Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q1 FY2025 Earnings Presentation
41 slides from Grasim Industries's earnings presentation, Aug 9, 2024
Slide 1: Presentation on Unaudited Financial Results
Ref No. GIL/CFD/SEC/25/154/SE 9th August 2024 BSE Limited National Stock Exchange of India Limited Scrip Code: 500300 / 890190 Symbol: GRASIM / GRASIMPP1 Dear Sir/Madam, Sub: Presentation on Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter ended 30th June 2024
Slide 2: Grasim Industries Limited Earnings Presentation Q1FY25
A FORCE FOR GOOD GRASIM INDUSTRIES LIMITED Earnings Presentation Q1FY25 August 2024 CREATING AND SCALING GROWTH ENGINES FOR A GROWING ECONOMY
Slide 3: Grasim's Leadership Across Key Components of Growing Economy
GRASIM’s LEADERSHIP ACROSS KEY COMPONENTS OF GROWING ECONOMY • Cellulosic Staple Fibre • Grey Cement • Cellulosic Fashion Yarn • White Cement • Linen Textiles Infrastructure • Ready Mix Concrete • Premium Cotton Aspirational & Housing • Wall Putty Fabrics Consumption Demand • Decorative Paints • Chl
Slide 4: Track Record of Consistent Growth
TRACK RECORD OF CONSISTENT GROWTH Consolidated Revenue (₹ Cr.) PILLARS OF OUR STRATEGY 1,30,978 1,33,774 TTM Revenue 1,17,627 ₹ 1,33,774 Cr. MARKET LEADERSHIP 26,840 25,847 26,504 23% 20% 20% INNOVATION TTM EBITDA FY23 FY24 TTM Consolidated Revenue Standalone Revenue Standalone % in consolidated ₹ 2
Slide 5: Macro Updates
MACRO UPDATES Grasim Industries Q1FY25 Earnings Presentation
Slide 6: Macro Indicators
MACRO INDICATORS Industrial Production – IIP Growth (% YoY) India Merchandise Exports ($bn) IIP (% growth YoY) Average (FY24) 5.9 140 120.0 5.9 107.4 108.3 105.9 120 5.6 5.4 104.0 5.0 100 4.2 80 60 40 20 0 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 IIP grew by 5.9% YoY in
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS Grasim Industries Q1FY25 Earnings Presentation
Slide 8: Performance Highlights - Q1FY25
PERFORMANCE HIGHLIGHTS - Q1FY25 Consolidated Revenue ₹33,861 Cr. up 9% YoY; EBITDA at ₹4,760 Cr. down 4% YoY • Consolidated EBITDA was down mainly driven by investments in Paints business for building a strong consumer facing business Cellulosic Fibres: Highest ever CSF quarterly sales volume of 212
Slide 9: Performance Highlights - Q1FY25
PERFORMANCE HIGHLIGHTS - Q1FY25 CONSOLIDATED Revenue (₹ Cr.) EBITDA (₹ Cr.) Adjusted PAT* (₹ Cr.) 37,727 6,196 33,861 1,908 31,065 4,981 4,760 1,576 1,189 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 ^ Q1FY25^ STANDALONE Revenue (₹ Cr.) EBITDA (₹ Cr.) Adjusted PAT* (₹ Cr.) 789 787 355 6,7
Slide 10: Strong Balance Sheet
STRONG BALANCE SHEET Consolidated As on As on As on Particulars 30th Jun 2023 31st Mar 2024 30th Jun 2024 Net worth (₹ Cr.) 80,996 88,652 93,317 Debt - Equity Ratio 0.85 0.97 1.00 Debt* - Equity Ratio 0.15 0.19 0.21 Net debt* (₹ Cr.) 8,985 15,436 19,028 Total debts to Total assets 0.31 0.33 0.33 Con
Slide 11: Improving Sustainability Performance
IMPROVING SUSTAINABILITY PERFORMANCE* 54% 11% 11% 50% 8% Increasing 46% 44% Increasing proportion of 5% Renewable recycled water Power Share to freshwater consumption FY22 FY23 FY24 Q1FY25 FY22 FY23 FY24 Q1FY25 Awards & Achievements: ➢ Indian patent granted for Nanollose’s Nullarbor - Tree-Free lyoc
Slide 12: Cellulosic Fibres
CELLULOSIC FIBRES (CELLULOSIC STAPLE FIBRE & CELLULOSIC FASHION YARN) Grasim Industries Q1FY25 Earnings Presentation
Slide 13: Cellulosic Fibres: Fastest Growing in the Fibre Basket
CELLULOSIC FIBRES: FASTEST GROWING IN THE FIBRE BASKET GLOBAL INDIA INDIA CELLULOSIC 12.8% CAGR FIBRE GROWING 4.0% CAGR FASTEST WITH CAGR >2x 0.3% CAGR (0.8%) CAGR OF OTHER FIBRES 3.8% CAGR 4.5% CAGR CY15 CY23 CY15 CY23 Synthetic Cotton Cellulosic Fibres Synthetic Cotton Cellulosic Fibres GROWTH 6%
Slide 14: Macro Trends - Cellulosic Fibres
MACRO TRENDS - CELLULOSIC FIBRES China Operating Rate (in Percentage) China Inventory (in Days) 85 16 82 82 12 12 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Global Prices Trend ($/Kg) Price Movement 3.62 YoY QoQ Jun Exit Price Fibres (%) (%) (D over Q1FY25) 2.07 2.14 1.64 $/Kg 1.91 International CSF
Slide 15: Key Operational Metrics
KEY OPERATIONAL METRICS CSF Sales (KT) Sales Volume Mix (CSF) Export Sales Standard Fibre 208 212 11% 78% 187 Q1FY25 Q1FY25 89% 22% Q1FY24 Q4FY24 Q1FY25 Domestic Sales Speciality Fibre CFY Sales (KT) Highest ever quarterly CSF sales volume at 212 KT, up 14% YoY 10.8 9.3 9.5 Specialty volumes share i
Slide 16: Operating Performance – Cellulosic Fibres
OPERATING PERFORMANCE – CELLULOSIC FIBRES Revenue (₹ Cr.) EBITDA (₹ Cr.) 3,762 3,787 462 3,584 405 390 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Cellulosic Fibres revenue grew 6% led by volume growth though realisation was lower on YoY basis CSF EBITDA was higher by 16% YoY led by lower input (caust
Slide 17: Chemicals
CHEMICALS (CHLOR-ALKALI, CHLORINE DERIVATIVES & SPECIALITY CHEMICALS) Grasim Industries Q1FY25 Earnings Presentation
Slide 18: Diversified Chemicals Portfolio
DIVERSIFIED CHEMICALS PORTFOLIO FY26 1,168 Q1FY27 CHLOR-ALKALI 1,530 172 13% 139 15% ➢ Largest producer of Caustic Soda in India. Market growing at a steady pace with demand from Alumina, Organic & Inorganic Chemicals, Textiles & FMCG industries 1,359 1,029 246 ➢ Maintaining Market leadership positi
Slide 19: Focus on Speciality Chemicals
FOCUS ON SPECIALITY CHEMICALS MAJOR END-USE APPLICATIONS CHLORINE INTEGRATION LEVELS (%) Integration includes chlorine SPECIALITY CHEMICALS* consumption for HCL and pipeline 65% CONSTRUCTION sales for dedicated customers 62% 60% 58% RENEWABLES FY22 FY23 FY24 Q1FY25 CHEMICALS REVENUE BREAK-UP (Q1FY25
Slide 20: Key Operational Metrics - Chemicals
KEY OPERATIONAL METRICS - CHEMICALS CFR SEA Caustic Soda Prices ($/Ton)# Grasim – ECU (₹/Ton) 451 469 415 34,729 32,529 30,427 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Caustic Soda Sales (KT) Revenue Break-up of Chemicals Business (%) 308 292 282 20% 20% 20% 25% 28% 30% 55% 52% 50% Q1FY24 Q4FY24 Q1
Slide 21: Financial Performance - Chemicals
FINANCIAL PERFORMANCE - CHEMICALS Revenue (₹ Cr.) EBITDA (₹ Cr.) 2,146 358 2,083 2,066 310 195 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 International average Caustic soda prices (CFR-SEA) improved by 13% YoY to $469/MT in Q1FY25. Domestic caustic prices remains lower due to demand supply mismatch C
Slide 22: Building Materials
BUILDING MATERIALS (CEMENT, PAINTS & B2B E-COMMERCE) Grasim Industries Q1FY25 Earnings Presentation
Slide 23: India Cement Industry
INDIA CEMENT INDUSTRY India is the second largest cement producer in the world, but remains a highly underpenetrated market Global Cement Production Per Capita Cement Consumption - FY23 (kg/annum) 1,430-1,480 1,110-1,130 32.2% 950-980 750-780 51.1% World average: 500-550 1.6% 420-470 420-430 1.2% 30
Slide 24: Performance Update - Cement (UltraTech)
PERFORMANCE UPDATE - CEMENT (ULTRATECH) Domestic sales grew 6% YoY with capacity utilisation of 85% Grey cement capacity expanded by 8.7 MTPA in Q1FY25, taking total grey cement capacity (India and Overseas) to 154.9 Mn TPA Domestic grey cement realisations declined by 5.7% and 2.4% YoY and QoQ resp
Slide 25: Growing India Decorative Paints Market
GROWING INDIA DECORATIVE PAINTS MARKET INDUSTRY SIZE – FY25e Estimated CAGR of UN-ORGANISED MARKET PER-CAPITA CONSUMPTION ~₹80,000 Cr. ~25% 3.5 kg (Global average of 10 kg/annum) >10% over the next decade Housing Urbanisation Demand 2nd Largest Player* in Indian Decorative Paints Industry MANUFACTUR
Slide 26: Performance Update - Paints (Birla Opus)
PERFORMANCE UPDATE - PAINTS (BIRLA OPUS) Operations ramping up at three plants commenced in Apr’24, trial run production started at Chamarajanagar and construction activity at other two plants is progressing as per schedule More than 80% range of 145 planned products have been placed in the distribu
Slide 27: Digitisation of Construction Materials Trade
DIGITISATION OF CONSTRUCTION MATERIALS TRADE Digital shifting of Construction Materials market with end-to-end solutions (Demand prediction, Product assortment, Sourcing, Logistics and Financing) VALUE PROPOSITION PRODUCT CATEGORIES CEMENT & STEEL SANITARYWARE COMPETITIVE PRICING ASSURED QUALITY PIP
Slide 28: Performance Update - B2B Ecommerce (Birla Pivot)
PERFORMANCE UPDATE - B2B ECOMMERCE (BIRLA PIVOT) Quarterly revenue run-rate now over ₹550 Cr., continued revenue scale up across categories, geographies and new customers Expanded offerings across 35 product categories comprising 18,000+ SKUs sourced from 150+ Indian and International brands New buy
Slide 29: Financial Performance - Building Materials
FINANCIAL PERFORMANCE - BUILDING MATERIALS Revenue (₹ Cr.) EBITDA (₹ Cr.) 4,150 20,919 17,867 18,701 3,143 2,909 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Revenue grew by 5% YoY to ₹18,701 Cr. aided by new growth businesses at standalone level • Cement business revenue stood at ₹18,070 Cr. , up by 2
Slide 30: Financial Services
FINANCIAL SERVICES Grasim Industries Q1FY25 Earnings Presentation
Slide 31: Performance Update - Financial Services (Aditya Birla Capital)
PERFORMANCE UPDATE - FINANCIAL SERVICES (ADITYA BIRLA CAPITAL) Revenue# (₹ Cr.) Total Lending Book (₹ Cr.)* 10,484 1,27,705 1,24,059 8,807 1,00,287 7,030 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Consolidated Revenue stood at ₹8,807 Cr. up 25% YoY though down by 16% QoQ due to seasonal variation in
Slide 32: Other Businesses
OTHER BUSINESSES (TEXTILES, INSULATORS & RENEWABLES) Grasim Industries Q1FY25 Earnings Presentation
Slide 33: Financial Performance - Other Businesses
FINANCIAL PERFORMANCE - OTHER BUSINESSES Revenue (₹ Cr.) EBITDA (₹ Cr.) 129 790 798 753 109 105 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Revenue from other businesses was up 6% YoY and EBITDA was down by 16% YoY mainly due to textiles business Textiles business revenue grew by 3% YoY and 6% QoQ to
Slide 34: Appendix
APPENDIX Grasim Industries Q1FY25 Earnings Presentation
Slide 35: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT *EBDITA excluding interest related to financial services business. ^PAT adjusted for exceptional items for like-to-like comparison equivalent to Grasim’s holding. Grasim Industries Q1FY25 Earnings Presentation 34
Slide 36: Standalone Income Statement
STANDALONE INCOME STATEMENT ^PAT adjusted for exceptional items for like-to-like comparison. Grasim Industries Q1FY25 Earnings Presentation 35
Slide 37: Capex Plan - Standalone
CAPEX PLAN - STANDALONE ^Cumulative Capex for Paints business stood at ₹7,795 Cr. till 30th June 2024. Grasim Industries Q1FY25 Earnings Presentation 36
Slide 38: Balance Sheet
BALANCE SHEET Grasim Industries Q1FY25 Earnings Presentation 37
Slide 39: Grasim Group Structure
GRASIM GROUP STRUCTURE Grasim Industries Limited Cellulosic Fibres Chemicals New Businesses Textiles Overseas Pulp & CSF JVs Subsidiaries AV Group NB Inc. (Canada) CSF Vilayat Paints Rishra UltraTech Cement (57.27%)** (45.0%)* Domsjo (Sweden) Grey Cement Vilayat Nagda Panipat Malanpur (33.3%)* o Ind
Slide 40: Forward Looking and Cautionary Statement
FORWARD LOOKING AND CAUTIONARY STATEMENT This presentation is issued by Grasim Industries Limited (the “Company”) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constit
Slide 41: Thank You
THANK YOU Investor Relations Team grasim.ir@adityabirla.com +91 22 2499 5657 Grasim Industries Q1FY25 Earnings Presentation