Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q3 FY2024 Earnings Presentation
44 slides from Grasim Industries's earnings presentation, Feb 8, 2024
Slide 1: Presentation on Unaudited Financial Results (filing cover letter)
Ref No. GIL/CFD/SEC/24/331/SE 8th February 2024 BSE Limited National Stock Exchange of India Limited Scrip Code: 500300 Symbol: GRASIM Dear Sir/Madam, Sub: Presentation on Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter and nine months ended 31st December 202
Slide 2: Grasim Industries Limited Earnings Presentation Q3FY24
GRASIM INDUSTRIES LIMITED Earnings Presentation Q3FY24 February 2024
Slide 3: Stronglomerate - Big in Your Life
STRONGLOMERATE - BIG IN YOUR LIFE STANDALONE BUSINESSES SUBSIDIARIES 57.27% 52.69% 100% PAINTS ❖ Birla Opus – 2nd largest capacity@ in the Indian Decorative Paints ❖ PAN India presence with six manufacturing units VISCOSE ❖ Pioneers in VISCOSE STAPLE FIBRE and VISCOSE FILAMENT YARN in India # No. 1
Slide 4: Value Creation Strategy
VALUE CREATION STRATEGY PILLARS OF OUR STRATEGY LEADERSHIP ACROSS CAPITAL COST INNOVATION SUSTAINABILITY BUSINESSES ALLOCATION LEADERSHIP Focus Conserve Investment in Continuous Attain Premiumisation Environment Core and High Growth Cost Optimisation Leadership through innovation and by eco-friendly
Slide 5: Our Brand Ecosystem
OUR BRAND ECOSYSTEM VISCOSE CHEMICALS TEXTILES * BRANDS OF KEY SUBSIDIARIES * Using these brands under a license from Soktas Tekstil Sanayi Ve Ticaret Anonim Sirketi in key territories including India, Bangladesh and Nepal Grasim Industries Q3FY24 Earnings Presentation 4
Slide 6: LIVA: Co-branding of Apparels
LIVA : CO-BRANDING OF APPARELS LIVA Tagging (Million) LIVA Tagged leading brands SS23 AW23 54 SS22 AW22 58 SS21 AW21 53 SS20 AW20 46 SS – Spring Summer (October – March) AW - Autumn Winter (April – September) Grasim Industries Q3FY24 Earnings Presentation 5
Slide 7: Macro Updates
MACRO UPDATES Grasim Industries Q3FY24 Earnings Presentation
Slide 8: Macro Indicators
MACRO INDICATORS India Manufacturing – IIP Growth (% YoY) India Merchandise Exports ($bn) 14 125 12 11.6 121.0 10.3 120 10 114.7 115 8 110.7 5.7 6.2 6.2 110 107.4 6 4.6 105.9 4.0 104.6 104.0 105 4 2.4 2 100 0 95 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY
Slide 9: Financial Highlights
FINANCIAL HIGHLIGHTS Grasim Industries Q3FY24 Earnings Presentation
Slide 10: Performance Highlights Q3FY24
PERFORMANCE HIGHLIGHTS Q3FY24 Consolidated Revenue ₹31,965 Cr. up 12% YoY and 6% QoQ; EBITDA at ₹5,150 Cr. up 34% YoY and 14% QoQ • Consolidated performance was driven by Cement and Financial Services business Standalone Revenue at ₹6,400 Cr. (up 3% YoY) and EBITDA at ₹643 Cr. (up 11% YoY) • Viscose
Slide 11: Performance Highlights - Consolidated
PERFORMANCE HIGHLIGHTS - CONSOLIDATED Q3FY24 Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT* (₹ Cr.) 31,965 1,514 28,638 30,221 5,150 4,509 1,164 3,834^ 1,024^ Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 9MFY24 Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT* (₹ Cr.) 93,251 14,640 4,773 84,165 13,126 12,8
Slide 12: Performance Highlights - Standalone
PERFORMANCE HIGHLIGHTS - STANDALONE Q3FY24 Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT (₹ Cr.) 6,196 6,442 6,400 1,354 795 628* 580 643 257# 236 726 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 9MFY24 Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT (₹ Cr.) 3,656 1,983 2,118# 20,194 19,080 3,271 2,786 14
Slide 13: Improving Sustainability Performance: Q3FY24
IMPROVING SUSTAINABILITY PERFORMANCE : Q3FY24 Renewable 11% Power Share Maintained RE-power share Recycled 47% Water of total water requirement from recycled water to reduce 47 freshwater withdrawal Awards & Achievements: ➢ Grasim VSF achieves #1 ranking in Canopy’s Hot Button Report 2023 and receiv
Slide 14: Capex Plan
CAPEX PLAN Planned Capex Capex Spent Capex Spent Particulars (₹ Cr.) FY24 Q3FY24 9MFY24 Viscose Business 663 115 394 Capacity Expansion (including debottlenecking) 225 35 158 Modernisation and Maintenance Capex 438 80 236 Chemicals Business (A+B+C) 797 192 555 (A) Capacity Expansion - Chlor-Alkali &
Slide 15: Strong Balance Sheet
STRONG BALANCE SHEET Consolidated Standalone Particulars Q3FY23 Q2FY24 Q3FY24 Particulars Q3FY23 Q2FY24 Q3FY24 Net worth (₹ Cr.) 79,091 83,170 87,141 Net worth (₹ Cr.) 48,624 49,798 52,386 Debt - Equity Ratio 0.78 0.92 0.93 Debt - Equity Ratio 0.11 0.16 0.18 Net debt* (₹ Cr.) 10,611 13,405 16,397 Ne
Slide 16: Viscose
VISCOSE Grasim Industries Q3FY24 Earnings Presentation
Slide 17: Inter Fibre Dynamics
INTER FIBRE DYNAMICS GLOBAL INDIA 4.0% CAGR 12.8% CAGR 0.3% CAGR (0.8%) CAGR 3.8% CAGR 4.3% CAGR CY15 CY23 CY15 CY23 Synthetic Cotton Viscose Synthetic Cotton Viscose ➢ Viscose demand in India is increasing at a faster pace led by intensive business development initiatives and support to textile val
Slide 18: Macro Trends - Viscose
MACRO TRENDS - VISCOSE China Operating Rate (in Percentage) China Inventory (in Days) 27 85 88 85 22 66 69 12 13 10 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Global Prices Trend ($/Kg)# Price Movement 3.62 YoY QoQ Dec Exit Price Fibre (%) (%) (D over Q3FY24) 2.22 2.11 2.0
Slide 19: Key Operational Metrics
KEY OPERATIONAL METRICS VSF Sales (KT) Sales Volume Mix (VSF) Export Sales Standard Fibre 602 210 8% 81% 205 518 153 Q3FY24 Q3FY24 92% 19% Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Domestic Sales Speciality Fibre VFY Sales (KT) VSF capacity utilization >95%, however value chain still concerned about poor r
Slide 20: Operating Performance – Viscose
OPERATING PERFORMANCE – VISCOSE Revenue (₹ Cr.) EBITDA (₹ Cr.) 11,385 11,187 1,260 3,889 468 3,715 402 3,182 887 63 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Revenue higher by 17% YoY on account of improved volumes however impacted by lower realisations Lower sales volume
Slide 21: Chemicals (Chlor-Alkali & Speciality Chemicals)
CHEMICALS (CHLOR-ALKALI & SPECIALITY CHEMICALS) Grasim Industries Q3FY24 Earnings Presentation
Slide 22: Diversified Chemicals Portfolio
DIVERSIFIED CHEMICALS PORTFOLIO 1,530 Q3FY25 1,192 Q4FY26 CHLOR-ALKALI 172 235 13% 25% ➢ Largest Caustic Soda player in India. Market growing at a steady pace with demand from Alumina, Organic & Inorganic Chemicals, Textiles & FMCG industries 1,359 957 246 ➢ Maintaining Market leadership position in
Slide 23: Focus on Speciality Chemicals
FOCUS ON SPECIALITY CHEMICALS MAJOR END-USE APPLICATIONS CHLORINE INTEGRATION LEVELS (%) Integration includes chlorine SPECIALITY CHEMICALS* consumption for HCL and pipeline CONSTRUCTION sales for dedicated customers 63% 60% 58% RENEWABLES 57% FY21 FY22 FY23 Q3FY24 CHEMICALS REVENUE BREAK-UP (Q3FY24
Slide 24: Key Operational Metrics - Chemicals
KEY OPERATIONAL METRICS - CHEMICALS CFR SEA Caustic Soda Prices ($/Ton)# Grasim – ECU (₹/Ton) 694 707 49,886 46,689 417 444 425 32,008 31,383 32,686 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Caustic Soda Sales (KT) Break-up of Chemicals Business (%) 306 897 299 859 284 16
Slide 25: Financial Performance – Chemicals
FINANCIAL PERFORMANCE – CHEMICALS Revenue (₹ Cr.) EBITDA (₹ Cr.) 1,903 488 8,024 2,582 1,988 1,996 6,130 264 859 236 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 International Caustic soda prices (Asia), while improved to USD488/MT in Oct’23, again in decline mode since Nov’
Slide 26: New Growth Businesses
NEW GROWTH BUSINESSES Grasim Industries Q3FY24 Earnings Presentation
Slide 27: Decorative Paints Industry
DECORATIVE PAINTS INDUSTRY ORGANISED DECORATIVE PAINTS INDUSTRY KEY DRIVERS HOUSING DEMAND • The Decorative Paints Industry size is expected to be ~₹73K Cr. by Mar’24 of which ~72-75% is organised 28% sector URBANISATION • Organised Decorative Paints industry revenue is likely 72% to grow in FY24 by
Slide 28: Decorative Paints: Our Strengths
DECORATIVE PAINTS: OUR STRENGTHS Decorative Paints PAN INDIA REACH WIDE PRODUCT OFFERING DISTRIBUTION PROWESS MANUFACTURING EXCELLENCE ESTABLISHED ECOSYSTEM Capacity 1,332 MLPA^ Ludhiana Panipat Mahad Kharagpur Chamarajanagar Cheyyar Large competitive capacities Best in class product Building strong
Slide 29: Birla Opus: Progress Update
BIRLA OPUS: PROGRESS UPDATE Trial production commenced at three plants (Ludhiana, Cheyyar and Panipat) Sales and distribution network in place to support launch in Q4FY24 Sub-brands portfolio, packages artwork and consumer communication plans completed Advertisement concepts finalised with agencies
Slide 30: B2B E-Commerce for Building Materials Industry Opportunity
B2B E-COMMERCE FOR BUILDING MATERIALS INDUSTRY OPPORTUNITY VALUE PROPOSITION PRODUCT CATEGORIES COMPETITIVE PRICING CEMENT & STEEL ASSURED QUALITY SANITARYWARE, TILES, PIPES & FITTINGS Build. Grow. Transform GUARANTEED DELIVERY One-stop destination for your PAINTS Building Materials needs 18000+ at:
Slide 31: Birla Pivot: Progress Update
BIRLA PIVOT: PROGRESS UPDATE Birla Pivot crossed the milestone of MRR (monthly revenue run-rate) of ₹120 Cr. (quarterly run-rate now nearing ₹300 Cr.) Private label “Birla Pivot Tiles” garnering good feedback from customers. Ply and Doors next in-line for private label launch Coverage extended to 20
Slide 32: Other Businesses (Textiles and Insulators)
OTHER BUSINESSES (Textiles and Insulators) Grasim Industries Q3FY24 Earnings Presentation
Slide 33: Financial Performance – Other Businesses
FINANCIAL PERFORMANCE – Other businesses* Revenue (₹ Cr.) EBITDA (₹ Cr.) 1,762 649 865 690 565 667 432 785 28 (23) Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Balance of standalone operations (other than Viscose and Chemicals) recorded revenue growth of 22% QoQ and 60% YoY
Slide 34: Key Subsidiaries
KEY SUBSIDIARIES (ULTRATECH, ADITYA BIRLA CAPITAL & ADITYA BIRLA RENEWABLES) Grasim Industries Q3FY24 Earnings Presentation
Slide 35: Financial Performance - UltraTech
FINANCIAL PERFORMANCE - UltraTech Sales volume (Million Ton) Revenue (₹ Cr.) EBITDA (₹ Cr.) 27.32 16,012 16,740 3,395 26.69 15,521 25.86 2,718 2,462 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Consolidated Net Sales for the quarter was ₹16,740 Cr. compared to ₹15,521 Cr. in Q3FY23
Slide 36: Financial Performance - Aditya Birla Capital
FINANCIAL PERFORMANCE - Aditya Birla Capital Total Lending Book (₹ Cr.)* Revenue (₹ Cr.) PAT (₹ Cr.) 8,800 705 736 1,08,961 1,15,139 7,721 85,987 6,938 530 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Consolidated Revenue and PAT grew by 27% and 39% YoY to ₹8,800 Cr. and ₹736 Cr. r
Slide 37: Financial Performance – Aditya Birla Renewables
FINANCIAL PERFORMANCE – Aditya Birla Renewables Aditya Birla Renewables Renewable Power Capacity (MWp) Particulars Q3FY23 Q2FY24 Q3FY24 872 744 Revenue ₹ Cr. 69 86 92 551 EBITDA ₹ Cr. 50 56 46 EBIT ₹ Cr. 30 26 15 Capital Employed ₹ Cr. 3,401 5,588 6,737 (Incl. CWIP) FY22 FY23 Q3FY24 Project Distribu
Slide 38: Appendix
APPENDIX Grasim Industries Q3FY24 Earnings Presentation
Slide 39: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (₹ Cr.) Q3FY24 Q3FY23 % Change 9MFY24 9MFY23 % Change Revenue from Operations 31,965 28,638 12 93,251 84,165 11 Other Income 256 2,972* -91 837 3,392* -75 EBITDA 5,150 6,588 -22 14,640 15,605 -6 EBITDA Margin (%) 16% 21% 16% 18% Finance Cost 433 340 27 1,191
Slide 40: Standalone Income Statement
STANDALONE INCOME STATEMENT % % Particulars (₹ Cr.) Q3FY24 Q3FY23 9MFY24 9MFY23 Change Change Revenue from Operations 6,400 6,196 3 19,080 20,194 -6 Other Income 120 103 17 996 902 10 EBITDA 643 580 11 2,786 3,656 -24 EBITDA Margin (%) 10% 9% 14% 17% Finance Cost 107 89 20 320 261 23 Depreciation 29
Slide 41: Balance Sheet
BALANCE SHEET Standalone (₹ Cr.) Consolidated (₹ Cr.) 31st Dec'23 31st Mar'23 EQUITY & LIABILITIES 31st Dec'23 31st Mar'23 (Unaudited) (Audited) (Unaudited) (Audited) 52,386 46,955 Net Worth 87,141 78,742 - - Non Controlling Interest 48,889 44,171 - - Borrowings related to Financial Services 1,01,08
Slide 42: Grasim Group Structure
GRASIM GROUP STRUCTURE Grasim Industries Limited Viscose Chemicals New Businesses Textiles Overseas Pulp & VSF JVs Subsidiaries AV Group NB Inc. (Canada) VSF Vilayat Paints Rishra UltraTech Cement (57.27%)** (45.0%)* Domsjo (Sweden) Vilayat Nagda Panipat Malanpur Grey Cement Domestic (33.3%)* AV Ter
Slide 43: Forward Looking and Cautionary Statement
FORWARD LOOKING AND CAUTIONARY STATEMENT This presentation is issued by Grasim Industries Limited (the “Company”) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constit
Slide 44: Thank You
THANK YOU Investor Relations Team grasim.ir@adityabirla.com +91 22 2499 5657 Grasim Industries Q3FY24 Earnings Presentation