Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q1 FY2019 Earnings Presentation
30 slides from Grasim Industries's earnings presentation, Aug 14, 2018
Slide 1: India's New Growth Story: Q1 FY19 Performance Review
Grasim Industries Limited India’s New Growth Story Ranked #205 in the list of “Global 2000 – Growth Champions 2018” by Forbes Magazine, USA Q1 FY19 Performance Review 14th August, 2018
Slide 2: Our Leadership Businesses
Our Leadership Businesses 1 Viscose Staple Fibre Caustic Soda # Producer in India Specialty Chemicals* (Epoxy resins, SBP, CP and others) Pulp & Fibre UltraTech Aditya Birla Idea JVs Cement Capital Cellular # 4 #1 Cement Producer in India Amongst Top Asset Management 3 Amongst Top 3 companies wirele
Slide 3: Contents and Glossary
CONTENTS Content Performance Financial Business Highlights Performance Performance Glossary ABCL: Aditya Birla Capital Ltd., ABNL: Aditya Birla Nuvo Ltd., FCF: Free Cash Flow, NBFC: Non Banking Finance Company, VSF: Viscose Staple Fiber, VFY: Viscose Filament Yarn, MT : Metric Ton, K: One Thousand,
Slide 4: Performance Highlights - Q1FY19
Performance Highlights - Q1FY19 Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT (Rs. Cr.) Standalone ` 4,789 Cr. ` 1,176 Cr. ` 643 Cr. Up by 75% YoY Up by 89% YoY Up by 85% YoY Consolidated ` 16,857 Cr. ` 3,212 Cr. ` 1,116 Cr. Up by 71% YoY Up by 33% YoY Up by 25% YoY ► Reported best ever Standalone and
Slide 5: Content
Content Performance Financial Business Highlights Performance Performance Grasim Presentation - Q1FY19 5
Slide 6: Income Statement Q1 FY19
Income Statement Q1 FY19 Standalone % Consolidated % Particulars (Rs. Cr.) Q1FY19 Q1FY18 Change Q1FY19 Q1FY18 Change Net Revenue from Operations 4,789 2,740 75 16,857 9,846 71 Other Income 122 66 85 233 236 -1 EBITDA 1,176 621 89 3,212 2,419 33 EBITDA Margin (%) 24% 22% 19% 24% Finance Cost 59 7 406
Slide 7: Strong Balance Sheet and Financial Ratios
Strong Balance Sheet and Financial Ratios Consolidated Financial Ratios Consolidated Debt / Surplus ( Rs. Cr.) 22,402 21,599 31st Mar 30th Jun 2018 2018 13,575 13,244 Net Worth (Rs. in Cr.) 57,362 58,502 8,828 8,355 Debt: Equity 0.27 0.25 Mar-18 Jun-18 Standalone Debt / Surplus ( Rs. Cr.) Net Debt:
Slide 8: Capex Plan
Capex Plan Capex Cash Outflow Capex spent (Net of CWIP Particulars (Rs. Cr.) FY20 as on FY19 YTD Jun'18 1/4/2018) Onwards VSF: Brownfield Expansion (including debottlenecking) 4,257 Normal Capex (Water supply augmentation & usage 780 reduction, R&D, Environment and Others) Chemical: Brownfield Expan
Slide 9: Content
Content Performance Financial Business Highlights Performance Performance Grasim Presentation - Q1FY19 9
Slide 10: Viscose Industry
Viscose Industry Global Prices Trend ($/Kg) 2.30 Grey $1.96/Kg $1.97/Kg 2.10 VSF Q1FY18 Q1FY19 0.34% 1.90 YoY 1.70 1.50 $1.91/Kg $2.09/Kg 1.30 Cotton Q1FY18 Q1FY19 9.06% YoY 1.10 Industry Data 0.90 $0.96/Kg $1.20/Kg 0.70 PSF Q1FY18 Q1FY19 24.9% 0.50 YoY Jun-15 Oct-15 Feb-16 Jun-16 Oct-16 Feb-17 Jun-
Slide 11: Business Performance: Viscose
Business Performance: Viscose Sales volume (KTPA)* Net Revenue EBITDA 9% 68% 35% 132 586 121 2,480 1,836 349 Q1FY18 Q1FY19 Q1FY18 Q1FY19 Q1FY18 Q1FY19 ► Q1FY19 quarterly performance was best ever with record production of 134KTPA and highest ever domestic sales of 109KTPA (83KTPA Q1FY18) ► Committed
Slide 12: Viscose business at a glance – Q1FY19
Viscose business at a glance – Q1FY19 Volume ► Higher volumes consequent to the debottlenecking of capacity ► The share of domestic sales volume in the overall sales volume Domestic improved to 82% (Q1FY19) from 69% (Q1FY18). Volume The demand for VAP products continues to remain buoyant Up 30% ► Pr
Slide 13: Reaching new Heights through LIVA
Reaching new Heights through LIVA Continued focus on expanding usage and application of VSF in domestic textile market to bolster the VSF demand in the textile value chain. LIVA tagged garments for SS18 has doubled from SS17 26 Available in 12.6 33+ Brands covered, more than 3000+ stores across the
Slide 14: Chemicals Industry
Chemicals Industry South East Asia Caustic Soda Prices ($)/Ton Industry Data; India landed Prices ► Caustic prices temporarily softened during the quarter on account of availability of distress consignments and delayed ramp up of alumina plants in China post winter ► Caustic soda imports into India
Slide 15: Business Performance: Chemicals
Business Performance: Chemicals Sales volume* (KTPA) Net Revenues# EBITDA# 18% 235 46% 103% 1,579 495 1,084 244 199 Q1FY18 Q1FY19 Q1FY18 Q1FY19 Q1FY18 Q1FY19 ► Caustic Soda production and sales volume are up 18% and 18% Chlorine Price Movement Indexed YoY ► Grasim’s capacity utilization stood at @92
Slide 16: Business Performance: Pulp JVs
Business Performance: Pulp JVs Pulp prices ($/Mt) Production Sales volume 1,100 2,02,993 2,03,401 1,050 ADMT ADMT 1,000 Q1FY19 Q1FY19 950 Net Revenues (Rs. In Cr.) 900 850 Q1FY19 1,321 Source: Industry Data Q1FY18 1,232 Up by 7% YoY ► Improving product quality resulting in higher EBITDA (Rs. In Cr.)
Slide 17: Business Performance: UltraTech
Business Performance: UltraTech Sales volume (MTPA) Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 29% 28% 18 9,021 1,798 1,763 14 7,035 Q1FY18 Q1FY19 Q1FY18 Q1FY19 Q1FY18 Q1FY19 ► Cement prices increased by 2% QoQ to marginalize the impact of rising cost (Logistics up 9% YoY, Energy 18% YoY and Raw materia
Slide 18: Business Performance: ABCL
Business Performance: ABCL Lending Book(Rs. Cr.)* AUM(Rs. Cr.)** 30% 17% 53,584 305,684 41,066 262,113 Q1FY18 Q1FY19 Q1FY18 Q1FY19 ► Revenue and Net profit after minority interest for Q1FY19 are at Rs. 3,024 Cr. and Rs. 216 Cr. ► Lending book (Incl. housing) grew 30% YoY to Rs.53,584 Cr. ► Asset Man
Slide 19: Business Performance- Other Businesses
Business Performance- Other Businesses Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) Annual maintenance shut down of Fertilizers 521 30 23 days during the quarter Rishra plant operations were impacted in Jun-18 due to Textile strike/lockout. Operations resumed 356 16 from 7th August post wage settlement wi
Slide 20: Thank You
THANK YOU Grasim Presentation - Q1FY19 20
Slide 21: Consolidated Financial Performance
Consolidated Financial Performance Quarter 1 % % Particulars (Rs. Cr.) Q4FY18 2018-19 2017-18 Change Change Net Sales & Op. Income 16,857 9,846 71 17,438 -3 Other Income 233 236 -1 254 -8 EBITDA 3,212 2,419 33 2,968 8 Finance Cost 406 149 392 Finance Cost Relating to NBFC/NHFC 890 - 813 Depreciation
Slide 22: Standalone Financial Performance
Standalone Financial Performance Quarter 1 Quarter 1 - Excl ABNL % Particulars (Rs. Cr.) % Q4FY18 % 2018-19 2017-18 Change 2018-19 2017-18 Change Change Net Sales & Op. Income 4,789 2,740 75 4,606 4 3,547 2,740 29 Other Income 122 66 85 102 19 116 66 76 EBITDA 1,176 621 89 947 24 1,033 621 66 Financ
Slide 23: Balance Sheet
Balance Sheet Standalone (Rs. Cr.) Consolidated (Rs. Cr.) 30th June'18 31st Mar'18 EQUITY & LIABILITIES 30th June'18 31st Mar'18 45,451 44,790 Net Worth 58,502 57,362 - - Non Controlling Interest 26,598 26,337 - - Borrowings related to financial services 46,818 44,667 3,058 2,969 Other Borrowings 21
Slide 24: Viscose Business Summary
Viscose Business Summary Quarter 1 % % Particulars Q4 FY18 2018-19 2017-18 Change Change Capacity VSF KT 546 498 10 498 10 VFY KT 46 - 46 - Production VSF KT 134 129 4 113 19 VFY KT 11 - 9 25 Sales Volume VSF KT 132 121 9 124 7 VFY KT 11 - 9 26 Net Revenue Rs. Cr. 2,480 1,836 35 2,232 11 EBITDA Rs.
Slide 25: Chemical Business Summary
Chemical Business Summary Quarter 1 % % Particulars Q4FY18 2018-19 2017-18 Change Change Capacity* KTPA 1,140 840 36 938 22 Production* KT 236 201 18 220 7 Sales Volume* KT 235 199 18 215 9 Net Revenue Rs. Cr. 1,579 1,084 46 1,439 10 EBITDA Rs. Cr. 495 244 103 412 20 EBITDA Margin % 31.3% 22.5% - 28
Slide 26: Cement Business Summary
Cement Business Summary Quarter 1 % % Particulars Q4 FY18 2018-19 2017-18 Change Change Capacity* Mn. TPA 93 89 4 89 4 Production Mn. MT 17 14 27 18 -3 Sales Volume Mn. MT 18 14 29 19 -5 Net Revenue Rs. Cr. 9,021 7,035 28 9,421 -4 EBITDA Rs. Cr. 1,763 1,798 -2 1,887 -7 EBITDA Margin % 19.39% 24.97%
Slide 27: Business Performance (Q1FY19)- Telecom
Business Performance (Q1FY19)- Telecom VLR Subscriber Data Volume (Mn MB) 2% 203.4 4x 10,18,261 199 2,52,822 Q1FY18 Q1FY19 Q1FY18 Q1FY19 ► VLR subscribers improved 2% YoY to 203.4 million (Q1FY19) ► The quarterly voice minutes at 349.5 bn (Q1FY19) up 39.4% YoY from 250.7 bn minutes (Q1FY18) ► The br
Slide 28: Grasim: Group Structure
Grasim: Group Structure VSF - 546K TPA Caustic Soda - UTCL (60.21%)* ABCL (56.0)* Other JV’s & Overseas VFY - 46K TPA ~1140K TPA Others Subsidiary Subsidiary Associates Pulp - 70K TPA Pulp & VSF JVs Epoxy – 94K TPA Domestic NBFC Broking Idea Cellular Nagda Nagda Fertilizers AV Group NB (100%)* (75%)
Slide 29: Forward Looking & Cautionary Statement
Forward Looking & 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 the
Slide 30: Quarterly Performance Review Q1 FY19
Grasim Industries Limited Quarterly Performance Review Q1 FY19, 30th June 2018 Grasim Presentation - Q1FY19 30