Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q1 FY20 Earnings Presentation
34 slides from Grasim Industries's earnings presentation, Aug 14, 2019
Slide 1: Cover letter to stock exchanges
ADITYABIRLA ADITYA BIRLA GRAS IM GRAS IM Ref Ref No.: GIL/CFD/SEC/20/097/SE No.: GIL/CFD/SEC/20/097/SE 14 th August 14th August 2019 2019 BSE BSE Limited Limited The National Stock Exchange National Stock Exchange of of India India Limited Limited Dalai Dalal Street, Street, Exchange Exchange Plaza,
Slide 2: Earnings Presentation Q1FY20
Grasim Industries Limited BIG IN YOUR LIFE Earnings Presentation Q1FY20
Slide 3: Big in Your Life
BIG IN YOUR LIFE In Caustic Soda # 1 In Viscose Staple Fibre # 4 In Global DG Pulp Producer^ # 1 & Specialty Chemicals* # 1 In Premium Fabric 60% 56% Market Cap (June 30, 2019): INR 60,112 Crore (USD 8.7 Billion) Total Market Cap Total Market Cap (June 30, 2019): (June 30, 2019): INR 1.25 Lakh Crore
Slide 4: Table of Content
Table of Content Key Highlights 01 Financial Overview 02 Business Performance 03 Appendix 04
Slide 5: Key Highlights
ADITYA BIRLA Key m Highlights
Slide 6: Q1FY20: Key Highlights
Key Highlights Financial Overview Business Performance Appendix Q1FY20: KEY HIGHLIGHTS Consolidated Revenue and EBITDA up by 13% & 31% on YoY basis respectively Global softening in VSF prices owing to capacity over-hang and US-China trade war Globally, VSF continues to be fastest growing fibre with
Slide 7: Financial Overview
ADITYA BIRLA Financial Overview
Slide 8: Financial Overview: Consolidated and Standalone
Key Highlights Financial Overview Business Performance Appendix FINANCIAL OVERVIEW Consolidated Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 19% 18% 22% 20,965 18,861 4,217 16,761 3,786 3,212 Q1FY19 Q4FY19 Q1FY20 Q1FY19 Q4FY19 Q1FY20 Standalone Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 24% 18% 18% 1,176 5,35
Slide 9: Strong Balance Sheet
Key Highlights Financial Overview Business Performance Appendix STRONG BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) Net Debt/ Net Debt/ 0.51x EBITDA 1.38x EBITDA (Annualized) (Annualized) 4,453 * 28,819* 22,092 2,555 1,899 6,728 Jun-19 Jun-19 Debt Liquid investments Net Debt * Includes
Slide 10: Capex Plan
Key Highlights Financial Overview Business Performance Appendix CAPEX PLAN VSF Capacity (KTPA) Caustic Soda Capacity (KTPA) 43% 27% 788 1,457 BB’Puram (146 KTPA) Vilayat expansion 146 H2 FY21 (219 KTPA) H2 FY21 438 Vilayat expansion (2 phases of 1,147 (73 KTPA) 300 TPD each) H2 FY21 383 365 365 549
Slide 11: Capex Plan
Key Highlights Financial Overview Business Performance Appendix CAPEX PLAN Capex Capex Cash Outflow spent (Net of CWIP Particulars (Rs. Cr.) as on FY21 1/4/2019) Q1FY20 9MFY20 Onwards VSF: Brownfield Expansion 3,279 Modernisation Capex 1,108 Chemical: Brownfield Expansion 1,562 Modernisation Capex 1
Slide 12: Business Performance
ADITYA BIRLA Business Performance
Slide 13: Viscose Industry
Key Highlights Financial Overview Business Performance Appendix VISCOSE INDUSTRY Global Prices Trend ($/Kg) Price YoY QoQ June Exit Price Movement (%) (%) (D over Q1FY20) 2.05 1.85 1.65 Grey 1.48 $/Kg -21% -8% 1.45 VSF (-5%) 1.25 1.05 1.73 $/Kg 0.85 Cotton -17% -6% (0%) 0.65 0.45 Q 1FY 19 Q 2FY 19 Q
Slide 14: Viscose – Key Operational Metrics
Key Highlights Financial Overview Business Performance Appendix VISCOSE – KEY OPERATIONAL METRICS VSF Sales Sales Volume Mix Export Sales Grey VSF 139 138 132 15% 76% 85% 24% Q1FY19 Q4FY19 Q1FY20 KTPA Domestic Sales Specialty Fibre Pulp CCF prices vs Consumption Prices Base Pulp price are trending d
Slide 15: Viscose – Key Sustainability Initiatives
Key Highlights Financial Overview Business Performance Appendix VISCOSE – KEY SUSTAINABILITY INITIATIVES 1 3 5 Further 15%+ Developed Commissioned 3rd reduction in water molecular tracer Generation consumption at that helps in Specialty Fibre line multiple sites from tracing garments to of 16KTPA ba
Slide 16: Financial Performance - Viscose
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE - VISCOSE Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 2,625 2,509 586 2,480 413 442 462 487 442 108 98 103 VFY VFY VFY VFY VFY VFY Q1FY19 Q4FY19 Q1FY20 Q1FY19 Q4FY19 Q1FY20 QoQ performance is better despite global price
Slide 17: LIVA: Expanding Product Portfolio
Key Highlights Financial Overview Business Performance Appendix LIVA: EXPANDING PRODUCT PORTFOLIO Continued focus on expanding usage and application of VSF in domestic textile market to bolster the VSF demand in the textile value chain LIVA Tagging (Mn.) 22.6 40+ 17.5 Brands covered LIVA brand Saree
Slide 18: Newly Commissioned Specialty Fibre
Key Highlights Financial Overview Business Performance Appendix NEWLY COMMISSIONED SPECIALTY FIBRE Grasim Industries Limited | Earnings Presentation Q1 FY20 17
Slide 19: VSF Vilayat Project Progress
Key Highlights Financial Overview Business Performance Appendix VSF VILAYAT PROJECT PROGRESS Since ground breaking in Nov -2018 Grasim Industries Limited | Earnings Presentation Q1 FY20 18
Slide 20: Caustic Industry
Key Highlights Financial Overview Business Performance Appendix CAUSTIC INDUSTRY Caustic Soda Prices ($/Ton) 423 405 390 388 383 348 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Caustic soda prices in Asia declined during the quarter led by lower demand from key user industries Caustic prices in India
Slide 21: Caustic – Key Operational Metrics
Key Highlights Financial Overview Business Performance Appendix CAUSTIC – KEY OPERATIONAL METRICS Caustic Soda Sales Sales Mix Merchant chlorine sales 261 235 238 72% 28% Captive chlorine Q1FY19 Q4FY19 Q1FY20 consumption Production impacted due to water shortage in Q1, now normalized post onset of m
Slide 22: Financial Performance - Chemicals
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE - CHEMICALS Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 1,688 1,579 1,503 495 434 446 Q1FY19 Q4FY19 Q1FY20 Q1FY19 Q4FY19 Q1FY20 Power cost reduced by 7% YoY, with new sources and cost optimization; Added wind power sour
Slide 23: Financial Performance – Pulp JVs
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – PULP JV’s Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 1,446 1,321 191 1,215 169 117 Q1FY19 Q4FY19 Q1FY20 Q1FY19 Q4FY19 Q1FY20 Pulp production impacted due to maintenance shutdown at different sites in Q1FY20 Previous
Slide 24: Financial Performance – Other Businesses
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – OTHER BUSINESSES Fertilisers Textile Insulators Net Revenue (Rs. Cr.) Net Revenue (Rs. Cr.) Net Revenue (Rs. Cr.) 697 475 124 679 437 110 356 98 521 Q1FY19 Q4FY19 Q1FY20 Q1FY19 Q4FY19 Q1FY20 Q1FY19 Q4FY19 Q1FY20
Slide 25: Financial Performance – UltraTech
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – UltraTech Sales volume (MT) Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 14% 61% 3% 2,840 18.80 10,178 1,763 18.30 8,900 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Achieved successful integration of the biggest acquisit
Slide 26: Financial Performance – ABCL
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – ABCL Lending Book(Rs. Cr.)* AAUM(Rs. Cr.)** 16% 2% 2,53,965 61,998 2,49,270 53,584 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Revenue and Net profit after minority interest for Q1FY20 are at Rs.3,646 Cr. and Rs.270 Cr. Lending
Slide 27: Appendix
ADITYA BIRLA Appendix I _
Slide 28: Balance Sheet
Key Highlights Financial Overview Business Performance Capital Allocation Strategy Appendix BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) 30th Jun'19 31st Mar'19 EQUITY & LIABILITIES 30th Jun'19 31st Mar'19 41,516 41,959 Net Worth 56,376 55,773 - - Non Controlling Interest 27,984 27,387
Slide 29: Income Statement – Q1FY20
Key Highlights Financial Overview Business Performance Capital Allocation Strategy Appendix INCOME STATEMENT – Q1FY20 Standalone Consolidated Particulars (Rs. Cr.) Q1FY20 Q1FY19 Q1FY20 Q1FY19 Net Revenue from Operations 5,001 4,789 18,861 16,761 Other Income 85 97 231 176 EBITDA 928 1,176 4,217 3,21
Slide 30: Viscose Business Summary
Key Highlights Financial Overview Business Performance Capital Allocation Strategy Appendix VISCOSE BUSINESS SUMMARY Quarter 1 % % Particulars Q4FY19 2019-20 2018-19 Change Change Capacity VSF KTPA 566 546 4 566 0 VFY KTPA 46 46 - 46 0 Production VSF KT 140 134 4 130 8 VFY KT 11 11 0 11 0 Sales Volu
Slide 31: Chemical Business Summary
Key Highlights Financial Overview Business Performance Capital Allocation Strategy Appendix CHEMICAL BUSINESS SUMMARY Quarter 1 % % Particulars Q4FY19 2019-20 2018-19 Change Change Capacity* KTPA 1,147 1,140 1 1,147 0 Production* KT 242 236 3 254 -5 Sales Volume* KT 238 235 1 261 -9 Net Revenue Rs.
Slide 32: Grasim Group Structure
Key Highlights Financial Overview Business Performance Capital Allocation Strategy Appendix GRASIM GROUP STRUCTURE Grasim Industries Limited VSF - 566K TPA Caustic Soda - Overseas UTCL (60.21%)* ABCL (55.99)* VFY - 47K TPA ~1147K TPA Others Pulp - 74K TPA Pulp & VSF JVs Subsidiary Subsidiary Epoxy –
Slide 33: 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 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