Aditya Birla Real Estate Ltd · NSE:ABREL
Aditya Birla Real Estate — Century Textiles and Industries — Q1 FY23 Earnings Presentation
47 slides from Aditya Birla Real Estate's earnings presentation, Jul 25, 2022
Slide 1: Exchange filing cover letter
CENTURY Textiles and Industries Limited REGO. OFFICE : "CENTURY BHAVAN", DR. ANNIE BESANT ROAD, WORLI , MUMBAl-400 030. INDIA. TEL. : +91 -22-2495 7000 FAX : +91 -22-2430 9491 , +91 -22-2436 1980 E-Mail : ctil.ho @birlacentury.com Website : www.centurytextind .com CIN-L 17120MH1897PLC000163 OUR REF.
Slide 2: Earnings Presentation – Q1 FY23
Century Textiles and Industries Limited Earnings Presentation – Q1 FY23
Slide 3: Table of Contents
2 TABLE OF CONTENTS Summary Real Estate Pulp and Paper Textiles Financials
Slide 4: Q1 FY23 Key Operational Highlights
3 Q1 FY23 KEY OPERATIONAL HIGHLIGHTS • Strong financial performance across businesses in Q1 FY23 despite increasing input costs and geopolitical issues like Russia-Ukraine War. • Real estate business saw steady sales due to a sustained demand momentum, with Birla Niyaara project sales reaching 58% o
Slide 5: Company Overview
4 COMPANY OVERVIEW • Incorporated in 1897, Century Textiles and Industries Limited (CTIL) has evolved from a single unit textile mill into a diversified conglomerate under the visionary leadership of Mr. B. K. Birla. • The company’s 125-years-old legacy is built on a steadfast commitment to the deve
Slide 6: Quarterly Consolidated Performance at a Glance
5 QUARTERLY CONSOLIDATED PERFORMANCE AT A GLANCE (RS. IN CRORES) TURNOVER EBITDA & EBITDA MARGINS PAT 1,172 143 45 117 832 14.1% 25 12.2% Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Summary TTM QUARTERLY PERFORMANCE 1,188 1,172 998 1,050 832 14.1% 13.3% 12.2% 10.0% 11.2% -- 117 25 -- 133 32 -- 1
Slide 7: Quarterly Segment Wise Consolidated Performance
6 QUARTERLY SEGMENT WISE CONSOLIDATED PERFORMANCE (RS. IN CRORES) REAL ESTATE PULP AND PAPER TEXTILES 857 268 34 33 205 577 17.6% 16.6% 15.6% 6 1.0% 0.4% 134 -9.1% -3 - 96 - 2 1 Summary Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 - - - - - Q1 FY22 Q1 FY23 - Rental Income EBITDA EBITDA % Sales EBITDA EBITDA % -
Slide 8: Real Estate
BlRLA ESTATES Real Estate Over 64 lakh sq. ft. under construction across 5 projects
Slide 9: Executive Summary - Real Estate
8 EXECUTIVE SUMMARY - REAL ESTATE REVENUE (RS. IN CRORES) • The B. K. Birla Group forayed into the real estate sector in 2016 Real Estate under the brand name ‘Birla Estates’. 159 146 142 139 • The company is focused on developing land parcels owned by the Group, as well as growing the business with
Slide 10: Step Towards More Focus on Growing Business
9 STEP TOWARDS MORE FOCUS ON GROWING BUSINESS BIRLA ESTATES Real Estate Strong Vision & Strategy ■ Opportunities -- Pulp & Paper Strengths Leveraging: Encash on: Strong focus on: ■ ' • Rapid urbanization and nuclearization of • Maintaining a capital efficient, asset light • The Birla Brand families
Slide 11: Q1 FY23 Key Operational Highlights – Real Estate
10 Q1 FY23 KEY OPERATIONAL HIGHLIGHTS – REAL ESTATE Real Estate • Achieved sales of INR 434 Crs in Q1 FY23. • Residential real estate saw steady sales due to a sustained demand momentum as buyer confidence remained positive due to stable ■ - - overall economic scenario. Pulp & Paper • Birla Niyaara
Slide 12: Market Outlook – Real Estate
11 MARKET OUTLOOK – REAL ESTATE Real Estate • The real estate market witnessed a stable quarter in line with seasonal trends. • The industry outlook remains positive backed by residential upcycle buoyed by high absorption / low inventory scenario, sustained demand momentum and the ongoing consolidat
Slide 13: Geographical Presence
12 GEOGRAPHICAL PRESENCE Real Estate (C) - Commercial (R) Residential ■ - - Golf Course Extension, Pulp & Paper Gurugram, NCR BIRLA CENTURION (C) BIRLA NAVYA & GROUP HOUSING (R) Worli, Mumbai ■ Kalyan, Maharashtra ' Textiles Whitefield, Bengaluru BIRLA AURORA (C) Magadi Road, Bengaluru BIRLA TISYA (
Slide 14: Summary of Product Portfolio
13 SUMMARY OF PRODUCT PORTFOLIO Real Estate COMMERCIAL Name of the Project Location Area (Lakh sq. ft) No. of Storeys Annual Leasing Revenues Birla Aurora 2.6 22 Worli Approx. Rs. 125 Cr I Birla Centurion ---~ 3.5 12 ■ - - RESIDENTIAL Pulp & Paper Revenue Cumulative Area Saleable Area Project Name L
Slide 15: Residential & Commercial Sales Highlights
14 RESIDENTIAL & COMMERCIAL SALES HIGHLIGHTS BIRLA E - - - ,~ E S Real Estate Particulars UOM Q1 FY23 Q1 FY22 % chg YoY Q4 FY22 % chg QoQ ■ - - Commercial ' ; ;' ' ; Pulp & Paper I I Leasing Income Rs. Cr. 29 31 (7.3)% 30 (2.8)% ■ Average Rent Realisation Rs./sq.ft. 146 156 (6.5)% 149 (2.0)% ' (BA&B
Slide 16: Birla Vanya, Kalyan – Project Update
15 BIRLA VANYA, KALYAN – PROJECT UPDATE (LAUNCHED – Q1 FY20) BIRLA E - - - ,~ E S Real Estate ---- Location Shahad, Kalyan Area 22 acres ■ - - Pulp & Paper 13.2 lakh sq. ft. Saleable Area Phase 1 and 2 – 9.9 lakh sq. ft. launched Revenue Potential Rs. 1,134 Crs ■ ' Residential – 1 BHK, 2 BHK, 3 BHK
Slide 17: Birla Alokya, Bengaluru – Project Update
16 BIRLA ALOKYA, BENGALURU (Outright) - PROJECT UPDATE (LAUNCHED - Q3 FY20) Real Estate Location Soukya Road, Bengaluru ■ - Area 8.1 acres Pulp & Paper Saleable Area 5.47 lakh sq. ft. ■ ' Revenue Potential Rs. 394 Crs Textiles Product Type Residential – 3-Bed and 4-Bed Villaments ■ Cumulative Sales
Slide 18: Birla Navya, Gurugram – Project Update
17 BIRLA NAVYA, GURUGRAM (JV) – PROJECT UPDATE - ~ E,~ E S BIRLA Real Estate ---- Location Sector 63 A, Gurugram, NCR Area 47 acres Pulp & Paper Saleable Area* Total 17.8 lakh sq. ft. (Floors Project) Revenue Potential Rs. 2,258 Crs Product Type Residential – 2 BHK, 3 BHK & 4 BHK Textiles Launch Yea
Slide 19: Birla Niyaara, Mumbai – Project Update
18 BIRLA NIYAARA, MUMBAI – PROJECT UPDATE (LAUNCHED – Q4 FY22) BIRLA .~ E.~ E S Real Estate ---- Location Worli, Mumbai Area 14.2 acres Pulp & Paper Saleable Area* 24 lakh sq. ft.(Residential Phase – I) Rs. 10,000 + Crs : Three Towers Revenue Potential (Tower A: ~Rs 3,300 Crs) Residential – 2 BHK, 3
Slide 20: Birla Tisya, Bengaluru – Project Update
19 BIRLA TISYA, BENGALURU (JV) – PROJECT UPDATE BIRLA ESTATES Real Estate Location Magadi Road, Bengaluru ■ -- Area 4.8 acres Pulp & Paper 6.5 lakh sq. ft. Saleable Area* Revenue Potential Rs. 633 Crs ■ ' Product Type Residential – 2 BHK, 3 BHK & 4 BHK Textiles Launch Year December 2021 ■ Cumulative
Slide 21: ESG – Real Estate
20 ENVIRONMENT SOCIAL GOVERNANCE (ESG) – REAL ESTATE BIRLA ESTATES Real Estate ENVIRONMENT SOCIAL • ESG Roadmap for Birla Estates – Integrated Report Predict and Win – a customer engagement event with IPL theme documentation in progress ■ - • BREEAM precertification for Worli Project – Technical Pul
Slide 22: Pulp & Paper
Pulp & Paper Flag bearer in Paper Industry
Slide 23: Pulp & Paper - Executive Summary
22 PULP & PAPER - EXECUTIVE SUMMARY CENTURY a PuLP PAPER Real Estate • Century Pulp and Paper (CPP) is a producer of excellent quality writing and printing paper, and a leading manufacturer of tissue and board, as well as Rayon Grade Pulp (RGP) products. • Established in 1984, with relentless focus
Slide 24: Step Towards More Focus on Growing Business
23 STEP TOWARDS MORE FOCUS ON GROWING BUSINESS CENTURY a PuLP PAPER Real Estate Strong Vision & Strategy Opportunities Pulp & Paper Strengths • Leveraging: Encash on: Strong focus on: • India’s only integrated Pulp & Paper mill • Growth in tissue paper demand due to providing comprehensive solution
Slide 25: Q1 FY23 Key Operational Highlights – Pulp & Paper
24 Q1 FY23 KEY OPERATIONAL HIGHLIGHTS – PULP & PAPER Real Estate Pulp & Paper • Q1 FY23 saw major impact on operation costs with sharp increase in input material prices such as coal and imported pulp. • Multiple price increases were taken across product categories to balance increased input costs du
Slide 26: Market Outlook – Pulp & Paper
25 MARKET OUTLOOK – PULP & PAPER CENTURY a PuLP PAPER Real Estate • Starting Jul 1, 2022, Single-use plastic ban has been imposed. It presents a good opportunity for paper segment. • For Writing & Printing paper (WPP), market is expected to perform better. However, cost pressures in domestic market
Slide 27: Q1 FY23 Production & Sales
26 Q1 FY23 PRODUCTION & SALES CENTURY a PuLP PAPER Real Estate 857 35 116 I Pulp & Paper 1,20,283 1,16,394 1,13,703 ~ 1,07,655 7,830 577 11,268 10,330 18,000 99,895 5,003 23 12,330 4,047 340 10,846 11,972 71 10,286 ■ ' 45,000 40,293 45,721 39,812 45,695 274 Textiles 365 49,453 53,441 50,868 ■ 45,868
Slide 28: Macros: NSR Movement
27 MACROS CENTURY a PuLP PAPER Real Estate NSR MOVEMENT (INR/TONS) 86,133 68,131 77,358 YoY QoQ 63,271 33% 14% 58,256 58,850 67,312 Pulp & Paper 61,715 57,812 YoY QoQ 55,885 54% 28% - Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Domestic Export ■ ' NSR AND OVERALL CONTRIBUTION Textiles 78,343 68,007 63,0
Slide 29: ESG – Pulp & Paper
28 ENVIRONMENT SOCIAL GOVERNANCE (ESG) – PULP & PAPER CENTURY • Real Estate ENVIRONMENT SOCIAL Pulp & Paper Textiles ► Collection of fallen pine tree leaves (Perul), which may ► Reconstruction of houses (6 Nos.) damaged in flood of Oct’21 for Flood ■ cause wildfire during summer, to be used as fuel
Slide 30: Textiles
Textiles World’s 2nd and India’s 1st LEED V4 certified textile mfg co.
Slide 31: Executive Summary – Century Textiles
30 EXECUTIVE SUMMARY – CENTURY TEXTILES Real Estate • Century Textiles and Industries Limited (CTIL), was incorporated in Mumbai, India, in 1897. A state-of-the-art, vertically integrated plant, Birla Century (A Division of CTIL) was set up at Jhagadia, Bharuch, Gujarat, in the year 2008, using the
Slide 32: Step Towards More Focus on Growing Business
31 STEP TOWARDS MORE FOCUS ON GROWING BUSINESS Real Estate Advantages Growth Drivers Pulp & Paper Strengths ■ • State-of-the-Art Vertically Integrated • US-China trade war has increased demand ' Plant (Fibre to Finishing) • Increased penetration of organised of Indian products in USA retail, better
Slide 33: Q1 FY23 Key Operational Highlights – Textiles
32 Q1 FY23 KEY OPERATIONAL HIGHLIGHTS– TEXTILES Real Estate Pulp & Paper ■ ' • On year-on-year basis the business performance was much better in this quarter with increased production, sales and sales turnover. Textiles Increased input costs kept margins low. • In apparel fabrics although overall de
Slide 34: Market Outlook - Textiles
33 MARKET OUTLOOK - TEXTILES Real Estate • High market uncertainty envisaged on account of high inflation, on-going war scenario and fluctuations in commodity prices. Expected to stabilize in H2 FY23. • Grim home textile industry outlook due to drop in US demand. Apparel fabric in domestic market sh
Slide 35: Macros – Q1 FY23
34 MACROS – Q1 FY23 Real Estate CLOTH – CAPACITY UTILISATION NET SALES REALISATIONS OVERALL CONTRIBUTION (RS. PER/MTR) --80% 96% YoY 6% QoQ 5% YoY 54% QoQ 16% Q1 FY23 (RS. PER/MTR) 9,555 9,133 383 (000 MTRS) 7,616 330 248 Pulp & Paper 185 11 175 177 PRODUCTION - CLOTH I ll DOMESTIC EXPORT TOTAL NSR
Slide 36: Sales – Q1 FY23
35 SALES – Q1 FY23 Real Estate CLOTH BED SHEETS YARN OTHERS NET SALES QUANTITY NET SALES QUANTITY NET SALES QUANTITY 916,277 766 (NO. OF SETS) 9,896 (000 MTRS) 629 (TONS) Pulp & Paper 5,984 405,535 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 ■ ' Textiles NET SALES NET SALES NET SALES NET SALES 1
Slide 37: ESG – Textiles
36 ENVIRONMENT SOCIAL GOVERNANCE (ESG) – TEXTILES Real Estate ENVIRONMENT SOCIAL GOVERNANCE M.di!C-,dt~ Mw',28,2022 CMk:>11 Dx.tal luut. ""'r 1; . m2 ■ Certificate of Eligibility Pulp & Paper ~r<ific~l<! HoldH& bnorySit.: 95 ..... t:<,vy ,..,,...~._u,,;...,..,,;.,f•.-.e.,"><li> .,..-,GJ.,j.o,., -t,i
Slide 38: Financial Summary
Financial Summary Excellent financial performance during the quarter as compared to Q1 FY22 37
Slide 39: Quarterly Financial Performance
38 QUARTERLY FINANCIAL PERFORMANCE Real Estate (RS. IN CRORES) Variance Q on Q Variance Yon Y Particulars Q1 FY22 Q4FY22 Q1 FY23 Amount I % Amount i % ~ -.-."' .-..... -.-.-. .-.·:· . .. . . . ...... -. ·1·"' . ...... ,., . .-."' . .; .,., . . ."' . . .,., . .- Continuing Operations Sales j I I ~ Te
Slide 40: Historical Consolidated Financial Performance
39 HISTORICAL CONSOLIDATED FINANCIAL PERFORMANCE Real Estate (RS. IN CRORES) Particulars FY19 FY20 FY21 FY22 Q1 FY23 Continuing Operations Sales Textiles 765 735 582 1,037 268 Pulp & Paper Pulp & Paper 2,643 2,383 1,774 2,818 857 Real Estate 159 146 142 139 33 Others 66 67 69 74 14 Textiles 58 -48 2
Slide 41: Cash Flow – Q1 FY23
40 CASH FLOW – Q1 FY23 Real Estate (RS. IN CRORES) Pulp & i Birla Grand Particulars Textile Rayon I H.O. Paper : Estates Total . EBITDA 1 i I 11 134 i I (3) - I I 143 MAT Paid I I (10); (10) . Pulp & Paper I I I I I I Collections - Real Estate - I - I 135 I - I 135 I I I I :Project Development Cost-
Slide 42: Cash Flow : Q1 FY23
41 CASH FLOW : Q1 FY23 (INR CRORES) Real Estate ■ Increase ■ Decrease ■ Total 135 Pulp & Paper 143 -10 ■ . -176 Textiles ■ -147 - -17 -11 11 -72 Financials EBITDA MAT Paid Collections Project Dev. Wcap Change Capex Interest Interest (bond) Free Cash Flow
Slide 43: Statement of Outstanding Loan
42 STATEMENT OF OUTSTANDING LOAN Real Estate (RS. IN CRORES) O/s as on O/s as on O/s as on Particulars 31-12-2021 31-03-2022 30-06-2022 --------------------------------------------------------------------------------------------------------------------------------------------------------------------
Slide 44: Outstanding Loan
43 OUTSTANDING LOAN (RS. IN CRORES) Real Estate 1,281 @ 6.46% 1,315 @ 6.20% 1,308 @ 6.70% 85 120 137 ■ BEPL- 7.20% ■ BEPL- 7.20% ■ BEPL- 7.82% Pulp & Paper 400 650 650 ■ NCD- 7.35% ■ NCD- 6.89% ■ NCD- 7.07% ■ . 270 Textiles ■ STL- 3.94% ■ STL- 4.26% ■ STL- 5.47% 314 334 ■ 526 ■ LTL- 6.96% ■ LTL- 6.4
Slide 45: Financial Performance
44 FINANCIAL PERFORMANCE Real Estate REVENUES* (RS. IN CRORES) EBITDA (RS. IN CRORES) PAT# (RS. IN CRORES) 1,061 499 (RS. IN CRORES) 3,944 4,131 3,423 378 2,616 600 487 Pulp & Paper 154 FY19 FY20 FY21 FY22 1,190 Q1 FY23 FY19 FY20 285 FY21 FY22 143 1111 Q1 FY23 FY19 FY20 -15 FY21 FY22 t- 45 Q1 FY23 ■
Slide 46: Disclaimer
45 DISCLAIMER Century Textiles and Industries Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinion
Slide 47: Thank You
46 Bringing our century old legacy and expertise into all our businesses while focusing on sustainability, customer centricity, technology and innovation to be future ready Thank You
Century Textiles and Industries — Q1 FY23 Earnings Presentation on 6ix