Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q1 FY2010 Earnings Presentation
41 slides from Grasim Industries's earnings presentation, Jul 28, 2009
Slide 1: Grasim Industries Limited - Performance Review Q1FY10
Grasim Industries Limited - A Cement and VSF Major Performance Review Q1FY10 28th July 2009
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: Contents
Contents Highlights Business review Financial Performance Capex Plan Summary 3
Slide 4: Highlights
Highlights Continue to pursue its strategy – to transform into Global size Cement and VSF Company Sponge Iron business sale completed on 22nd May, 09 Consideration of Rs.1,030 Crores received Extraordinary gain of Rs. 336.1 Crs. (net of tax) Cement capacity augmented to 45.65 Mn. Tons (Sta
Slide 5: Highlights continued
Highlights continued All round growth in operating performance Growth of 23% YoY in cement volumes (Grasim standalone) with ramp up of newly commissioned capacity of 2.90 Mn. TPA UltraTech volumes (cement and clinker combine) also up by 23% YoY Price and volume recovery in VSF business despi
Slide 6: Business Review
Business Review Cement VSF Chemicals Sponge Iron 6
Slide 7: Cement : Q1FY10 Highlights
Cement : Q1FY10 Highlights Q1 FY10 Q1 FY09 % Chg. Consolidated capacity increased by 31% Grey Cement Capacity Mn. TPA 45.65 34.95 31 with commissioning of projects - Grasim * 22.55 16.75 35 Cement production up by 19% - UltraTech 23.10 18.20 27 Production Mn. MT 9.43 7.94 19 Capacity utilisati
Slide 8: Cement : Q1FY10 Highlights (Contd….)
Cement : Q1FY10 Highlights (Contd….) Q1 FY10 Q1 FY09 % Chg. Putty continued to grow at impressive Wall Care Putty rates, sales volume up 38% Sales Volumes MT 43,639 31,543 38 Realisation Rs./MT 19,230 19,646 (2) Segment revenue up by 30% aided by Net Revenue Rs. Crs. 4,050.5 3,126.8 30 volume gr
Slide 9: Cement : Outlook
Cement : Outlook Grinding capacity at Kotputli, Rajasthan (3.1 mn. tons) likely to be commissioned by end Q3FY10 Cement demand likely to grow at 9% Improvement in economic environment during the year Robust demand from semi-urban and rural sector Emphasis on infrastructure development by G
Slide 10: Viscose Staple Fibre : Q1FY10 Highlights
Viscose Staple Fibre : Q1FY10 Highlights Q1FY10 Q1FY09 % Chg. Production impacted due to Nagda plant Capacity (TPA) 333,975 333,975 - shut down since 22nd May 09 owing to water Production (MT) 62,352 58,083 7 shortage Sales Volumes (MT) 67,418 56,760 19 Resurgence of demand and price in Net Reve
Slide 11: Viscose Staple Fibre : Outlook
Viscose Staple Fibre : Outlook Production at Nagda plant resumed from July 9, 2009 With no major improvement in the end consumer off-take at retail level globally, expect some correction in the current level of volume and realisation, beyond 2nd Quarter Sustainability of current level of price
Slide 12: Chemical : Q1FY10 Highlights
Chemical : Q1FY10 Highlights Q1FY10 Q1FY09 % Chg. Production up by 11% with improvement Capacity (TPA) 258,000 258,000 - in capacity utilisation Production (MT) 52,231 47,084 11 ECU realisation down by 7% Sales Volumes (MT) 49,845 47,800 4 Negligible realisation from chlorine and Net Revenue (
Slide 13: Sponge Iron : Q1FY10 Highlights
Sponge Iron : Q1FY10 Highlights Sponge Iron business sale completed on Q1FY10* Q1FY09 Capacity (TPA) 900,000 900,000 22nd May, 09 Production (MT) 77,069 100,532 Consideration of Rs.1,030 Crs. received Sales Volumes (MT) 75,427 91,206 Capital gain of Rs.336.1 Crs. (Net of Taxes) Net Revenue (Rs
Slide 14: Financial Performance
[GRA STM] Financial Performance 14
Slide 15: Revenue – Q1FY10
Revenue – Q1FY10 Standalone Revenue Consolidated Revenue Rs. Crs. 18% Rs. Crs. 15% 3,250 5,500 3,079 5,123 5,000 4,448 4,500 2,750 2,618 4,000 3,500 2,250 3,000 Q1/09 Q1/10 Q1/09 Q1/10 Consolidated Quarterly Revenue of Rs.51 Billion 15
Slide 16: Revenue Chart
Revenue Chart Rs. Crores Net Revenue Q1FY10 Q1FY09 % Chg. Grey Cement 1,979 1,498 32 White Cement 167 130 29 Viscose Staple Fibre 716 644 11 Chemical 120 127 (5) Sponge Iron (upto 22nd May, 2009) 111 249 (55) Others 16 16 - Inter Segment Eliminations (30) (46) - Standalone Net Revenue 3,079 2,618 18
Slide 17: Revenue Mix – Q1FY10
Revenue Mix – Q1FY10 Standalone Q1FY10 Consolidated Q1FY10 1 1 2 4 18 27 68 79 Standalone Q1FY09 Consolidated Q1FY09 1 6 2 3 9 20 29 61 69 Cement VSF & Chemical Sponge Iron Textile Others 17
Slide 18: Financial Performance – Q1FY10
Financial Performance – Q1FY10 Standalone Consolidated (Rs. Crores) Q1FY10 Q1FY09 % Change Q1FY10 Q1FY09 % Change Revenue 3,079 2,618 18 5,123 4,448 15 PBIDT 947 834 14 1,681 1,356 24 Interest 48 30 57 82 67 24 Depreciation 137 105 30 240 200 20 PBT 763 699 9 1,358 1,090 25 Total Tax Expenses 232 18
Slide 19: PBIDT – Q1FY10
PBIDT – Q1FY10 Standalone PBIDT Consolidated PBIDT 14% 24% Rs. Crs. Rs. Crs. 1,000 947 1,750 1,681 900 834 1,500 1,356 800 1,250 700 1,000 600 500 750 Q1/09 Q1/10 Q1/09 Q1/10 19
Slide 20: PBIDT – Chart
PBIDT – Chart Rs. Crores PBIDT Q1FY10 Q1FY09 % Chg. Cement 740 487 52 Viscose Staple Fibre 198 195 1 Chemical 35 42 (16) Sponge Iron (39) 74 Others 13 36 Standalone PBIDT 947 834 14 UltraTech Cement Ltd. (Subsidiary) 755 467 61 Pulp JVs (45%) and Fibre JV (31%) (25) 6 Grasim Bhiwani Textiles Ltd. (S
Slide 21: Net Profit
Net Profit Rs. Crores Net Profit % Q1FY10 Q1FY09 Grasim Standalone 531 514 3% UltraTech Cement Ltd. (Grasim's Share) 54.78% 230 142 62% (100%) (419) (261) Grasim Bhiwani Textiles Ltd. 100% 0.6 (2) Pulp and Fibre JVs (Grasim's Share) 45% / 31% -33.8 -0.3 (100%) (75) (8) Idea Cellular Ltd. (Grasim's S
Slide 22: Grasim Financials
Grasim Financials Standalone Consolidated Strong Balance sheet (Rs. Crores) Q1FY09 Q1 FY10 Q1FY09 Q1 FY10 Net worth at $2.6 Bn. (Rs.12,636 Crs.) Net Revenue 2,618 3,079 4,448 5,123 Capital Employed at $4.5 Bn. (Rs.21,604 Crs.) PBIDT 834 947 1,356 1,681 PAT (After Minority Share) 514 531 672 74
Slide 23: Capex
[GRA STM] ADITYA BIRTA GROUP Capex 23
Slide 24: Capex plan
Capex plan Capex Summary Rs. Crores Total Spent Cash Outflow Incurred Project upto last Net Capex FY10 FY11 in Cost year Q1FY10 Cement Business 5,988 3,883 2,105 1,686 419 197 VSF Business 85 -- 85 77 8 15 Others (Mainly Chemical) 82 -- 82 54 28 7 Grasim 6,155 3,883 2,272 1,817 455 220 UltraTech 3
Slide 25: Capex plan
Capex plan Rs. Crores Total Spent Cash Outflow Incurred Project upto last Net Capex in Cost year FY10 FY11 Q1FY10 Grasim Cement Business 5,988 3,883 2,105 1,686 419 197 - Projects: Kotputli (4.5 Mn. TPA), Shambhupura (4.4 4,548 3,804 744 Mn. TPA), Dadri - GU (1.3 Mn. TPA), (96 MW TPP) - Bricks & RMC
Slide 26: Summary
[GRA STM] Summary 26
Slide 27: Summary
Summary Grasim – A Cement and VSF major With strong competitive edge Global size operations Consolidating leadership position with strong organic growth Domestic leadership in Cement Leveraging investments in capacity & TPPs for volume and cost leadership Continous focus on growth in m
Slide 28: Plant Locations – Grasim & its subsidiaries
Plant Locations– Grasim & its subsidiaries Bathinda(G) Panipat Bhiwani Dadri T Grey Cement plants Kotputli Aligarh Grinding Units (G) Jodhpur T Malanpur Shambhupura B Bulk Cement Terminal Jawad Bharuch Durgapur(G) UltraTech Cement Plants F Jafrabad Magdalla (G) UltraTech Grinding Units (G) F C Pipav
Slide 29: Thank You
GRASTM ADITYA BIRLA GROUP Thank You
Slide 30: Annexures
Grasim Industries Limited Annexures
Slide 31: Annexures
Annexures Consolidated Financial Performance Standalone Financial Performance Consolidated and Standalone Financial Consolidated and Standalone Profitability Segmental Performance Cement Summary VSF Summary Chemical Summary UltraTech Performance 31
Slide 32: Consolidated Financial Performance
Consolidated Financial Performance (Rs. Crores) Q1 FY10 Q1 FY09 % Chg. FY09 Net Turnover & Op. Income 5,122.8 4,448.4 15 18,470.9 Other Income 56.6 67.4 (16) 253.0 PBIDT 1,680.7 1,356.4 24 4,780.2 Interest 82.3 66.6 24 307.8 Gross Profit 1,598.4 1,289.8 24 4,472.4 Depreciation 240.0 199.6 20 865.8 P
Slide 33: Standalone Financial Performance
Standalone Financial Performance (Rs. Crores) Q1 FY10 Q1 FY09 % Chg. FY09 Net Turnover & Op. Income 3,078.7 2,618.3 18 10,940.4 Other Income 28.6 56.3 (49) 214.1 PBIDT 947.3 834.0 14 2,845.6 Interest 47.6 30.2 57 140.8 Gross Profit 899.7 803.8 12 2,704.8 Depreciation 137.0 105.0 30 456.9 PBT (before
Slide 34: Financial Snapshot
Financial Snapshot Standalone Consolidated (Rs. Crores) FY07 FY08 FY09 Q1 FY10 FY07 FY08 FY09 Q1 FY10 Gross Block $ 7,974 10,615 12,277 11,790 14,481 19,258 21,041 20,618 Net Block $ 4,593 7,050 8,305 8,202 8,468 12,918 14,215 14,080 Goodwill 1,844 1,991 2,001 2,001 Cement Subs. Investment 2,476 2,5
Slide 35: Profitability Snapshot
Profitability Snapshot Standalone Consolidated (Rs. Crores) FY07 FY08 FY09 Q1 FY10 FY07 FY08 FY09 Q1 FY10 Gross Turnover 9,573 11,552 12,073 3,301 15,674 19,112 20,300 5,503 Net Turnover & Op. Income 8,644 10,325 10,940 3,079 14,142 17,141 18,471 5,123 PBIDT 2,619 3,424 2,846 947 4,290 5,422 4,780 1
Slide 36: Segmental Performance – Q1FY10
Segmental Performance – Q1FY10 Standalone Rs. Crores ROAvCE (%) Business Revenue PBIDT PBIDT Margin (%) PBIT Capital Employed (PBIT basis) Q1FY10 Q1FY09 Q1FY10 Q1FY09 Q1FY10 Q1FY09 Q1FY10 Q1FY09 Q1FY10 Q1FY09 Q1FY10 Q1FY09 Cement 2,146 1,628 740 487 34.5 29.9 644 425 6,751 5,828 38.2 30.1 VSF 716 64
Slide 37: Cement : Summary
Cement : Summary Q1 FY10 Q1 FY09 % Chg. FY09 Grey Cement Capacity Mn. TPA 45.65 34.95 31 41.55 - Grasim * 22.55 16.75 35 19.65 - UltraTech 23.10 18.20 27 21.90 Production Mn. MT 9.43 7.94 19 32.18 - Grasim * 4.91 3.99 23 16.32 - UltraTech 4.52 3.95 14 15.87 Sales Volumes $ Mn. MT 10.21 8.31 23 35.01
Slide 38: Cement : Summary
Cement : Summary Q1 FY10 Q1 FY09 % Chg. FY09 Wall Care Putty Sales Volumes MT 43,639 31,543 38 159,880 Realisation Rs./MT 19,230 19,646 (2) 19,698 Net Revenue Rs. Crs. 4,050.5 3,126.8 30 13,487.0 - Cement - Grasim * 1,978.8 1,497.9 32 6,348.5 - Cement - UltraTech 1,997.6 1,543.5 29 6,618.3 - White C
Slide 39: Viscose Staple Fibre : Summary
Viscose Staple Fibre : Summary Q1 FY10 Q1 FY09 % Chg. FY09 Capacity TPA 333,975 333,975 - 333,975 Production MT 62,352 58,083 7 232,745 Sales Volumes MT 67,418 56,760 19 238,463 Net Revenue Rs. Crs. 716.2 644.4 11 2,533.6 Avg. Realisation Rs./MT 97,543 101,908 (4) 96,517 PBIDT Rs. Crs. 198.1 195.3 1
Slide 40: Chemical : Summary
Chemical : Summary Q1 FY10 Q1 FY09 % Chg. FY09 Capacity TPA 258,000 258,000 -- 258,000 Production MT 52,231 47,084 11 207,226 Sales Volumes MT 49,845 47,800 4 207,520 Net Revenue Rs. Crs. 120.2 126.7 (5) 522.5 Avg. Realisation Rs./MT 20,753 22,352 (7) 21,553 PBIDT Rs. Crs. 35.4 42.2 (16) 155.4 PBIDT
Slide 41: UltraTech: Consolidated Financial Performance
UltraTech: Consolidated Financial Performance (Rs. Crores) Q1 FY10 Q1 FY09 % Chg. FY09 Revenue 1,997.6 1,543.5 29 6,618.3 Other Income 18.3 10.3 77 46.0 PBIDT 755.3 470.7 60 1,819.2 PBIDT Margin % 37.5% 30.3% -- 27.3% Interest 33.0 24.7 33 125.6 Depreciation 94.2 71.8 31 325.8 PBT 628.1 374.2 68 1,3