Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q4 FY2011 Earnings Presentation
40 slides from Grasim Industries's earnings presentation, May 2011
Slide 1: Performance Review Quarter 4: 2010-11
Performance Review Quarter 4 : 2010-11 Grasim Industries Limited A Cement and VSF Major
Slide 2: Cautionary Statement
Cautionary Statement Statements in this “Presentation” describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or impl
Slide 3: Contents
Contents z Highlights z Business Review z Financial Performance z Capex Plan z Summary 3
Slide 4: Highlights – Quarter 4
Highlights – Quarter 4 z Strong results on the back of better performance by both the businesses z VSF Business reported better performance supported by buoyant demand conditions ¾ Operating at 100% capacity utilisation ¾ Realisation improved in line with the competitive fibres ¾ Better operating ma
Slide 5: Business Review
Business Review VSF Chemical Cement Subsidiary 5
Slide 6: Viscose Staple Fibre: Highlights
Viscose Staple Fibre : Highlights Global Industry Scenario Quarter – 4 % Chg. z Demand for VSF fibre remained better 2010-11 2009-10 ¾ Cotton shortage and rising costs continue to drive Capacity (TPA) 333,975 333,975 --- prices of all the fibres including VSF ¾ Cotton prices touch $5/kg in internati
Slide 7: Viscose Staple Fibre: Highlights (Contd.)
Viscose Staple Fibre : Highlights (Contd….) Quarter – 4 z Highest ever PBIDT % Chg. 2010-11 2009-10 ¾ On Standalone basis, PBIDT up by 41% PBIDT (Rs. Crs.) 513.7 363.2 41 Ö Margins increased to 38.4% PBIDT Margin (%) 38.4% 34.6% -- ¾ Higher volumes and better market PBIT (Rs. Crs.) 486.9 335.0 45 co
Slide 8: Viscose Staple Fibre: Outlook
Viscose Staple Fibre : Outlook z Profitability in the short term will be governed by the prices of competitive fibres, input and energy costs ¾ Current margins may shrink with lower realisation and rising input prices z VSF expansion plan at Vilayat and Harihar progressing as per plan ¾ Projects exp
Slide 9: Chemical: Highlights
Chemical : Highlights Quarter -4 Industry Scenario % Chg. 2010-11 2009-10 z Improvement in caustic prices in Caustic Capacity (TPA) 258,000 258,000 - international markets Production (MT) 66,183 59,994 10 z Good demand from major end user Sales Volumes (MT) 68,253 59,585 15 Net Revenue (Rs. Crs.) 15
Slide 10: Cement: Industry Scenario
Cement : Industry Scenario Industry Capacity z At Industry level, 40% capacity increase in last 350 Mn. Tons 304 300 276 two years 250 ¾ 28 Mn. Tons capacity added in FY11 over and 216 198 200 168 above 60 Mn. Tons added in FY10 150 ¾ Industry Capacity at 304 Mn. Tons 100 z Capacity Utilisation at 7
Slide 11: Cement: Highlights
Cement : Highlights Quarter -4 % Chg. z 3 Mn. Ton Star Cement acquisition 2010-11 2009-10 Grey Cement completed in Sept’ 10 Capacity Mn. TPA 51.75 48.75 6 ¾ Capacity increased to 51.75 Mn. Ton Production Mn. MT 11.07 10.24 8 Cement Sales Volumes $ Mn. MT 11.09 10.37 7 z Domestic production at 10.4 M
Slide 12: Cement: Financials
Cement : Financials Quarter -4 % Chg. z Net revenue increased by 14% 2010-11 2009-10 ¾ Acquisition of Star Cement contributed Realisation Rs. /MT - Domestic Cement 3,657 3,356 9 to growth - Clinker 1,877 1,455 29 ¾ Improved RMC and White Cement - White Cement 8,798 8,588 2 Net Revenue Rs. Crs. 4,762
Slide 13: Cement: Outlook
Cement : Outlook z Cement Demand expected to grow at >8.5% from FY12 linked to ¾ Expected increase in infrastructure spending ¾ Rural demand emanating from agricultural growth ¾ Revival in corporate capex cycle z Surplus scenario on account of new capacities to continue and last 8-10 quarters z Sell
Slide 14: Financial Performance
ADITYA BIRLA Fimancial Perfonmance
Slide 15: Consolidated Revenue
Consolidated Revenue 19% 84 601 59 284 6502 Rs. Crores 5474 Quarter 4 VSF Pulp JVs Cement Textile, Chemical & Quarter 4 2009-10 Inter Co. 2010-11 Eliminations 5,474 284 59 601 84 6,502 All businesses contribute to revenue growth 15
Slide 16: Revenue Chart
Revenue Chart Rs. Crores Full Year Quarter -4 Net Revenue 2010-11 2009-10 2010-11 2009-10 17% 4,170 3,574 Viscose Staple Fibre 1,329 1,045 27% 10% 542 493 Chemical 156 120 30% 78 63 Others 22 16 (144) (149) Inter Segment Eliminations (Intra Company) (45) (40) 17% 4,646 3,981 Standalone Net Revenue o
Slide 17: Financial Performance – Quarter 4
Financial Performance – Quarter 4 Quarter - 4 : Standalone Quarter - 4 : Consolidated (Rs. Crores) 2010-11 2009-10 % Change 2010-11 2009-10 % Change Revenue 1,462 1,141 28 6,502 5,474 19 Operating Costs 964 800 20 4,852 4,041 20 PBIDT 583 396 47 1,782 1,500 19 Interest 13 11 19 108 90 20 Depreciatio
Slide 18: Financial Performance – Twelve Months
Financial Performance – Twelve Months $ # @ * Continued Businesses- Excluding Cement and Sponge Iron businesses from FY10 reported numbers for comparison purpose $ Net of excess tax provision reversal of Rs.125.5 Crores related to earlier years in Subsidiary UltraTech @ Results of Idea Cellular Ltd.
Slide 19: Consolidated PBIDT
Consolidated PBIDT 23 19% 72 187 Rs. Crores 1782 1500 Quarter-4 Standalone PBIDT Cement Pulp JVs & Others Quarter -4 2009-10 2010-11 1,500 187 72 23 1782 19
Slide 20: PBIDT – Chart
PBIDT – Chart Rs. Crores Full Year PBIDT Quarter -4 2010-11 2009-10 2010-11 2009-10 12% 1,479 1,315 Viscose Staple Fibre 514 363 41% 124 125 Chemical 29 25 19% 214 148 Others 40 8 14% 1,817 1,588 Standalone PBIDT of the continued Business 583 396 47% Discontinued Businesses - (39) Sponge Iron (Sold
Slide 21: Net Profit (Before Extraordinary Gain)
Net Profit (Before Extraordinary Gain) Rs. Crores Full Year Quarter -4 2010-11 2009-10 2010-11 2009-10 Total Net Grasim's Total Net Grasim's Total Net Grasim's Total Net Grasim's Profit share Profit share Profit share Profit share 20% 1,182 986 Grasim Standalone - Continued Businesses 396 289 37% -
Slide 22: Grasim Financials
Grasim Financials Standalone Consolidated Quarter 4 Quarter 4 Quarter 4 Quarter 4 (Rs. Crores) 2009-10 2010-11 2009-10 2010-11 Net Worth 7,145 8,134 12,525 14,559 Debt 1,038 814 5,599 6,783 Capital Employed 8,435 9,177 23,884 27,654 Debt:Equity (x) 0.15 0.10 0.34 0.36 Interest Cover 29.4 33.0 13.1 1
Slide 23: Capex
ADITYA BIRLA
Slide 24: Capex plan
Capex plan Rs. Crores Net Capex Cash Outflow to be spent FY12 FY13 as on 01.04.11 Onward VSF Business – Expansion Projects: Vilayat (120,000 TPA) 2,095 Harihar (36,500 TPA) - Other Capex 337 Chemical Business – Vilayat (182,500 TPA) 772 Balance Capex (Including normal capex for chemical) 154 Standal
Slide 25: Summary
ADITYA BIRLA
Slide 26: Summary
Summary z Excellent performance of the Company with both businesses performing well z Strong balance sheet to enable investment in future growth z Aggressive capacity expansions under implementation in both businesses – Cement, VSF and allied Chemical ¾ Cement capacity to increase by 20% by Q1FY14 w
Slide 27: Plant Locations – Grasim & its subsidiaries
Plant Locations– Grasim & its subsidiaries Bathinda(G) Panipat Bhiwani Dadri T Kotputli Aligarh Jodhpur T Malanpur Shambhupura Jawad Bharuch Durgapur(G) UltraTech Cement Plants F Jafrabad Magdalla (G) UltraTech Grinding Units (G) F C Pipavav Nagda Hirmi Raipur Awarpur B UltraTech Bulk Cement Termina
Slide 28: Thank You
ADITYA BIRLA GRASIM Thank You
Slide 29: Annexure
Grasim Industries Limited Annexure
Slide 30: Annexure
Annexure Consolidated Financial Performance Standalone Financial Performance Consolidated and Standalone Financial Consolidated and Standalone Profitability Businesswise Performance VSF Summary Chemical Summary Cement Summary 30
Slide 31: Consolidated Financial Performance
Consolidated Financial Performance (Rs. Crores) Quarter - 4 Full Year % Chg. % Chg. 2010-11 2009-10 2010-11 2009-10 Net Turnover & Op. Income 6,502.0 5,474.4 19 21,585.2 20,194.8 7 Other Income 132.5 66.7 99 397.4 273.6 45 PBIDT 1,782.2 1,500.1 19 5,396.7 6,322.3 (15) Interest 108.1 89.8 20 405.6 33
Slide 32: Standalone Financial Performance
Standalone Financial Performance (Rs. Crores) Quarter - 4 Full Year * % Chg. % Chg. 2010-11 2009-10 2010-11 2009-10 Net Turnover & Op. Income 1,461.6 1,140.9 28 4,645.9 8,312.6 (44) Other Income 85.1 55.3 54 297.8 235.3 27 PBIDT 582.9 396.2 47 1,817.1 2,972.3 (39) Interest 13.3 11.2 19 45.6 120.4 (6
Slide 33: Financial Snapshot
Financial Snapshot Standalone Consolidated March March March March March March March March (Rs. Crores) 2008 2009 2010 * 2011 * 2008 2009 2010 2011 Gross Block $ 10,615 12,280 3,145 3,085 19,262 21,044 21,717 24,164 $ Net Block 7,054 8,308 1,829 1,643 12,922 14,219 14,553 15,791 Goodwill 1,991 2,001
Slide 34: Profitability Snapshot
Profitability Snapshot Standalone Consolidated (Rs. Crores) 2007-08 2008-09 2009-10 * 2010-11* 2007-08 2008-09 2009-10 2010-11 Gross Turnover 11,552 12,097 8,842 4,891 19,112 20,325 21,711 23,571 Net Turnover & Op. Income 10,325 10,965 8,313 4,646 17,141 18,496 20,195 21,585 PBIDT 3,424 2,844 2,972
Slide 35: Consolidated Businesswise Performance – Quarter 4
Consolidated Businesswise Performance - Quarter 4 (Rs. Crores) ROAvCE (%) Business Revenue PBIDT PBIDT Margin (%) PBIT Capital Employed (PBIT basis) 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 Cement * 4,762 4,161 1,142 1,070 23.7 25.6 895 862 20,0
Slide 36: Consolidated Businesswise Performance – 12 Months
Consolidated Businesswise Performance – 12 Months (Rs. Crores) ROAvCE (%) Business Revenue PBIDT PBIDT Margin (%) PBIT Capital Employed (PBIT basis) 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 Cement * 15,969 15,475 3,483 4,767 21.6 30.6 2,559 3,96
Slide 37: Viscose Staple Fibre: Summary
Viscose Staple Fibre : Summary Quarter -4 Full Year % Chg. % Chg. 2010-11 2009-10 2010-11 2009-10 Capacity TPA 333,975 333,975 - 333,975 333,975 - Production MT 82,932 81,081 2 305,087 302,092 1 Sales Volumes MT 85,650 85,714 - 305,072 308,431 (1) Net Revenue Rs. Crs. 1,328.7 1,044.7 27 4,169.5 3,57
Slide 38: Chemical: Summary
Chemical : Summary Quarter -4 Full Year % Chg. % Chg. 2010-11 2009-10 2010-11 2009-10 Capacity TPA 258,000 258,000 -- 258,000 258,000 -- Production MT 66,183 59,994 10 242,037 229,801 5 Sales Volumes MT 68,253 59,585 15 241,365 229,876 5 Net Revenue Rs. Crs. 156.1 120.1 30 542.3 492.8 10 Avg. Realis
Slide 39: Cement: Summary
Cement : Summary Quarter -4 Full Year % Chg. % Chg. 2010-11 2009-10 2010-11 2009-10 Grey Cement Capacity Mn. TPA 51.75 48.75 6 51.75 48.75 6 Production Mn. MT 11.07 10.24 8 39.67 37.02 7 Cement Sales Volumes $ Mn. MT 11.09 10.37 7 39.96 37.29 7 Clinker Sales Volumes Mn. MT 0.43 0.62 (31) 1.59 2.46 (
Slide 40: Cement: Summary Contd…
Cement : Summary Contd… Quarter -4 Full Year % Chg. % Chg. 2010-11 2009-10 2010-11 2009-10 Realisation Rs. /MT - Domestic Cement 3,657 3,356 9 3,360 3,503 (4) - Clinker 1,877 1,455 29 1,697 1,785 (5) - White Cement 8,798 8,588 2 8,571 8,304 3 Net Revenue Rs. Crs. 4,762.0 4,161.5 14 15,969.1 15,475.0