Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q3 FY21 Earnings Presentation
42 slides from Grasim Industries's earnings presentation, Feb 12, 2021
Slide 1: Earnings Presentation Q3 FY21
EARNINGS PRESENTATION Q3 FY21
Slide 2: Big in Your Life
BIG IN YOUR LIFE # 1 In Viscose @ # 1 In Chlor - Alkali* 57.28% 54.21% Market Cap (Feb 05, 2021): INR 78,040 Crore (USD 10.72 Billion) Market Cap Market Cap (Feb 05, 2021): (Feb 05, 2021): INR 1.83 Lakh Crore INR 21,771 Crore (USD 25.19 Billion) (USD 2.99 Billion) Cement Producer Asset Management #
Slide 3: Table of Content
Table of Content Key Quarterly Updates Financial Overview Business Performance ESG Appendix
Slide 4: Key Quarterly Updates
KEY QUARTERLY UPDATES Grasim Industries Limited | Earnings Presentation | Q3 FY21 4
Slide 5: Quarterly Highlights
Quarterly Updates Financial Overview Business Performance ESG Appendix QUARTERLY HIGHLIGHTS Operational and Financial Performance Buoyant quarterly performance with 24% QoQ and 52% YoY growth in consolidated EBITDA Capacity Utilisation for all key businesses touched Pre COVID-19 levels. Q3FY21- VSF:
Slide 6: Foray into Paints Business
Quarterly Updates Financial Overview Business Performance ESG Appendix FORAY INTO PAINTS BUSINESS Rationale Strategy • Entry into Consumer-Focused • Strong Number Two Player in business adds scale, growth and decorative paints segment reduces portfolio volatility • Potentially leverage Birla White •
Slide 7: Financial Overview
FINANCIAL OVERVIEW Grasim Industries Limited | Earnings Presentation | Q3 FY21 7
Slide 8: Strong Financial Performance Driven by Multiple Drivers
Quarterly Updates Financial Overview Business Performance ESG Appendix STRONG FINANCIAL PERFORMANCE DRIVEN BY MULTIPLE DRIVERS Standalone Revenue (Rs. Cr.) Standalone EBITDA (Rs. Cr.) 1,940 3,438 4,269 -46 680 766 25% 14% 3,672 709 621 2,949 1,335 72 59 57 (118) 605 489 597 Q1FY21 Q2FY21 Q3FY21 Q1FY
Slide 9: Financial Overview: Quarterly
Quarterly Updates Financial Overview Business Performance ESG Appendix FINANCIAL OVERVIEW: QUARTERLY Consolidated Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT (Rs. Cr.) 13% 17% 52% 24% 103% 43% YoY QoQ YoY QoQ YoY QoQ 18,617 20,986 4,476 1,384 17,944 3,603 2,945 967 680 Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21
Slide 10: Strong Balance Sheet
Quarterly Updates Financial Overview Business Performance ESG Appendix STRONG BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) Net Debt/ EBITDA Net Debt/ EBITDA 1.25x 0.92x (Last 12M EBITDA) (Last 12M EBITDA) Mar-20 28,401 Mar-20 4,574 2,975 20,761 Reduction Reduction Rs. 882 Cr. Rs. 7,994
Slide 11: Capex Plan
Quarterly Updates Financial Overview Business Performance ESG Appendix CAPEX PLAN Capex spent Balance Approved Particulars (Rs. Cr.) Capex for FY21 9MFY21 Viscose Staple Fibre (from 578 KTPA to 801 KTPA) Capacity Expansion 315 559 Normal Modernisation and Maintenance Capex 131 135 Chemical (from 1,1
Slide 12: Business Performance
BUSINESS PERFORMANCE Grasim Industries Limited | Earnings Presentation | Q3 FY21 12
Slide 13: VSF Demand Improving with Recovery in Textile Sector
Quarterly Updates Financial Overview Business Performance ESG Appendix VSF DEMAND IMPROVING WITH RECOVERY IN TEXTILE SECTOR Strong consumer demand in Tier-2/3 towns and rural segment, coupled with festivals and wedding season created a positive impetus Lower VSF & Yarn prices compared to cotton and
Slide 14: Financial Performance - Viscose
Quarterly Updates Financial Overview Business Performance ESG Appendix FINANCIAL PERFORMANCE - VISCOSE Global Prices Trend ($/Kg) Price YoY QoQ Dec Exit Price Movement (%) (%) (D over Q3FY21) 2.40 1.90 Grey VSF - 1.41 $/Kg 7% 20% 1.40 CCF ( 5% ) 0.90 1.77 $/Kg 0.40 Cotton 4% 11% ( 4% ) Jul-20 Jun-20
Slide 15: Financial Performance - Viscose
Quarterly Updates Financial Overview Business Performance ESG Appendix FINANCIAL PERFORMANCE - VISCOSE Revenue1 (Rs. Cr.) EBITDA1 (Rs. Cr.) 28% 89% 150% 2,194 QoQ 2,145 YoY QoQ 482 1,679 256 193 Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21 Sequential growth in Viscose revenues driven by improved realis
Slide 16: Financial Performance - Viscose
Quarterly Updates Financial Overview Business Performance ESG Appendix FINANCIAL PERFORMANCE - VISCOSE VSF Sales (KT) Sales Volume Mix 3% 8% Export Sales Grey VSF YoY QoQ 142 9% 78% 138 131 91% 22% Q3FY20 Q2FY21 Q3FY21 Domestic Sales VAP VFY Sales (KT) Sequential improvement in the share of VAP mix
Slide 17: Financial Performance - Chemicals
Quarterly Updates Financial Overview Business Performance ESG Appendix FINANCIAL PERFORMANCE - CHEMICALS Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 1,362 185 187 1,281 177 1,126 Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21 Revenue and EBITDA of Chemicals business touched the pre COVID-19 level with pick up in
Slide 18: Financial Performance - Chemicals
Quarterly Updates Financial Overview Business Performance ESG Appendix FINANCIAL PERFORMANCE - CHEMICALS Caustic Realisation Grasim – ECU 45,000 40,000 37,036 37,856 35,000 40,453 38,342 30,000 37,216 30,348 25,000 26,637 20,000 27,805 24,171 15,000 25,649 22,760 Caustic Realisation - Grasim (Rs./MT
Slide 19: Caustic - Key Operational Metrics
Quarterly Updates Financial Overview Business Performance ESG Appendix CAUSTIC – KEY OPERATIONAL METRICS Caustic Soda Sales (KT) Chlorine & HCl Consumption in VAP (Tons) 9% 3% 261 QoQ 73,420 QoQ 258 66,239 64,278 236 Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21 Domestic demand from textile, alumina and
Slide 20: Financial Performance - Other Businesses
Quarterly Updates Financial Overview Business Performance ESG Appendix FINANCIAL PERFORMANCE – OTHER BUSINESSES Textile Insulators Revenue (Rs. Cr.) Revenue (Rs. Cr.) 400 49% 15% 15% QoQ YoY QoQ 103 263 176 90 90 Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21 EBITDA (Rs. Cr.) EBITDA (Rs. Cr.) 269% 39% Yo
Slide 21: Financial Performance - UltraTech
Quarterly Updates Financial Overview Business Performance ESG Appendix FINANCIAL PERFORMANCE – UltraTech Sales volume (Million Ton) Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 14% 17% 57% YoY YoY YoY 24 12,254 3,362 21 10,439 2,147 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Strong operational performance on b
Slide 22: Financial Performance - ABCL
Quarterly Updates Financial Overview Business Performance ESG Appendix FINANCIAL PERFORMANCE – ABCL Lending Book (Rs. Cr.)* Domestic AAUM (Rs. Cr.) 2% 60,123 YoY 57,522 255,458 249,926 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Revenue and net profit after minority interest for Q3FY21 are up 17.1% and 15.6% to Rs.
Slide 23: Financial Performance - Other Subsidiaries
Quarterly Updates Financial Overview Business Performance ESG Appendix FINANCIAL PERFORMANCE – OTHER SUBSIDIARIES Aditya Birla Renewables (Solar Power) Grasim Premium Fabrics Private Limited Rs. Cr. Rs. Cr. Particulars Q3FY21 Q2FY21 Q3FY20 Particulars Q3FY21 Q2FY21 Q3FY20 Revenue 45 34 26 Revenue 26
Slide 24: Financial Performance - Pulp JVs
Quarterly Updates Financial Overview Business Performance ESG Appendix FINANCIAL PERFORMANCE – PULP JV’s Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 18% 19% YoY QoQ 40 1,272 1,081 1,072 -3 -32 Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21 Production Volume (Tons) Sales Volume (Tons) 7% 1% 19% 15% YoY QoQ YoY QoQ
Slide 25: Consolidated Income Statement
Quarterly Updates Financial Overview Business Performance ESG Appendix CONSOLIDATED INCOME STATEMENT Quarterly Year to Date Particulars (Rs. Cr.) Q3FY21 Q3FY20 9MFY21 9MFY20 Revenue from Operations 20,986 18,617 51,973 55,766 Other Income 330 243 907 695 EBITDA 4,476 2,945 10,624 10,435 EBITDA Margi
Slide 26: Standalone Income Statement
Quarterly Updates Financial Overview Business Performance ESG Appendix STANDALONE INCOME STATEMENT Quarterly Year to Date Particulars (Rs. Cr.) Q3FY21 Q3FY20 9MFY21 9MFY20 Revenue from Operations 3,672 3,858 7,955 12,233 Other Income 64 81 444 452 EBITDA 709 465 1,212 2,238 EBITDA Margin (%) 19% 12%
Slide 27: ESG
ESG Grasim Industries Limited | Earnings Presentation | Q3 FY21 27
Slide 28: Greater Purpose - Greater Future
Quarterly Updates Financial Overview Business Performance ESG Appendix GREATER PURPOSE - GREATER FUTURE VSF business has set a global benchmark in sustainability • VSF business received the No.1 ranking in Canopy Hot Button Report 2020 and has been accorded with ‘Dark Green Shirt’ • VSF business won
Slide 29: R&D: Investment in Future Products
Quarterly Updates Financial Overview Business Performance ESG Appendix R&D: Investment In Future Products VSF Key Strengths Product Innovation (VSF) Liva Reviva: Virgin raw material is replaced World-class Infrastructure with pre-consumer industrial waste, thus 1 Corporate R&D 5 for VSF 4 for CFI up
Slide 30: Key Focus Area: R&D & Sustainability
Quarterly Updates Financial Overview Business Performance ESG Appendix KEY FOCUS AREA: R&D & SUSTAINABILITY R&D: Investment In Future Products Sustainability: Key Focus Areas Product Innovation (Chemicals) Energy • Launched Vytal, new products for water VSF & Chemicals: Focus is on reducing the ener
Slide 31: Key Focus Areas: CSR & Human Resources
Quarterly Updates Financial Overview Business Performance ESG Appendix KEY FOCUS AREAS: CSR & HUMAN RESOURCES Caring For Our Community Empowering Our Employees Education Recruitment and Leadership Pipeline 23,342 children supported through educational material Ratio of 1:1 identified successors for
Slide 32: Appendix
APPENDIX Grasim Industries Limited | Earnings Presentation | Q3 FY21 32
Slide 33: Balance Sheet
Quarterly Updates Financial Overview Business Performance ESG Appendix BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) 31st Dec'20 31st Mar'20 EQUITY & LIABILITIES 31st Dec'20 31st Mar'20 41,762 37,674 Net Worth 63,047 56,611 - - Non Controlling Interest 36,152 34,305 - - Borrowings relate
Slide 34: Viscose Business Summary
Quarterly Updates Financial Overview Business Performance ESG Appendix VISCOSE BUSINESS SUMMARY Quarterly Year to Date Particulars % Change % Change Q3FY21 Q3FY20 9MFY21 9MFY20 Capacity VSF KTPA 578 566 2 578 566 2 VFY KTPA 48 46 4 48 46 4 Production VSF KT 144 148 (3) 309 436 (29) VFY KT 9 10 (10)
Slide 35: Chemical Business Summary
Quarterly Updates Financial Overview Business Performance ESG Appendix CHEMICAL BUSINESS SUMMARY Quarterly Year to Date Particulars % Change % Change Q3FY21 Q3FY20 9MFY21 9MFY20 Capacity* KTPA 1,147 1,147 0 1,147 1,147 0 Production* KT 259 257 1 629 747 (16) Sales Volume* KT 258 261 (1) 633 740 (14)
Slide 36: Financial Overview: Year to Date
Quarterly Updates Financial Overview Business Performance ESG Appendix FINANCIAL OVERVIEW: YEAR TO DATE Consolidated Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT (Rs. Cr.) 55,766 51,973 10,435 10,624 2,887 2,585 9MFY20 9MFY21 9MFY20 9MFY21 9MFY20 9MFY21 Standalone Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT (R
Slide 37: Unit Wise Capacities and Expansion Plan
Quarterly Updates Financial Overview Business Performance ESG Appendix UNIT WISE CAPACITIES AND EXPANSION PLAN VSF Capacity (KTPA) Caustic Soda Capacity (KTPA) BB’Puram 1,457 (146 KTPA) Phase 1 - Q1FY22 801 146 (73KTPA) 1,147 1,147 Vilayat expansion Vilayat expansion 438 (73 KTPA) 578 582 (219 KTPA)
Slide 38: Grasim Group Structure
Quarterly Updates Financial Overview Business Performance ESG Appendix GRASIM GROUP STRUCTURE Grasim Industries Limited VSF - 578K TPA Caustic Soda - Overseas UTCL (57.28%)** ABCL (54.21%)** VFY - 48K TPA 1147K TPA Others Pulp - 74K TPA Pulp & VSF JVs Subsidiary Subsidiary Epoxy – 123K TPA Nagda Nag
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 | Q3 FY21 40
Slide 41: Glossary
GLOSSARY Abbreviation Particulars AAUM Average Asset Under Management ECU Electro Chemical Unit Epoxy Name of Chemical FY Financial Year KTPA Thousand Ton per annum MTPA Million Ton per annum NBFC Non Banking Financial Company PMT Per Metric Ton ROAvCE Return on Average Capital Employed TPD Ton per
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