Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q2 FY2014-15 Earnings Presentation
44 slides from Grasim Industries's earnings presentation, Oct 29, 2014
Slide 1: Performance Review Quarter 2: 2014-15
Performance Review Quarter 2 : 2014-15 Grasim Industries Limited A VSF and Cement Major
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 – Quarter 2
Highlights – Quarter 2 Business Environment : Indian economy showing initial signs of recovery with improvement in sentiments GDP expanded by 5.7% in Q1 FY14-15 as against 4.6% in Q4 FY13-14 [Growth Rate FY12-13 : 4.5%, FY13-14 : 4.7%] VSF and pulp industry continue to face challenging environ
Slide 5: Highlights – Quarter 2: Strategic Actions / Projects
Highlights – Quarter 2 Strategic Action / Projects : VSF Greenfield project at Vilayat Commissioned 2 lines (77K TPA) in July’ 14 Trial run started for the remaining two lines of speciality fibre (43K TPA) Cement capacity raised to 63.2 Mn. TPA Commissioning of 1.4 Mn. Ton grinding capacit
Slide 6: Business Review
Business Review VSF Chemical Cement Subsidiary 6
Slide 7: Viscose Staple Fibre : Highlights
Viscose Staple Fibre : Highlights Quarter 2 % Global Industry Scenario Quarter 1 Change Overcapacity continues to affect business 2014-15 2014-15 2013-14 (YoY) environment 377,775 Capacity - Annual (MT) 454,425 377,775 20 Sharp fall in cotton prices due to record 94,444 Capacity - Quarter (MT) 1
Slide 8: Viscose Staple Fibre : Highlights
Viscose Staple Fibre : Highlights Quarter 2 Despite higher volume, financial performance Quarter 1 ….) % Change 2014-15 2014-15 2013-14 (YoY) impacted on YoY basis Lower realisation Standalone Business: Higher input prices (mainly sulphur and coal) 81 PBIDT (` Cr.) 151 240 (37) Higher overhe
Slide 9: Viscose Staple Fibre : Outlook
Viscose Staple Fibre : Outlook Vilayat to drive volumes gradually with higher share of premium specialty fibre The present pressure on realisation expected to continue in near term Sharply declining cotton and polyester prices is a major challenge, may impact the VSF growth rate of double digi
Slide 10: Chemical : Highlights
Chemical : Highlights Quarter 1 Quarter 2 % Industry Scenario Change 2014-15 2014-15 2013-14 (YoY) Caustic soda prices declined due to imports 452,500 Capacity - Annual (MT) 452,500 440,500 3 113,125 Capacity - Quarter (MT) 113,125 83,500* 35 Resulting into fall in ECU realisation on QoQ basis 1
Slide 11: Cement : Highlights
Cement : Highlights Quarter 1 Quarter 2% Industry Scenario Change 2014-15 2014-15 2013-14 (YoY) Continuous revival seen in demand Grey Cement (Mn. MT) Expected growth for the quarter 8%, (Q1 - 7.1%) 49.70 Clinker capacity - Annual 49.70 45.10 10 o Linked to increased rural housing demand, 61.75
Slide 12: Cement : Financials
Cement : Financials Quarter 2 Strong growth in Revenue, up 18% Quarter 1 % Change Supported by 10% growth in Cement volumes 2014-15 2014-15 2013-14 (YoY) Variable Cost increased by 4% over last year 6,032 Net Revenue (` Cr.) 5,772 4,871 18 Increase in petcoke and indigenous coal prices 1,296
Slide 13: Cement : Outlook
Cement : Outlook Renewed focus on infrastructure by new Government to accelerate demand growth Cement demand likely to grow ~ 8% in FY15, the growth should accelerate from next year Present overcapacity and resultant pressure on margins is expected to narrow down in next 2-3 years Current sl
Slide 14: Financial Performance
ADITYA BIRLA GRASIM Financial Performance 14
Slide 15: Consolidated Revenue
Consolidated Revenue 16% (43) 901 162 75 7,000 6,000 5,772 4,871 5,000 7945 4,000 ` Crore 3,000 6850 2,000 1,637 1,712 1,000 254 416 88 45 - VSF & E Pulp JVs Chemical Cement Others Q2FY14 Q2FY15 Q2 VSF & JVs Chemical Cement Inter Co. Q2 FY2013-14 Eliminations & FY 2014-15 Others 6,850 75 162 901 (43
Slide 16: Financial Performance – Consolidated
Financial Performance – Consolidated (` Crore) Half Year % Change Quarter 2 % Change Quarter 1 2014-15 2013-14 YoY 2014-15 2013-14 YoY 2014-15 15,990 13,788 16 Revenue 7,945 6,850 16 8,044 13,597 11,438 19 Operating Costs 6,770 5,816 16 6,826 2,765 2,693 3 PBIDT 1,277 1,143 12 1,488 299 214 40 Finan
Slide 17: Consolidated PBIDT
Consolidated PBIDT 12% 19 (116) 214 17 1,200 987 1,000 800 773 1277 ` Crore 600 1143 400 269 200 153 62 79 39 58 - VSF & Pulp JVs Chemical Cement Others Q2FY14 Q2FY15 Qtr. 2 VSF & JVs Chemical Cement Others incl. Qtr. 2 2013-14 Inter Co. 2014-15 Eliminations 1,143 (116) 17 214 19 1,277 17
Slide 18: Net Profit
Net Profit (` Crore) Half Year Quarter 1 Quarter 2 2014-15 2013-14 % 2014-15 2014-15 2013-14 % Total Grasim's Total Grasim's Change Grasim's Total Grasim's Total Grasim's Change Co. share Co. share share Co. share Co. share 405 640 (37) 106 Standalone PAT 299 414 (28) 1,041 627 946 570 10 378 UltraT
Slide 19: Balance Sheet : Grasim
Balance Sheet : Grasim Standalone Consolidated (` Crore) As on As on As on As on th st EQUITY & LIABILITIES th st 30 Sep'14 31 Mar'14 30 Sep'14 31 Mar'14 Shareholders' Funds 11,231 10,828 Net Worth 22,634 21,614 - - Minority Interest 7,275 6,936 Non Current Liabilities 967 1,004 Long Term Borrowings
Slide 20: Strong Financials
Strong Financials Standalone Consolidated H1 Full Year H1 Full Year (` Crore) 2014-15 2013-14 2014-15 2013-14 Net Worth 11,231 10,828 22,634 21,614 Debt 1,156 1,302 12,416 9,681 Net Debt (+) over liquid funds (-) 23 (56) 6,852 3,442 Capital Employed 12,931 12,592 45,199 41,035 Debt:Equity (x) 0.10 0
Slide 21: Capex
ADITYA BIRLA GRASIM Capex
Slide 22: Capex plan
Capex plan (` Crore) Capex Work in Cash Outflow Capex under Progress Net FY15 FY16 spent Implemen as on Capex onward during -tation $ 01-04-14 H1 Standalone VSF Expansion : Vilayat (120K TPA) 2,132 Chemical : Vilayat 100 Nagda Revamp 272 Normal Capex : VSF 365 : Chemical & Others 230 Standalone Cape
Slide 23: Summary
ADITYA BIRLA GRASIM Summary 23
Slide 24: Summary
Summary VSF business performance remain impacted with market sentiments, though improved sequentially with higher volumes and lower cost Ramping up of production at Vilayat to drive volumes, better product mix and profitability Cement business achieved improved performance Ramping up of the
Slide 25: Organizational Structure
Organizational Structure Pulp, Fibre & Allied Chemical UltraTech Cement * Others (60.25%) VSF Overseas VSF Pulp Domestic Overseas 454K TPA JV 70 K TPA Pulp JVs Chemicals 3 Mn. TPA, (UAE, Bangladesh, Sri Lanka) Grasim Nagda Birla Jingwei $ AV Cell $ Grey Cement Bhiwani Caustic Textiles * 162K TPA 72K
Slide 26: Plant Locations – Grasim & its subsidiaries
Plant Locations– Grasim & its subsidiaries Bathinda(G) Panipat Bhiwani Dadri T Kotputli Aligarh Jodhpur P T Malanpur Shambhupura Jawad P Katni Sewagram Bharuch Durgapur(G) UltraTech Cement Plants Wanakbori F Jafrabad F C Vilayat UltraTech Grinding Units (G) F C Pipavav Nagda Hirmi Raipur Magdalla (G
Slide 27: Thank You
ADITYA BIRLA GRASIM ADITYA BIRLA GRASIM Thank You 27
Slide 28: Annexure
Grasim Industries Limited Annexure 28
Slide 29: Annexure
Annexure Consolidated Financial Performance Standalone Financial Performance Consolidated and Standalone Profitability Revenue & PBIDT Chart VSF Summary Chemical Summary Cement Summary 29
Slide 30: Consolidated Financial Performance
Consolidated Financial Performance (` Crore) Quarter - 2 % Half Year % Full Year 2014-15 2013-14 Change 2014-15 2013-14 Change 2013-14 Net Sales & Op. Income 7,945.5 6,850.0 16 15,989.8 13,788.0 16 29,324.0 Other Income 102.4 109.2 (6) 372.2 342.6 9 576.6 PBIDT 1,277.5 1,143.4 12 2,765.3 2,692.5 3 5
Slide 31: Standalone Financial Performance
Standalone Financial Performance (` Crore) Quarter 2 Half Year Full Year % Change % Change 2014-15 2013-14 2014-15 2013-14 2013-14 Net Sales & Op. Income 1,599.8 1,421.4 13 3,038.6 2,584.5 18 5,603.5 Other Income 211.4 205.3 3 266.6 287.0 (7) 384.8 PBIDT 425.4 482.5 (12) 621.3 780.8 (20) 1,246.1 PBI
Slide 32: Profitability Snapshot
Profitability Snapshot Standalone Consolidated (` Crore) FY FY FY H1 FY FY FY H1 2011-12 2012-13 2013-14 2014-15 2011-12 2012-13 2013-14 2014-15 Net Turnover & Op. Income 4,974 5,255 5,604 3,039 25,244 13,788 29,324 15,972 PBIDT 1,722 1,523 1,246 621 6,321 6,543 5,491 2,765 PBIDT Margin (%) 31.7 26.
Slide 33: Revenue Chart
Revenue Chart (` Crore) Half Year % Quarter 2 % Quarter 1 ` 2014-15 2013-14 Change 2014-15 2013-14 Change 2014-15 2,365 2,191 8 Viscose Staple Fibre 1,271 1,211 5 1,094 829 478 74 Chemical 416 254 64 413 48 49 Others 22 26 26 (204) (133) Eliminations (Inter Segment) (109) (69) (95) 3,039 2,585 18 St
Slide 34: PBIDT – Chart
PBIDT – Chart (` Crore) Half Year % PBIDT Quarter 2 % Quarter 1 2014-15 2013-14 Change 2014-15 2013-14 Change 2013-14 232 427 (46) Viscose Staple Fibre 151 240 (37) 81 170 112 51 Chemical 79 62 28 91 220 242 (9) Others 195 180 8 24 621 781 (20) Standalone PBIDT 425 483 (12) 196 Subsidiaries 2,283 2,
Slide 35: Viscose Staple Fibre : Summary
Viscose Staple Fibre : Summary Quarter 2 % Half Year % Full Year 2014-15 2013-14 Change 2014-15 2013-14 Change 2013-14 Capacity * TPA 1,07,220 94,444 14 2,01,664 1,86,629 8 3,57,517 Production MT 1,00,950 91,955 10 1,90,777 1,79,687 6 3,61,012 Sales Volumes MT 1,00,927 93,025 8 1,87,316 1,70,544 10
Slide 36: Chemical : Summary
Chemical : Summary Quarter 2 % Half Year % Full Year 2014-15 2013-14 Change 2014-15 2013-14 Change 2013-14 Capacity* TPA 1,13,125 83,500 35 2,26,250 1,55,250 46 3,51,790 Production MT 1,01,639 79,957 27 2,01,802 1,50,992 34 3,13,479 Sales Volumes MT 1,00,052 78,356 28 1,96,145 1,50,384 30 3,14,488 N
Slide 37: Cement : Summary
Cement : Summary ` Quarter 2 % Half Year % Full Year 2014-15 2013-14 Change 2014-15 2013-14 Change 2013-14 Grey Cement Capacity Mn. TPA 15.44 13.48 15 30.88 26.96 15 54.76 Production Mn. MT 10.91 9.71 12 22.95 20.38 13 43.60 Cement Sales Volumes $ Mn. MT 10.92 9.88 10 23.09 20.67 12 44.06 Clinker Sa
Slide 38: Unaudited Consolidated Financial Results Q2 and Six Months Ended 30-09-2014
UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30-09-2014 PART I: STATEMENT OF CONSOLIDATED UNAUDITED RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30-09-2014 ` Crore Three Months Ended Six Months Ended Year Ended Particulars 30-09-2014 30-06-2014 30-09-2013 30-09-2014
Slide 39: Unaudited Consolidated Segment Wise Revenue, Results and Capital Employed
UNAUDITED CONSOLIDATED SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER AND SIX MONTHS ENDED 30-09-2014 ` Crore Particulars Three Months Ended Six Months Ended Year Ended 30-09-2014 30-06-2014 30-09-2013 30-09-2014 30-09-2013 31-03-2014 (Unaudited) (Unaudited) (Unaudited) (Unaudite
Slide 40: Notes to Financial Results
Grasim Industries Limited NOTES: 1. a. The Company has opted to publish Consolidated Financial Results which are reviewed by the Audit Committee and approved by the Board of Directors today. b. Key numbers of Standalone Financial Results of the Company are as under: ` Crore Three Months Ended Six Mo
Slide 41: Notes to Financial Results (continued)
Grasim Industries Limited 6. Tax expenses for the quarter and six months ended 30th September, 2013 are net of provisions written back pertaining to earlier years’ amounting to ` 18.38 Crore and ` 19.27 Crore respectively. For the year ended 31st March, 2014 write back was ` 124.74 Crore. 7. During
Slide 42: Consolidated Statement of Assets and Liabilities
Grasim Industries Limited 9. Consolidated Statement of Assets and Liabilities as at 30th September, 2014: ` Crore AS AT Particulars 30-09-2014 31-03-2014 (Unaudited) (Audited) A. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital 91.86 91.84 (b) Share Capital (Other than Equity) 45.33 4
Slide 43: Press Release: Grasim Reports Financial Results for Quarter 2 FY 2014-15
Press Release Mumbai, 29th October, 2014 Grasim Reports Financial Results for Quarter 2 FY 2014-15 Investment for Growth Yielding Results - Robust Volume Growth across Businesses Consolidated Net Revenue: ` 7,945 Cr., up16% ; PBIDT: ` 1,277 Cr., up 12% Grasim Industries Limited, an Aditya Birla Grou
Slide 44: Cement Subsidiary (UltraTech Cement) and Cement Capex Outlook
Cement Subsidiary (UltraTech Cement) Cement sales at 10.92 Mn. tons are up by 10% led by higher demand and additional volume from the Gujarat Cement Units acquired from Jaypee Cement in Quarter 1. Costs were impacted on account of increase in prices of petcoke and input material coupled with higher
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