Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q4 FY21 Earnings Presentation
43 slides from Grasim Industries's earnings presentation, May 24, 2021
Slide 1: Viscose: The Green Fibre
Table of Content Viscose: The Green Fibre Grasim Industries Ltd Q4FY21 EARNINGS PRESENTATION 24th May 2021
Slide 2: Big in Your Life
BIG IN YOUR LIFE # 1 In Viscose @ # 1 In Chlor - Alkali* 57.28% 54.21% Market Cap (May 21, 2021): INR 90,294 Crore (USD 12.36 Billion) Market Cap Market Cap (May 21, 2021): (May 21, 2021) INR 1.92 Lakh Crore INR 30,228 Crore (USD 26.24 Billion) (USD 4.14 Billion) Cement Producer Asset Management # 1
Slide 3: Viscose: The Green Fibre
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix VISCOSE: THE GREEN FIBRE Conserving and rejuvenating natural resources for the future based on three tenets Green Product Green Technology Green Ecosystem Grasim Industries Limited | Earnings Presentation | Q4 FY21 | VISCOSE:
Slide 4: Viscose is amongst the fastest growing fibre with superior sustainability credentials
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix Green Product VISCOSE is amongst the fastest growing fibre with Superior Sustainability Credentials Made from Renewable & Natural Source No use of chemical for wood Ethically 100% sourced wood and Sustainable Forestry No land
Slide 5: We have consistently invested in technology to improve our environmental footprint
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix Green Technology • Implementation of closed-loop technology, leading to reduction of emission to air and water, improves working ambience, cuts down raw material consumption Viscose Technology • Inhouse developed Green technol
Slide 6: Pillars of Ecosystem
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix Green Technology We have consistently invested in Technology to improve our environmental footprint at every stage of the product life, from raw material Water Management Caustic Consumption extraction to end of life 47% reduc
Slide 7: Green Ecosystem: Pillars of Ecosystem
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix Green Ecosystem Pillars of Ecosystem Responsible Valuable Social Sourcing Partnerships Responsibility • Sustainable • Customer Focus • >1 million lives Forestry + NextGen LAPF: Co- touched across 7 states Feedstock development
Slide 8: Viscose offers long term solutions for textile industry
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix VISCOSE: THE GREEN FIBRE VISCOSE offers long term solutions for textile industry Strong Sustainability Credentials of VISCOSE, Modal and Lyocell ready for break-through growth Birla Cellulose VISCOSE Green Credentials further
Slide 9: Performance Highlights FY21
PERFORMANCE HIGHLIGHTS FY21 Grasim Industries Limited | Earnings Presentation | Q4 FY21 | VISCOSE: THE GREEN FIBRE 9
Slide 10: Performance Highlights Q4FY21
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix PERFORMANCE HIGHLIGHTS Q4FY21 Financial & Business Performance Consolidated EBITDA up 62% YoY to Rs.5,142 Cr. and standalone EBITDA more than doubled to Rs.880 Cr. VSF business reported best ever EBITDA of Rs.548 cr. in Q4FY21
Slide 11: Strong Financial Performance
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix STRONG FINANCIAL PERFORMANCE Standalone Revenue (Rs. Cr.) Standalone EBITDA (Rs. Cr.) 1,940 3,450 4,294 4,955 -46 667 765 913 6,000 24% 19% 1,000 5,000 800 4,000 600 3,000 880 4,394 400 708 3,697 608 2,000 2,960 200 72 60 57 3
Slide 12: Financial Overview: Quarterly
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix FINANCIAL OVERVIEW: QUARTERLY Consolidated Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT* (Rs. Cr.) 26% 16% 62% 15% 14% 24% YoY QoQ YoY QoQ YoY QoQ 24,399 5,142 19,350 21,000 4,476 1,715 1,511 1,389 3,180 Q4FY20 Q3FY21 Q4FY21 Q4FY20
Slide 13: Strong Balance Sheet
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix STRONG BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) Net Debt/ EBITDA Net Debt/ EBITDA 0.44x 0.56x (Last 12M EBITDA) (Last 12M EBITDA) Mar-20 Mar-20 4,163 Rs.2,999 Cr. Rs.20,882 Cr. 25,879 Reduction by 3,249 Reduct
Slide 14: Capex Plan
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix CAPEX PLAN Capex spent Capex spent Capex for Strategic Capex Particulars (Rs. Cr.) Q4 FY21 FY21 FY22 • Vilayat VSF Expansion likely to complete as Viscose Staple Fibre planned; pending capex is on account of (from 578 KTPA to
Slide 15: Business Performance
BUSINESS PERFORMANCE Grasim Industries Limited | Earnings Presentation | Q4 FY21 | VISCOSE: THE GREEN FIBRE 15
Slide 16: Industry Performance - Viscose
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix INDUSTRY PERFORMANCE - VISCOSE Global Textile Markets witnessed an unprecedented upheaval in H1FY21 followed by a sharp recovery in H2FY21, fueled by restocking and strong underlying demand Consumer preference for comfortable,
Slide 17: Industry Performance - Viscose
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix INDUSTRY PERFORMANCE - VISCOSE China VSF prices rose from ~12,800 RMB in Jan-21 to ~15,800 RMB in Mar-21, driven by strong consumer demand and prices of competing fibres The gap between cotton and VSF prices that had widened i
Slide 18: Financial Performance - Viscose
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE - VISCOSE Revenue1 (Rs. Cr.) EBITDA1 (Rs. Cr.) 23% 20% 30% 140% YoY QoQ 2,583 QoQ YoY 625 2,102 2,145 482 261 Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21 Strong Viscose business performance driven by strong
Slide 19: Financial Performance - Viscose
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE - VISCOSE VSF Sales (KT) Sales Volume Mix 8% 4% Export Sales Grey VSF YoY QoQ 147 11% 74% 142 136 89% 26% Q4FY20 Q3FY21 Q4FY21 Domestic Sales VAP VFY Sales (KT) VAP share in overall portfolio increased by
Slide 20: Financial Performance - Chemicals
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE - CHEMICALS Caustic Realisation Grasim – ECU 40,453 44,000 37,856 37,036 40,000 38,342 36,000 37,216 30,348 32,000 28,000 26,637 24,000 24,171 23,203 27,805 22,760 20,000 25,649 16,000 Caustic Realisation
Slide 21: Caustic - Key Operational Metrics
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix CAUSTIC – KEY OPERATIONAL METRICS Caustic Soda Sales (KT) Chlorine & HCl Consumption in VAP (Tons) 6% 3% YoY QoQ 267 72,248 66,239 68,329 258 252 Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21 Caustic market in Q4 FY21 was better t
Slide 22: Financial Performance - Chemicals
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE - CHEMICALS Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 1,472 177 185 104 1,290 1,281 Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21 Significant YoY improvement in Revenue and EBITDA for the overall segment, however Qo
Slide 23: Financial Performance - Other Businesses
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – OTHER BUSINESSES Textile Insulators Revenue (Rs. Cr.) Revenue (Rs. Cr.) 28% 5% 11% 115 367 QoQ YoY QoQ 369 288 109 103 Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21 EBITDA (Rs. Cr.) EBITDA (Rs. Cr.) 39 390%
Slide 24: Financial Performance - UltraTech
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – UltraTech Sales volume (Million Ton) Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 4% 5% 24% YoY YoY YoY 86 44,726 12,302 9,898 83 42,430 FY20 FY21 FY20 FY21 FY20 FY21 Consolidated Sales volume grew by 4% YoY to 8
Slide 25: Financial Performance - ABCL
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – ABCL Lending Book (Rs. Cr.)* AMC Closing AAUM (Rs. Cr.) 2% 28% YoY 60,557 YoY 259,422 202,396 59,159 FY20 FY21 Q4FY20 Q4FY21 Consolidated Revenue and net profit after minority interest for FY21 are up 1
Slide 26: Financial Performance - Aditya Birla Renewables
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – Aditya Birla Renewables Aditya Birla Renewables (Solar Power) Solar Power Capacity (MWp) Rs. Cr. Particulars Q4FY20 Q3FY21 Q4FY21 845 671 Revenue 45 45 60 502 EBITDA 24 35 46 EBIT 16 24 32 Capital Emplo
Slide 27: Financial Performance - Pulp JVs
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – PULP JV’s Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 16% 3% YoY QoQ 110% 84 QoQ 1,306 1,272 40 1,129 -37 Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21 Production Volume (Tons) Sales Volume (Tons) 2% 4% YoY QoQ 224,
Slide 28: Consolidated Income Statement
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix CONSOLIDATED INCOME STATEMENT Quarterly Year to Date Particulars (Rs. Cr.) Q4FY21 Q4FY20 FY21 FY20 Revenue from Operations 24,399 19,350 76,398 75,141 Other Income 131 273 1,052 969 EBITDA 5,142 3,180 15,766 13,615 EBITDA Marg
Slide 29: Standalone Income Statement
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix STANDALONE INCOME STATEMENT Quarterly Year to Date Particulars (Rs. Cr.) Q4FY21 Q4FY20 FY21 FY20 Revenue from Operations 4,394 3,712 12,386 16,082 Other Income 69 73 514 526 EBITDA 880 399 2,078 2,661 EBITDA Margin (%) 20% 11%
Slide 30: Vilayat VSF Expansion Project
Vilayat VSF Expansion Project Grasim Industries Limited | Earnings Presentation | Q4 FY21 | VISCOSE: THE GREEN FIBRE 30
Slide 31: Viscose: Vilayat Expansion Project (Aerial View - April 2021)
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix VISCOSE: Vilayat Expansion Project (Aerial View –April 2021) Mechanical completion of CAP and Acid plant achieved. WTP - Filtered water and clarified water system commissioned Fast tracked the pre commissioning & commissioning
Slide 32: Viscose: Vilayat Expansion Project
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix VISCOSE: Vilayat Expansion Project Main Plant Auxiliary After Treatment Spinning Machine Grasim Industries Limited | Earnings Presentation | Q4 FY21 | VISCOSE: THE GREEN FIBRE 32
Slide 33: Viscose: Vilayat Expansion Project
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix VISCOSE: Vilayat Expansion Project Acid Plant CAP Water Treatment CPP Grasim Industries Limited | Earnings Presentation | Q4 FY21 | VISCOSE: THE GREEN FIBRE 33
Slide 34: Appendix
APPENDIX Grasim Industries Limited | Earnings Presentation | Q4 FY21 | VISCOSE: THE GREEN FIBRE 34
Slide 35: Balance Sheet
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) 31st Mar'21 31st Mar'20 EQUITY & LIABILITIES 31st Mar'21 31st Mar'20 42,948 37,692 Net Worth 65,494 56,632 - - Non Controlling Interest 37,068 34,305 - - Borrowings rel
Slide 36: Viscose Business Summary
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix VISCOSE BUSINESS SUMMARY Quarterly Year to Date Particulars % Change % Change Q4FY21 Q4FY20 FY21 FY20 Capacity VSF KTPA 591 566 4 591 566 4 VFY KTPA 48 46 4 48 46 4 Production VSF KT 143 131 9 452 567 (20) VFY KT 11 10 10 26 4
Slide 37: Chemical Business Summary
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix CHEMICAL BUSINESS SUMMARY Quarterly Year to Date Particulars % Change % Change Q4FY21 Q4FY20 FY21 FY20 Capacity* KTPA 1,147 1,147 0 1,147 1,147 0 Production* KT 265 250 6 894 998 (10) Sales Volume* KT 267 252 6 900 991 (9) Rev
Slide 38: Financial Overview: Year to Date
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix FINANCIAL OVERVIEW: YEAR TO DATE Consolidated Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT* (Rs. Cr.) 15,766 75,141 76,398 13,615 4,412 4,305 FY20 FY21 FY20 FY21 FY20 FY21 Standalone Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT* (Rs. Cr.)
Slide 39: Grasim Group Structure
VISCOSE: THE GREEN FIBRE Financial Overview Business Performance Appendix GRASIM GROUP STRUCTURE Grasim Industries Limited VSF - 591K TPA Caustic Soda - Overseas UTCL (57.28%)** ABCL (54.21%)** VFY - 48K TPA 1147K TPA Others Pulp - 74K TPA Pulp & VSF JVs Subsidiary Subsidiary Epoxy – 123K TPA Nagda
Slide 40: 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 41: Notes
NOTES Grasim Industries Limited | Earnings Presentation | Q4 FY21 | VISCOSE: THE GREEN FIBRE 41
Slide 42: 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 43: 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: pradeep.a@adityabirla.com saket.sah@adityabirla.com