Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q2 FY20 Earnings Presentation
37 slides from Grasim Industries's earnings presentation, Nov 14, 2019
Slide 1: Cover letter to stock exchanges on Q2 FY20 results presentation
ADITYA BIRLA GRASIM Ref No.: GIL/CFD/SEC/20/148/SE 14th November 2019 BSE Limited The National Stock Exchange of India Limited Dalai Street, Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No. C/1, G Block, Bandra-Kurla Complex, Fort, Mumbai - 400 001 Bandra (East), Mumbai 400051 Scrip Co
Slide 2: Grasim Industries Limited Earnings Presentation Q2FY20
ADITYA BIRLA GRASIM Grasim Industries Limited BIG IN YOUR LIFE YOUR LIFE 2 Earnings Earnings Presentation Q2FY20 Presentation Q2FY20
Slide 3: Grasim: Big in Your Life
ADITYA BIRLA BIG IN YOUR LIFE # 1 In Viscose Staple Fibre# # 1 In& Specialty Caustic Soda Chemicals* # 1 In Premium Fabric 57% 57% Market Cap (Sep 30, 2019): ADITYA BIRLA INR 48,000 Crore (USD 6.8 Billion) UltraTech Total Market Cap Total Market Cap (Sep 30, 2019): (Sep 30, 2019): INR 1.20 Lakh Cror
Slide 4: Table of Content
Table of Content Key Highlights 01 Financial Overview 02 Business Performance 03 Appendix 04
Slide 5: Key Highlights
ADITYA BIRLA Key I Highlights I I ir- I 1 1
Slide 6: Q2FY20: Key Highlights
Key Highlights Financial Overview Business Performance Appendix ADITYA BIRLA Q2FY20: KEY HIGHLIGHTS WI GRASIM 0- Consolidated Revenue and EBITDA up by 3% & 7% on YoY basis respectively 0- Global prices of VSF softened further on account of capacity overhang and continuing U.S- China Trade war 0- Glo
Slide 7: Financial Overview
ADITYA BIRLA 10 41 ! Financial I Overview I
Slide 8: Financial Overview: Quarterly
Key Highlights Financial Overview Business Performance Appendix FINANCIAL OVERVIEW: QUARTERLY Consolidated Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 20,088 16% 22% 17% 17,892 18,430 4,461 3,180 2,972 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 Standalone Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 25% 18% 19%
Slide 9: Strong Balance Sheet
Key Highlights Financial Overview Business Performance Appendix STRONG BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) Net Debt/ Net Debt/ EBITDA EBITDA 0.51x (H1FY20 1.48x (H1 FY20 Annualized) Annualized) 4,492 31,559 23,092 2,652 1,840 8,467 Sep-19 Sep-19 Debt Liquid investments Net Debt
Slide 10: Capex Plan
Key Highlights Financial Overview Business Performance Appendix CAPEX PLAN VSF Capacity (KTPA) Caustic Soda Capacity (KTPA) 43% 27% 788 1,457 BB’Puram (146 KTPA) Vilayat expansion 146 H2 FY21 (219 KTPA) H2 FY21 438 Vilayat expansion (2 phases of 1,147 (73 KTPA) 300 TPD each) H2 FY21 383 365 365 549
Slide 11: Capex Plan
Key Highlights Financial Overview Business Performance Appendix CAPEX PLAN Capex Capex Cash Outflow (Net of CWIP spent Particulars (Rs. Cr.) as on YTD H2 FY21 1/4/2019) Sep'19 FY20 Onwards Capital expenditure for Capacity Expansion Viscose Staple Fibre 3,279 624 1,300 1,355 Viscose Filament Yarn 182
Slide 12: The Taxation Law Amendment Ordinance 2019: Impact Analysis
Key Highlights Financial Overview Business Performance Appendix THE TAXATION LAW AMENDMENT ORDINANCE – 2019: IMPACT ANALYSIS Revised New Comments Old Rates Rate Tax • Saving of 9.77% 34.94% 25.17% Profit • Existing incentives will be withdrawn Book Profit 17.47%* NA • No MAT Credit available * Earli
Slide 13: Business Performance
ADITYA BIRLA GRASIM Business I Performance I I I I
Slide 14: Viscose Industry
Key Highlights Financial Overview Business Performance Appendix ADITYA BIRLA VISCOSE INDUSTRY GRASIM Global Prices Trend ($/Kg) Price YoY QoQ Sep Exit Price 2.30 Movement (%) (%) (D over Q2FY20) 2.10 1.90 1.70 ...%%.*%...,,,.............••••••••............................................. Grey 1.33
Slide 15: Viscose: Key Operational Metrics
Key Highlights Financial Overview Business Performance Appendix VISCOSE – KEY OPERATIONAL METRICS VSF Sales (KT) Sales Volume Mix Export Sales Grey VSF 138 142 136 12% 80% 88% 20% Q2FY19 Q1FY20 Q2FY20 Domestic Sales Specialty Fibre Pulp CCF prices vs Consumption Prices Share of domestic sales in tot
Slide 16: Financial Performance - Viscose
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE - VISCOSE Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 2,605 2,509 576 2,431 442 381 491 127 103 442 443 80 VFY VFY VFY VFY VFY VFY VFY VFY VFY Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 VSF reported a strong operating pe
Slide 17: Viscose: Key Sustainability Initiatives
Key Highlights Financial Overview Business Performance Appendix VISCOSE – KEY SUSTAINABILITY INITIATIVES 2 1 4 Birla Cellulose is Grasim carbon neutral in participated in scope 1 and 2 Encouraging 2019 CSA emissions, 3 response from (Corporate ahead of global Sustainability competition in leading br
Slide 18: Chlor Alkali Industry: Caustic Soda Prices
Key Highlights Financial Overview Business Performance Appendix CHLOR ALKALI INDUSTRY Caustic Soda Prices 39,631 40,276 38,287 37,845 37,070 37,198 34,522 31,310 28,660 30,357 Caustic Realization - Grasim (Rs./MT) Caustic Realization - IHS SEA in Rs./MT ECU - Grasim (Rs./MT) Source: Company data and
Slide 19: Caustic: Key Operational Metrics
Key Highlights Financial Overview Business Performance Appendix ADITYA BIRLA CAUSTIC – KEY OPERATIONAL METRICS GRASIM Caustic Soda Sales (KT) Chlorine Sales (KT) 258 182 175 179 238 241 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 0- Caustic soda sales were impacted by slowdown in major application seg
Slide 20: Financial Performance - Chemicals
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE - CHEMICALS Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 1,612 1,503 456 446 1,347 273 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 Caustic soda Revenue & EBITDA impacted by lower sales volume and sharp fall in the realizat
Slide 21: Financial Performance - Other Businesses
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – OTHER BUSINESSES Fertilisers Textile Insulators Net Revenue (Rs. Cr.) Net Revenue (Rs. Cr.) Net Revenue (Rs. Cr.) 743 721 437 420 111 110 697 97 276 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20
Slide 22: JV with Maschinenfabrik Reinhausen: Composite Insulators
Key Highlights Financial Overview Business Performance Appendix JV with Maschinenfabrik Reinhausen GmbH (“MR”), Germany: Composite Insulators ▪ MR is the global leader for power transformer automation and control solutions Grasim MR ▪ Almost 50% of the electricity generated worldwide MR flows throug
Slide 23: Dow Jones Sustainability Index (DJSI)
Key Highlights Financial Overview Business Performance Appendix ADITYA BIRLA DOW JONES SUSTAINABILITY INDEX (DJSI) GRASIM Grasim has largely outperformed the global Industry average score Environmental Policy & Management Systems 1 II Grasim Corporate Citizenship and Philanthropy IN DJSI Customer Re
Slide 24: Financial Performance - UltraTech
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – UltraTech Sales volume (MT) Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 1% 4% 33% 18.88 9,620 2,072 18.69 9,249 1,564 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Cement demand was impacted due to heavy rains/ floods in
Slide 25: Financial Performance - ABCL
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – ABCL Lending Book(Rs. Cr.)* AAUM(Rs. Cr.)** 60,447 2,71,556 2,69,393 57,945 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Revenue and net profit after minority interest for Q2FY20 are at Rs.3,976 Cr. and Rs.256 Cr. up 11% and 37%
Slide 26: Financial Performance - Other Subsidiaries
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – OTHER SUBSIDIARIES Solar subsidiaries Grasim Premium Fabrics (Brand Soktas) Particulars (Rs. Cr.) Q2FY20 Q1FY20 Particulars (Rs. Cr.) Q2FY20 Q1FY20 Net Revenue Rs. Cr. 20 26 Net Revenue Rs. Cr. 45 48 EBITDA Rs. C
Slide 27: Financial Performance - Pulp JVs
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – PULP JV’s Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 1,302 1,215 1,283 124 121 117 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 Production Volume (Tons) Sales Volume (Tons) 2,15,563 2,13,715 1,94,717 2,00,020 Q2FY19 Q2F
Slide 28: Appendix
ADITYA BIRLA I Appendix pendix I 7
Slide 29: Balance Sheet
Key Highlights Financial Overview Business Performance Appendix BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) 31st Mar'19 30th Sep'19 31st Mar'19 EQUITY & LIABILITIES 30th Sep'19 (Restated) 39,524 41,959 Net Worth 57,056 58,018 - - Non Controlling Interest 31,560 30,502 - - Borrowings re
Slide 30: Income Statement - Standalone
Key Highlights Financial Overview Business Performance Appendix INCOME STATEMENT - STANDALONE Quarterly Half Year Particulars (Rs. Cr.) Q2FY20 Q2FY19 H1FY20 H1FY19 Net Revenue from Operations 4,797 5,118 9,798 9,907 Other Income* 286 275 371 372 EBITDA 946 1,352 1,874 2,528 EBITDA Margin (%) 19% 25%
Slide 31: Income Statement - Consolidated
Key Highlights Financial Overview Business Performance Appendix INCOME STATEMENT – CONSOLIDATED Quarterly Half Year Particulars (Rs. Cr.) Q2FY20 Q2FY19 H1FY20 H1FY19 Net Revenue from Operations 18,430 17,892 38,519 35,298 Other Income 223 252 457 435 EBITDA 3,180 2,972 7,641 6,288 EBITDA Margin (%)
Slide 32: Viscose Business Summary
Key Highlights Financial Overview Business Performance Appendix VISCOSE BUSINESS SUMMARY Quarter 2 % Half Year % Particulars (Rs. Cr.) 2019-20 2018-19 Change 2019-20 2018-19 Change Capacity VSF KTPA 566 546 4 566 546 4 VFY KTPA 46 46 - 46 46 0 Production VSF KT 148 137 8 288 271 6 VFY KT 11 12 -8 22
Slide 33: Chemical Business Summary
Key Highlights Financial Overview Business Performance Appendix CHEMICAL BUSINESS SUMMARY Quarter 2 % Half Yearly % Particulars (Rs. Cr.) 2019-20 2018-19 Change 2019-20 2018-19 Change Capacity* KTPA 1,147 1,140 1 1,147 1,140 1 Production* KT 249 254 -2 491 490 0 Sales Volume* KT 241 258 -7 479 493 -
Slide 34: Grasim Group Structure
Key Highlights Financial Overview Business Performance Appendix GRASIM GROUP STRUCTURE Grasim Industries Limited VSF - 566K TPA Caustic Soda - Overseas UTCL (60.21%)* ABCL (55.99)* VFY - 47K TPA ~1147K TPA Others Pulp - 74K TPA Pulp & VSF JVs Subsidiary Subsidiary Epoxy – 123K TPA 00 Nagda Nagda Fer
Slide 35: 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 36: Notes
NOTES Grasim Industries Limited | Earnings Presentation Q2 FY20 35
Slide 37: Thank you
ADITYA BIRLA P a11A GRASIM Thank you Grasim Industries Ltd. Aditya Birla Centre 'A' Wing, 2nd Floor ,S.K. Ahire Marg ,Worli Mumbai 400 030 ,India Investor Relations Team Email: pradeep.a@adityabirla.com saket.sah@adityabirla.com