Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q2 FY22 Earnings Presentation
34 slides from Grasim Industries's earnings presentation, Nov 12, 2021
Slide 1: Grasim Industries Limited Q2FY22 Earnings Presentation
GRASIM INDUSTRIES LIMITED Q2FY22 EARNINGS PRESENTATION 12th November 2021
Slide 2: Big in Your Life
BIG IN YOUR LIFE # 1 In Viscose @ # 1 In Chlor - Alkali* # 1 In Advanced Material* 57.28% 54.19% Market Cap (November 11th, 2021): INR 1,21,709 Crore (USD 16.36 Billion) Market Cap Market Cap (November 11th, 2021): (November 11th, 2021): INR 2.32 Lakh Crore INR 26,167 Crore (USD 31.24 Billion) (USD
Slide 3: Performance Highlights Q2FY22
PERFORMANCE HIGHLIGHTS Q2FY22 Grasim Industries Limited | Earnings Presentation | Q2 FY22 | 3
Slide 4: Performance Highlights Q2FY22
Financial Overview Business Performance Sustainability Appendix PERFORMANCE HIGHLIGHTS Q2FY22 Consolidated revenue up 26% YoY to Rs. 22,564 Cr. and EBITDA up 19% YoY to Rs.4,282 Cr. Standalone revenue up 67% YoY to Rs.4,933 Cr. and EBITDA up 144% YoY to Rs.1,504 Cr. VSF strong performance with EBITD
Slide 5: Performance Highlights Q2FY22
Financial Overview Business Performance Sustainability Appendix PERFORMANCE HIGHLIGHTS Q2FY22 Consolidated Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT1 (Rs. Cr.) 22,564 4,736 19,919 4,282 1,667 17,950 3,603 1,359 966 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 Standalone Revenue (Rs. C
Slide 6: Capex Plan
Financial Overview Business Performance Sustainability Appendix CAPEX PLAN Capex spent Balance Particulars (Rs. Cr.) Approved Capex H1FY22 for FY22 Viscose Staple Fibre Capacity Expansion (591 KTPA -->810 KTPA) 468 478 Normal Modernisation and Maintenance Capex 109 326 Chlor-Alkali Capacity Expansio
Slide 7: Paints Business
Financial Overview Business Performance Sustainability Appendix PAINTS BUSINESS Manufacturing Plant locations Overall capex spent of Rs.267Cr. (YTD FY22) primarily on acquisition of land parcels close to consumption hubs Ludhiana (Punjab) Environmental clearance process is ongoing across various pro
Slide 8: Strong Balance Sheet
Financial Overview Business Performance Sustainability Appendix STRONG BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) Net Debt/ EBITDA Net Debt/ EBITDA 0.25x 0.49x (Annualised 12M EBITDA) (Annualised 12M EBITDA) 4,194 Jun-21 Jun-21 Rs.1,817 Cr. Rs.8,982 Cr. Decreased by 19,662 Decreased b
Slide 9: Business Performance
BUSINESS PERFORMANCE Grasim Industries Limited | Earnings Presentation | Q2 FY22 | 9
Slide 10: Industry Performance - Viscose
Financial Overview Business Performance Sustainability Appendix INDUSTRY PERFORMANCE - VISCOSE Chinese VSF industry’s performance was impacted by multiple headwinds like restriction in energy consumption leading to production cuts, and supply chain issues (container shortages) The operating rates (O
Slide 11: Industry Performance - Viscose Price Movement
Financial Overview Business Performance Sustainability Appendix INDUSTRY PERFORMANCE - VISCOSE China VSF prices moderated to ~12,870 RMB in Q2FY22 from ~14,192 RMB in Q1FY22 due to demand slow- down; Considerable improvement from October-21 onwards following the cuts in operating rate by Chinese pro
Slide 12: Financial Performance - Viscose
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - VISCOSE Revenue1 (Rs. Cr.) EBITDA1 (Rs. Cr.) 79% 43% 201% 19% YoY QoQ 3,005 YoY QoQ 580 488 2,103 1,679 193 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 Viscose business reported strong operational and financial per
Slide 13: Financial Performance - Viscose
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - VISCOSE VSF Sales (KT) Sales Volume Mix Export Sales Grey VSF 18% 38% YoY QoQ 154 16% 73% 131 112 84% 27% Q2FY21 Q1FY22 Q2FY22 Domestic Sales VAP VFY Sales (KT) VAP share in overall portfolio increased to 27% 50%
Slide 14: Financial Performance - Chemicals
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - CHEMICALS Caustic Realisation Grasim – ECU 37,289 41,000 35,000 37,216 31,185 32,332 36,000 30,000 28,154 26,077 26,658 25,000 29,141 24,775 27,387 31,000 21,584 27,805 25,504 22,779 26,200 23,821 19,745 20,119 3
Slide 15: Caustic – Key Operational Metrics
Financial Overview Business Performance Sustainability Appendix CAUSTIC – KEY OPERATIONAL METRICS Caustic Soda Sales (KT) Chlorine & HCl Consumption in VAP (Tons) 8% 7% 254 YoY QoQ 64,278 64,530 62,965 236 238 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 The capacity utilization of Caustic soda busines
Slide 16: Financial Performance - Chemicals
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - CHEMICALS Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 1,627 275 1,436 232 1,126 187 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 Chlor-Alkali business witnessed an improvement in operational performance and an increase in EC
Slide 17: Financial Performance – Other Businesses
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – OTHER BUSINESSES Textile Insulators Revenue (Rs. Cr.) Revenue (Rs. Cr.) 409 90 85 325 65 188 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 EBITDA (Rs. Cr.) EBITDA (Rs. Cr.) 37 9 22 (4) (27) (8) Q2FY21 Q1FY22 Q2FY22 Q
Slide 18: Financial Performance – UltraTech
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – UltraTech Sales volume (Million Ton) Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 8% 16% 1% YoY YoY YoY 21.64 12,017 2,833 2,855 20.05 10,387 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Consolidated sales volume grew by 8% Y
Slide 19: Financial Performance – ABCL
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – ABCL Lending Book (Rs. Cr.)* AMC Domestic AAUM (Rs. Cr.) 26% 59,060 YoY 3,00,289 57,592 2,38,674 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Consolidated revenue and net profit after minority interest for Q2FY22 are up 22% YoY a
Slide 20: Financial Performance – Aditya Birla Renewables
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – Aditya Birla Renewables Aditya Birla Renewables (Solar Power) Solar Power Capacity (MWp) Rs. Cr. 588 Particulars Q2FY21 Q1FY22 Q2FY22 Revenue 34 59 49 EBITDA 25 49 42 502 EBIT 15 36 28 Capital Employed 1,628 1,85
Slide 21: Financial Performance – Pulp JV's
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – PULP JV’s Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 31% YoY 6% 1,407 1,401 QoQ 195 185 1,072 (3) Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 Production Volume (Tons) Sales Volume (Tons) 1,97,834 1,95,187 1,93,289 1,85,231
Slide 22: Sustainability Performance
Sustainability Performance Grasim Industries Limited | Earnings Presentation | Q2 FY22 | 22
Slide 23: Sustainability Highlights
Financial Overview Business Performance Sustainability Appendix Sustainability Highlights VSF (Birla Cellulose) ranked #1 in Canopy Hot Button Report-2021 which ranks global VSF players Grasim ranked 7th in the most sustainable companies in India ET Futurescape Sustainability Index Report-2021 VSF b
Slide 24: Appendix
APPENDIX Grasim Industries Limited | Earnings Presentation | Q2 FY22 | 24
Slide 25: Standalone Income Statement
Financial Overview Business Performance Sustainability Appendix STANDALONE INCOME STATEMENT Quarterly Half Year Particulars (Rs. Cr.) Q2FY22 Q2FY21 H1FY22 H1FY21 Revenue from Operations 4,933 2,960 8,696 4,296 Other Income 702 282 767 381 EBITDA 1,504 616 2,309 490 EBITDA Margin (%) 27% 19% 24% 10%
Slide 26: Consolidated Income Statement
Financial Overview Business Performance Sustainability Appendix CONSOLIDATED INCOME STATEMENT Quarterly Half Year Particulars (Rs. Cr.) Q2FY22 Q2FY21 H1FY22 H1FY21 Revenue from Operations 22,564 17,950 42,484 30,999 Other Income 253 203 523 580 EBITDA 4,282 3,603 9,019 6,148 EBITDA Margin (%) 19% 20
Slide 27: Balance Sheet
Financial Overview Business Performance Sustainability Appendix BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) 30th Sep'21 31st Mar'21 EQUITY & LIABILITIES 30th Sep'21 31st Mar'21 46,505 42,948 Net Worth 70,625 65,494 - - Non Controlling Interest 38,257 37,068 - - Borrowings related to fi
Slide 28: Viscose Business Summary
Financial Overview Business Performance Sustainability Appendix VISCOSE BUSINESS SUMMARY Quarterly Half Year Particulars % Change % Change Q2FY22 Q2FY21 H1FY22 H1FY21 Capacity VSF KTPA 591 566 4 591 566 4 VFY KTPA 48 46 4 48 46 4 Production VSF KT 146 128 14 279 165 69 VFY KT 11 5 120 21 6 250 Sales
Slide 29: Chemical Business Summary
Financial Overview Business Performance Sustainability Appendix CHEMICAL BUSINESS SUMMARY Quarterly Half Year Particulars % Change % Change Q2FY22 Q2FY21 H1FY22 H1FY21 Capacity* KTPA 1,147 1,147 - 1,147 1,147 - Production* KT 249 232 7 491 370 33 Sales Volume* KT 254 236 8 493 375 31 Revenue Rs. Cr.
Slide 30: Grasim Group Structure
Financial Overview Business Performance Sustainability Appendix GRASIM GROUP STRUCTURE Grasim Industries Limited VSF - 591K TPA Caustic Soda - Overseas UTCL (57.28%)** ABCL (54.19%)** VFY - 48K TPA 1147K TPA Others Pulp - 74K TPA Pulp & VSF JVs Subsidiary Subsidiary Epoxy – 123K TPA Nagda Nagda Fert
Slide 31: 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 32: Notes
NOTES Grasim Industries Limited | Earnings Presentation | Q2 FY22 | 32
Slide 33: 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 34: 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: saket.sah@adityabirla.com sheetal.daga@adityabirla.com