Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q1 FY2007 Earnings Presentation
48 slides from Grasim Industries's earnings presentation, Jul 29, 2006
Slide 1: Grasim Industries Limited Performance Review – Q1FY07
Grasim Industries Limited Performance Review – Q1FY07 29th July 2006
Slide 2: Cautionary Statement
Cautionary Statement Statements in this “Presentation” describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or impl
Slide 3: Consolidated Financial Performance – Q1FY07
Consolidated Financial Performance – Q1FY07 % z Consolidated revenue up by 29% Rs. Crs. Change z PBIDT higher by 52% ¾ Excellent performance from Grasim’s TOTAL REVENUE 3,196 29 Cement Business & Cement Subsidiaries; PBIDT 972 52 PBIDT up by 110% YoY (including minority share) ¾ Higher operating pro
Slide 4: Consolidated Financial Performance
Consolidated Financial Performance (Rs. Crores) Q1FY07 Q1FY06 % Chg. FY06 Net Turnover & Op. Income 3,195.9 2,473.7 29 10,227.1 Other Income 49.2 75.5* (35) 217.3 PBIDT 972.3 640.5 52 2,330.5 Interest 52.6 56.7 (7) 212.2 Gross Profit 919.7 583.8 58 2,118.3 Depreciation 141.7 135.4 5 563.1 Exceptiona
Slide 5: Consolidated Segmental Performance – Q1FY07
Consolidated Segmental Performance – Q1FY07 Revenue Mix PBIDT Mix VSF Chemical Sponge Iron Others VSF Others 12% 2% 2% 5% 17% Sponge Iron 5% Chemical 1% 2% Textiles 2% * Cement Cement 72% 80% (Rs.3,196 Crs.) (Rs.973 Crs.) z VSF (incl. Chemical) contributed 19% (21%) to Revenue and 14% (20%) in PBIDT
Slide 6: Standalone Financial Performance – Q1FY07
Standalone Financial Performance – Q1FY07 % z Revenue up by 21% Rs. Crs. Change z PBIDT up by 25% ¾ Excellent performance by Cement business TOTAL REVENUE 1,877 21 ¾ Higher operating profits in VSF business PBIDT 551 25 despite plant closure ¾ Poor performance from Sponge Iron Interest Charges 24 (1
Slide 7: Standalone Financial Performance
Standalone Financial Performance (Rs. Crores) Q1FY07 Q1FY06 % Chg. FY06 Net Turnover & Op. Income 1,877.0 1,553.3 21 6,655.7 Other Income 37.5 65.5* (43) 169.1 PBIDT 550.7 439.9 25 1,590.9 Interest 23.5 26.6 (11) 97.4 Gross Profit 527.2 413.3 28 1,493.5 Depreciation 74.0 70.4 5 291.6 Exceptional Ite
Slide 8: Standalone Segmental Performance – Q1FY07
Standalone Segmental Performance– Q1FY07 Revenue Mix PBIDT Mix Sponge Others Sponge Iron VSF VSF Iron 9% 5% 3% 21% 23% Chemical Chemical 4% 3% Textiles 3% Cement Cement 61% 68% (Rs.1,877 Crs.) (Rs.551 Crs.) z VSF (incl. Chemical) contributed 27% (33%) to Revenue and 24% (29%) in PBIDT mix z Cement c
Slide 9: Business Review – Q1FY07
Business Review – Q1FY07 VSF Chemicals Cement Sponge Iron Textiles 9
Slide 10: Viscose Staple Fibre : Q1FY07 Highlights
Viscose Staple Fibre : Q1FY07 Highlights % z Operations at Nagda plant suspended for Q1FY07 Q1FY06 Chg. Capacity (TPA) @ 266,450 253,675 5 45 days due to water shortage Production (MT) 45,194 52,282 (14) ¾ Lower production and sales volumes as a Sales Volumes (MT) 51,957 52,962 (2) result Net Turnov
Slide 11: Viscose Staple Fibre : Outlook
Viscose Staple Fibre : Outlook z Operations at Nagda normalised from 2nd week of July z Volumes outlook remains positive ¾ Strong demand from India and South Asian Textile hubs ¾ Capacity increased at Harihar by 9,125 tons thru’ debottlenecking z Price outlook encouraging ¾ Backed by strong demand ¾
Slide 12: Chemical : Q1FY07 Highlights
Chemical : Q1FY07 Highlights % z Production declined by 15% Q1FY07 Q1FY06 Chg. ¾ Water shortage impacted operations Caustic Capacity (TPA) 190,800 190,800 -- z Sales volumes down by 14% on lower Caustic Production (MT) 30,738 36,017 (15) production Caustic Sales Volumes (MT) 30,712 35,849 (14) z ECU
Slide 13: Cement : Q1FY07 Highlights
Cement : Q1FY07 Highlights % z Excellent performance Q1FY07 Q1FY06 Chg. z High capacity utilisation at 109% Grey Cement z Sales volume up by 5% on continued Capacity (Mn. TPA) 13.12 13.12 -- Production (Mn. MT) 3.56 3.35 6 demand growth Sales Volumes* (Mn. MT) 3.50 3.33 5 z Realisation surged by 36%
Slide 14: Cement : Q1FY07 Highlights contd..
Cement : Q1FY07 Highlights contd.. zCement : Highlights (Contd..) Q1FY07 – Zone wise Growth 25% z Continued thrust on cost control 16% 20% ¾ Optimising rail-road mix; despatches thru’ 12% 10% 15% 9% 9% rail increased from 36% to 47% 8% 10% 5% 5% 5% ¾ Blended cement proportion increased from 0% 50% t
Slide 15: Cement : Outlook
Cement : Outlook z Robust demand growth of 9% in Q1FY07 z Demand outlook positive, expected to grow by 8-9% in the long term ¾ Strong demand from housing and infrastructure ¾ Industrial investment to provide further impetus z Industry capacity utilisation to remain at higher levels ¾ Demand – supply
Slide 16: Sponge Iron : Q1FY07 Highlights
Sponge Iron : Q1FY07 Highlights z Lower capacity utilisation due to poor % availability of Natural Gas Q1FY07 Q1FY06 Chg. z Realisation lower by 14% YoY due to Capacity (TPA) 900,000 900,000 -- lower global scrap prices Production (MT) 126,941 179,816 (29) z Operating margins declined due to Sales V
Slide 17: Sponge Iron : Outlook
Sponge Iron : Outlook z Volumes to remain depressed due to inadequate Natural Gas supplies z Realisations may improve marginally with upswing in scrap prices ¾ But competition from coal based sponge iron continues to be a threat z Profitability to remain under pressure ¾ High input costs and lower u
Slide 18: Textiles : Q1FY07 Highlights and Outlook
Textiles : Q1FY07 Highlights and Outlook z Fabric volumes up by 18% Q1 Q1 % FY07 FY06 Chg. ¾ Increased supplies to Ready-made Sales Volumes Garment (RMG) segment - Fabrics (lac Mtrs.) 33 28 18 ¾ Healthy growth in domestic OTC - Synthetic Yarn (MT) 1,413 1,643 (14) business Net Turnover (Rs. Crs.) 52
Slide 19: Capex
Capex 19
Slide 20: Capex plans
Capex plans z Capex Summary Rs. Crores Cash Outflow Total FY07 FY08 Cement 3,641 1,519 2,021 - 4 Mn. TPA Greenfield Project at Kotputli, Rajasthan 1,275 - 4 Mn. TPA Brownfield Project at Shambhupura, Rajasthan 1,200 - Thermal Power plants (4 Nos, 102 MW, Project Cost Rs.455 Crs.) 390 - Grinding unit
Slide 21: UltraTech Cement Limited (Consolidated) Performance Review
UltraTech Cement Limited (Consolidated) Performance Review 21
Slide 22: UltraTech: Consolidated Financial Performance – Q1FY07
UltraTech: Consolidated Financial Performance – Q1FY07 (Rs. Crores) z Turnover * up by 43% Q1 Q1 % FY07 FY06 Inc. z Operating profit increased by 130% Net Turnover* and 1,178.5 822.2 43 z Significant improvement in margins Other Income from 21% to 33% PBIDT 388.2 169.1 130 ¾ Substantial increase in
Slide 23: UltraTech Consolidated: Highlights
UltraTech Consolidated: Highlights Q1 Q1 z Capacity utilisation at 104% (95%) FY06 FY07 FY06 Production (Mn. MT) z Volumes up by 10% at 4.4 Mn. MT Clinker 0.54 0.36 1.32 ¾ Domestic despatches up by 10% against Cement 3.88 3.66 13.71 sector average of 8% Sales volumes (Mn. MT) z Domestic cement reali
Slide 24: Shree Digvijay Cement Company Limited (SDCC) Performance Review
Shree Digvijay Cement Company Limited (SDCC) Performance Review 24
Slide 25: SDCC Financial Performance - Q1FY07
SDCC Financial Performance - Q1FY07 (Rs. Crores) z Capacity utilisation declined to 87% Q1 Q1 % (Lac MT) (104%) due to plant breakdown FY07 FY06 Chg. Cement Production 2.36 2.15 10 z Resultant fall in sales volumes by 19% Sales Volumes - Cement 2.27 2.15 z Cement realisations up by 30% (19) - Clinke
Slide 26: Plant Locations– Grasim & its subsidiaries
Plant Locations– Grasim & its subsidiaries Bhatinda(G) Proposed Cement Projects Panipat Proposed Grinding Units Bhiwani Grey cement plants Kotputli T Dadri Grinding Units (G) Shambhupura Jodhpur B Bulk Cement Terminal Jawad Bharuch Durgapur(G) UltraTech Cement Plants F Jafrabad Magdalla (G) UltraTec
Slide 27: Thank You
GRAS TM, ADITYA BIRLA GROUP Thank You
Slide 28: Annexure
Grasim Industries Limited Annexure
Slide 29: Index of Annexure
Index of Annexure Page Nos. Consolidated and Standalone Profitability snapshot (3 yrs.) 30 Consolidated and Standalone Financial snapshot (3 yrs.) 31 Segmental Performance – Q1FY07 32 VSF Summary 33 Chemical Summary 34 Cement Summary 35 Sponge Iron Summary 36 Textiles Summary 37 Pr
Slide 30: Profitability Snapshot
Profitability Snapshot Standalone Consolidated Q1 Q1 (Rs. Crores) FY99 FY05 FY06 FY04 FY05 FY06 FY07 FY07 Gross Turnover 4,325 7,201 7,607 2,094 9,189 10,776 11,715 3,564 Net Turnover 3,757 6,229 6,621 1,866 7,782 9,292 10,192 3,185 PBIDT 674 1,785 1,591 551 1,909 2,272 2,331 972 PBIDT Margin (%) 17
Slide 31: Financial Snapshot
Financial Snapshot Standalone Consolidated (Rs. Crores) FY99 FY05 FY06 Q1FY07 FY04 FY05 FY06 Q1FY07 Gross Block 4,937 6,052 6,417 6,677 10,702 11,317 11,932 12,298 Net Block 3,354 3,204 3,307 3,499 6,394 6,299 6,416 6,717 Goodwill - - - - 2,037 1,958 1,773 1,860 Cement Subs. Investment 56 2,362 2,35
Slide 32: Segmental Performance-Q1FY07
Segmental Performance-Q1FY07 Standalone (Rs. Crores) PBIDT Margin Capital ROAvCE (%) Revenue PBIDT PBIT Business (%) Employed (PBIT basis) Q1FY07 Q1FY06 Q1FY07 Q1FY06 Q1FY07 Q1FY06 Q1FY07 Q1FY06 Q1FY07 Q1FY06 Q1FY07 Q1FY06 VSF 446.4 418.3 114.3 91.8 25.9 22.0 97.9 76.7 1,048 1,047 41.2 31.2 Chemical
Slide 33: Viscose Staple Fibre : Summary
Viscose Staple Fibre : Summary % Q1 FY07 Q1 FY06 FY06 Chg. Capacity TPA 266,450 253,675 5 257,325 Production MT 45,194 52,282 (14) 228,981 Sales Volumes MT 51,957 52,962 (2) 242,399 Net Turnover Rs. Crs. 441.1 417.8 6 1,918.8 Avg. Realisation Rs./MT 78,983 73,092 8 73,786 PBIDT Rs. Crs. 114.3 91.8 2
Slide 34: Chemical : Summary
Chemical : Summary % Q1 FY07 Q1 FY06 FY06 Chg. Capacity (Caustic) MT 190,800 190,800 -- 190,800 Production (Caustic) MT 30,738 36,017 (15) 165,509 Sales Volume(Caustic) MT 30,712 35,849 (14) 165,853 Net Turnover Rs. Crs. 71.5 99.3 (28) 385.0 Avg. ECU Realisation Rs./MT 19,252 24,669 (22) 20,594 PBID
Slide 35: Cement : Summary
Cement : Summary % Q1 FY07 Q1 FY06 FY06 Chg. Grey Cement Capacity Mn. MT 13.12 13.12 -- 13.12 Production Mn. MT 3.56 3.35 6 13.83 Sales Volumes * Mn. MT 3.50 3.33 5 13.99 Net Turnover * Rs. Crs. 1,021.4 723.1 41 3,092.7 Avg. Realisation Rs./MT 2,731 2,008 36 2,046 White Cement Capacity TPA 475,000 4
Slide 36: Sponge Iron : Summary
Sponge Iron : Summary % Q1 FY07 Q1 FY06 FY06 Chg. Capacity TPA 900,000 900,000 -- 900,000 Production MT 126,941 179,816 (29) 505,825 Sales Volumes MT 140,912 143,627 (2) 478,291 Net Turnover Rs. Crs. 175.4 220.5 (20) 633.6 Avg. Realisation Rs./MT 12,054 14,075 (14) 12,323 PBIDT Rs. Crs. 14.2 69.2 (8
Slide 37: Textiles : Summary
Textiles : Summary % Q1 FY07 Q1 FY06 FY06 Chg. Net Turnover Rs. Crs. 52.8 50.5 4 236.9 PBIDT Rs. Crs. 1.2 0.9 26 3.4 PBIDT Margin % 2.2% 1.8% -- 1.4% PBIT Rs. Crs. (0.1) (0.6) -- (3.0) Capital Employed Rs. Crs. 95 103 (8) 93 ROAvCE (PBIT basis) % (0.6)% (2.3)% -- (3.2)% 37
Slide 38: Production Data (MT)
Production Data (MT) Q1FY07 Q1FY06 FY06 Capacity Capacity Capacity Production % Production % Production % TPA TPA TPA VSF @ 266,450 45,194 70 253,675 52,282 82 257,325 228,981 90 Caustic Soda 190,800 30,738 64 190,800 36,017 76 190,800 165,509 87 Grey Cement * 13.12 3.56 109 13.12 3.35 102 13.12 13.
Slide 39: Divisional Turnover (Qty.) & Realisation
Divisional Turnover (Qty.) & Realisation Quantity (MT) Realisation (Rs. /MT) Product Q1 FY07 Q1 FY06 FY06 Q1 FY07 Q1 FY06 FY06 VSF 51,957 52,962 242,399 78,983 73,092 73,786 Caustic Soda * 30,712 35,849 165,853 19,252 24,669 20,594 Grey Cement # 3.50 3.33 13.99 2,731 2,008 2,046 White Cement 81,143
Slide 40: UltraTech: Consolidated Financial Performance
UltraTech: Consolidated Financial Performance (Rs. Crores) Q1 FY07 Q1 FY06 % Inc. FY06 Net Turnover * & Other Income 1,178.5 822.1 43 3,288.0 PBIDT 388.2 169.1 130 606.6 PBIDT Margin (%) 33.2% 20.8% -- 19.0% Interest 22.6 22.3 1 90.1 Depreciation 55.0 57.6 (4) 230.5 PBT 310.6 89.2 248 286.0 Current
Slide 41: SDCC : Financial Performance
SDCC : Financial Performance (Rs. Crores) % Q1 FY07 Q1 FY06 FY06 Chg. Net Turnover & Op. Income 60.6 53.6 13 214.4 Other Income 1.9 0.4 356 4.8 PBIDT 12.8 12.4 3 44.4 PBIDT Margin 21.1% 23.1% 20.7% Interest 0.3 1.3 -- 3.2 Depreciation 1.6 2.7 (43) 7.4 Profit before EIs 10.9 8.3 31 33.8 Exceptional I
Slide 42: Press Release Mumbai, July 29, 2006
Press Release Mumbai, July 29, 2006 GRASIM, THE ADITYA BIRLA GROUP’s FLAGSHIP COMPANY REPORTS EXCELLENT ALL-ROUND PERFORMANCE FOR Q1FY 2007 Consolidated Net Revenue at Rs.3,196 Crs., up by 29% Consolidated Net Profit at Rs.435 Crs., up by 47% Rs. Crores Consolidated Stand-alone Q1 Q1 % Q1 Q1 % FY07
Slide 43: Highlights of Grasim's operations
Highlights of Grasim’s operations: Q1FY07 Q1FY06 % Change Production - Viscose Staple Fibre M.T. 45,194 52,282 -14% Cement Mn. M.T. 3.56 3.35 6% White Cement M.T. 83,045 78,774 5% Sponge Iron M.T. 126,941 179,816 -29% Caustic Soda M.T. 30,738 36,017 -15% Sales Volumes - Viscose Staple Fibre M.T. 51,
Slide 44: Cement Business
Cement Business Increased volumes and a strong growth in realizations helped the Cement business post an admirable performance. Capacity utilisation was higher at 109% (102%). Sales volumes rose by 5% at 3.50 Mn. tons. Realisations surged by 36% at Rs.2,731 per ton leading to a significant improveme
Slide 45: Sponge Iron and Chemical Business
Sponge Iron Business Sponge Iron business continued to remain under severe pressure due to non- availability of natural gas and a steep increase in the prices of inputs, viz., natural gas, iron ore and pellets. Though on a sequential basis, realisations did show some improvement, it was lower by 14%
Slide 46: Unaudited Financial Results for the Quarter Ended 30 June 2006
UNAUDITED FINANCIAL RESULTS th FOR THE QUARTER ENDED 30 JUNE 2006 Rs in Crores Consolidated Standalone Three Months Three Months Full Year Three Months Three Months Full Year ended 30th ended 30th ended 31st ended 30th ended 30th ended 31st June 2006 June 2005 March 2006 June 2006 June 2005 March 20
Slide 47: Segment Reporting
-2- SEGMENT REPORTING : Rs. in Crores Consolidated Standalone Three Months Three Months Full Year Three Months Three Months Full Year ended 30th ended 30th ended 31st ended 30th ended 30th ended 31st June 2006 June 2005 March 2006 June 2006 June 2005 March 2006 ( Audited ) ( Audited ) 1. SEGMENT REV
Slide 48: Notes
-3- V. NOTES 1 Consolidated Results have been prepared in accordance with Accounting Standard on Consolidated Financial Statements (AS-21), Accounting Standard on Accounting for Investments in Associates (AS-23), and Accounting Standard on Financial Reporting of Interest in Joint Ventures (AS-27) is