Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q2 FY2021 Earnings Presentation
41 slides from Grasim Industries's earnings presentation, Nov 12, 2020
Slide 1: Cover letter to stock exchanges
Ref No.: GIL/CFD/SEC/21/102/SE 12th November 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: G
Slide 2: Grasim Industries Limited Earnings Presentation Q2FY21
Grasim Industries Limited Earnings Presentation Q2FY21
Slide 3: Big in Your Life
BIG IN YOUR LIFE # 1 In Viscose @ # 1 In Chlor - Alkali* 57.28% 54.24% Market Cap (Nov 11, 2020): INR 52,828 Crore (USD 7.11 Billion) Market Cap Market Cap (Nov 11, 2020): (Nov 11, 2020): INR 1.40 Lakh Crore INR 17,500 Crore (USD 18.86 Billion) (USD 2.36 Billion) Cement Producer Asset Management # 1
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 | Q2 FY21 4
Slide 6: Financial Performance Driven by Multiple Drivers
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE DRIVEN BY MULTIPLE DRIVERS Standalone Revenue (Rs. Cr.) Standalone EBITDA (Rs. Cr.) 3,438 680 1,940 (46) Q1FY21 Q2FY21 Q1FY21 Q2FY21 Capacity Utilisation Input Cost Fixed Cost Improvement (QoQ) Reduction1 (QoQ) Sav
Slide 7: Financial Performance Driven by Operational Improvement
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE DRIVEN BY OPERATIONAL IMPROVEMENT VSF Caustic Soda Capacity Utilisation Sales Volume (KT) EBITDA (Rs. Crore) Capacity Utilisation Sales Volume (KT) EBITDA (Rs. Crore) 88% 236 168 131 179 80% 49% 138 26% 43 41 (34)
Slide 8: Financial Overview: Quarterly
Financial Overview Business Performance Sustainability Appendix FINANCIAL OVERVIEW: QUARTERLY Consolidated Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT1 (Rs. Cr.) 3,660 1,002 18,400 18,400 3,174 924 2,613 13,611 237 Q2FY20 Q1FY21 Q2FY21 Q2FY20 Q1FY21 Q2FY21 Q2FY20 Q1FY21 Q2FY21 Standalone Revenue (Rs. Cr.
Slide 9: Strong Balance Sheet
Financial Overview Business Performance Sustainability Appendix STRONG BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) Net Debt/ EBITDA Net Debt/ EBITDA 1.46x 1.39x (Last 12M EBITDA) (Last 12M EBITDA) 28,621 4,980 17,295 2,651 2,329 11,326 Sep-20 Sep-20 Gross Debt Liquid investments Net De
Slide 10: Capex Plan
Financial Overview Business Performance Sustainability Appendix CAPEX PLAN Balance Capex Capex spent Particulars (Rs. Cr.) to be spent H1FY21 H2FY21 Viscose Staple Fibre (from 578 KTPA to 801 KTPA) Capacity Expansion 109 764 Normal Modernisation and Maintenance Capex 55 238 Chemical (from 1,147 KTPA
Slide 11: Unit Wise Capacities and Expansion Plan
Financial Overview Business Performance Sustainability Appendix UNIT WISE CAPACITIES AND EXPANSION PLAN VSF Capacity (KTPA) Caustic Soda Capacity (KTPA) BB’Puram 1,457 (146 KTPA) Phase 1 - Q1FY22 801 146 (73KTPA) 1,147 1,147 Vilayat expansion Vilayat expansion 438 (73 KTPA) 578 582 (219 KTPA) Q4FY21
Slide 12: Sale of Fertiliser Business
Financial Overview Business Performance Sustainability Appendix SALE OF FERTILISER BUSINESS Key Details Transaction Rationale One of the largest urea producer in India with capacity of 3,340 TPD for urea Focus on Core Business Amongst the most energy efficient urea plants in India Operates across 7
Slide 13: Sale of Fertiliser Business
Financial Overview Business Performance Sustainability Appendix SALE OF FERTILISER BUSINESS Buyer: Indorama India Private Limited, a step-down subsidiary of Indorama Corporation is the largest producer of Urea and Phosphate fertilizers in Sub-Saharan Africa, the largest producer of polyolefins in We
Slide 14: Grasim and Lubrizol Partners for India's Largest CPVC Resin Plant
Financial Overview Business Performance Sustainability Appendix GRASIM AND LUBRIZOL PARTNERS FOR INDIA’S LARGEST CPVC RESIN PLANT • Grasim partners with Lubrizol Advanced Materials to manufacture and supply chlorinated polyvinyl chloride (CPVC) resin • Construction of 100 KTPA at Vilayat (Gujarat) i
Slide 15: Business Performance
BUSINESS PERFORMANCE Grasim Industries Limited | Earnings Presentation | Q2 FY21 14
Slide 16: VSF Demand Improving with Recovery in Textile Sector
Financial Overview Business Performance Sustainability Appendix VSF DEMAND IMPROVING WITH RECOVERY IN TEXTILE SECTOR India: Demand pick up for comfortable clothing and women’s wear emanating from smaller town and cities Chinese domestic demand remained buoyant, with decline in the exports In China,
Slide 17: Financial Performance - Viscose
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - VISCOSE Global Prices Trend ($/Kg) Price YoY QoQ Sep Exit Price 2.60 Movement (%) (%) (D over Q2FY21) 2.10 Grey VSF - 1.14 $/Kg -23% -3% CCF ( 2% ) 1.60 1.10 1.56 $/Kg Cotton -4% 6% 0.60 ( 1% ) 0.71 $/Kg PSF -28%
Slide 18: Financial Performance - Viscose
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - VISCOSE Revenue1 (Rs. Cr.) EBITDA1 (Rs. Cr.) 2,431 381 1,679 193 558 (113) Q2FY20 Q1FY21 Q2FY21 Q2FY20 Q1FY21 Q2FY21 Significant bounce back in the revenue and EBITDA driven by higher sales volume and lower costs
Slide 19: Financial Performance - Viscose
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - VISCOSE VSF Sales (KT) Sales Volume Mix Export Sales Grey VSF 142 131 18% 85% 43 82% 15% Q2FY20 Q1FY21 Q2FY21 Domestic Sales VAP VFY Sales (KT) Share of domestic sales is closer to Pre-COVID levels 10 Significant
Slide 20: Financial Performance - Chemicals
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - CHEMICALS Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 1,347 273 1,126 187 702 41 Q2FY20 Q1FY21 Q2FY21 Q2FY20 Q1FY21 Q2FY21 Strong pick up in the sales volume and cost tailwinds resulted in sharp increase in the EBITDA Ste
Slide 21: Chlor Alkali Industry
Financial Overview Business Performance Sustainability Appendix CHLOR ALKALI INDUSTRY Caustic Realisation Grasim – ECU 43,000 37,036 37,856 38,000 40,453 38,342 33,000 37,216 30,348 28,000 26,637 24,171 23,000 27,805 25,649 18,000 Caustic Realisation - Grasim (Rs./MT) Caustic Realisation - IHS SEA (
Slide 22: Caustic - Key Operational Metrics
Financial Overview Business Performance Sustainability Appendix CAUSTIC – KEY OPERATIONAL METRICS Caustic Soda Sales (KT) Chlorine & HCl Consumption in VAP (Tons) 71,063 241 236 64,300 138 35,282 Q2FY20 Q1FY21 Q2FY21 Q2FY20 Q1FY21 Q2FY21 Demand pick from textile, paper segment and other segment led
Slide 23: Financial Performance - Fertiliser
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - FERTILISER Urea Sales (MT) EBITDA (Rs. Cr.) 298,327 72 290,644 60 277,907 49 Q2FY20 Q1FY21 Q2FY21 Q2FY20 Q1FY21 Q2FY21 Urea sales volume were lower sequentially on account of lower production The YoY increase in
Slide 24: Financial Performance - Other Businesses
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – OTHER BUSINESSES Textile Insulators Revenue (Rs. Cr.) Revenue (Rs. Cr.) 418 97 90 176 44 75 Q2FY20 Q1FY21 Q2FY21 Q2FY20 Q1FY21 Q2FY21 EBITDA (Rs. Cr.) EBITDA (Rs. Cr.) 13 9 (22) (2) (15) (55) Q2FY20 Q1FY21 Q2FY21
Slide 25: Financial Performance - UltraTech
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – UltraTech Sales volume (Million Ton) Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 20 10,354 2,830 19 9,615 2,066 Q2FY20 Q2FY21 Q2FY20 Q2FY21 Q2FY20 Q2FY21 Strong operational performance on back of robust sales volume and o
Slide 26: Financial Performance - ABCL
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – ABCL Lending Book (Rs. Cr.)* Domestic AAUM (Rs. Cr.) 58,073 238,674 57,592 214,592 Q1FY21 Q2FY21 Q1FY21 Q2FY21 Revenue and net profit after minority interest for Q2FY21 are Rs. 4,589 Cr. and Rs. 264 Cr. respectiv
Slide 27: 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 Q2FY21 Q1FY21 Q2FY20 Particulars Q2FY21 Q1FY21 Q2FY20 Revenue 34 38 20 Revenue 13 1 45 E
Slide 28: Financial Performance - Pulp JVs
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – PULP JV’s Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 1,283 121 1,072 845 -3 -23 Q2FY20 Q1FY21 Q2FY21 Q2FY20 Q1FY21 Q2FY21 Production Volume (Tons) Sales Volume (Tons) 215,549 213,714 197,834 195,187 170,224 147,304 Q2FY2
Slide 29: Consolidated Income Statement
Financial Overview Business Performance Sustainability Appendix CONSOLIDATED INCOME STATEMENT Quarterly Half Year Particulars (Rs. Cr.) Q2FY21 Q2FY20 H1FY21 H1FY20 Revenue from Operations 18,400 18,400 32,011 38,458 Other Income 200 216 578 453 EBITDA 3,660 3,174 6,273 7,635 EBITDA Margin (%) 20% 17
Slide 30: Standalone Income Statement
Financial Overview Business Performance Sustainability Appendix STANDALONE INCOME STATEMENT Quarterly Half Year Particulars (Rs. Cr.) Q2FY21 Q2FY20 H1FY21 H1FY20 Revenue from Operations 3,438 4,795 5,379 9,793 Other Income 282 287 382 372 EBITDA 680 946 634 1,874 EBITDA Margin (%) 18% 19% 11% 18% Fi
Slide 31: Sustainability
SUSTAINABILITY Grasim Industries Limited | Earnings Presentation | Q2 FY21 30
Slide 32: Greater Purpose - Greater Future
Financial Overview Business Performance Sustainability Appendix GREATER PURPOSE - GREATER FUTURE Awards and Recognition • Grasim Industries Limited ranked 9th in the list of “ET Futurescape 7th Responsible Business Ranking” on Sustainability and CSR • Grasim is also ranked in top 10 in India for CSR
Slide 33: Appendix
APPENDIX Grasim Industries Limited | Earnings Presentation | Q2 FY21 32
Slide 34: Balance Sheet
Financial Overview Business Performance Sustainability Appendix BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) 30th Sep'20 31st Mar'20 EQUITY & LIABILITIES 30th Sep'20 31st Mar'20 40,095 37,674 Net Worth 60,252 56,652 - - Non Controlling Interest 35,293 34,335 - - Borrowings related to fi
Slide 35: Viscose Business Summary
Financial Overview Business Performance Sustainability Appendix VISCOSE BUSINESS SUMMARY Quarter 2 Half Year Particulars % Change % Change 2020-21 2019-20 H1FY21 H1FY20 Capacity VSF KTPA 578 566 2 578 566 2 VFY KTPA 48 46 4 48 46 4 Production VSF KT 128 148 (14) 165 288 (56) VFY KT 5 11 (55) 6 22 (7
Slide 36: Chemical Business Summary
Financial Overview Business Performance Sustainability Appendix CHEMICAL BUSINESS SUMMARY Quarter 2 Half Year Particulars % Change % Change 2020-21 2019-20 H1FY21 H1FY20 Capacity* KTPA 1,147 1,147 0 1,147 1,147 0 Production* KT 232 249 (7) 370 491 (53) Sales Volume* KT 236 241 (2) 374 479 (51) Reven
Slide 37: 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 Fert
Slide 38: 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 39: Notes
NOTES Grasim Industries Limited | Earnings Presentation | Q2 FY21 38
Slide 40: 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 41: 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