Slide 15: VSF and Chemicals Performance in FY18
VSF and Chemicals Performance in FY18 Sales volume (KTPA) Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) Viscose 2% 18% 17% * Chemicals 12% 31% 54% * Sales Volume does not include VFY volume Q4FY18: 9KT; Q4FY17:Nil as ABNL merged with Grasim w.e.f. 1st July 2017 15
Slide 16: Viscose Industry
Viscose Industry Global Prices Trend ($/Kg) 2.30 2.10 1.90 1.70 1.50 1.30 1.10 Industry Data 0.90 0.70 Grey VSF (China Export Price in $/kg) Cotton Price in $/kg (Cotlook) PSF (China Export Price in $/kg) 0.50 Mar-15 Jul-15 Nov-15 Mar-16 Jul-16 Nov-16 Mar-17 Jul-17 Nov-17 Mar-18 ► India demand growt
Slide 17: Business Performance (Q4FY18): Viscose
Business Performance(Q4FY18): Viscose Sales volume (KTPA)* Net Revenue EBITDA -7% 15% 16% ► Q4FY18 production and sales volume were impacted due to delay in regulatory approvals for enhanced capacity post debottlenecking. Approvals received in Q1FY19 VSF reported record production and sales volume
Slide 18: LIVA driving domestic growth
LIVA driving domestic growth Pioneering ingredient branding in global textile industry by Grasim - LIVA Top brands covered (Nos.) Domestic Sales Volume LIVA Tagging (Mn.) (MT) 22% LIVA presence in outlets (Nos.) ► Continued focus on expanding usage and53.42% application of VSF in domestic textile ma
Slide 19: Chemicals Industry
Chemicals Industry Caustic Soda Prices ($)/Ton 700 681 650 635 Industry Data; India landed Prices 600 550 540 500 500 450 Jun-17 Sep-17 Dec'17 Mar'18 ► Caustic prices consolidated during the quarter with capacity restarts in China ► Demand from major consuming segment like alumina and Viscose expect
Slide 20: Business Performance (Q4FY18): Chemicals
Business Performance(Q4FY18): Chemicals Sales volume* (KTPA) Net Revenues# EBITDA# 11% 35% 95% ► Caustic Soda production and sales volume are up 12% and 11% YoY Chlorine consumption in VAPs (%) ► Grasim’s capacity utilization @93% (Q4FY18) higher than the industry** 29% 26% ► EBITDA up by 95% YoY, s
Slide 21: Business Performance (Q4FY18): Pulp and Fibre JVs
Business Performance(Q4FY18): Pulp and Fibre JVs Production (ADMT) EBITDA (Rs. In Cr) 5% 8x ► Pioneering Forest to Fashion through strategic investments in pulp Net Profit (Rs. in Cr) manufacturing facilities High backward integration, encompassing over ~50% of our requirement FY18 Making availa
Slide 22: Business Performance (Q4FY18): UltraTech
Business Performance(Q4FY18): UltraTech Sales volume (MTPA) Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 29% 34% 20% ► Q4FY18 sales volume up 29% YoY, Revenue up 34% YoY, EBITDA up 20% YoY to Rs.1,887 Cr ► Logistics cost per ton up by 6% due to change in sales pattern form ex-works to FOR and increase in dies
Slide 23: Business Performance (Q4FY18): ABCL
Business Performance(Q4FY18): ABCL Lending Book(Rs. Cr.)* AUM(Rs. Cr.)** 32% 24% ► Revenue and EBT as per IGAAP for Q4FY18 are at Rs. 4,203 Cr. and Rs. 398 Cr ► NBFC lending book grew 25% YoY to Rs.43,242 Cr. and Housing Finance book grew by 2x YoY to Rs.8,137 Cr in Q4FY18 ► Asset Management busines
Slide 24: Business Performance (Q4FY18): Other Businesses
Business Performance(Q4FY18)- Other Businesses Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 55 Demand conditions remain firm. Fertilizers 611 Textile Improvement in demand condition, 399 35 pricing pressure continues Insulator Industry remained flat but the share of 149 15 porcelain insulator dropped 24
Slide 25: Thank You
THANK YOU 25
Slide 26: Consolidated Financial Performance
Consolidated Financial Performance Quarter 4 % YTD Mar'18 % Particulars 2017-18 2016-17 Change 2017-18 2016-17 Change Net Sales & Op. Income 17,438 9,995 74 56,198 36,068 56 Other Income 254 269 -6 990 948 4 EBITDA 2,961 2,142 38 10,881 8,333 31 EBITDA Margin (%) 16.7% 20.9% - 19.0% 22.5% - Finance
Slide 27: Standalone Financial Performance
Standalone Financial Performance Quarter 4 % YTD Mar'18 % Particulars 2017-18 2016-17 Change 2017-18 2016-17 Change Net Sales & Op. Income 4,606 2,876 60 15,788 10,346 53 Other Income 102 30 235 461 474 -3 EBITDA 947 556 70 3,542 2,629 35 EBITDA Margin (%) 20% 19% - 22% 24% - Finance Cost 49 8 487 1
Slide 28: Balance Sheet
Balance Sheet Standalone Consolidated 31st Mar'18 31st Mar'17 EQUITY & LIABILITIES 31st Mar'18 31st Mar'17 44,790 16,231 Net Worth 57,362 31,387 - - Non Controlling Interest 26,337 9,702 - - Borrowings related to financial services 44,667 - 2,969 701 Other Borrowings 22,402 9,213 1,835 663 Deferred
Slide 29: Viscose Business Summary
Viscose Business Summary Quarter 4 % YTD Mar'18 % Particulars 2017-18 2016-17 Change 2017-18 2016-17 Change Capacity VSF KTPA 498 498 - 498 498 - VFY KTPA 46 - 46 - Production VSF KT 113 120 -6 499 493 1 VFY KT 9 - 19 - Sales Volume VSF KT 124 133 -7 508 500 2 VFY KT 9 - 19 - Net Revenue Rs. Cr. 2,2
Slide 30: Chemical Business Summary
Chemical Business Summary Quarter 4 % YTD Mar'18 % Particulars 2017-18 2016-17 Change 2017-18 2016-17 Change Capacity* KTPA 938 840 12 938 840 12 Production* KT 220 197 12 886 780 14 Sales Volume* KT 215 194 11 879 785 12 Net Revenue Rs. Cr. 1,439 1,068 35 5,004 3,813 31 EBITDA Rs. Cr. 412 211 95 1,
Slide 31: Cement Business Summary
Cement Business Summary Quarter 4 % YTD Mar'18 % Particulars 2017-18 2016-17 Change 2017-18 2016-17 Change Capacity* Mn. TPA 89 70 27 89 70 27 Production Mn. MT 18 14 25 61 51 19 Sales Volume Mn. MT 19 15 29 65 54 20 Net Revenue Rs. Cr. 9,421 7,020 34 31,411 25,375 24 EBITDA Rs. Cr. 1,887 1,577 20 6
Slide 32: Business Performance (Q4FY18): Telecom
Business Performance (Q4FY18)- Telecom VLR Subscriber Data Volume (Mn MB) Revenues (Rs. Cr.) 5% 6.4x ► Idea witnessed strong subscriber additions of 12.2Mn (Net customer adds) on VLR in H2FY18 to 207.7Mn (Q4FY18) ► The voice usage per subscriber has improved to 577 minutes in Q4FY18 from 412 minutes
Slide 33: Grasim: Group Structure
Grasim: Group Structure VSF - 498K TPA Chemical UTCL (60.21%)* ABCL (56.0)* JV’s & Overseas VFY - 46K TPA Caustic Others Subsidiary Subsidiary Associates Pulp - 70K TPA Pulp & VSF JVs 938K TPA Domestic NBFC Broking Idea Cellular Nagda Nagda Fertilizers AV Group NB (100%)* (75%)* (23.13%)* 162K TPA 2
Slide 34: Forward Looking & Cautionary Statement
Forward Looking & 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 the
Slide 35: Grasim Industries Limited: Quarterly Performance Review
Grasim Industries Limited Quarterly Performance Review Q4 FY18, 23th May 2018 35