Dcm Shriram Limited · NSE:DCMSHRIRAM
Dcm Shriram — Q3 FY2023 Earnings Presentation
29 slides from Dcm Shriram's earnings presentation, Jan 20, 2023
Slide 1: DCM Shriram Ltd. Q3 2023 Results Presentation
DCM Shriram Ltd. Q3 2023 - Results Presentation January 20, 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 Management Message & Q3 FY23 YTD FY23 Segments Financial Snapshot 4 Financial Snapshot 9 Management’s Message 13 Revenue Drivers 5 Revenue Drivers 10 Our Businesses 14 PBDIT Drivers 6 PBDIT Drivers 11 Chloro-Vinyl Businesses 15-19 Returns & Leverage 7 Segment Performance 12 Sugar 2
Slide 4: Financial Snapshot – Q3 FY23
Financial Snapshot – Q3 FY23 Revenue (Net) * PBDIT PAT 19% -4% -2% 614 588 350 342 3,236 2,730 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 PBIT Finance Cost ** Depreciation -6% -26% 8% 553 522 17 66 13 61 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Surplus net of Debt as on 31st December, 2022 is Rs 101 cr vs net
Slide 5: Revenue Drivers – Q3 FY23
Revenue Drivers – Q3 FY23 Chemicals Vinyl Sugar 3% -33% 29% 738 757 304 728 204 565 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 • Revenue stable over same period last year • Revenue performance is led by lower prices • Revenue growth led by sugar volumes both • ECU up 2% YoY • PVC and Carbide prices lower b
Slide 6: PBDIT Drivers – Q3 FY23
PBDIT Drivers – Q3 FY23 Chemicals Vinyl Sugar -24% -85% -23% 286 125 132 218 102 19 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 • Higher inputs costs led by Coal / energy at • Significantly lower product prices • Sugar prices are marginally lower YoY Bharuch complex and Salt led to lower earnings • Cost of
Slide 7: Returns & Leverage
Returns & Leverage PBDIT/ Net Sales (%) Gross Debt (GD) and Cash & Equivalents (CE) Rs/Cr CE GD CE GD CE GD -4.3 22.5 1,700 1,510 1,611 1,509 1,505 18.2 19.6 1,383 Q3'22 Q3'23 FY'22 Q3'22 Q3'23 FY'22 ROCE (%) Capital Employed (Rs/Cr) 4.9 284 33.7 4,681 4,965 5,064 33.5 28.6 Q3'22 Q3'23 FY'22 Q3'22 Q
Slide 8: Segment Performance – Q3 FY23
Segment Performance – Q3 FY23 Revenues PBIT PBIT Margins % Segments YoY % YoY % Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Change Change Chloro-Vinyl 960 1,042 -8 210 385 -46 22 37 Sugar 728 565 29 81 112 -28 11 20 SFS 512 446 15 142 97 47 28 22 Bioseed 107 79 34 3 -34 - 2 - Fertilizer 652 367 78 89 16 476
Slide 9: Financial Snapshot – 9M FY23
Financial Snapshot – 9M FY23 Revenue (Net) * PBDIT PAT 11% 9% 29% 8,827 1,225 1,354 6,832 666 724 9M FY22 9M FY23 9M FY22 9M FY23 9M FY22 9M FY23 PBIT Finance Cost ** Depreciation 11% 7% -40% 1,165 68 189 1,048 177 41 9M FY22 9M FY23 9M FY22 9M FY23 9M FY22 9M FY23 * Net revenue includes operating i
Slide 10: Revenue Drivers – 9M FY23
Revenue Drivers – 9M FY23 Chemicals Vinyl Sugar 49% -27% 20% 2,434 822 2,055 1,633 602 1,719 9M FY22 9M FY23 9M FY22 9M FY23 9M FY22 9M FY23 • ECU prices up 48% YoY led by prices of Caustic • PVC volumes and prices lower by 13% and 25% • Higher sugar volumes by 20% led by higher Lye. Chlorine prices
Slide 11: PBDIT Drivers – 9M FY23
PBDIT Drivers – 9M FY23 Chemicals Vinyl Sugar 65% -78% -47% 836 371 207 506 109 80 9M FY22 9M FY23 9M FY22 9M FY23 9M FY22 9M FY23 • Higher ECU realisations is the key contributor • Lower PVC and carbide prices • Lower margins led by higher SAP and lower • Gains moderated by higher energy costs • In
Slide 12: Segment Performance – 9M FY23
Segment Performance – 9M FY23 Revenues PBIT PBIT Margins % Segments YoY % YoY % 9M FY23 9M FY22 9M FY23 9M FY22 9M FY23 9M FY22 Change Change Chloro-Vinyl 3,036 2,455 24 836 801 4 28 33 Sugar 2,055 1,719 20 48 149 -68 2 9 SFS 967 837 16 195 134 46 20 16 Bioseed 400 345 16 18 -25 - 4 - Fertilizer 1,5
Slide 13: Management’s Message
Management’s Message Commenting on the performance for the quarter and period ending December 2022, 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 another consistent quarter of robust
Slide 14: Our Businesses
Our Businesses Chloro-Vinyl Agri Other Businesses Businesses Businesses Fenesta Caustic Sugar Building Soda (1,845 (41,000 Systems TPD) TCD) (8,600 TPA) Aluminum Cement Co-Gen Chloride (400,000 (166 MW) (75 TPD) TPA) Distillery . PVC Resins (350 KLD)* Polymer India (220 TPD) + (120 KLD)** Compounds
Slide 15: Chloro Vinyl Business
Chloro Vinyl Business Revenues PBIT Cap. Employed Particulars (Rs/ Cr) (Rs/Cr) (Rs/Cr) Q3 FY23 960.1 209.5 2,730.2 Q3 FY22 1,042.2 385.2 1,778.6 % Shift (7.9) (45.6) 53.5 9M FY23 3,035.9 836.4 2,730.2 9M FY22 2,454.8 801.2 1,778.6 % Shift 23.7 4.4 53.5 Capital employed includes CWIP of Rs 1,261 cr a
Slide 16: Chemicals
Chemicals Operational Financial ECU Caustic Sales Revenues PBIT Particulars Realisations PBIT Margin % (MT) (Rs/Cr) (Rs/Cr) (Rs/MT) Q3 FY23 1,41,087 43,883 756.6 194.5 25.7 Q3 FY22 1,43,395 43,011 738.3 264.6 35.8 % Shift (1.6) 2.0 2.5 (26.5) (28.3) 9M FY23 4,39,595 45,658 2,434.2 768.9 31.6 9M FY22
Slide 17: Chemicals
Chemicals Oversupply due to new capacities, lower demand, lower than expected exports mainly due to China’s participation Industry - impacted domestic prices. Overview Exports up – Q3 FY23 at 1.07 vs 0.65 lac MT LY. Indian Imports down at 0.40 vs 0.75 lac MT LY. 9M FY23 at 2.98 vs 1.84 lac MT LY
Slide 18: 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) Q3 FY23 17,228 84,119 6,146 79,039 203.5 15.0 7.4 Q3 FY22 16,460 1,44,805 4,896 1,16,841 303.9 120.5 39.7 % Shift 4.7
Slide 19: Vinyl
Vinyl Recession fears and high inflation has led to negative demand sentiment in the construction and housing sectors Industry globally. This in turn has impacted the PVC demand and the global prices. Overview Indian PVC prices further impacted by expiry of anti dumping duty and reduction in cus
Slide 20: Sugar
Sugar Revenues PBIT PBIT Margin Cap. Employed Particulars (Rs/Cr) (Rs/Cr) (% ) (Rs/Cr) Q3 FY23 727.9 81.1 11.1 2,634.7 Q3 FY22 565.4 111.9 19.8 2,215.7 % Shift 28.7 (27.6) (43.7) 18.9 9M FY23 2,054.7 48.3 2.4 2,634.7 9M FY22 1,718.8 149.5 8.7 2,215.7 % Shift 19.5 (67.7) (73.0) 18.9 * Net of excise d
Slide 21: Sugar
Sugar Operational Sugar Sugar Sales Sugar Power XWR Distillery XWR - Distillery XWR - Distillery XWR - Power Sales Distillery Sales Particulars Production (Domestic) (Domestic) (Rs/ unit) Cane Juice B Heavy C Heavy (Lac Units) (Lac Ltrs) (Lac Qtls) (Lac Qtls) XWR (Rs/Qtl) (Lac Units) (Rs/ Ltrs) (Rs/
Slide 22: Sugar
Sugar Revenues for Q3 FY23 up 29% YoY (9M FY23 up 20%) o Sugar volumes were higher due to higher domestic releases and exports. All export quota tied up & 51% executed. o Domestic prices for Q3 FY23 down at Rs/ qtl 3600 vs 3663 LY and for 9M FY23 up at Rs/ qtl 3574 vs 3470 LY. o Ethanol volumes we
Slide 23: Shriram Farm Solutions
Shriram Farm Solutions Revenues PBIT PBIT Margin Cap. Employed Particulars (Rs/Cr) (Rs/Cr) (% ) (Rs/Cr) Q3 FY23 511.5 142.0 27.8 84.2 Q3 FY22 446.1 96.7 21.7 40.2 % Shift 14.7 46.8 28.0 109.5 9M FY23 967.3 195.4 20.2 84.2 9M FY22 836.8 133.6 16.0 40.2 % Shift 15.6 46.3 26.5 109.5 The products includ
Slide 24: Bioseed
Bioseed Revenues (Rs/Cr) PBIT PBIT Margin Cap. Employed Particulars India International Total (Rs/Cr) (% ) (Rs/Cr) Q3 FY23 74.3 32.3 106.6 2.6 2.4 430.8 Q3 FY22 52.5 26.9 79.4 (33.6) (42.3) 462.2 % Shift 41.4 20.3 34.3 - - (6.8) 9M FY23 311.7 87.9 399.5 17.8 4.4 430.8 9M FY22 243.6 101.7 345.3 (24.6
Slide 25: Fertilizers (Urea)
Fertilizers (Urea) Operational Financial Sales Realisations Revenues PBIT PBIT Margin Cap. Employed Particulars (MT) (Rs/MT) (Rs/Cr) (Rs/Cr) (% ) (Rs/Cr) Q3 FY23 1,12,266 54,073 652.2 89.4 13.7 448.4 Q3 FY22 1,03,613 34,250 367.2 15.5 4.2 479.1 % Shift 8.4 57.9 77.6 475.6 224.1 (6.4) 9M FY23 2,86,66
Slide 26: Other Businesses
Other Businesses The ‘Others’ Segment in the financial results, includes Cement, Fenesta Building Systems, Vinyl compounding business and Hariyali Kisaan Bazaar. Revenues under ‘Others’ stood at Rs 310 cr in Q3 FY23 from Rs 257 cr in LY. PBIT for the quarter stood at Rs 32 cr vs. Rs 13 cr in LY.
Slide 27: Fenesta Building Systems
Fenesta Building Systems Operational Financial Order Book (Rs/Cr) Revenues PBIT PBIT Margin Particulars Retail Projects Total (Rs/Cr) (Rs/Cr) (% ) Q3 FY23 97.7 102.4 200.1 178.8 34.5 19.3 Q3 FY22 101.9 77.7 179.6 136.7 17.3 12.7 % Shift (4.1) 31.8 11.4 30.8 98.8 52.0 9M FY23 295.6 295.0 590.6 523.0
Slide 28: Cement
Cement Operational Financial Sales Realisations Revenues PBIT PBIT Margin Particulars (MT) (Rs/MT) (Rs/Cr) (Rs/Cr) (% ) Q3 FY23 96,008 3,996 45.9 (7.6) (16.5) Q3 FY22 87,336 3,818 40.0 (10.5) (26.4) % Shift 9.9 4.7 14.7 - - 9M FY23 2,55,163 4,057 127.5 (40.9) (32.1) 9M FY22 2,96,150 3,686 131.5 (15.
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 Fenesta and Bioseed. Access to captive power at all key manufacturin