Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q4 FY20 Earnings Presentation
42 slides from Grasim Industries's earnings presentation, Jun 13, 2020
Slide 1: Cover letter to stock exchanges on audited results
Ref No.: GIL/CFD/SEC/21/032/SE 13th June 2020 BSE Limited The National Stock Exchange of India Limited Dalal 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 Code: 500300 Symbol: GRASI
Slide 2: Earnings Presentation Q4FY20
Earnings Presentation Q4FY20 Grasim Industries Limited Greater Purpose Greater Future
Slide 3: Big in Your Life
BIG IN YOUR LIFE # 1 In Viscose Staple Fibre@ # 1 In Chlor - Alkali* 57.28% 54.24% Market Cap (May 31, 2020): INR 38,758 Crore (USD 5.13 Billion) Market Cap Market Cap (May 31, 2020): (May 31, 2020): INR 1.13 Lakh Crore INR 11,067 Crore (USD 14.9 Billion) (USD 1.46 Billion) Cement Producer Asset Man
Slide 4: Table of Content
Table of Content COVID Response 01 Financial Overview 02 Business Performance 03 Sustainability 04 Appendix 05
Slide 5: COVID Response
COVID RESPONSE Grasim Industries Limited | Earnings Presentation Q4 FY20 4
Slide 6: COVID-19 Impact
COVID Response Financial Overview Business Performance Sustainability Appendix COVID-19 IMPACT Operations at all our plants except Fertiliser plant were temporarily suspended on imposition of lockdown Fertiliser plant continued operations at full capacity, not impacted by lockdown Chemicals and VSF
Slide 7: Our COVID-19 response: Beyond business
COVID Response Financial Overview Business Performance Sustainability Appendix COVID-19 RESPONSE Our COVID-19 response: Beyond business Healthcare and Medical Support Other Activities Aditya Birla Hospitals at Nagda, Veraval, Jagdishpur, Kharach and Disinfection with Sodium Hypochlorite Ganjam have
Slide 8: Financial Overview
FINANCIAL OVERVIEW Grasim Industries Limited | Earnings Presentation Q4 FY20 7
Slide 9: Performance Highlight: FY20 Overall, Focus on VAP
COVID Response Financial Overview Business Performance Sustainability Appendix PERFORMANCE HIGHLIGHT: FY20 Overall Robust Consolidated Performance: Revenue of Rs. 77,625 Cr., record EBITDA of 13,846 Cr., and PAT of 4,425 Cr. Maintained strong leverage ratios with Net Cash Flow from Operations of Rs.
Slide 10: Performance Highlight: FY20 Cost Focus, Sustainability
COVID Response Financial Overview Business Performance Sustainability Appendix PERFORMANCE HIGHLIGHT: FY20 Cost Focus Viscose: Achieved reduction Pulp, Caustic and Sulphur cost of ~Rs. 460 Cr. Viscose: Cost savings measure under Project Cascade ~Rs.251 Cr. Chemical: Achieved reduction in the power a
Slide 11: Financial Overview: FY20
COVID Response Financial Overview Business Performance Sustainability Appendix FINANCIAL OVERVIEW: FY20 Consolidated Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT (Rs. Cr.) 19% 17% 18% 4,425 77,200 77,625 55,894 13,404 13,846 10,883 2,679 1,693 FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 Standalone Revenu
Slide 12: Standalone Financial Overview: FY20 (Breakdown by Business)
COVID Response Financial Overview Business Performance Sustainability Appendix STANDALONE FINANCIAL OVERVIEW: FY20 (BREAKDOWN BY BUSINESS) Revenue EBITDA EBIT 6% 10% 10% 14% 7% 7% 47% 46% Rs. 18,609 Cr. 50% Rs. 2,836 Cr. Rs. 1,989 Cr. 30% 36% 37% Viscose Chemical Fertiliser Others & Elimination ROAv
Slide 13: Financial Overview: Quarterly
COVID Response Financial Overview Business Performance Sustainability Appendix FINANCIAL OVERVIEW: QUARTERLY Consolidated Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT (Rs. Cr.) 18% 15% 16% 22,431 1,506 19,205 19,902 3,999 3,243 1,144 2,968 680 Q4FY19 Q3FY20 Q4FY20 Q4FY19 Q3FY20 Q4FY20 Q4FY19 Q3FY20 Q4FY20
Slide 14: Strong Balance Sheet
COVID Response Financial Overview Business Performance Sustainability Appendix STRONG BALANCE SHEET FY20: Strong standalone Net Cash Flow from Operations of Rs. 3,519 Cr. Standalone (Rs. Cr.) Consolidated (Rs. Cr.) Net Debt / EBITDA 1.05x Net Debt / EBITDA 1.49x 5,068* 28,831* 20,682 2,975 2,653# 8,
Slide 15: Business Performance
BUSINESS PERFORMANCE Grasim Industries Limited | Earnings Presentation Q4 FY20 14
Slide 16: Financial Performance - Viscose
COVID Response Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - VISCOSE Revenue* (Rs. Cr.) EBITDA* (Rs. Cr.) 16% 12% 12% 2,625 413 2,194 2,102 256 261 Q4FY19 Q3FY20 Q4FY20 Q4FY19 Q3FY20 Q4FY20 EBITDA Margin (EBITDA including Other Income / Total Income (Revenue
Slide 17: Viscose Industry
COVID Response Financial Overview Business Performance Sustainability Appendix VISCOSE INDUSTRY Global Prices Trend ($/Kg) Price YoY QoQ March Exit Price 2.30 Movement (%) (%) (D over Q4FY20) 2.10 1.90 1.70 Grey 1.19 $/Kg 1.50 -28% -7% VSF (-1%) 1.30 1.10 0.90 1.49 $/Kg 0.70 Cotton -11% -1% (9%) 0.7
Slide 18: Viscose – Key Operational Metrics
COVID Response Financial Overview Business Performance Sustainability Appendix VISCOSE – KEY OPERATIONAL METRICS VSF Sales (KT) Sales Volume Mix Export Sales Grey VSF 139 138 136 14% 76% 86% 24% Q4FY19 Q3FY20 Q4FY20 Domestic Sales VAP Share of VAP sales in total sales increased to 24% (Up 2% YoY) Th
Slide 19: Financial Performance - Chemicals
COVID Response Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - CHEMICALS Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 26% 14% 8% 1,688 1,362 1,290 434 185 104* Q4FY19 Q3FY20 Q4FY20 Q4FY19 Q3FY20 Q4FY20 EBITDA Margin (EBITDA including Other Income / Total Income (Revenue
Slide 20: Chlor Alkali Industry
COVID Response Financial Overview Business Performance Sustainability Appendix CHLOR ALKALI INDUSTRY Caustic Realisation Grasim – ECU (Rs./ ton) 40,023 40,453 38,342 37,226 34,827 37,036 37,856 30,351 27,805 26,637 Caustic Realization - Grasim (Rs./MT) Caustic Realization - IHS SEA in Rs./MT Lower d
Slide 21: Caustic – Key Operational Metrics
COVID Response Financial Overview Business Performance Sustainability Appendix CAUSTIC – KEY OPERATIONAL METRICS Caustic Soda Sales (KT) Chlorine & HCl Consumption in VAP (ton) 261 261 73,416 72,248 252 68,216 Q4FY19 Q3FY20 Q4FY20 Q4FY19 Q3FY20 Q4FY20 Caustic Soda sales for Q4FY20 were lower by 27KT
Slide 22: Financial Performance - Fertiliser
COVID Response Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - FERTILISER Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 679 638 623 68 52 30 Q4FY19 Q3FY20 Q4FY20 Q4FY19 Q3FY20 Q4FY20 Industry Urea sales for FY20 was higher by 6% YoY to 31.72 MTPA In FY20, higher sales of
Slide 23: Financial Performance – Other Businesses
COVID Response Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – OTHER BUSINESSES Textile Insulators Revenue (Rs. Cr.) Revenue (Rs. Cr.) 475 124 401 109 344 90 Q4FY19 Q3FY20 Q4FY20 Q4FY19 Q3FY20 Q4FY20 EBITDA (Rs. Cr.) EBITDA (Rs. Cr.) 52 10 3 3 (2) (1) Q4FY19 Q
Slide 24: Financial Performance – UltraTech
COVID Response Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – UltraTech Sales volume (MT) Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 86 82 41,609 42,125 9,931 7,810 FY19 FY20 FY19 FY20 FY19 FY20 Reported highest ever consolidated EBITDA of Rs. 9,931 Cr. up 27% YoY an
Slide 25: Financial Performance – ABCL
COVID Response Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – ABCL Lending Book (Rs. Cr.)* AAUM (Rs. Cr.) 265,110 266,988 63,119 59,159 FY19 FY20 FY19 FY20 Revenue and net profit after minority interest for FY20 are Rs. 16,792 Cr. and Rs. 920 Cr. respectively
Slide 26: Financial Performance – Other Subsidiaries
COVID Response Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – OTHER SUBSIDIARIES Aditya Birla Renewables (Solar Power) Grasim Premium Fabrics Private Limited Rs. Cr. Rs. Cr. Particulars FY20 Particulars FY20 Revenue 117 Revenue 165 EBITDA 64 EBITDA 23 EBITDA
Slide 27: Financial Performance – Pulp JVs
COVID Response Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – PULP JV’s Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 5,382 569 4,711 171 FY19 FY20 FY19 FY20 Production Volume (Tons) Sales Volume (Tons) 789,527 803,687 800,916 796,446 FY19 FY20 FY19 FY20 Note: The above
Slide 28: Income Statement – Consolidated
COVID Response Financial Overview Business Performance Sustainability Appendix INCOME STATEMENT – CONSOLIDATED Quarterly Annual Particulars (Rs. Cr.) Q4FY20 Q4FY19 FY20 FY19 Revenue from Operations 19,902 22,431 77,625 77,200 Other Income 273 184 967 828 EBITDA 3,243 3,999 13,846 13,404 EBITDA Margi
Slide 29: Income Statement - Standalone
COVID Response Financial Overview Business Performance Sustainability Appendix INCOME STATEMENT - STANDALONE Quarterly Annual Particulars (Rs. Cr.) Q4FY20 Q4FY19 FY20 FY19 Revenue from Operations 4,313 5,352 18,609 20,550 Other Income 73 101 525 568 EBITDA 467 1,000 2,836 4,639 EBITDA Margin (%) 11%
Slide 30: Sustainability
SUSTAINABILITY Grasim Industries Limited | Earnings Presentation Q4 FY20 29
Slide 31: Greater Purpose - Greater Future
COVID Response Financial Overview Business Performance Sustainability Appendix GREATER PURPOSE - GREATER FUTURE Grasim outperformed the Dow Jones Sustainability Index (DJSI) global industry average score The four pillars of our sustainability framework provide a broad outline of our contributions to
Slide 32: Sustainability Targets
COVID Response Financial Overview Business Performance Sustainability Appendix SUSTAINABILITY TARGETS Viscose (VSF) Chemicals, Fertiliser and Insulators Safety Safety Reduce LTIFR below 90% by FY2025 (over Reduce LTIFR below 80% by 2025 (over the base the baseline year of FY15) year of FY17) Water W
Slide 33: Appendix
APPENDIX Grasim Industries Limited | Earnings Presentation Q4 FY20 32
Slide 34: Balance Sheet
COVID Response Financial Overview Business Performance Sustainability Appendix BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) 31st Mar'19 31st Mar'20 31st Mar'19 EQUITY & LIABILITIES 31st Mar'20 (Restated)* 37,674 41,959 Net Worth 56,652 58,020 - - Non Controlling Interest 34,335 30,503 -
Slide 35: Viscose Business Summary
COVID Response Financial Overview Business Performance Sustainability Appendix VISCOSE BUSINESS SUMMARY Quarter 4 % Annual % Particulars 2019-20 2018-19 Change 2019-20 2018-19 Change Capacity VSF KTPA 566 566 0 566 566 0 VFY KTPA 47 47 0 47 47 0 Production VSF KT 131 130 1 567 541 5 VFY KT 10 11 (14
Slide 36: Chemical Business Summary
COVID Response Financial Overview Business Performance Sustainability Appendix CHEMICAL BUSINESS SUMMARY Quarter 4 % Annual % Particulars 2019-20 2018-19 Change 2019-20 2018-19 Change Capacity* KTPA 1,147 1,147 0 1,147 1,147 0 Production* KT 250 254 (2) 998 995 0 Sales Volume* KT 252 261 (3) 991 1,0
Slide 37: Capex Plan
COVID Response Financial Overview Business Performance Sustainability Appendix CAPEX PLAN The capacity expansion plans have been put on hold. We are closely monitoring the emerging demand scenario due to lock down situation. Grasim Industries Limited | Earnings Presentation Q4 FY20 36
Slide 38: Grasim Group Structure
COVID Response Financial Overview Business Performance Sustainability Appendix GRASIM GROUP STRUCTURE Grasim Industries Limited VSF - 566K TPA Caustic Soda - Overseas UTCL (57.28%)* ABCL (54.24%)* VFY - 47K TPA ~1147K TPA Others Pulp - 74K TPA Pulp & VSF JVs Subsidiary Subsidiary Epoxy – 123K TPA Na
Slide 39: 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 40: Notes
NOTES Grasim Industries Limited | Earnings Presentation Q4 FY20 39
Slide 41: Glossary
GLOSSARY Grasim Industries Limited | Earnings Presentation Q4 FY20 40
Slide 42: Thank you
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