Dcm Shriram Limited · NSE:DCMSHRIRAM
Dcm Shriram — Q2 FY22 Earnings Presentation
29 slides from Dcm Shriram's earnings presentation, Oct 19, 2021
Slide 1: DCM Shriram Ltd. Q2 & H1 FY22 Results Presentation
DCM Shriram Ltd. Q2 & H1 FY22 - Results Presentation October 19, 2021
Slide 2: Safe Harbour
Certain statements in this document may be forward-looking. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, Safe Harbour technological risks, and many other factors that could cause our actual results t
Slide 3: Table of Contents
Table of Contents Management Message & Q2 FY22 H1 FY22 Segments Financial Snapshot 4 Financial Snapshot 9 Management’s Message 13 Revenue Drivers 5 Revenue Drivers 10 Segments 14 PBDIT Drivers 6 PBDIT Drivers 11 Chloro-Vinyl Businesses 15-19 Returns & Leverage 7 Segment Performance 12 Sugar 20-22 Se
Slide 4: Financial Snapshot - Q2 FY22
Financial Snapshot - Q2 FY22 Revenue (Net) PBDIT Depreciation 5% 2,145* 30% 311 -1% 60 59 240 2,047 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 PBIT Finance Cost** PAT 40% 252 26 -9% 33% 159 180 119 23 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 * Net of excise duty on country liquor sales a
Slide 5: Revenue Drivers - Q2 FY22
Revenue Drivers - Q2 FY22 Positive Revenue Drivers Negative Revenue Drivers Chemicals Vinyl 37% 94% 332 Sugar 483 171 830 352 -29% 590* Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 • Driven by both volumes and prices. Q2 FY21 Q2 FY22 • Driven by higher prices and higher volumes of PVC. • Caustic sales volumes up
Slide 6: PBDIT Drivers - Q2 FY22
PBDIT Drivers - Q2 FY22 Positive PBDIT Drivers Negative PBDIT Drivers Sugar Vinyl Chemicals -42% 156 58 199% 14% 108 33 52 94 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 • Primarily impacted due to overall lower volumes. Sugar • Led by higher prices and PVC volumes. • Led by volumes and higher p
Slide 7: Returns & Leverage - Q2 FY22
Returns & Leverage - Q2 FY22 PBDIT to Net Sales Net Debt / EBITDA 15.0% 0.22 14.5% 0.14 11.7% FY21 Q2 FY21 Q2 FY22 FY21 Q2 FY21 Q2 FY22 -0.48 ROCE % Capital Employed (Rs. Crs) 23.3% 4,954 18.0% 15.5% 4,686 4,215 FY21 Q2 FY21 Q2 FY22 FY21 Q2 FY21 Q2 FY22 Note: ROCE and Net Debt/ EBITDA Calculated on
Slide 8: Segment Performance - Q2 FY22
Segment Performance - Q2 FY22 Rs crs Revenues PBIT PBIT Margins % YoY % Segments Q2 FY22 Q2 FY21 YoY % Change Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Change Chloro-Vinyl 814.3 522.9 55.7 238.2 121.8 95.6 29.3 23.3 Sugar 589.9* 830.0 (28.9) 14.2 39.1 (63.8) 2.4 4.7 SFS 178.3 189.0 (5.6) 21.1 21.5 (1.9) 11.8
Slide 9: Financial Snapshot - H1 FY22
Financial Snapshot - H1 FY22 Revenue (Net) PBDIT Depreciation 4% 4,102* 42% -2% 611 432 119 3,959 117 H1 FY21 H1 FY22 H1 FY21 H1 FY22 H1 FY21 H1 FY22 PBIT Finance Cost** PAT 495 69 58% -26% 68% 316 51 313 188 H1 FY21 H1 FY22 H1 FY21 H1 FY22 H1 FY21 H1 FY22 Long Term credit rating upgraded to AA+ (
Slide 10: Revenue Drivers – H1 FY22
Revenue Drivers – H1 FY22 Positive Revenue Drivers Negative Revenue Drivers Chemical Vinyl Sugar 895 1,707 585 518 -32% 1,153* 53% 105% 253 H1 FY21 H1 FY22 H1 FY21 H1 FY22 H1 FY21 H1 FY22 • Driven by both volumes and prices. Volumes up 34% • Domestic volumes lower due to lower monthly release. • Dri
Slide 11: PBDIT Drivers – H1 FY22
PBDIT Drivers – H1 FY22 Positive PBDIT Drivers Negative PBDIT Drivers Chemical Vinyl Sugar 148 -49% 42% 220 312% 246 155 76 60 H1 FY21 H1 FY22 H1 FY21 H1 FY22 H1 FY21 H1 FY22 • Led by volumes and higher product prices. • Sugar volumes were lower for both domestic and export. • Primarily by higher pr
Slide 12: Segment Performance - H1 FY22
Segment Performance - H1 FY22 Rs crs Revenues PBIT PBIT Margins % YoY % Segments H1 FY22 H1 FY21 YoY % Change H1 FY22 H1 FY21 H1 FY22 H1 FY21 Change Chloro-Vinyl 1,412.7 838.5 68.5 416.1 165.2 151.9 29.5 19.7 Sugar 1,153.4* 1,707.4 (32.4) 37.5 110.9 (66.1) 3.3 6.5 SFS 390.7 398.5 (1.9) 36.9 38.9 (5.
Slide 13: Management’s Message
Management’s Message Commenting on the performance for the quarter and period ending September 2021, in a joint statement, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managing Director, said: “We are glad to report a good overall performance during
Slide 14: Segments
Segments Chloro-Vinyl Agri Other Businesses Businesses Businesses Fenesta Caustic Sugar Building Soda (1,845 (38,000 Systems TPD) TCD) (8,400 TPA) Aluminum Cement Co-Gen Chloride (400,000 (155 MW) (60 TPD) TPA) PVC Resins Distillery Polymer India (220 TPD) (350 KLD) Compounds Calcium Hariyali Shrira
Slide 15: Chloro Vinyl Business
Chloro Vinyl Business PBIT Cap. Employed Particulars Revenues (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) Q2 FY21 814.3 238.2 1,682.4 Q2 FY20 522.9 121.8 1,468.8 % Shift 55.7 95.6 14.5 H1 FY21 1,412.7 416.1 1,682.4 H1 FY20 838.5 165.2 1,468.8 % Shift 68.5 151.9 14.5 The Chloro-Vinyl business of the Company has hi
Slide 16: Chemicals operational and financial performance
Chemicals Operational Financial Caustic Sales ECU Realizations Revenues PBIT Particulars PBIT Margin % (MT) (Rs./MT) (Rs Cr.) (Rs. Cr.) Q2 FY22 148,986 24,924 482.6 85.9 17.8 Q2 FY21 130,089 20,387 351.6 73.7 21.0 % Shift 14.5 22.3 37.2 16.6 (15.1) H1 FY22 283,593 24,628 894.9 178.1 19.9 H1 FY21 212
Slide 17: Chemicals
Chemicals Demand in India has increased after the monsoon season as pandemic restrictions ease amid declining infection rate. Industry Overview For Q2 FY22, imports in India were 0.40 lac MT compared to 0.61 lac MT in Q2 FY21. For Q2 FY22, exports in India were 0.57 lac MT compared to 0.49 lac
Slide 18: Plastics operational and financial performance
Plastics Operational Financial PVC XWR Carbide XWR PVC Sales Carbide Sales Revenues PBIT Particulars Realizations Realizations PBIT Margin % (MT) (MT) (Rs Cr.) (Rs. Cr.) (Rs./MT) (Rs./MT) Q2 FY22 20,771 131,888 4,901 96,923 331.7 152.3 45.9 Q2 FY21 16,917 81,185 5,184 55,539 171.3 48.1 28.1 % Shift
Slide 19: Plastics
Plastics Revenue for Q2 FY22 up 94% YoY at Rs 332 crs driven primarily by prices. o PVC prices up 62% YoY and carbide prices up 75% YoY. Domestic PVC prices reached over Rs 150,000/MT during Sep’21 moving in line with international prices. o PVC volumes up 23% YoY. Carbide sales volumes down 5% Yo
Slide 20: Sugar
Sugar Particulars Revenues (Rs. Cr.) PBIT (Rs. Cr.) PBIT Margin % Cap. Employed (Rs. Cr.) Q2 FY22 589.9* 14.2 2.4 1,800.1 Q2 FY21 830.0 39.1 4.7 1,928.8 % Shift (28.9) (63.8) (49.0) (6.7) H1 FY22 1,153.4* 37.5 3.3 1,800.1 H1 FY21 1,707.4 110.9 6.5 1,928.8 % Shift (32.4) (66.1) (49.9) (6.7) Capital e
Slide 21: Sugar operational data
Sugar Operational Sugar Sugar Power Distillery Distillery Sugar Sales Production (Domestic) Power Sales Realizations Distillery Sales Realizations - B Realizations - C Particulars (Domestic) (Lac Qtls) Realizations (Lac Units) (Rs/ unit) (Lac Ltrs) Heavy Heavy (Rs/ (Lac Qtls) (Rs/Qtl) (Lac Units) (R
Slide 22: Sugar
Sugar Revenues for Q2 FY22 overall sugar down 29% YoY at Rs 590 crs (net of excise duty on country liquor sales amounting to Rs 33 crs) impacted by lower exports and domestic volumes. o Sugar volumes had an impact of Rs 245 crs on revenues. o Exports were lower during Q2 FY22 at 0.1 lac qtls vs 5.
Slide 23: Shriram Farm Solutions
Shriram Farm Solutions Revenues PBIT Cap. Employed Particulars PBIT Margin % (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) Q2 FY22 178.3 21.1 11.8 (56.2) Q2 FY21 189.0 21.5 11.4 (18.4) % Shift (5.6) (1.9) 4.0 - H1 FY22 390.7 36.9 9.4 (56.2) H1 FY21 398.5 38.9 9.8 (18.4) % Shift (1.9) (5.2) (3.4) - The products incl
Slide 24: Bioseed
Bioseed Revenues (Rs. Cr.) PBIT Cap. Employed Particulars PBIT Margin % India International Total (Rs. Cr.) (Rs. Cr.) Q2 FY22 55.1 22.3 77.4 (16.1) (20.7) 498.0 Q2 FY21 73.8 33.6 107.4 5.6 5.2 433.4 % Shift (25.3) (33.7) (27.9) - - 14.9 H1 FY22 191.0 74.8 265.9 9.0 3.4 498.0 H1 FY21 241.1 66.5 307.7
Slide 25: Fertilizers (Urea)
Fertilizers (Urea) Operational Financial Sales Realizations Revenues PBIT Cap. Employed Particulars PBIT Margin % (MT) (Rs./MT) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) Q2 FY22 102,296 27,396 293.5 13.8 4.7 289.7 Q2 FY21 108,986 18,892 218.9 15.2 7.0 541.9 % Shift (6.1) 45.0 34.0 (9.6) (32.6) (46.5) H1 FY22 17
Slide 26: Other Businesses
Other Businesses The ‘Others’ Segment in the financial results, includes Cement, Fenesta Building Systems and Hariyali Kisaan Bazaar. Revenues under ‘Others’ stood at Rs 209 crs in Q2 FY22 from Rs. 188 crs in Q2 FY21. PBIT for the quarter stood at Rs. 10 crs vis-à- vis Rs. 14 crs in Q2 FY21. 26
Slide 27: Fenesta Building Systems
Fenesta Building Systems Operational Financial Order Book (Rs crs) Revenues Particulars PBIT PBIT Margin % Retail Projects Total Total Q2 FY22 98.7 94.8 193.4 130.1 14.7 11.3 Q2 FY21 72.4 46.6 119.0 93.0 11.3 12.2 % Shift 36.3 103.3 62.6 39.9 30.2 (6.9) H1 FY22 155.2 124.9 280.1 238.6 23.4 9.8 H1 FY
Slide 28: Cement
Cement Operational Financial Sales Revenues PBIT PBIT Margin % Particulars Realizations (Rs./MT) (MT) (Rs. Cr.) (Rs. Cr.) Q2 FY22 101,232 3,640 44.9 (4.0) (9.0) Q2 FY21 109,231 3,566 47.1 3.3 6.9 % Shift (7.3) 2.1 (4.6) - - H1 FY22 208,814 3,631 91.5 (5.0) (5.5) H1 FY21 178,876 3,641 78.4 5.8 7.3 %
Slide 29: About Us & Investor Contacts
DCM Shriram Ltd. is an integrated business entity, with extensive and growing presence across the entire Agri value chain and Chloro-Vinyl industry. The Company has added innovative value- added businesses in these domains primarily Bioseed and Fenesta. Access to captive power at all key manufacturi