Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q2 FY2022-23 Earnings Presentation
35 slides from Grasim Industries's earnings presentation, Nov 14, 2022
Slide 1: Cover letter to stock exchanges on Q2 results presentation
Ref No. GIL/CFD/SEC/23/123/SE 14th November 2022 BSE Limited The National Stock Exchange of India Limited Dalal Street, Exchange Plaza, 5th Floor, Plot No. C/1, Phiroze Jeejeebhoy Towers, Fort G Block, Bandra - Kurla Complex, Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Scrip Code: 500300 Symbol
Slide 2: Grasim Industries Limited Investor Presentation Q2 FY2022-23
Grasim Industries Limited Investor Presentation Q2 FY2022-23 14 November 2022 th
Slide 3: Big in Your Life
BIG IN YOUR LIFE # 1 In Viscose @ # 1 In Chlor - Alkali* # 1 In Advanced Material* 57.27% 54.17% Market Cap (November 11th, 2022): INR 1,12,481 Crore (USD 13.83 Billion) Market Cap Market Cap (November 11th, 2022): (November 11th, 2022): INR 1.97 Lakh Crore INR 31,043 Crore (USD 24.18 Billion) (USD
Slide 4: Financial Overview
FINANCIAL OVERVIEW Grasim Industries Limited | Earnings Presentation | Q2 FY23 | 3
Slide 5: Performance Highlights Q2FY23
Financial Overview Business Performance Sustainability Appendix PERFORMANCE HIGHLIGHTS Q2FY23 Robust performance at Standalone level • Revenue up 37% YoY to ₹6,745 Cr. • Highest ever EBITDA and PAT at ₹1,712 Cr. and ₹1,052 Cr. up 14% and 11% YoY respectively Consolidated revenue up 22% YoY to ₹27,48
Slide 6: Performance Highlights Q2FY23 Standalone and Consolidated
Financial Overview Business Performance Sustainability Appendix PERFORMANCE HIGHLIGHTS Q2FY23 Standalone Revenue (₹ Cr.) EBITDA* (₹ Cr.) PAT1 (₹ Cr.) 37% -7% 14% 26% 11% 30% YoY QoQ YoY QoQ YoY QoQ 7,253 6,745 1,712 1,052 1,504 947 1,364 809 4,933 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1F
Slide 7: Strong Balance Sheet
Financial Overview Business Performance Sustainability Appendix STRONG BALANCE SHEET Standalone (₹ Cr.) Consolidated (₹ Cr.) Net Debt/ EBITDA 0.67x (12M EBITDA) Mar-22 5,145 ₹(553) Cr. 18,681 Mar-22 4,915 ₹4,300 Cr. 10,188 8,492 (230) Sep-22 Sep-22 Gross Debt Liquid investments Net Debt Note: Gross
Slide 8: Capex Plan
Financial Overview Business Performance Sustainability Appendix CAPEX PLAN Budgeted Capex Capex Spent for Capex Spent till Particulars (₹ Cr.) for FY23* Q2FY23 H1FY23 Viscose Staple Fibre Capacity Expansion (including debottlenecking) 680 91 157 Modernisation and Maintenance Capex 844 84 174 Chemica
Slide 9: Paints: Project Progress Update
Financial Overview Business Performance Sustainability Appendix PAINTS: PROJECT PROGRESS UPDATE Environmental clearance and Consent to establish received for five sites out of six • Civil work in progress at five sites On track for commissioning of first plant in Q4FY24 and remaining plants by FY25
Slide 10: B2B E-Commerce: Project Progress Update
Financial Overview Business Performance Sustainability Appendix B2B E-COMMERCE: PROJECT PROGRESS UPDATE We are on track for commercial launch of Minimum Viable Product-1 (MVP-1) by Q2FY24 Product categories to be covered by the platform: cement, steel, doors and windows, kitchen & electricals, paint
Slide 11: Business Performance
BUSINESS PERFORMANCE Grasim Industries Limited | Earnings Presentation | Q2 FY23 | 10
Slide 12: Industry Performance - Viscose
Financial Overview Business Performance Sustainability Appendix INDUSTRY PERFORMANCE - VISCOSE Continued COVID related restrictions in China and high inflation in developed economies impacting VSF demand globally, reflected in lower operating rates in China Global demand weakness leading to cheaper
Slide 13: Industry Performance - Viscose Price Movement
Financial Overview Business Performance Sustainability Appendix INDUSTRY PERFORMANCE - VISCOSE China VSF average prices were rangebound, averaging at RMB ~14,571 in Q2FY23 (~ 14,685 in Q1FY23) Global Cotton prices are normalising from life-time high in May’22; The normalcy in cotton prices has impac
Slide 14: Operating Performance - Viscose
Financial Overview Business Performance Sustainability Appendix OPERATING PERFORMANCE - VISCOSE VSF Sales (KT) Sales Volume Mix 10% Export Sales Grey VSF YoY 6% 82% 197 170 154 94% 18% Q2FY22 Q1FY23 Q2FY23 Domestic Sales VAP VFY Sales (KT) Share of domestic sales remained at 94% in Q2FY23 same as Q1
Slide 15: Financial Performance - Viscose
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - VISCOSE Revenue1 (₹ Cr.) EBITDA1 (₹ Cr.) 4,300 580 3,903 500 3,005 324 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Viscose Q2FY23 revenue is up by 30% YoY to ₹3,903 Cr. VSF EBITDA margins are under pressure with in
Slide 16: Financial Performance - Chemicals
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - CHEMICALS Global Caustic Soda Prices ($/Ton) Grasim – ECU (₹/Ton) 56% 89% YoY YoY 769 53,560 657 49,503 421 26,227 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Global caustic soda prices averaged at $657 in Q2FY23 a
Slide 17: Chemicals – Key Operational Metrics
Financial Overview Business Performance Sustainability Appendix CHEMICALS – KEY OPERATIONAL METRICS Caustic Soda Sales (KT) Chlorine & HCl Consumption in VAP (KT) 17% 7% 34% YoY QoQ YoY 296 86,662 84,665 278 254 62,965 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Caustic soda sales volume increased 17%
Slide 18: Financial Performance - Chemicals
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE - CHEMICALS Revenue (₹ Cr.) EBITDA (₹ Cr.) 67% 162% YoY YoY 2,733 2,708 806 609 1,627 232 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Revenue & EBITDA for Q2FY23 up by 67% & 162% YoY respectively led by strong volume
Slide 19: Financial Performance – Other Businesses
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – OTHER BUSINESSES Textile Insulators Revenue (₹ Cr.) Revenue (₹ Cr.) 43% 76% 23% YoY YoY QoQ 149 620 584 121 409 85 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 EBITDA (₹ Cr.) EBITDA (₹ Cr.) 90% 255% 27 YoY 97 QoQ 71
Slide 20: Financial Performance – UltraTech
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – UltraTech Sales volume (Million Ton) Revenue (₹ Cr.) EBITDA (₹ Cr.) 7% 16% YoY YoY 2,855 23.10 13,893 21.64 12,017 2,013 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Consolidated sales volume grew by 7% YoY to ~23 M
Slide 21: Financial Performance – ABCL
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – ABCL Lending Book (₹ Cr.)* Revenue (₹ Cr.) PAT (₹ Cr.) 31% 22% 30% YoY YoY YoY 488 77,430 6,825 5,596 377 59,060 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Strong quarterly performance with accelerated growth mome
Slide 22: Financial Performance – Aditya Birla Renewables
Financial Overview Business Performance Sustainability Appendix FINANCIAL PERFORMANCE – Aditya Birla Renewables Aditya Birla Renewables Renewable Power Capacity (MWp) ₹ Cr. 1,708 Particulars Q2FY22 Q1FY23 Q2FY23 Revenue 49 69 55 1,003 EBITDA 42 53 37 551 650 EBIT 28 37 21 Capital Employed (Incl. 1,9
Slide 23: Sustainability Performance
Sustainability Performance Grasim Industries Limited | Earnings Presentation | Q2 FY23 | 22
Slide 24: Sustainability Highlights
Financial Overview Business Performance Sustainability Appendix SUSTAINABILITY HIGHLIGHTS Substantial improvement in S&P DJSI score at 88 percentile for FY22 compared to 76 percentile of previous year VSF Business maintained its Leadership position in ‘Canopy’s Hot Button Report 2022’ by securing hi
Slide 25: Appendix
APPENDIX Grasim Industries Limited | Earnings Presentation | Q2 FY23 | 24
Slide 26: Standalone Income Statement
Financial Overview Business Performance Sustainability Appendix STANDALONE INCOME STATEMENT Particulars (₹ Cr.) Q2FY23 Q2FY22 H1FY23 H1FY22 Revenue from Operations 6,745 4,933 13,998 8,696 Other Income 756 702 799 767 EBITDA 1,712 1,504 3,076 2,309 EBITDA Margin (%) 23% 27% 21% 24% Finance Cost 85 5
Slide 27: Consolidated Income Statement
Financial Overview Business Performance Sustainability Appendix CONSOLIDATED INCOME STATEMENT Particulars (₹ Cr.) Q2FY23 Q2FY22 H1FY23 H1FY22 Revenue from Operations 27,486 22,567 55,527 42,487 Other Income 252 250 420 520 EBITDA 3,783 4,282 9,016 9,019 EBITDA Margin (%) 14% 19% 16% 21% Finance Cost
Slide 28: Balance Sheet
Financial Overview Business Performance Sustainability Appendix BALANCE SHEET Standalone (₹ Cr.) Consolidated (₹ Cr.) 30th Sep'22 31st March'22 EQUITY & LIABILITIES 30th Sep'22 31st March'22 (UnAudited) (Audited) (UnAudited) (Audited) 48,455 48,616 Net Worth 76,510 75,698 - - Non Controlling Interes
Slide 29: Viscose Business Summary
Financial Overview Business Performance Sustainability Appendix VISCOSE BUSINESS SUMMARY % Change % Change Particulars Q2FY23 Q2FY22 Q1FY23 YoY QoQ Capacity VSF KTPA 824 591 39 824 - VFY KTPA 48 48 - 48 - Production VSF KT 191 146 31 193 -1 VFY KT 12 11 9 10 18 Sales Volume VSF KT 170 154 10 197 -14
Slide 30: Chemical Business Summary
Financial Overview Business Performance Sustainability Appendix CHEMICAL BUSINESS SUMMARY % Change % Change Particulars Q2FY23 Q2FY22 Q1FY23 YoY QoQ Capacity* KTPA 1,311 1,147 14 1,311 - Production* KT 287 249 15 286 0.2 Sales Volume* KT 296 254 17 278 7 Revenue ₹ Cr. 2,708 1,627 67 2,733 -1 EBITDA
Slide 31: Grasim Group Structure
Financial Overview Business Performance Sustainability Appendix GRASIM GROUP STRUCTURE Grasim Industries Limited VSF - 824K TPA Caustic Soda - Overseas UTCL (57.27%)** ABCL (54.17%)** VFY - 48K TPA 1311K TPA Textile Pulp - 74K TPA Pulp & VSF JVs Subsidiary Subsidiary Epoxy – 123K TPA Nagda Nagda Jay
Slide 32: Forward Looking and Cautionary Statement
FORWARD LOOKING AND CAUTIONARY STATEMENT 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 make a difference to t
Slide 33: Notes
NOTES Grasim Industries Limited | Earnings Presentation | Q2 FY23 | 32
Slide 34: Glossary
GLOSSARY Abbreviation Particulars AAUM Average Asset Under Management AMC Asset Management Company CMS Chloromethane DJSI Dow Jones Sustainability Indices ECU Electro Chemical Unit Epoxy Name of Chemical ESG Environment, Social, and Governance FY Financial Year HCL Hydrochloric acid KTPA Thousand To
Slide 35: Thank you
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: sheetal.daga@adityabirla.com grasim.ir@adityabirla.com
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