Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q1 FY2021 Earnings Presentation
37 slides from Grasim Industries's earnings presentation, Aug 13, 2020
Slide 1: Cover letter to stock exchanges on Q1 FY21 results presentation
Ref No.: GIL/CFD/SEC/21/062/SE 13th August 2020 BSE Limited The National Stock Exchange of India Limited Dalal Street, Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No. C/1, G Block, Bandra-Kurla Complex, Fort, Mumbai - 400 001 Bandra (East), Mumbai 400051 Scrip Code: 500300 Symbol: GRA
Slide 2: Earnings Presentation Q1FY21
Earnings Presentation Q1FY21 August 13, 2020
Slide 3: Big in your life
BIG IN YOUR LIFE # 1 In Viscose @ # 1 In Chlor - Alkali* 57.28% 54.24% Market Cap (July 31, 2020): INR 41,639 Crore (USD 5.57 Billion) Market Cap Market Cap (July 31, 2020): (July 31, 2020): INR 1.19 Lakh Crore INR 13,131 Crore (USD 15.93 Billion) (USD 1.76 Billion) Cement Producer Asset Management
Slide 4: Table of Content
Table of Content Financial Overview 01 Business Performance 02 Sustainability 03 Appendix 04
Slide 5: Financial Overview
FINANCIAL OVERVIEW Grasim Industries Limited | Earnings Presentation | Q1 FY21 4
Slide 6: Key Focus Areas
Financial Overview Business Performance Sustainability Appendix KEY FOCUS AREAS Demand Creation Innovation & Agility VSF: Innovation at fore launched Anti Chemicals: Strong demand for Value Added Microbial Fibre; fabric produced using this Products used in health and hygiene special fibre inherently
Slide 7: Operational Performance – Improvement in Capacity Utilisation Level
Financial Overview Business Performance Sustainability Appendix OPERATIONAL PERFORMANCE – IMPROVEMENT IN CAPACITY UTILISATION LEVEL Viscose Staple Fiber Caustic Soda 73% 6% 23% 48% 79% 72% 23% 53% 70% 78% Mar-20 Apr-20 May-20 Jun-20 Jul-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Capacity Utilisation leve
Slide 8: Recovery Time: Driving Sales and Targeting Cost
Financial Overview Business Performance Sustainability Appendix RECOVERY TIME: DRIVING SALES AND TARGETING COST Strong performance by Value Added Products across the businesses VSF Chemicals Fertiliser (Purak) Value Added Products ~30%1 ~ 27%2 ~16%3 Share (Q1FY21) 25% QoQ 10% QoQ Achieved significan
Slide 9: Better Operational Performance – Improving Financial Performance
Financial Overview Business Performance Sustainability Appendix BETTER OPERATIONAL PERFORMANCE – IMPROVING FINANCIAL PERFORMANCE Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 45% 51 32% 11 23% (108) Apr-20 * May-20 Jun-20 Apr-20 * May-20 Jun-20 * Total lockdown-Partial Reopening * Total lockdown-Partial Reopen
Slide 10: Financial Overview: Quarterly
Financial Overview Business Performance Sustainability Appendix FINANCIAL OVERVIEW: QUARTERLY Consolidated Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT1 (Rs. Cr.) 20,103 19,902 4,461 2,189 13,621 3,243 2,613 1,294 352 Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 Standalone Revenue (Rs. C
Slide 11: Strong Balance Sheet
Financial Overview Business Performance Sustainability Appendix STRONG BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) 29,931 5,724 18,670 3,137 2,587 11,261 Jun-20 Jun-20 Debt Liquid investments Net Debt Standalone Debt / Equity Ratio 0.14x Current Ratio 1.13x (Borrowings / Net worth) (Cu
Slide 12: Capex Plan
Financial Overview Business Performance Sustainability Appendix CAPEX PLAN Balance Capex Capex spent Particulars (Rs. Cr.) to be spent Q1FY21 9MFY21 Viscose Staple Fibre (from 566 KTPA to 801 KTPA) Capacity Expansion 46 818 Normal Modernisation and Maintenance Capex 19 287 Chemical (from 1,147 KTPA
Slide 13: Business Performance
BUSINESS PERFORMANCE Grasim Industries Limited | Earnings Presentation | Q1 FY21 12
Slide 14: Financial Performance - Viscose
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - VISCOSE Revenue* (Rs. Cr.) EBITDA* (Rs. Cr.) 2,509 2,102 442 261 558 (113) Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 Sharp decline in EBITDA due to lower sales volume and prices, major impact from VFY business Fi
Slide 15: Financial Performance - Viscose Price Movement
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - VISCOSE Global Prices Trend ($/Kg) Price YoY QoQ June Exit Price 2.20 Movement (%) (%) (D over Q1FY21) 2.00 1.80 Grey VSF - 1.16 $/Kg 1.60 -26% -6% 1.40 CCF 0% 1.20 1.00 1.49 $/Kg 0.80 Cotton -20% -12% 0.60 (3%)
Slide 16: Financial Performance - Viscose Sales Volume
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - VISCOSE VSF Sales (KT) Sales Volume Mix Export Sales Grey VSF 138 136 38% 70% 43 62% 30% Q1FY20 Q4FY20 Q1FY21 Domestic Sales VAP VSF business switched focus to export market and dedicated few production lines to
Slide 17: Financial Performance - Chemicals
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - CHEMICALS Revenue* (Rs. Cr.) EBITDA* (Rs. Cr.) 1,503 1,290 446 704 104 41 Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 Sharp dip in the sales volume and weakness in ECU realization impacted the financial performance
Slide 18: Chlor Alkali Industry
Financial Overview Business Performance Sustainability Appendix CHLOR ALKALI INDUSTRY Caustic Realisation Grasim – ECU 45000 40,453 40000 38,342 37,216 40,023 35000 37,036 37,856 30000 27,805 30,348 25,649 25000 26,637 20000 Caustic Realisation - Grasim (Rs./MT) Caustic Realisation - HIS SEA (Rs./MT
Slide 19: Caustic – Key Operational Metrics
Financial Overview Business Performance Sustainability Appendix CAUSTIC – KEY OPERATIONAL METRICS Caustic Soda Sales (KT) Chlorine & HCl Consumption in VAP (Tons) 72,248 238 252 62,096 138 35,282 Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 Caustic Soda sales for Q1FY21 were lower on account of lower d
Slide 20: Financial Performance - Fertiliser
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - FERTILISER Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 697 68 72 623 605 52 Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 Demand for urea continued to remain strong because of normal monsoons leading to advance crop sowing Im
Slide 21: Financial Performance – Other Businesses
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – OTHER BUSINESSES Textile Insulators Revenue (Rs. Cr.) Revenue (Rs. Cr.) 437 110 109 344 45 75 Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 EBITDA (Rs. Cr.) EBITDA (Rs. Cr.) 31 6 3 (1) (55) (15) Q1FY20 Q4FY20 Q1FY21
Slide 22: Financial Performance – UltraTech
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – ULTRATECH Sales volume (MT) Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 19 11,420 3,084 15 2,353 7,634 Q1FY20 Q1FY21 Q1FY20 Q1FY21 Q1FY20 Q1FY21 India Operations reported operational EBITDA of Rs. 2,026 Cr. and operating
Slide 23: Financial Performance – ABCL
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – ABCL Lending Book (Rs. Cr.)* Domestic AAUM (Rs. Cr.) 61,998 58,073 253,965 214,592 Q1FY20 Q1FY21 Q1FY20 Q1FY21 Revenue and net profit after minority interest for Q1FY21 are Rs. 4,035 Cr. and Rs. 198 Cr. respectiv
Slide 24: Financial Performance – Other Subsidiaries
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – OTHER SUBSIDIARIES Aditya Birla Renewables (Solar Power) Grasim Premium Fabrics Private Limited Rs. Cr. Rs. Cr. Particulars Q1FY21 Q4FY20 Q1FY20 Particulars Q1FY21 Q4FY20 Q1FY20 Revenue 38 45 26 Revenue 1 27 48 E
Slide 25: Financial Performance – Pulp JV's
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – PULP JV’s Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 1,211 1,129 117 845 (23) (37) Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 Production Volume (Tons) Sales Volume (Tons) 204,161 196,997 188,436 204,505 147,304 170,224 Q1
Slide 26: Income Statement – Q1FY21
Financial Overview Business Performance Sustainability Appendix INCOME STATEMENT – Q1FY21 Standalone Consolidated Particulars (Rs. Cr.) Q1FY21 Q1FY20 Q1FY21 Q1FY20 Net Revenue from Operations 1,944 5,001 13,621 20,103 Other Income 99 85 377 234 EBITDA (46) 928 2,613 4,461 EBITDA Margin (%) -2% 18% 1
Slide 27: Sustainability
SUSTAINABILITY Grasim Industries Limited | Earnings Presentation | Q1 FY21 26
Slide 28: Greater Purpose - Greater Future
Financial Overview Business Performance Sustainability Appendix GREATER PURPOSE - GREATER FUTURE World Environment Day (5th June) Celebration • Planting trees at factory, school premises, & in nearby villages • Conducted webinar on “Biodiversity & Sustainable Wood Sourcing at Birla Cellulose” Commit
Slide 29: Appendix
APPENDIX Grasim Industries Limited | Earnings Presentation | Q1 FY21 28
Slide 30: Balance Sheet
Financial Overview Business Performance Sustainability Appendix BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) 30th Jun'20 31st Mar'20 EQUITY & LIABILITIES 30th Jun'20 31st Mar'20 39,969 37,674 Net Worth 59,550 56,652 - - Non Controlling Interest 34,795 34,335 - - Borrowings related to fi
Slide 31: Viscose Business Summary
Financial Overview Business Performance Sustainability Appendix VISCOSE BUSINESS SUMMARY Quarter 1 Particulars % Change Q4FY20 % Change 2020-21 2019-20 Capacity VSF KTPA 578 566 2 578 0 VFY KTPA 48 46 4 48 0 Production VSF KT 37 140 (74) 131 -72 VFY KT 1 11 (91) 10 -90 Sales Volume VSF KT 43 138 (69
Slide 32: Chemical Business Summary
Financial Overview Business Performance Sustainability Appendix CHEMICAL BUSINESS SUMMARY Quarter 1 Particulars % Change Q4FY20 % Change 2020-21 2019-20 Capacity* KTPA 1,147 1,147 0 1,147 0 Production* KT 139 242 (43) 250 (44) Sales Volume* KT 138 238 (42) 252 (45) Revenue Rs. Cr. 704 1,503 (53) 1,2
Slide 33: Grasim Group Structure
Financial Overview Business Performance Sustainability Appendix GRASIM GROUP STRUCTURE Grasim Industries Limited VSF - 578K TPA Caustic Soda - Overseas UTCL (57.28%)* ABCL (54.24%)* VFY - 48K TPA ~1147K TPA Others Pulp - 74K TPA Pulp & VSF JVs Subsidiary Subsidiary Epoxy – 123K TPA Nagda Nagda Ferti
Slide 34: 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 35: Notes
NOTES Grasim Industries Limited | Earnings Presentation | Q1 FY21 34
Slide 36: Glossary
GLOSSARY Abbreviation Particulars AAUM Average Asset Under Management ECU Electro Chemical Unit Epoxy Name of Chemical FY Financial Year HSBP High Strength Bleaching Powder KTPA Thousand Ton per annum MTPA Million Ton per annum NBFC Non Banking Financial Company PMT Per Metric Ton ROAvCE Return on A
Slide 37: 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