Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q3 FY2009 Earnings Presentation
47 slides from Grasim Industries's earnings presentation, Jan 31, 2009
Slide 1: Grasim Industries Limited Performance Review Q3FY09
Grasim Industries Limited Performance Review Q3FY09 31st January 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: Consolidated Financial Performance – Q3FY09
Consolidated Financial Performance – Q3FY09 % Revenue up by 6% Rs. Crs. Change PBIDT lower by 27% Higher input and energy cost Revenue 4,632 6 VSF business performance severely impacted by PBIDT 1,074 (27) global economic downturn Interest up by 86% due to commissioning of Interest 95 86 p
Slide 4: Consolidated Financial Performance – 9MFY09
Consolidated Financial Performance – 9MFY09 % Revenue up by 10% Rs. Crs. Change PBIDT lower by 16% Higher input and energy cost Revenue 13,578 10 VSF business performance severely impacted by PBIDT 3,454 (16) global economic downturn Interest up by 47% due to commissioning of Interest 238
Slide 5: Consolidated Financial Performance
Consolidated Financial Performance (Rs. Crores) Q3 FY09 Q3 FY08 % Chg. 9M FY09 9M FY08 % Chg. FY08 Net Turnover & Op. Income 4,631.6 4,350.5 6 13,578.3 12,376.5 10 17,141.3 Other Income 71.1 76.2 (7) 207.4 227.8 (9) 295.3 PBIDT 1,073.7 1,470.4 (27) 3,453.7 4,107.5 (16) 5,422.0 Interest 94.9 51.0 86
Slide 6: Standalone Financial Performance – Q3FY09
Standalone Financial Performance – Q3FY09 % Revenue up by 3% Rs. Crs. Change PBIDT lower by 37% Revenue 2,690 3 Higher input and energy cost VSF business performance severely impacted by PBIDT 580 (37) global economic downturn Interest up by 90% due to commissioning of Interest Charges 44
Slide 7: Standalone Financial Performance – 9MFY09
Standalone Financial Performance – 9MFY09 % Revenue up by 6% Rs. Crs. Change PBIDT lower by 21% Revenue 8,009 6 Higher input and energy cost VSF business performance impacted by global PBIDT 2,093 (21) economic downturn Interest up by 30% due to commissioning of Interest Charges 104 30 pro
Slide 8: Standalone Financial Performance
Standalone Financial Performance (Rs. Crores) Q3 FY09 Q3 FY08 % Chg. 9M FY09 9M FY08 % Chg. FY08 Net Turnover & Op. Income 2,690.1 2,615.4 3 8,008.8 7,561.4 6 10,325.2 Other Income 44.1 57.3 (23) 184.8 170.4 8 267.7 PBIDT 580.1 920.5 (37) 2,093.1 2,643.4 (21) 3,424.5 Interest 44.4 23.4 90 103.7 79.8
Slide 9: Segmental Performance – Q3FY09
Segmental Performance – Q3FY09 Revenue Mix Consolidated PBIDT Mix Others VSF & VSF & Sponge Iron 3% Chemical Others Chemical 9% 6% 17% 7% Sponge Iron Textiles 4% 2% Cement 80% Cement 72% (Rs.4,632 Crs.) (Rs.1,074 Crs.) Revenue Mix Standalone PBIDT Mix Sponge Iron 11% VSF & Sponge Iron Others 5% VSF
Slide 10: Financial Highlights
[GRA STM] Financial Highlights 10
Slide 11: Grasim Consolidated Financials
Grasim Consolidated Financials 9M Strong Balance sheet (Rs. Crores) FY06 FY07 FY08 FY09 Net worth at $2.3 Bn. Net Turnover 10,224 14,069 16,974 13,443 Capital Employed at $4.3 Bn. PBIDT 2,337 4,290 5,422 3,454 Debt-equity at 0.52 PAT#(After Minority share) 1,041 1,967 2,655 1,618 Net lever
Slide 12: Grasim Standalone Financials
Grasim Standalone Financials 9M Strong Balance sheet (Rs. Crores) FY06 FY07 FY08 FY09 Low gearing at 0.36 Net Turnover 6,653 8,572 10,215 7,917 Net gearing lower at 0.26 PBIDT 1,597 2,619 3,424 2,093 High interest cover PAT * 863 1,536 2,048 1,263 ROAvCE in 9MFY09 at 23%, on Net Worth 4,97
Slide 13: Business Review – Q3FY09
Business Review – Q3FY09 VSF Chemicals Cement Sponge Iron 13
Slide 14: Viscose Staple Fibre: Q3FY09 Highlights
Viscose Staple Fibre : Q3FY09 Highlights Production curtailed due to lower demand Sales volume impacted due to global Q3FY09 Q3FY08 % Chg. weakness in textile demand Capacity (TPA) 333,975 270,100 24 Consumer resisting purchase due to global Production (MT) 51,777 70,839 (27) recessionary tren
Slide 15: Viscose Staple Fibre: Outlook
Viscose Staple Fibre : Outlook Business outlook to remain muted till recovery of Textile consumption in Western and Domestic markets Measures undertaken to meet severe downturn Reduction in VSF prices by Rs.7/kg. from January 09 to prevent its substitution by competing fibres and also to compe
Slide 16: Chemical: Q3FY09 Highlights & Outlook
Chemical : Q3FY09 Highlights & Outlook Record sales volumes Q3FY09 Q3FY08 % Chg. Consistent production and stock liquidation Caustic Capacity (TPA) 258,000 258,000 -- Caustic Production (MT) 52,176 50,452 3 ECU realisation stable Caustic Sales Volumes (MT) 54,688 49,978 9 Higher caustic pric
Slide 17: Cement: Q3FY09 Highlights
Cement : Q3FY09 Highlights Q3FY09 Q3FY08 % Chg. Cement volume up by 7% helped by new Grey Cement capacity and healthy sectoral growth Capacity Mn. TPA 18.05 13.12 38 Production Mn. MT 4.00 3.69 9 RMC volumes up by 18% Sales Volumes* Mn. MT 4.05 3.76 7 Revenue up by 16% aided by volume Realisat
Slide 18: Cement: Outlook
Cement : Outlook Cement demand likely to get impacted, expected to grow in line with GDP growth Moderation in economic growth rate Slowdown in real estate and infrastructure sector New capacities coming on stream over next two years coincides with slower economic growth rate Prices and mar
Slide 19: Cement Project Status
Cement Project Status 4.4 Mn. TPA Shambhupura, Raj. : Grinding facility at AC II and Split Grinding unit in Aligarh, UP to be commissioned in Q4FY09 4.5 Mn. TPA Kotputli, Raj. : Clinkerisation to be commissioned in Q4FY09 Grinding capacity by Q1FY10 4.9 Mn. TPA Tadpatri,A.P.(UltraTech) :Grindi
Slide 20: Sponge Iron: Q3FY09 Highlights
Sponge Iron : Q3FY09 Highlights Production and sales volumes decline due to lower demand Q3FY09 Q3FY08 % Chg. Production cut by steel producers Capacity (TPA) 900,000 900,000 -- Average realisations maintained at higher Production (MT) 112,062 142,701 (21) level, helped by exports during the q
Slide 21: Capex
[GRA STM] ADITYA BIRTA GROUP Capex 21
Slide 22: Capex plan
Capex plan Capex Summary Rs. Crores Total Net Cash Outflow Project Capex * Cost FY09 FY10 Cement Business 5,636 2,628 1,826 757 - Projects: Kotputli (4.5 Mn. TPA), Shambhupura (4.4 Mn. 4,319 1,538 TPA), Dadri - GU (1.3 Mn. TPA) (incl. 96 MW TPP) - 2 Nos. Power Plants (48 MW), Waste Heat Recovery S
Slide 23: Capex plan
Capex plan Capex Summary Rs. Crores Total Cash Outflow Project Net Cost Capex * FY09 FY10 UltraTech Cement - 4.9 Mn. TPA Tadpatri Project, A.P. (incl. 50 MW TPP) 1,967 508 - 3 Nos. Power Plants (175 MW), Waste Heat Recovery 1,346 659 System (25 MW) - Grinding and Jetty Capacity Expansion at Pipava
Slide 24: UltraTech Performance
IG RA STM] UltraTech Performance 24
Slide 25: UltraTech: Consolidated Financial Performance – Q3FY09
UltraTech: Consolidated Financial Performance – Q3FY09 (Rs. Crores) Revenue up by 16% Q3 Q3 % Increased volumes of Cement and RMC FY09 FY08 Chg. Operating margins impacted due to Revenue 1,668.7 1,434.2 16 higher input costs Other Income 14.2 10.0 43 Increase in energy, raw material, freight
Slide 26: UltraTech Consolidated: Highlights
UltraTech Consolidated: Highlights Sales volume up by 7% helped by new Q3 Q3 FY09 FY08 % Chg. capacity and healthy demand growth Domestic volume up by 12% Capacity (Mn. TPA) 19.5 17.0 15 Production (Mn. MT) RMC volume up by 56% Cement 3.98 3.60 11 High realisation in export markets: FOB Sale
Slide 27: Summary
[GRA STM] Summary 27
Slide 28: Summary
Summary Grasim – A VSF and Cement major With strong competitive edge Global size operations Consolidating leadership position with strong organic growth Domestic leadership in Cement Major Capex on capacity expansions, captive power plants, RMC and modernisation over FY07-FY09 period F
Slide 29: Plant Locations – Grasim & its subsidiaries
Plant Locations– Grasim & its subsidiaries Bathinda(G) Proposed Cement Projects Panipat Proposed Grinding Units Bhiwani Dadri T Grey Cement plants Kotputli Aligarh Grinding Units (G) Jodhpur T Gwalior Shambhupura B Bulk Cement Terminal Jawad Bharuch Durgapur(G) UltraTech Cement Plants F Jafrabad Mag
Slide 30: Thank You
GRASTM ADITYA BIRLA GROUP Thank You
Slide 31: Annexures
Grasim Industries Limited Annexures
Slide 32: Annexures
Annexures Consolidated and Standalone Financial Consolidated and Standalone Profitability Segmental Performance – Q3 FY09 & 9M FY09 VSF Summary Chemical Summary Cement Summary Sponge Iron Summary UltraTech Performance 32
Slide 33: Financial Snapshot
Financial Snapshot Standalone Consolidated (Rs. Crores) FY05 FY06 FY07 FY08 9MFY09 FY05 FY06 FY07 FY08 9MFY09 Gross Block $ 6,052 6,416 7,974 10,615 11,951 11,312 11,927 14,481 19,258 21,791 Net Block $ 3,204 3,307 4,593 7,050 8,070 6,294 6,411 8,468 12,919 14,844 Goodwill 1,958 1,773 1,844 1,991 2,
Slide 34: Profitability Snapshot
Profitability Snapshot Standalone Consolidated (Rs. Crores) FY05 FY06 FY07 FY08 9MFY09 FY05 FY06 FY07 FY08 9MFY09 Gross Turnover 7,201 7,638 9,573 11,552 8,928 10,776 11,746 15,674 19,113 15,047 Net Turnover 6,229 6,653 8,572 10,215 7,917 9,292 10,224 14,069 16,974 13,443 PBIDT 1,785 1,597 2,619 3,4
Slide 35: Segmental Performance – Q3FY09
Segmental Performance – Q3FY09 Standalone Rs. Crores ROAvCE (%) Revenue PBIDT PBIDT Margin (%) PBIT Capital Employed (PBIT basis) Business Q3FY09 Q3FY08 Q3FY09 Q3FY08 Q3FY09 Q3FY08 Q3FY09 Q3FY08 Q3FY09 Q3FY08 Q3FY09 Q3FY08 VSF 564 795 64 334 11.3 42.0 37 313 1,885 1,489 8.4 92.6 Chemical 128 110 33
Slide 36: Segmental Performance – 9MFY09
Segmental Performance – 9MFY09 Standalone Rs. Crores ROAvCE (%) Business Revenue PBIDT PBIDT Margin (%) PBIT Capital Employed (PBIT basis) 9M FY09 9M FY08 9M FY09 9M FY08 9M FY09 9M FY08 9M FY09 9M FY08 9M FY09 9M FY08 9M FY09 9M FY08 VSF 1,899 2,292 407 906 21.4 39.5 329 843 1,885 1,489 24.6 83.3 C
Slide 37: Viscose Staple Fibre: Summary
Viscose Staple Fibre : Summary Q3 FY09 Q3 FY08 % Chg. 9M FY09 9M FY08 % Chg. FY08 Capacity TPA 333,975 270,100 24 333,975 270,100 24 333,975 Production MT 51,777 70,839 (27) 172,832 209,072 (17) 279,901 Sales Volumes MT 53,758 68,552 (22) 173,054 208,131 (17) 269,781 Net Revenue Rs. Crs. 563.9 794.7
Slide 38: Chemical: Summary
Chemical : Summary Q3 FY09 Q3 FY08 % Chg. 9M FY09 9M FY08 % Chg. FY08 Capacity TPA 258,000 258,000 -- 258,000 258,000 -- 258,000 Production MT 52,176 50,452 3 154,397 142,046 9 188,537 Sales Volumes MT 54,688 49,978 9 155,591 142,484 9 187,356 Net Revenue Rs. Crs. 127.7 110.4 16 399.6 316.4 26 417.6
Slide 39: Cement: Summary
Cement : Summary Q3 FY09 Q3 FY08 % Chg. 9M FY09 9M FY08 % Chg. FY08 Grey Cement Capacity Mn. TPA 18.05 13.12 38 18.05 13.12 38 16.75 Production Mn. MT 4.00 3.69 9 11.64 11.16 4 15.36 Sales Volumes Mn. MT 4.05 3.76 7 11.71 11.26 4 15.54 Avg. Realisation Rs./MT 3,399 3,215 6 3,402 3,156 8 3,192 RMC Sa
Slide 40: Sponge Iron: Summary
Sponge Iron : Summary Q3 FY09 Q3 FY08 % Chg. 9M FY09 9M FY08 % Chg. FY08 Capacity TPA 900,000 900,000 -- 900,000 900,000 -- 900,000 Production MT 112,062 142,701 (21) 324,780 427,510 (24) 562,000 Sales Volumes MT 115,410 135,205 (15) 324,588 416,870 (22) 557,187 Net Revenue Rs. Crs. 297.8 244.3 22 8
Slide 41: UltraTech: Consolidated Financial Performance
UltraTech: Consolidated Financial Performance (Rs. Crores) Q3 FY09 Q3 FY08 % Chg. 9M FY09 9M FY08 % Chg. FY08 Cement Production (Mn. MT) 3.98 3.60 11 11.27 10.85 4 15.07 Sales Volume(Mn. MT): Cement-Domestic 3.80 3.40 12 10.84 10.22 6 14.25 Cement-Exports 0.30 0.26 17 0.64 0.69 (6) 0.90 Clinker 0.58
Slide 42: Press Release Mumbai, January 31, 2009
Press Release Mumbai, January 31, 2009 GRASIM, THE ADITYA BIRLA GROUP’s FLAGSHIP COMPANY PERFORMANCE FOR Q3FY2009 Consolidated Net Revenue Rs.4,632 Crs. Consolidated Net Profit Rs.460 Crs. Consolidated Financial Performance: Rs. Crores Q3 Q3 9M 9M FY09 FY08 FY09 FY08 Net Revenue 4,632 4,350 13,578 1
Slide 43: Standalone results and operations highlights
On a stand-alone basis, Grasim’s Revenues for the quarter stood at Rs.2,690 crores (Rs.2,615 crores). Interest cost rose by 90% as a result of commissioning of new projects and increased borrowings. Depreciation too was higher by 38% due to commissioning of new projects. These, coupled with the cons
Slide 44: UltraTech and cement capex plan
Cement Subsidiary: UltraTech Cement Limited (UltraTech), a subsidiary of Grasim, reported a lower Net Profit at Rs.237 crores (Rs.281 crores). Variable costs escalated due to a sharp increase in prices of coal and raw materials. The combined sales of cement and clinker reflected a growth of 7%. Ceme
Slide 45: Unaudited Financial Results for Quarter Ended 31 December 2008
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31st DECEMBER 2008 I. CONSOLIDATED RESULTS : Rs in Crores Three Months Three Months Nine Months Nine Months Year ended 31st ended 31st ended 31st ended 31st ended 31st December 2008 December 2007 December 2008 December 2007 March 2008 (Audited) Net S
Slide 46: Segment Reporting - Consolidated
III. SEGMENT REPORTING - CONSOLIDATED Rs. in Crores Three Months Three Months Nine Months Nine Months Year ended 31st ended 31st ended 31st ended 31st ended 31st December 2008 December 2007 December 2008 December 2007 March 2008 (Audited) 1. SEGMENT REVENUE a Fibre & Pulp 653.79 900.81 2,271.48 2,61
Slide 47: Notes
V. NOTES 1 Consolidated Results have been prepared in accordance with Accounting Standard on Consolidated Financial Statements (AS-21), Accounting Standard on Accounting for Investments in Associates (AS-23) and Accounting Standard on Financial Reporting of Interest in Joint Ventures (AS-27) issued