Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q3 FY2020 Earnings Presentation
34 slides from Grasim Industries's earnings presentation, Feb 10, 2020
Slide 1: Cover letter to stock exchanges
ADITYA BIRLA lu GRASIM Ref No.: GIL/CFD/SEC/20/204/SE 10th February 2020 BSE Limited The National Stock Exchange of India Limited Dalai Street, Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No. C/1, G Block, Bandra-Kurla Complex, Fort, Mumbai - 400 001 Bandra (East), Mumbai 400051 Scrip
Slide 2: Grasim Industries Limited Earnings Presentation Q3FY20
Grasim Industries Limited BIG IN YOUR LIFE Earnings Presentation Q3FY20
Slide 3: Big in your life: Grasim at a glance
AD,TyA BI RLA BIG IN YOUR LIFE # 1 In Viscose Staple Fibre@ # 1 In& Specialty Caustic Soda Chemicals* # 1 In Premium Fabric ADITYA BIRLA ,1 1 57% 57% Market Cap (Jan 31, 2019): ADITYA BIRLA INR 51,000 Crore 111A (USD 7.1 Billion) ADITYA BIRLA Uffrarech CAPITAL Total Market Cap Total Market Cap (Jan
Slide 4: Table of Content
Table of Content Financial Overview 01 Business Performance 02 Appendix 03 VISCOSE - THE GREATER rinRE
Slide 5: Financial Overview
ADITYA BIRLA GRASIM Financial Financial Overview Overview
Slide 6: Financial Overview: Quarterly
Key Highlights Financial Overview Business Performance Appendix ADITYA BIRLA FINANCIAL OVERVIEW: QUARTERLY 111VI GRASEM Consolidated Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 16% 17% 15% 19,471 18,430 19,205 3,117 3,174 2,968 Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 Standalone Net Revenue (Rs. Cr.) EB
Slide 7: Strong Balance Sheet
Key Highlights Financial Overview Business Performance Appendix ADITYA BIRLA STRONG BALANCE SHEET 1 1 GRASIM Robust 9M FY20 standalone operating cash flow (before capex) generation of ~Rs. 3,438 Cr • Standalone (Rs. Cr.) Consolidated (Rs. Cr.) Net Debt/ EBITDA 0.82x 1.56x (9MFY20 Annualized) 4,856 3
Slide 8: Capex Plan
Key Highlights Financial Overview Business Performance Appendix ADITYA BIPLA .,, CAPEX PLAN hit& Capex Capex Cash Outflow (Net of CWIP spent Particulars (Rs. Cr.) as on YTD Q4 FY21 1/4/2019) Dec'19 FY20 Onwards Capital expenditure for Capacity Expansion Viscose Staple Fibre (from 566 KTPA to 788 KTP
Slide 9: Business Performance
ADITYA BIRLA GRASIM Business Business Performance Performance I I
Slide 10: Viscose Industry
Key Highlights Financial Overview Business Performance Appendix ADITYA BIPLA .,, VISCOSE INDUSTRY hit& Capacity addition of ~1.3 Mn Tons in last one year in Asia, muted demand due to weak macro- economic conditions, US-China trade war, and sharp RMB depreciation have impacted global prices Inventory
Slide 11: Viscose Industry: Global Prices Trend
Key Highlights Financial Overview Business Performance Appendix ADITYA BIPLA .,, VISCOSE INDUSTRY Global Prices Trend ($/Kg) Price YoY QoQ Dec Exit Price 2.10 Movement (%) (%) (D over Q3FY20) 1.90 1.70 1.50 Grey 1.26 $/Kg 1.30 -27% -9% 1.10 VSF (-2%) 0.90 0.70 0.50 1.68 $/Kg Cotton -14% 3% (2%) 0.89
Slide 12: Viscose – Key Operational Metrics
Key Highlights Financial Overview Business Performance Appendix ADITYA BIRLA VISCOSE – KEY OPERATIONAL METRICS GRASIM VSF Sales (KT) Sales Volume Mix Export Sales Grey VSF 142 134 138 14% 78% 86% 22% Q3FY19 Q2FY20 Q3FY20 Domestic Sales VAP Pulp CCF prices vs Consumption Prices 1,050 69,000 0- Share
Slide 13: Financial Performance - Viscose
Key Highlights Financial Overview Business Performance Appendix ADITYA BIRLA FINANCIAL PERFORMANCE - VISCOSE h 110 GRASIM Net Revenue* (Rs. Cr.) EBITDA* (Rs. Cr.) 2,615 2,431 477 2,194 381 256 Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 Pulp prices touched a new low providing relief on the cost front
Slide 14: Viscose (Pulp & Fibre) – Sustainability Report Highlights
Key Key Highlights Highlights Financial Financial Overview Overview Business Business Performance Performance Appendix Appendi)4 ADITYA BIRLA VISCOSE (PULP VISCOSE (PULP & &FIBRE) FIBRE) -–SUSTAINABILITY SUSTAINABILITYREPORT REPORTHIGHLIGHTS HIGHLIGHTS GRASIM The VSF business is Launched Carbon Neut
Slide 15: Sustainability Report Highlights (Goals and Targets)
Key Highlights Financial Overview Business Performance Appendix ADITYA BIPLA :1 VISCOSE (PULP & FIBRE) – SUSTAINABILITY REPORT HIGHLIGHTS (GOALS AND TARGETS) 1 1 Reduce sulphur release to air by 70% at all VSF sites by 2022 2 Reduce water intensity by 50% in VSF manufacturing by 2025 over baseline o
Slide 16: Chlor Alkali Industry
Key Highlights Financial Overview Business Performance Appendix ADITYA BIRLA CHLOR ALKALI INDUSTRY h 110 GRASIM Caustic Realisation (Trend) Grasim – ECU (Rs./ ton) 39,631 40,276 38,287 37,845 37,070 37,198 34,522 30,357 31,310 27,805 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q2F
Slide 17: Caustic – Key Operational Metrics
Key Highlights Financial Overview Business Performance Appendix ADITYA BIRLA CAUSTIC – KEY OPERATIONAL METRICS P2L, GRASIM Caustic Soda Sales (KT) Chlorine & HCl Consumption in VAP (ton) J 250 241 261 70,104 73,416 63,434 Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 Chlorine consumption in VAPs improve
Slide 18: Financial Performance - Chemicals
Key Highlights Financial Overview Business Performance Appendix ADITYA BIRLA FINANCIAL PERFORMANCE - CHEMICALS P2L, GRASIM Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) J 1,559 441 1,347 1,362 273 185 Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 Chemical EBITDA impacted primarily due to weakness in the ECU re
Slide 19: Financial Performance – Other Businesses
Key Highlights Financial Overview Business Performance Appendix ADITYA BIRLA FINANCIAL PERFORMANCE – OTHER BUSINESSES P2L,GRASIM Fertilisers Textile Insulators Net Revenue (Rs. Cr.) Net Revenue (Rs. Cr.) Net Revenue (Rs. Cr.) 868 420 401 394 101 97 721 90 638 Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY2
Slide 20: Financial Performance – UltraTech
Key Highlights Financial Overview Business Performance Appendix ADITYA BIRLA FINANCIAL PERFORMANCE – UltraTech h 110 GRASIM Sales volume (MT) Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 2,141 21.76 10,444 10,354 20.90 1,707 Q3FY19 Q3FY20 Q3FY19 Q3FY20 Q3FY19 Q3FY20 Cement demand in Q3FY20 impacted by eco
Slide 21: Financial Performance – ABCL
Key Highlights Financial Overview Business Performance Appendix ADITYA BIRLA FINANCIAL PERFORMANCE – ABCL h 110 GRASIM Lending Book (Rs. Cr.)* AAUM (Rs. Cr.) 60,129 60,123 2,65,475 2,58,833 Q3FY19 Q3FY20 Q3FY19 Q3FY20 Revenue and net profit after minority interest for Q3FY20 are at Rs. 4,326 Cr. and
Slide 22: Financial Performance – Other Subsidiaries
Key Highlights Financial Overview Business Performance Appendix ADITYA BIRLA FINANCIAL PERFORMANCE – OTHER SUBSIDIARIES h 110 GRASIM Aditya Birla Renewables (Solar Power) Grasim Premium Fabrics Private Limited Rs. Cr. Rs. Cr. Particulars Q3FY20 Q2FY20 Particulars Q3FY20 Q2FY20 Net Revenue 26 20 Net
Slide 23: Financial Performance – Pulp JVs
Key Highlights Financial Overview Business Performance Appendix ADITYA BIRLA FINANCIAL PERFORMANCE – PULP JV’s P2L, GRASIM Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 121 1283 1,224 74 1,081 -32 Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 Production Volume (Tons) Sales Volume (Tons) J 1,86,302 1,86,980 1,8
Slide 24: Appendix
ADITYA BIRLA GRASIM Appendix Appendix I I
Slide 25: Balance Sheet
Key Highlights Financial Overview Business Performance Appendix ADITYA BIPLA .,, BALANCE SHEET hit& Standalone (Rs. Cr.) Consolidated (Rs. Cr.) 31st Mar'19 31 Dec'19 31st Mar'19 EQUITY & LIABILITIES 31 Dec'19 (Restated) 40,060 41,959 Net Worth 58,224 58,020 - - Non Controlling Interest 32,268 30,503
Slide 26: Capex Plan: VSF and Caustic Soda Capacity
Key Highlights Financial Overview Business Performance Appendix ADITYA BIRLA CAPEX PLAN P2L, GRASIM VSF Capacity (KTPA) Caustic Soda Capacity (KTPA) 43% 27% 788 1,457 BB’Puram (146 KTPA) Vilayat expansion 146 H2 FY21 (219 KTPA) -• H2 FY21 438 Vilayat expansion (2 phases of 1,147 (73 KTPA) 300 TPD ea
Slide 27: Income Statement - Standalone
Key Highlights Financial Overview Business Performance Appendix ADITYA BIPLA .,, INCOME STATEMENT - STANDALONE hit& Quarterly Year to date Particulars (Rs. Cr.) Q3FY20 Q3FY19 9MFY20 9MFY19 Net Revenue from Operations 4,499 5,291 14,297 15,198 Other Income* 81 95 452 467 EBITDA 495 1,111 2,369 3,639
Slide 28: Income Statement – Consolidated
Key Highlights Financial Overview Business Performance Appendix ADITYA BIPLA .,, INCOME STATEMENT – CONSOLIDATED hit& Quarterly Year to Date Particulars (Rs. Cr.) Q3FY20 Q3FY19 9MFY20 9MFY19 Net Revenue from Operations 19,205 19,471 57,724 54,770 Other Income 242 207 694 642 EBITDA 2,968 3,117 10,60
Slide 29: Viscose Business Summary
Key Highlights Financial Overview Business Performance Appendix ADITYA BIPLA .,, VISCOSE BUSINESS SUMMARY hit& Quarter 3 % Year to date % Particulars (Rs. Cr.) 2019-20 2018-19 Change 2019-20 2018-19 Change Capacity VSF KTPA 566 546 4 566 546 4 VFY KTPA 46 46 - 46 46 0 Production VSF KT 148 141 5 436
Slide 30: Chemical Business Summary
Key Highlights Financial Overview Business Performance Appendix ADITYA BIPLA .,, CHEMICAL BUSINESS SUMMARY hit& Quarter 3 % Year to date % Particulars (Rs. Cr.) 2019-20 2018-19 Change 2019-20 2018-19 Change Capacity* KTPA 1,147 1,140 1 1,147 1,140 1 Production* KT 257 250 3 747 740 1 Sales Volume* K
Slide 31: Grasim Group Structure
Key Highlights Financial Overview Business Performance Appendix ADITYA BIRLP .,, GRASIM GROUP STRUCTURE hit& Grasim Industries Limited VSF - 566K TPA Caustic Soda - Overseas UTCL (57.29%)* ABCL (56.6)* VFY - 47K TPA ~1147K TPA Others Pulp - 74K TPA Pulp & VSF JVs Subsidiary Subsidiary Epoxy – 123K T
Slide 32: Forward Looking and Cautionary Statement
ADITYA BIPLA .,, FORWARD LOOKING AND CAUTIONARY STATEMENT hit& Certain statements in this report may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could
Slide 33: Notes
ADITYA BIPLA .,, NOTES hit& Grasim Industries Limited | Earnings Presentation Q2 FY20 4 32
Slide 34: Thank you
ADITYA BIRLA WI GRASIM Thank you Grasim Industries Ltd. Aditya Birla Centre 'A' Wing, 2nd Floor ,S.K. Ahire Marg ,Worli Mumbai 400 030 ,India Investor Relations Team Email: pradeep.a@adityabirla.com saket.sah@adityabirla.com