Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q3 FY2025 Earnings Presentation
41 slides from Grasim Industries's earnings presentation, February 2025
Slide 1: Grasim Industries Limited Earnings Presentation Q3FY25
A FORCE FOR GOOD GRASIM INDUSTRIES LIMITED Earnings Presentation Q3FY25 February 2025 CREATING AND SCALING GROWTH ENGINES FOR GROWING ECONOMY
Slide 2: 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 3: Track Record of Consistent Growth
TRACK RECORD OF CONSISTENT GROWTH TTM Revenue TTM EBITDA TTM PAT^ ₹ 1,39,944 Cr. ₹ 19,666 Cr. ₹ 3,867 Cr. Consolidated Revenue (₹ Cr.) Consolidated EBITDA (₹ Cr.) 1,39,944 1,30,978 1,17,627 20,837 19,666 17,723 * 26,840 25,847 29,405 4,198 3,573 3,196 23% 20% 21% 24% 17% 16% FY23 FY24 TTM FY23 FY24
Slide 4: Macro Updates
baa BIRLA LL | *:. GRASIM MACRO UPDATES
Slide 5: Macro Indicators
MACRO INDICATORS Industrial Production – IIP Growth (% YoY) India Merchandise Exports ($bn) IIP (% growth YoY) Average (FY24) 125 120.0 5.9 120 115 5.2 4.7 108.3 109.3 110 105.9 3.7 105 103.3 3.1 100 95 -0.1 90 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Manufacturing secto
Slide 6: Financial Highlights
ADITYA BIRLA Lae GRASIM FINANCIAL HIGHLIGHTS
Slide 7: Key Highlights – Q3FY25
KEY HIGHLIGHTS – Q3FY25 Consolidated Revenue ₹34,793 Cr. up 9% YoY; EBITDA at ₹4,668 Cr. down 9% YoY • Consolidated EBITDA was down due to lower margins in cement business and initial investments for building consumer facing Paints business Cellulosic Fibres: Board approves setting up of 110K TPA Ly
Slide 8: Performance Highlights – Q3FY25
PERFORMANCE HIGHLIGHTS – Q3FY25 Consolidated Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT^@ (₹ Cr.) 33,563 34,793 31,965 5,150 4,668 4,042 1,514 899 473 Q3FY24 Q2FY25 Q3FY25 Q3FY24 Q2FY25 Q3FY25 Q3FY24 Q2FY25 Q3FY25 Standalone Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT ^ (₹ Cr.) 7,623 8,120 6,400 1,619 771 643 1,189*
Slide 9: Performance Highlights – 9MFY25
PERFORMANCE HIGHLIGHTS – 9MFY25 Consolidated Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT^@ (₹ Cr.) 1,02,216 93,251 14,640 13,470 4,255 2,562 9MFY24 9MFY25 9MFY24 9MFY25 9MFY24 9MFY25 Standalone Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT ^ (₹ Cr.) 22,637 2,786 1,386 19,080 2,409 655* 1,189** 550 2,131 1,220 9MFY24 9M
Slide 10: Strong Balance Sheet
STRONG BALANCE SHEET Consolidated As on As on Particulars 31st Mar 2024 31st Dec 2024 Net worth (₹ Cr.) 88,652 91,363 Debt - Equity Ratio 0.97 1.15 Debt* - Equity Ratio 0.19 0.31 Net debt* (₹ Cr.) 15,436 32,321 Total debts to Total assets 0.33 0.37 Consolidated Net debt* to TTM EBITDA stood at 1.64x
Slide 11: Improving Sustainability Performance
IMPROVING SUSTAINABILITY PERFORMANCE* 11% 11% 50% 51% 8% 46% Increasing 44% Increasing 5% proportion of Renewable recycled water Power Share to freshwater consumption FY22 FY23 FY24 9MFY25 ^ FY22 FY23 FY24 9MFY25 ^ Awards & Achievements: ➢ Grasim Industries was honored with ‘The Conscious Corporate
Slide 12: Cellulosic Fibres (CSF & CFY)
CELLULOSIC FIBRES (CSF & CFY)
Slide 13: Cellulosic Fibres: Fastest Growing in the Fibre Basket
CELLULOSIC FIBRES: FASTEST GROWING IN THE FIBRE BASKET The Board has approved setting up of 110K TPA capacity of Lyocell, the fastest growing Specialty Cellulosic Fibres, at Harihar, Karnataka. The first phase of 55K TPA will be executed by mid-2027 at an investment of ₹1,350 Cr. GLOBAL INDIA INDIA
Slide 14: Macro Trends - Cellulosic Fibres
MACRO TRENDS - CELLULOSIC FIBRES China Operating Rate (in Percentage) China Inventory (in Days) 13 88 89 86 85 85 10 9 8 8 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 Global Prices Trend ($/Kg) Price Movement 3.62 YoY QoQ Dec Exit Price Fibres (%) (%) (D over Q3FY25) 2.01 1
Slide 15: Key Operational Metrics
KEY OPERATIONAL METRICS CSF Sales (KT) Sales Volume Mix (CSF) Export Sales Standard Fibre 636 602 3% 79% 219 205 205 Q3FY25 Q3FY25 97% 21% Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 Domestic Sales Speciality Fibre CFY Sales (KT) CSF sales volume flat YoY due to production disruptions at Excel 31.9 Kharach,
Slide 16: Financial Performance Q3FY25 - Cellulosic Fibres
FINANCIAL PERFORMANCE Q3FY25 - CELLULOSIC FIBRES Revenue (₹ Cr.) EBITDA (₹ Cr.) 11,187 11,847 1,260 1,230 4,125 3,934 494 3,715 402 331 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 Revenue grew 6% YoY led by improved realisation globally and higher share of Speciality fibres
Slide 17: Chemicals
CHEMICALS (CHLOR-ALKALI, CHLORINE DERIVATIVES & SPECIALITY CHEMICALS)
Slide 18: Diversified Chemicals Portfolio
DIVERSIFIED CHEMICALS PORTFOLIO 1,530 FY26 1,168 Q1FY27 CHLOR-ALKALI 25 139 2% 14% ➢ Largest Chlor-Alkali producer in India. Market growing at a steady pace with demand from Alumina, Organic & Inorganic Chemicals, Textiles & FMCG industries. 1,029 246 1,505 ➢ Maintaining Market leadership position i
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% RENEWABLES 58% FY22 FY23 FY24 9MFY25 CHEMICALS REVENUE BREAK-UP (Q3FY25
Slide 20: Key Operational Metrics - Chemicals
KEY OPERATIONAL METRICS - CHEMICALS CFR SEA Caustic Soda Prices ($/Ton)# Grasim – ECU (₹/Ton) 34,041 32,686 32,419 516 31,383 30,650 471 485 444 425 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 Caustic Soda Sales (KT) Revenue Break-up of Chemicals Business (%) 299 295 303 89
Slide 21: Financial Performance Q3FY25 - Chemicals
FINANCIAL PERFORMANCE Q3FY25 - CHEMICALS Revenue (₹ Cr.) EBITDA (₹ Cr.) 6,130 6,346 912 859 2,226 1,996 2,054 329 264 273 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 International average Caustic soda prices (CFR-SEA) improved by 16% YoY to $516/MT in Q3FY25 reflected in th
Slide 22: Building Materials
BUILDING MATERIALS (CEMENT, PAINTS & B2B E-COMMERCE)
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 Consumption (kg/annum) 1,410-1,420 1,110-1,130 32.2% 950-970 750-770 51.1% World average: 500-550 420-470 420-430 1.6% 300-330 ~295 280-290
Slide 24: Performance Update Q3FY25 - Cement (UltraTech)
PERFORMANCE UPDATE Q3FY25 - CEMENT (ULTRATECH) The India Cements Limited (ICEM) has become a subsidiary of UltraTech with effect from 24th December 2024 • The total India grey cement capacity is expected to reach 182.8* MTPA by FY25 • Additionally, the overseas capacity stands at 5.4 MTPA Domestic s
Slide 25: Growing India Decorative Paints Market
GROWING INDIA DECORATIVE PAINTS MARKET INDUSTRY SIZE – FY25e Estimated CAGR of UN-ORGANISED MARKET PER-CAPITA CONSUMPTION ~₹76,000 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 MANUFACTU
Slide 26: Performance Update Q3FY25 - Paints (Birla Opus)
PERFORMANCE UPDATE Q3FY25 - PAINTS (BIRLA OPUS) Commercial production started at Chamarajanagar (Nov-24), out of total six plants four already operational with capacity of 866 MLPA • Mahad trial production commenced, and commercial production expected in Q4FY25 • Kharagpur trial run production is ex
Slide 27: Comprehensive B2B Ecommerce Platform
COMPREHENSIVE B2B ECOMMERCE PLATFORM E-commerce platform for Building Materials with end-to-end solutions (Demand prediction, Product assortment, Sourcing, Logistics and Financing) VALUE PROPOSITION PRODUCT CATEGORIES COMPETITIVE PRICING CEMENT & ALLIED SANITARYWARE ASSURED QUALITY STEEL & ALLIED PI
Slide 28: Performance Update Q3FY25 - B2B Ecommerce (Birla Pivot)
PERFORMANCE UPDATE Q3FY25 - B2B ECOMMERCE (BIRLA PIVOT) Revenue in-line with expectations led by new product categories and healthy customer additions • On track to achieve FY27 revenue aspirations of USD $1 bn Launched customised self-serve tools driving digital adoption across B2B ecosystem enhanc
Slide 29: Financial Performance Q3FY25 - Building Materials
FINANCIAL PERFORMANCE Q3FY25 - BUILDING MATERIALS Revenue (₹ Cr.) EBITDA (₹ Cr.) 54,168 9,014 51,034 7,600 17,011 16,683 18,784 3,261 2,806 1,886 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 Revenue grew by 10% YoY to ₹18,784 Cr. led by growth in Cement and new growth busine
Slide 30: Financial Services
ADITYA BIRLA Lae GRASIM FINANCIAL SERVICES
Slide 31: Financial Performance Q3FY25 - Financial Services (Aditya Birla Capital)
FINANCIAL PERFORMANCE Q3FY25 - FINANCIAL SERVICES (ADITYA BIRLA CAPITAL) Revenue# (₹ Cr.) Total Lending Book (₹ Cr.)* 1,46,151 1,37,946 10,252 9,396 1,15,139 8,786 Q3FY24 Q2FY25 Q3FY25 Q3FY24 Q2FY25 Q3FY25 Consolidated Revenue stood at ₹9,396 Cr. up 7% YoY • All segments reported robust growth: NBFC
Slide 32: Other Businesses (Textiles, Insulators & Renewables)
OTHER BUSINESSES (TEXTILES, INSULATORS & RENEWABLES)
Slide 33: Financial Performance Q3FY25 - Other Businesses
FINANCIAL PERFORMANCE Q3FY25 - OTHER BUSINESSES Revenue (₹ Cr.) EBITDA (₹ Cr.) 340 2,297 2,390 279 782 778 815 125 99 45 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 Revenue from other businesses was up 4% YoY, EBITDA up by 26% YoY led by capacity increase in renewable busin
Slide 34: Appendix
baa BIRLA LL | *:. GRASIM APPENDIX
Slide 35: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (₹ Cr.) Q3FY25 Q3FY24 % Change Q2FY25 % Change Revenue from Operations 34,793 31,965 9 33,563 4 Other Income 369 256 44 395 -7 EBITDA* 4,668 5,150 -9 4,042 15 EBITDA Margin (%) 13% 16% 12% Finance Cost 699 433 61 581 20 Depreciation 1,532 1,244 23 1,496 2 Sh
Slide 36: Standalone Income Statement
STANDALONE INCOME STATEMENT Particulars (₹ Cr.) Q3FY25 Q3FY24 % Change Q2FY25 % Change Revenue from Operations 8,120 6,400 27 7,623 7 Other Income 102 120 - 1,294* - EBITDA 372 643 -42 1,619 - EBITDA Margin (%) 5% 10% 18% Finance Cost 181 107 69 161 12 Depreciation 421 296 42 406 4 PBT (230) 239 - 1
Slide 37: Capex Plan - Standalone
CAPEX PLAN - STANDALONE Planned Capex Capex Spent Particulars (₹ Cr.) FY25 9MFY25 Cellulosic Fibres Business 826 319 Capacity Expansion (including debottlenecking) 218 50 Modernisation and Maintenance Capex 608 269 Chemicals Business (A+B+C) 800 462 (A) Capacity Expansion - Chlor-Alkali & Chlorine D
Slide 38: Balance Sheet
BALANCE SHEET Standalone (₹ Cr.) Consolidated (₹ Cr.) 31st Dec'24 31st Mar'24 EQUITY & LIABILITIES 31st Dec'24 31st Mar'24 (Unaudited) (Audited) (Unaudited) (Audited) 52,434 52,115 Net Worth 91,363 88,652 - - Non Controlling Interest 58,748 50,286 - - Borrowings related to Financial Services 1,26,15
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