Dcm Shriram Limited · NSE:DCMSHRIRAM
Dcm Shriram — Q1 FY24 Earnings Presentation
25 slides from Dcm Shriram's earnings presentation, Jul 24, 2023
Slide 1: DCM Shriram Ltd. Q1 FY24 Results Presentation
DCM Shriram Ltd. Q1 FY24 - Results Presentation July 24, 2023
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 Q1 FY24 Management Message & Segments Financial Snapshot 4 Management’s Message 9 Revenue Drivers 5 Our Businesses 10 PBDIT Drivers 6 Chloro-Vinyl Businesses 11-15 Returns & Leverage 7 Sugar 16-18 Segment Performance 8 Fenesta 19 Agri Input Businesses 20-22 Other Businesses 23-24 N
Slide 4: Financial Snapshot – Q1 FY24
Financial Snapshot – Q1 FY24 Revenue (Net) * PBDIT PAT -2% -60% -78% 2,851 2,780 464 254 183 57 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 PBIT Finance Cost ** Depreciation -72% 52% 19% 403 25 61 72 17 111 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Net Debt as on 30th June 2023 is Rs 926 cr (LY Rs 8 cr) & as on
Slide 5: Revenue Drivers – Q1 FY24
Revenue Drivers – Q1 FY24 Chemicals Vinyl Sugar * -40% 35% -32% 896 243 958 536 164 710 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 • ECU down 41% YoY • PVC and Carbide prices lower by 39% and 30% • Sugar volumes (including exports) up at 18.0 vs • Volumes down 9% YoY respectively 12.9 lac qtls • Volumes we
Slide 6: PBDIT Drivers – Q1 FY24
PBDIT Drivers – Q1 FY24 Chemicals Vinyl Sugar -90% 306% 368 70 88 -3 36 22 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 • Lower earnings led by sharp decline in ECUs • Lower earnings led by significantly lower product • Earnings led by better product margins of both • Inputs costs especially energy prices ha
Slide 7: Returns & Leverage
Returns & Leverage PBDIT/ Net Sales (%) Gross Debt (GD) & Cash Surplus (CS) -Rs/Cr GD CS GD GD -9.7 CS CS 16.3 14.9 1,577 1,633 1,224 1,216 952 6.6 651 Q1'23 Q1'24 FY'23 Q1'23 Q1'24 FY'23 ROCE (%) Capital Employed (Rs/Cr) -15.4 462 36.5 5,480 5,678 27.3 5,018 21.2 Q1'23 Q1'24 FY'23 Q1'23 Q1'24 FY'23
Slide 8: Segment Performance – Q1 FY24
Segment Performance – Q1 FY24 Rs/Cr Revenues PBIT PBIT Margins % Segments YoY % YoY % Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Change Change Chloro-Vinyl 701 1,140 (39) 3 413 (99) 0 36 Sugar * 958 710 35 63 2 7 0 SFS 236 218 8 11 18 (40) 4 8 Fenesta 192 167 15 34 28 24 18 17 Bioseed 213 205 4 21 18 18 10
Slide 9: Management’s Message
Management’s Message Commenting on the performance for the quarter ending June 2023, in a joint statement, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managing Director, said: The world economy continues to face headwinds amidst weak growth prospect
Slide 10: Our Businesses
Our Businesses Value Chloro-Vinyl Agri Added Businesses Businesses Businesses Fenesta Caustic Sugar Building Soda (1,869 (41,000 Systems TPD) TCD) (8,600 TPA) Aluminum Co-Gen Chloride (166 MW) (75 TPD) Distillery . PVC Resins (440 KLD)* India (220 TPD) + (120 KLD)** Other Calcium Businesses Fertiliz
Slide 11: Chloro Vinyl Business
Chloro Vinyl Business Revenues PBIT Cap. Employed Particulars (Rs/ Cr) (Rs/Cr) (Rs/Cr) Q1 FY24 700.7 3.5 3,679.5 Q1 FY23 1,139.6 412.7 2,188.5 % Shift (38.5) (99.2) 68.1 Capital employed includes CWIP of Rs 2125 cr at 30th June, 2023 ( Rs 737 cr LY) & Rs 1,715 cr at 31st March, 2023 The Chloro-Vinyl
Slide 12: Chemicals
Chemicals Operational Financial ECU Caustic Sales Revenues PBIT Particulars Realisations PBIT Margin % (MT) (Rs/Cr) (Rs/Cr) (Rs/MT) Q1 FY24 1,38,758 28,996 536.3 10.5 2.0 Q1 FY23 1,51,707 49,468 896.2 346.5 38.7 % Shift (8.5) (41.4) (40.2) (97.0) (95.0) Caustic Soda - Import Prices & DCM Realization
Slide 13: Chemicals
Chemicals Global supplies outweighing demand led by higher operating rates in USA , Europe, China and new capacity additions in India. Recessionary trends continue impacting demand. These factors continue to affect sentiments Industry and therefore prices Overview Domestic demand also continued
Slide 14: Vinyl
Vinyl Operational Financial PVC XWR Carbide XWR PVC Sales Carbide Sales Revenues PBIT PBIT Margin Particulars Realisations Realisations (MT) (MT) (Rs/Cr) (Rs/Cr) (% ) (Rs/MT) (Rs/MT) Q1 FY24 15,336 78,858 5,431 70,901 164.4 (7.0) (4.3) Q1 FY23 14,706 1,28,748 4,571 1,01,550 243.4 66.2 27.2 % Shift 4
Slide 15: Vinyl
Vinyl India PVC demand continues to be higher than pre pandemic levels. Imports continue to be higher (almost 2/3rd of Industry total demand) given the poor demand from construction sector in China, US & Europe. Overview Domestic prices remain subdued due to oversupply & aggressive pricing by Ch
Slide 16: Sugar
Sugar Revenues * PBIT PBIT Margin Cap. Employed Particulars (Rs/Cr) (Rs/Cr) (% ) (Rs/Cr) Q1 FY24 958.1 63.2 6.6 3,107.3 Q1 FY23 709.8 2.1 0.3 2,803.9 % Shift 35.0 10.8 * Net of excise duty on country liquor sales amounting to Rs 157 cr (LY Rs 120 cr). Sugar - International Prices & DCM Realizations
Slide 17: Sugar
Sugar Operational Sugar Sugar Sales Sugar Power XWR Power Sales Distillery Sales Distillery XWR Particulars Production (Domestic) (Domestic) (Rs/ unit) (Lac Units) (Lac Ltrs) (Rs/ Ltrs) (Lac Qtls) (Lac Qtls) XWR (Rs/Qtl) (Lac Units) Q1 FY24 10.7 16.0 3,665 592 3.8 359.0 60.0 Q1 FY23 2.7 12.0 3,563 2
Slide 18: Sugar
Sugar Revenues up 35% YoY o Sugar volumes were up 41% due to higher domestic releases and exports. o Prices – both domestic and international were also higher by 3% and 25% respectively. o Ethanol volumes were higher than last year - 359 vs 350 lac ltr. PBIT higher at Rs 63 cr vs Rs 2 cr YoY o E
Slide 19: Shriram Farm Solutions
Shriram Farm Solutions Revenues PBIT PBIT Margin Cap. Employed Particulars (Rs/Cr) (Rs/Cr) (% ) (Rs/Cr) Q1 FY24 236.2 10.6 4.5 101.9 Q1 FY23 217.9 17.8 8.2 103.5 % Shift 8.4 (40.4) (45.0) (1.5) The products includes Seeds, Pesticides, Soluble Fertilizer, Micro-nutrients etc. This business is seasona
Slide 20: Fenesta Building Systems
Fenesta Building Systems Operational Financial Order Book (Rs/Cr) Revenues PBIT PBIT Margin Particulars Retail Projects Total (Rs/Cr) (Rs/Cr) (% ) Q1 FY24 102.5 105.7 208.2 191.5 34.3 17.9 Q1 FY23 95.4 89.5 184.8 166.6 27.7 16.6 % Shift 7.5 18.1 12.6 15.0 23.7 7.6 Revenues up 15% YoY o Quarter rev
Slide 21: Bioseed
Bioseed Revenues (Rs/Cr) PBIT PBIT Margin Cap. Employed Particulars Bioseed India Subsidiaries Total (Rs/Cr) (% ) (Rs/Cr) Q1 FY24 186.0 26.7 212.7 21.5 10.1 443.2 Q1 FY23 177.9 27.6 205.4 18.3 8.9 405.4 % Shift 4.6 (3.1) 3.5 17.5 13.5 9.3 Bioseed business is intensely research based and is diversifi
Slide 22: Fertilizers (Urea)
Fertilizers (Urea) Operational Financial Sales Realisations Revenues PBIT PBIT Margin Cap. Employed Particulars (MT) (Rs/MT) (Rs/Cr) (Rs/Cr) (% ) (Rs/Cr) Q1 FY24 1,03,496 34,655 378.2 20.1 5.3 263.9 Q1 FY23 63,948 48,128 321.5 (20.2) (6.3) 450.6 % Shift 61.8 (28.0) 17.6 - - (41.4) Revenues for Q1
Slide 23: Other Businesses
Other Businesses The ‘Others’ Segment in the financial results, includes Cement, Vinyl compounding business and Hariyali Kisaan Bazaar. Revenues under ‘Others’ stood at Rs 139 cr in Q1 FY24 from Rs 132 cr in LY. PBIT for the quarter stood at Rs 1 cr vs. Rs 16 cr loss in LY. 23
Slide 24: Cement
Cement Operational Financial Sales Realisations Revenues PBIT PBIT Margin Particulars (MT) (Rs/MT) (Rs/Cr) (Rs/Cr) (% ) Q1 FY24 1,09,851 3,947 52.5 (1.9) (3.7) Q1 FY23 83,860 4,251 43.2 (19.3) (44.8) % Shift 31.0 (7.1) 21.6 - - The Cement business is small, since its capacity utilization is driven b
Slide 25: About Us & Investor Contacts
DCM Shriram Ltd. is a diversified and an integrated business entity, with extensive and growing presence across the Agri Rural value chain and Chloro- Vinyl industry. The Company also has an innovative value-added business Fenesta. Access to captive power at all key manufacturing units enables the b