Dcm Shriram Limited · NSE:DCMSHRIRAM
Dcm Shriram — Q2 FY2024 Earnings Presentation
29 slides from Dcm Shriram's earnings presentation, Oct 30, 2023
Slide 1: Q2 FY 2024 - Results Presentation
DCM Shriram Ltd. Q2 FY 2024 - Results Presentation October 30, 2023
Slide 2: Safe Harbour
Certain statements in this document may be forward-looking. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, Safe Harbour technological risks, and many other factors that could cause our actual results t
Slide 3: Table of Contents
Table of Contents Management Message & Q2 FY24 H1 FY24 Segments Financial Snapshot 4 Financial Snapshot 9 Management’s Message 13 Revenue Drivers 5 Revenue Drivers 10 Our Businesses 14 PBDIT Drivers 6 PBDIT Drivers 11 Chloro-Vinyl 15-19 Returns & Leverage 7 Segment Performance 12 Sugar 20-22 Segment
Slide 4: Financial Snapshot – Q2 FY24
Financial Snapshot – Q2 FY24 Revenue (Net) * PBDIT PAT -1% -55% -75% 2,740 2,708 302 128 136 32 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 PBIT Finance Cost ** Depreciation -74% 29% 17% 239 15 11 63 74 62 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 ❑ Surplus net of Debt as on 30th September, 2023 is –ve Rs. 203 cr
Slide 5: Revenue Drivers – Q2 FY24
Revenue Drivers – Q2 FY24 Chemicals Vinyl Sugar * -35% -5% 57% 781 970 509 155 147 617 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 • ECU Q2 FY24 prices down 40% YoY • PVC volumes higher by 15% & prices lower by 13% • Sugar-higher domestic releases (15.5 vs 11.9 lac qtl) • Volumes were slightly lower by 2% •
Slide 6: PBDIT Drivers – Q2 FY24
PBDIT Drivers – Q2 FY24 Chemicals Vinyl Sugar -85% 250 9 15 -10 38 -15 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 • Led by lower ECU prices , down 40% YOY • Benefit of lower power and carbon costs partially • Led by higher volumes in both sugar & distillery • Margins are currently positive led by reduction
Slide 7: Returns & Leverage
Returns & Leverage PBDIT/ Net Sales (%) Gross Debt (GD) & Cash Surplus (CS) -Rs/Cr GD CS GD CS GD -6.0 CS 14.9 1,471 1,530 1,473 1,675 1,633 11.0 952 5.0 Q2'23 Q2'24 FY'23 Q2'23 Q2'24 FY'23 ROCE (%) Capital Employed (Rs/Cr) -17.4 -509 36.0 5,678 27.3 4,681 4,173 18.5 Q2'23 Q2'24 FY'23 Q2'23 Q2'24 FY
Slide 8: Segment Performance – Q2 FY24
Segment Performance – Q2 FY24 Revenues PBIT PBIT Margins % Segments YoY % YoY % Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Change Change Chloro-Vinyl 656 936 (30) 16 214 (92) 3 23 Sugar * 970 617 57 (11) (35) - - Fenesta 209 178 18 39 31 25 19 17 SFS 280 238 18 43 36 22 15 15 Fertilizer 368 585 (37) 17 35
Slide 9: Financial Snapshot – H1 FY24
Financial Snapshot – H1 FY24 Revenue (Net)* PBDIT PAT -2% -58% -77% 5,591 5,488 382 766 320 89 H1'23 H1'24 H1'23 H1'24 H1'23 H1'24 PBIT Finance Cost ** Depreciation 42% 18% -73% 643 146 40 124 174 28 H1'23 H1'24 H1'23 H1'24 H1'23 H1'24 ❑ Tax cash outflow of DCM Shriram Limited is approx. 17.5% * Net
Slide 10: Revenue Drivers – H1 FY24
Revenue Drivers – H1 FY24 Chemicals Vinyl Sugar -38% -22% 45% 1,678 398 311 1,928 1,046 1,327 H1'23 H1'24 H1'23 H1'24 H1'23 H1'24 • ECU prices down 41% YoY. • PVC prices lower by 30%, volumes up by 9% • Higher domestic sugar volumes (up 32% YoY) & higher • Caustic volumes were down 5% YoY • Carbide
Slide 11: PBDIT Drivers – H1 FY24
PBDIT Drivers – H1 FY24 Chemicals Vinyl Sugar -88% -90% 619 61 103 74 6 7 H1'23 H1'24 H1'23 H1'24 H1'23 H1'24 • Led by lower ECU prices • Earnings under pressure with continued lower PVC • Higher volumes of both sugar and ethanol. • Input costs marginally lower compared to last year and Carbide pric
Slide 12: Segment Performance – H1 FY24
Segment Performance – H1 FY24 Revenues PBIT PBIT Margins % Segments YoY % YoY % H1'24 H1'23 H1'24 H1'23 H1'24 H1'23 Change Change Chloro-Vinyl 1,357 2,076 (35) 20 627 (97) 1 30 Sugar * 1,928 1,327 45 52 (33) - 3 - Fenesta 401 344 16 73 59 25 18 17 SFS 516 456 13 54 53 1 10 12 Fertilizer 747 907 (18)
Slide 13: Management’s Message
Management’s Message Commenting on the performance for the quarter and period ending September 2023, in a joint statement, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managing Director, said: The overall business environment continues to be volatile
Slide 14: Our Businesses
Our Businesses Chloro-Vinyl Agri Value Added Businesses Businesses Businesses Fenesta Caustic Soda Sugar (41,000 Building (1,869 TPD) TCD) Systems (12,284 TPA) Aluminum Co-Gen Chloride (166 MW) (150 TPD) Distillery . PVC Resins (310 KLD)* (220 TPD) + (250 KLD)** India Other Businesses Calcium Fertil
Slide 15: Chloro Vinyl Business
Chloro Vinyl Business Revenues PBIT Cap. Employed Particulars (Rs/ Cr) (Rs/Cr) (Rs/Cr) Q2 FY24 656.5 16.5 3,865.9 Q2 FY23 936.2 214.2 2,531.0 % Shift (29.9) (92.3) 52.7 H1 FY24 1,357.2 19.9 3,865.9 H1 FY23 2,075.8 626.9 2,531.0 % Shift (34.6) (96.8) 52.7 Capital employed includes CWIP of Rs 2,267 cr
Slide 16: Chemicals
Chemicals Operational Financial ECU Caustic Sales Revenues PBIT Particulars Realisations PBIT Margin % (MT) (Rs/Cr) (Rs/Cr) (Rs/MT) Q2 FY24 1,43,911 26,081 509.4 11.7 2.3 Q2 FY23 1,46,801 43,463 781.4 227.9 29.2 % Shift (2.0) (40.0) (34.8) (94.9) (92.1) H1 FY24 2,82,669 27,509 1,045.8 22.2 2.1 H1 FY
Slide 17: Chemicals
Chemicals ▪ Globally subdued demand for caustic led to lower prices. Industry ▪ In India new capacities not able to operate fully due to demand growth not commensurate to capacity additions. ▪ Net exports stable in Q2 FY24. Exports down – 1.10 vs 1.27 lac MT LY. Imports down – 0.18 vs 0.40 lac MT LY
Slide 18: Vinyl
Vinyl Operational Financial PVC XWR Carbide XWR PVC Sales Carbide Sales Revenues PBIT PBIT Margin Particulars Realisations Realisations (MT) (MT) (Rs/Cr) (Rs/Cr) (%) (Rs/MT) (Rs/MT) Q2 FY24 13,235 78,484 5,545 64,556 147.0 4.8 3 Q2 FY23 11,523 89,964 5,183 87,929 154.9 (13.7) - % Shift 14.9 (12.8) 7
Slide 19: Vinyl
Vinyl ▪ Demand of PVC continues to be strong – growth of 30% in Q2. This demand growth is being met by imports – Industry largely from China and due to its aggressive pricing, domestic prices are taking a beating. Overview ▪ Capacity utilization for Q2 FY24 at 92% vs 66% LY due to power plant breakd
Slide 20: Sugar
Sugar Revenues * PBIT PBIT Margin Cap. Employed Particulars (Rs/Cr) (Rs/Cr) (%) (Rs/Cr) Q2 FY24 969.8 (10.7) - 2,475.8 Q2 FY23 617.1 (34.8) - 2,406.5 % Shift 57.2 2.9 H1 FY24 1,928.0 52.5 2.7 2,475.8 H1 FY23 1,326.9 (32.8) - 2,406.5 % Shift 45.3 - - 2.9 * Net of excise duty on country liquor sales a
Slide 21: Sugar
Sugar Operational Sugar Sugar Sales Sugar Power XWR Power Sales Distillery Sales Distillery XWR Particulars Production (Domestic) (Domestic) (Rs/ unit) (Lac Units) (Lac Ltrs) (Rs/ Ltrs) (Lac Qtls) (Lac Qtls) XWR (Rs/Qtl) (Lac Units) Q2 FY24 0.0 15.5 3,751 13 3.1 541.3 56.8 Q2 FY23 0.0 11.9 3,558 32
Slide 22: Sugar
Sugar ▪▪ Revenues Revenues for for Q2 Q2 FY24 FY24 up up 57% 57% YoY YoY (H1 (H1 FY24 FY24 up up 45%) 45%) led led by by both both volumes volumes & & prices prices across across sugar sugar & & ethanol ethanol o Domestic o Domestic sugar sugar prices prices for for Q2 Q2 FY24 FY24 up up at at Rs/ R
Slide 23: Fenesta Building Systems
Fenesta Building Systems Operational Financial Order Book (Rs/Cr) Revenues PBIT PBIT Margin Particulars Retail Projects Total (Rs/Cr) (Rs/Cr) (%) Q2 FY24 103.9 201.2 305.1 209.0 38.7 18.5 Q2 FY23 102.6 103.0 205.6 177.6 30.9 17.4 % Shift 1.3 95.3 48.4 17.7 25.5 6.6 H1 FY24 206.4 306.9 513.3 400.5 73
Slide 24: Shriram Farm Solutions
Shriram Farm Solutions Revenues PBIT PBIT Margin Cap. Employed Particulars (Rs/Cr) (Rs/Cr) (%) (Rs/Cr) Q2 FY24 280.0 43.3 15.5 (189.3) Q2 FY23 237.9 35.6 15.0 (31.1) % Shift 17.7 21.5 3.3 - H1 FY24 516.2 53.9 10.4 (189.3) H1 FY23 455.8 53.4 11.7 (31.1) % Shift 13.2 0.9 (10.9) - The products includes
Slide 25: Fertilizers (Urea)
Fertilizers (Urea) Operational Financial Sales Realisations Revenues PBIT PBIT Margin Cap. Employed Particulars (MT) (Rs/MT) (Rs/Cr) (Rs/Cr) (%) (Rs/Cr) Q2 FY24 1,02,524 34,588 368.5 16.7 4.5 (221.5) Q2 FY23 1,10,450 51,609 585.3 34.8 5.9 712.9 % Shift (7.2) (33.0) (37.0) (52.0) (23.7) - H1 FY24 2,0
Slide 26: Bioseed
Bioseed Revenues (Rs/Cr) PBIT PBIT Margin Cap. Employed Particulars Bioseed India Subsidiaries Total (Rs/Cr) (%) (Rs/Cr) Q2 FY24 91.2 36.8 128.0 0.7 0.5 454.5 Q2 FY23 59.5 28.0 87.5 (3.1) - 517.9 % Shift 53.3 31.2 46.2 - - (12.2) H1 FY24 277.2 63.5 340.7 22.2 6.5 454.5 H1 FY23 237.4 55.6 293.0 15.2
Slide 27: Other Businesses
Other Businesses ➢ The ‘Others’ Segment in the financial results, includes Cement, Vinyl compounding business and Hariyali Kisaan Bazaar. ➢ Revenues under ‘Others’ stood at Rs 125 crs in Q2 FY24 from Rs. 122 crs in LY(H1 FY24 at Rs. 264 crs vs Rs. 255 crs LY). ➢ PBIT for the quarter stood at – ve Rs
Slide 28: Cement
Cement Operational Financial Sales Realisations Revenues PBIT PBIT Margin Particulars (MT) (Rs/MT) (Rs/Cr) (Rs/Cr) (%) Q2 FY24 96,615 3,992 48.5 (7.1) - Q2 FY23 75,295 3,917 38.5 (14.0) - % Shift 28.3 1.9 26.0 - - H1 FY24 2,06,465 3,968 101.0 (9.1) - H1 FY23 1,59,156 4,093 81.7 (33.4) - % Shift 29.7
Slide 29: About Us & Investor Contacts
DCM Shriram Ltd. is an integrated business entity, with extensive and growing presence across the entire Agri value chain and Chloro-Vinyl industry. The Company has added innovative value- added businesses in these domains primarily Bioseed and Fenesta. Access to captive power at all key manufacturi