Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q4 FY2011-12 Earnings Presentation
48 slides from Grasim Industries's earnings presentation, May 5, 2012
Slide 1: Performance Review Quarter 4: 2011-12
Performance Review Quarter 4 : 2011-12 Grasim Industries Limited A VSF and Cement 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 Highlights Business Review Financial Performance Capex Plan Summary 3
Slide 4: Highlights – Quarter 4
Highlights – Quarter 4 Q4 records improved performance sequentially, albeit lower than corresponding quarter Consolidated profits for the year were up by 16% Consolidated turnover crossed ` 25,000 Cr. for the first time (approximately US$5 billion) In Q4, Cement business reported improved pe
Slide 5: Business Review
Business Review VSF Chemical Cement Subsidiary 5
Slide 6: Viscose Staple Fibre: Highlights
Viscose Staple Fibre : Highlights Quarter 3 Quarter 4 % Global Industry Scenario Change 2011-12 2011-12 2010-11 (YoY) Globally textile industry continued to be 333,975 Capacity (TPA) 333,975 333,975 -- affected by slowdown in Eurozone and 84,233 Production (MT) 83,349 82,932 1 China VSF prices r
Slide 7: Viscose Staple Fibre: Highlights (Contd.)
Viscose Staple Fibre : Highlights (Contd….) Quarter 3 Quarter 4 % Profitability impacted due to : Change 2011-12 2011-12 2010-11 (YoY) Lower realisation 277.7 PBIDT (` Cr.) 232.0 513.6 (55) Increase in caustic and energy cost Inflationary pressure on fixed cost 25.3% PBIDT Margin (%) 18.9% 3
Slide 8: Viscose Staple Fibre: Outlook
Viscose Staple Fibre : Outlook Positive outlook in medium to long term driven by rising consumption in emerging markets In the short run, environment will be challenging Stability in Euro zone and Macro economic policies to influence demand New capacities in China may create pressure on mark
Slide 9: Viscose Staple Fibre: Outlook
Viscose Staple Fibre : Outlook Expansions are progressing as per schedule Present capacity Expanded Commissioning (KTPA) capacity (KTPA) Target Vilayat, Gujarat - 120 Q4 FY12-13 Harihar, Karnataka 51 87 In phases :Q2 & Q4 FY12-13 Domsjo, Sweden 210 255 Q1 FY12-13 Additional capacity (including s
Slide 10: Chemical: Highlights
Chemical : Highlights Quarter 4 Industry Scenario Quarter 3 % 2011-12 Change Caustic prices remained firm 2011-12 2010-11 (YoY) Industry utilisation affected due to low 258,000 Caustic Capacity (TPA) 258,000 258,000 - chlorine offtake 68,741 Production (MT) 68,298 66,183 3 High international p
Slide 11: Cement: Industry Scenario
Cement : Industry Scenario Industry Capacity Mn. Tons Sector capacity utilisation improved to 81% in Q4 from 71% in Q3 Over supply continues to haunt the sector 15 Mn. MT new capacity added during the year, taking cement capacity at ~ 319 Mn. MT Annual capacity utilisation at 73% with demand
Slide 12: Cement: Highlights
Cement : Highlights Quarter 3 Quarter 4 % Cement production up by 7% Change 2011-12 2011-12 2010-11 (YoY) Total sales volume up by 9% Grey Cement Capacity utilisation at 94% v/s 88% in 51.75 Capacity (Mn. TPA) 51.75 51.75 - last year 10.44 Production (Mn. MT) 11.84 11.07 7 Sales Volumes(Mn. MT
Slide 13: Cement: Financials
Cement : Financials Quarter 4 % Consolidated Net Revenue surpass US$ Quarter 3 Change 1Bn., up by 19% 2011-12 2011-12 2010-11 (YoY) Higher volumes 4,864.8 Net Revenue (` Cr.) 5,659.1 4,745.7 19 Cost pushed Realisations 1,124.2 PBIDT (` Cr.) 1,490.1 1,139.9 31 22.9% PBIDT Margin (%) 25.7% 23.8%
Slide 14: Cement: Outlook
Cement : Outlook Industry likely to grow at 8% + per annum Infrastructure, housing development and rural development to be major growth drivers Demand growth should lead to higher volumes and better utilisation of capacity for us Surplus supply scenario likely to continue for next 3 years
Slide 15: Financial Performance
ri —_ we i Financial Performance 15
Slide 16: Consolidated Revenue
Consolidated Revenue (44) 12% 913 (98) (28) 64 7,289 ` Crore 6,482 Quarter 4 VSF Pulp JVs Chemical Cement Textile & Inter Quarter 4 2010-11 Co. 2011-12 Eliminations 6,482 (98) (28) 64 913 (44) 7,289 16
Slide 17: Revenue Chart
Revenue Chart ` Crore Full Year Quarter -4 Net Revenue 2011-12 2010-11 2011-12 2010-11 4,292 4,164 Viscose Staple Fibre 1,228 1,326 43% 777 542 Chemical 220 156 41% 105 78 Others 25 22 (205) (144) Inter Segment Eliminations (Intra Company) (60) (45) 7% 4,970 4,640 Standalone Net Revenue 1,412 1,458
Slide 18: Financial Performance – Consolidated
Financial Performance – Consolidated 2011-12 2010-11 % Change Full Year Full Year % Change ( ` Crore) Quarter 4 Quarter 3 Quarter 4 YoY 2011-12 2010-11 Revenue 7,289 6,292 6,482 12 25,244 21,550 17 Operating Costs 5,680 4,967 4,826 18 19,669 16,555 19 PBIDT 1,883 1,554 1,780 6 6,320 5,395 17 Interes
Slide 19: Financial Performance – Standalone
Financial Performance – Standalone 2011-12 2010-11 % Change Full Year Full Year % Change ( ` Crore) Quarter 4 Quarter 3 Quarter 4 YoY 2011-12 2010-11 Revenue 1,412 1,266 1,458 4,970 4,640 7 Operating Costs 1,172 957 961 22 3,711 3,121 19 PBIDT 367 395 582 (37) 1,722 1,817 (5) Interest 7 7 13 (45) 36
Slide 20: Consolidated PBIDT
Consolidated PBIDT 6% 67 (282) 350 (35) 3 1,883 1,780 ` Crore Quarter-4 VSF Pulp JVs Chemical Cement HO & Others Quarter-4 2010-11 2011-12 1,780 (282) (35) 3 350 67 1,883 Improved performance from Cement business 20
Slide 21: PBIDT – Chart
PBIDT – Chart ` Crore Full Year PBIDT Quarter -4 2011-12 2010-11 2011-12 2010-11 1,167 1,479 Viscose Staple Fibre 232 514 29% 161 124 Chemical 32 29 10% 394 213 Others 103 39 1,722 1,817 Standalone PBIDT 367 582 Subsidiaries 31% 4,565 3,481 UltraTech Cement Ltd. 1,490 1,140 31% 26 20 Grasim Bhiwani
Slide 22: Net Profit
Net Profit ` Crore Full Year Quarter -4 2011-12 2010-11 2011-12 2010-11 Total Grasim's Total Grasim's Total Grasim's Total Grasim's Co. share Co. share Co. share Co. share 1,177 1,182 Standalone Reported PAT 244 396 43% 2,403 1,450 1,682 1,016 UltraTech Cement (60.34%) 872 526 716 432 22% 6 6 4 4 Gr
Slide 23: Balance Sheet: Grasim
Balance Sheet : Grasim Standalone Consolidated ` Crore As on As on As on As on EQUITY & LIABILITIES 31.03.12 31.03.11 31.03.12 31.03.11 SHAREHOLDERS' FUNDS 91.7 91.7 Share Capital 91.7 91.7 - - Other Share Capital 41.9 37.7 12% 17% 9,007.7 8,042.0 Reserves & Surplus 16,935.0 14,443.9 - Minority Inte
Slide 24: Balance Sheet: Grasim
Balance Sheet : Grasim Standalone Consolidated ` Crore As on As on As on As on ASSETS 31.03.12 31.03.11 31.03.12 31.03.11 NON-CURRENT ASSETS 1,548.5 1,541.8 Net Fixed Assets 15,052.7 14,431.6 965.1 100.9 Capital WIP & Advances 4,258.9 1,357.8 53% 2,513.7 1,642.7 19,311.6 15,789.4 22% - Goodwill on C
Slide 25: Grasim Financials
Grasim Financials Standalone Consolidated Full Year Full Year Full Year Full Year (` Crore) 2011-12 2010-11 2011-12 2010-11 Net Worth 9,099 8,134 17,069 14,573 Debt 720 814 7,036 6,783 Net Debt (Net of liquidity) (2,089) (2,428) 674 24 Capital Employed 10,058 9,177 31,317 27,669 Debt:Equity (x) 0.08
Slide 26: Capex
ri —_ we i Capex 26
Slide 27: Capex plan
Capex plan ` Crore Cash Outflow Capex Capex under Opening spent Implemen- Work in FY13 FY14 during tation Progress FY12 VSF Business - Expansion Projects: Vilayat (120K TPA), Harihar (36K TPA) 2,257 - Other Capex 491 Chemical Business – Vilayat (182K TPA) 807 Balance Capex (Including normal capex fo
Slide 28: Summary
ri —_ we i Summary 28
Slide 29: Summary
Summary Cement business performed well helped by improved demand VSF business, however, was impacted due to difficult global conditions Leadership position and cost competitiveness in both the businesses will be further strengthened on ongoing basis Capacity expansions under implementation i
Slide 30: 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 FVilayat UltraTech Grinding Units (G) F C Pipavav Nagda Hirmi Raipur Magdalla (G) Awarpur B UltraTech Bulk Cemen
Slide 31: Thank You
ADITYA BIRLA GRASIM Thank You
Slide 32: Annexure
Grasim Industries Limited Annexure
Slide 33: Annexure
Annexure Consolidated Financial Performance Standalone Financial Performance Consolidated and Standalone Profitability Businesswise Performance VSF Summary Chemical Summary Cement Summary 33
Slide 34: Consolidated Financial Performance
Consolidated Financial Performance (` Crore) Quarter - 4 % Full Year % 2011-12 2010-11 Change 2011-12 2010-11 Change Net Sales & Op. Income 7,289.2 6,482.3 12 25,244.3 21,550.2 17 Other Income 273.4 123.5 121 745.4 399.1 87 PBIDT 1,882.9 1,779.7 6 6,320.3 5,394.5 17 Finance Cost 79.9 109.1 (27) 313.
Slide 35: Standalone Financial Performance
Standalone Financial Performance (` Crore) Quarter - 4 % Full Year % 2011-12 2010-11 Change 2011-12 2010-11 Change Net Sales & Op. Income 1,412.2 1,458.4 (3) 4,969.7 4,640.1 7 Other Income 126.5 85.1 49 463.5 297.8 56 PBIDT 367.1 582.4 (37) 1,721.8 1,816.8 (5) Finance Cost 7.4 13.3 (45) 35.8 45.8 (2
Slide 36: Profitability Snapshot
Profitability Snapshot Standalone Consolidated ( ` Crore) FY FY FY FY FY FY FY FY 2008-09 2009-10 * 2010-11 * 2011-12 * 2008-09 2009-10 2010-11 2011-12 Gross Turnover 12,097 8,842 4,917 5,257 20,325 21,711 23,620 27,642 Net Turnover & Op. Income 10,965 8,313 4,640 4,970 18,496 20,195 21,550 25,244 P
Slide 37: Consolidated Businesswise Performance – Quarter 4
Consolidated Businesswise Performance – Quarter 4 (` Crore) PBIDT Margin Capital ROAvCE (%) Business Revenue PBIDT PBIT (%) Employed (PBIT basis) 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 Cement * 5,659 4,746 1,490 1,140 25.7 23.8 1,241 893 22,63
Slide 38: Consolidated Businesswise Performance – Full Year
Consolidated Businesswise Performance – Full Year (` Crore) PBIDT Margin Capital ROAvCE (%) Business Revenue PBIDT PBIT (%) Employed (PBIT basis) 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 Cement * 19,236 15,941 4,565 3,481 23.3 21.6 3,602 2,557 2
Slide 39: Viscose Staple Fibre: Summary
Viscose Staple Fibre : Summary Quarter -4 % Full Year % 2011-12 2010-11 Change 2011-12 2010-11 Change Capacity TPA 3,33,975 3,33,975 - 3,33,975 3,33,975 - Production MT 83,439 82,932 1 3,21,085 3,05,087 5 Sales Volumes MT 94,904 85,650 11 3,06,917 3,05,072 1 Net Revenue ` Cr. 1,227.9 1,326.02 (7) 4,
Slide 40: Chemical: Summary
Chemical : Summary Quarter -4 % Full Year % 2011-12 2010-11 Change 2011-12 2010-11 Change Capacity TPA 2,58,000 2,58,000 - 2,58,000 2,58,000 - Production MT 68,298 66,183 3 2,60,326 2,42,037 8 Sales Volumes MT 72,839 68,253 7 2,65,816 2,41,365 10 Net Revenue ` Cr. 219.7 155.7 41 776.8 542.3 43 Avg.
Slide 41: Cement: Summary
Cement : Summary Quarter 3 Quarter -4 % Full Year % 2011-12 2010-11 Change 2011-12 2010-11 Change 2011-12 Grey Cement 51.75 Capacity Mn. TPA 51.75 51.75 - 51.75 51.75 - 10.44 Production Mn. MT 11.84 11.07 7 42.11 39.67 6 10.44 Cement Sales Volumes $ Mn. MT 12.06 11.09 9 42.60 39.96 7 0.38 Clinker Sa
Slide 42: Press Release: Grasim Reports Improved Performance for FY12
Press Release Mumbai, 5th May, 2012 GRASIM REPORTS IMPROVED PERFORMANCE FOR FY12 Consolidated Net Revenue crossed ` 25,000 Cr. Mark (up 17% at ` 25,244 Cr.) Consolidated Net Profit : ` 2,647 Cr. up 16% Capacity addition planned by FY14 - VSF : 156K TPA (Up 50%) - Cement : 10.2 Mn. TPA (Up 20%) Conso
Slide 43: Press Release (continued)
Variable cost was higher by 10%, mainly on account of increase in energy cost. This is attributable to 30% -150% rise in the price of domestic coal during Q4 FY10 -11. Logistics cost also rose due to increase in the railway freight. Chemical Business The Chemical business delivered another quarter o
Slide 44: Audited Consolidated Financial Results
AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 31-03-2012 PART I: STATEMENT OF CONSOLIDATED AUDITED RESULTS FOR THE QUARTER AND YEAR ENDED 31-03-2012 ` Crore Three Months Ended Year Ended Particulars 31-03-2012 31-12-2011 31-03-2011 31-03-2012 31-03-2011 (Audited) (Unaudited) (Unaudited)
Slide 45: Audited Consolidated Segment-wise Revenue, Results and Capital Employed
AUDITED CONSOLIDATED SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE YEAR ENDED 31-03-2012 ` Crore Particulars Three Months Ended Year Ended 31-03-2012 31-12-2011 31-03-2011 31-03-2012 31-03-2011 (Audited) (Unaudited) (Unaudited) (Audited) (Audited) Refer Note 6 1. SEGMENT REVENUE a Visco
Slide 46: Notes to Financial Results
GRASIM INDUSTRIES LIMITED NOTES: 1. a. The Company has opted to publish Consolidated Financial Results. The Standalone Financial Results are available at the Company’s websites, www.grasim.com and www.adityabirla.com and on the websites of the Stock Exchanges, www.bseindia.com and www.nseindia.com.
Slide 47: Notes and Statement of Assets and Liabilities
GRASIM INDUSTRIES LIMITED 6. The figures of the quarter ended 31st March are the balancing figures between the audited figures in respect of the full financial year and published year to date figures upto third quarter of the relevant financial year. 7. Consolidated Statement of Assets and Liabiliti
Slide 48: Notes to Financial Results (continued)
GRASIM INDUSTRIES LIMITED 8. Previous periods’ figures have been regrouped/rearranged wherever necessary to conform to the current periods’ classification. For and on behalf of Board of Directors Place : Mumbai K.K.Maheshwari Date : 5th May, 2012 Managing Director GRASIM INDUSTRIES LIMITED Regd. Off
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