Grasim Industries Ltd. · NSE:GRASIM

Grasim Industries — Q4 FY2012-13 Earnings Presentation

45 slides from Grasim Industries's earnings presentation, May 2013

  1. Slide 1: Performance Review Quarter 4: 2012-13

    Performance Review Quarter 4 : 2012-13 Grasim Industries Limited A VSF and Cement Major

  2. 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

  3. Slide 3: Contents

    Contents  Highlights  Business Review  Financial Performance  Capex Plan  Summary 3

  4. Slide 4: Highlights – Quarter 4

    Highlights – Quarter 4 Operational  Indian GDP growth has come down substantially in FY 13 to ~5%, affecting the business performance 2009-10: 8.6% Q1 FY13: 5.5% 2010-11: 9.3% Q2 FY13: 5.3% 2011-12: 6.2% Q3 FY13: 4.5%  In VSF :  In Fibre business, volumes improved notwithstanding difficult market

  5. Slide 5: Strategic Highlights – Quarter 4

    Strategic Highlights – Quarter 4  Projects commissioned till date VSF & Chemical  Harihar Brownfield Expansion 2nd phase : 18K TPA  Harihar Captive Power Plant : 20 MW  New Recovery Boiler at Harihar  Vilayat Chemical Expansion : 182K TPA Cement  Rawan Clinkerisation Plant : 3.30 Mn. TPA  Hot

  6. Slide 6: Business Review

    Business Review  VSF  Chemical  Cement Subsidiary 6

  7. Slide 7: Viscose Staple Fibre : Highlights

    Viscose Staple Fibre : Highlights Quarter Quarter 4 Global Industry Scenario % 3 Change  Sluggish global economy continues to impact 2012-13 2012-13 2011-12 (YoY) textiles 352,225 Capacity - Annual (MT) 352,225 333,975 5  VSF demand showing upward trend, though 88,056 Capacity - Quarter (MT) 88,05

  8. Slide 8: Viscose Staple Fibre : Highlights (Contd….)

    Viscose Staple Fibre : Highlights (Contd….) Quarter 4  Pulp prices eased, however increase in caustic Quarter 3 % Change cost impacted margins slightly 2012-13 2012-13 2011-12 (YoY)  Although chemical business got benefited from Standalone Business: increase in Caustic prices 188 PBIDT (` Cr.) 216

  9. Slide 9: Viscose Staple Fibre : Outlook

    Viscose Staple Fibre : Outlook  Given the fragile global economy, recovery of textile sector is expected to be slow in near term  In long term, VSF continues to hold favorable position in comparison to other fibres  Preference for comfort fabric leading to increase in demand for high quality cell

  10. Slide 10: Chemical : Highlights

    Chemical : Highlights Quarter Quarter 4 Industry Scenario % 3 Change  ECU realisation continues to hold on at high 2012-13 2012-13 2011-12 (YoY) levels 258,000 Capacity - Annual (MT) 258,000 258,000 --  Improvement in chlorine prices during the quarter 64,500 Capacity - Quarter (MT) 64,500 64,500

  11. Slide 11: Cement : Highlights

    Cement : Highlights Quarter Quarter 4 % Industry Scenario 3 Change  Weak demand conditions continued 2012-13 2011-12 (YoY) 2012-13  Infrastructure as well as Real estate segment witness Grey Cement (Mn. MT) slow growth 51.75 Capacity – Annual 53.90 51.75 4  Intermittent shortage of construction m

  12. Slide 12: Cement : Financials

    Cement : Financials Quarter Quarter 4 %  Net Revenue up by 3% on YoY basis 3 Change 2012-13 2012-13 2011-12 (YoY)  Price remained almost flat at Q3 level; 5,165 Net Revenue (` Cr.) 5,819 5,650 3 YoY realisation up by 2% 1,189 PBIDT (` Cr.) 1,451 1,490 (3)  Variable cost down by 2% YoY 22.6% PBIDT

  13. Slide 13: Cement : Outlook

    Cement : Outlook  Demand growth linked to GDP growth ; implementation of reforms  Likely growth of > 8% in the long term  Surplus supply scenario likely to continue over the next 3 years  Capacity addition pace to slowdown (Likely capacity addition of 50 Mn. Tons by FY16)  Industry capacity uti

  14. Slide 14: Financial Performance

    ri —_ we i Financial Performance 14

  15. Slide 15: Consolidated Revenue

    Consolidated Revenue 5% 103 128 5 5 (22) 170 7569 7672 ` Crore 7283 Quarter 4 VSF & Domsjo * Chemical Cement Inter Co. Quarter 4 Terrace Quarter 4 2011-12 Existing Eliminations 2012-13 Bay 2012-13 Pulp JV & Others After inc. Terrace Bay 7,283 (22) 128 5 170 5 7,569 103 7,672 * Results of Domsjo cons

  16. Slide 16: Financial Performance – Consolidated

    Financial Performance – Consolidated ` Crore Full Year Change Quarter 4 Change Quarter 3 % % 2012-13 2011-12 YoY 2012-13 2011-12 YoY 2012-13 27,904 25,245 11 Revenue 7,672 7,283 5 6,780 21,981 19,666 12 Operating Costs 6,094 5,697 7 5,473 6,543 6,321 4 PBIDT 1,786 1,883 (5) 1,485 324 314 3 Interest

  17. Slide 17: Consolidated PBIDT

    Consolidated PBIDT (24) 18 (39) 5% (28) (24) 1883 ` Crore 1810 1786 Qtr. 4 VSF & Chemical Cement Others incl. Qtr. 4 Terrace Qtr. 4 2012-13 2011-12 Existing Inter Co. 2012-13 Bay After inc. Pulp JV Eliminations Terrace Bay 1,883 (24) 18 (39) (28) 1,810 (24) 1,786 17

  18. Slide 18: Net Profit

    Net Profit ` Crore Twelve Months Quarter 4 2012-13 2011-12 % 2012-13 2011-12 % Grasim's Grasim's Change Grasim's Grasim's Change Total Co. Total Co. Total Co. Total Co. share share share share 1,226 1,177 4 Standalone PAT (Including EI) 372 244 53 2,678 1,615 2,403 1,450 11 UltraTech Cement 753 454

  19. Slide 19: Balance Sheet : Grasim

    Balance Sheet : Grasim ` Crore Standalone Consolidated As on 31st As on 31st As on 31st As on 31st EQUITY & LIABILITIES Mar'13 Mar'12 Mar'13 Mar'12 Shareholders' Funds 10,122 9,099 Net Worth 19,657 17,069 - - Minority Interest 6,221 5,233 Non Current Liabilities 981 567 Long Term Borrowings 6,653 5,

  20. Slide 20: Strong Financials

    Strong Financials Capital Employed Standalone Consolidated Full Year Full Year Full Year Full Year (` Crore) 2012-13 2011-12 2012-13 2011-12 Net Worth 10,122 9,099 19,657 17,069 Debt 1,295 720 9,561 7,038 Net Debt (Net of liquidity) (738) (2,089) 2,826 676 Capital Employed 11,761 10,058 37,741 31,31

  21. Slide 21: Capex

    ri —_ we i Capex 21

  22. Slide 22: Capex plan

    Capex plan ` Crore Capex Work in Cash Outflow Capex under Progress Net FY14 FY15 spent Implemen- as on Capex onward during tation $ 01-04-13 2012-13 Standalone VSF Expansion : Vilayat (120K TPA), Harihar (36K TPA) 2,165 Chemical Expansion : Vilayat (182K TPA) 966 Epoxy Project : Vilayat (51,500 TPA)

  23. Slide 23: Summary

    ri —_ we i Summary

  24. Slide 24: Summary

    Summary  Businesses reported satisfactory performance, given the challenging environment  Demand growth slowdown and surplus capacities may continue to pose challenges in short term  Grasim well positioned to meet these challenges with continuous cost optimisation measures and R&D  Both business

  25. Slide 25: Organizational Structure

    Organizational Structure Pulp, Fibre & Allied Chemical UltraTech Cement * Others (60.32%) VSF Overseas VSF Pulp Overseas Chemicals Domestic Overseas 370K TPA Units 70 K TPA Pulp Units 3 Mn. TPA, (UAE, 440K TPA 51 Mn. TPA Bangladesh, Sri Lanka) Nagda Birla Jingwei $ AV Cell $ Nagda 11 Composite Grasi

  26. Slide 26: Plant Locations – Grasim & its subsidiaries

    Plant Locations– Grasim & its subsidiaries Bathinda(G) Panipat Bhiwani Dadri T Kotputli Aligarh Jodhpur T Malanpur Shambhupura Jawad P Katni Bharuch Durgapur(G) UltraTech Cement Plants F Jafrabad FVilayat UltraTech Grinding Units (G) F C Pipavav Nagda Hirmi Raipur Magdalla (G) Awarpur UltraTech Whit

  27. Slide 27: Thank You

    ADITYA BIRLA GRASIM Thank You

  28. Slide 28: Annexure

    Grasim Industries Limited Annexure

  29. Slide 29: Annexure

    Annexure  Consolidated Financial Performance  Standalone Financial Performance  Consolidated and Standalone Profitability  Revenue & PBIDT Chart  VSF Summary  Chemical Summary  Cement Summary 29

  30. Slide 30: Consolidated Financial Performance

    Consolidated Financial Performance (` Crore) Quarter - 4 % Full Year % 2012-13 2011-12 Change 2012-13 2011-12 Change Net Sales & Op. Income 7,672.4 7,283.3 5 27,904.3 25,244.9 11 Other Income 207.5 296.7 (30) 619.5 741.5 (16) PBIDT 1,785.9 1,883.3 (5) 6,543.1 6,320.6 4 PBIDT Margin (%) 22.7% 24.8% 2

  31. Slide 31: Standalone Financial Performance

    Standalone Financial Performance (` Crore) Quarter 4 % Full Year % 2012-13 2011-12 Change 2012-13 2011-12 Change Net Sales & Op. Income 1,396.2 1,416.1 (1) 5,255.0 4,973.6 6 Other Income 98.4 126.5 (22) 434.6 463.5 (6) PBIDT 332.2 367.1 (9) 1,522.7 1,721.8 (12) PBIDT Margin (%) 22.2% 23.8% 26.8% 31.

  32. Slide 32: Profitability Snapshot

    Profitability Snapshot Standalone Consolidated ( ` Crore) FY FY FY FY FY FY FY FY 2009-10 2010-11* 2011-12 2012-13 2009-10 2010-11 2011-12 2012-13 Net Turnover & Op. Income 8,313 4,640 4,974 5,255 20,195 21,550 25,244 27,904 PBIDT 2,972 1,817 1,722 1,523 6,322 5,395 6,321 6,543 PBIDT Margin (%) 34.8

  33. Slide 33: Revenue Chart

    Revenue Chart (` Crore) Full Year % Quarter 4 % Quarter 3 Change Net Revenue Change 2012-13 2011-12 2012-13 2011-12 2012-13 YoY YoY 4,472 4,292 4 Viscose Staple Fibre 1,216 1,228 (1) 1,030 951 781 22 Chemical 229 224 2 247 95 105 Others 18 25 26 (263) (205) Eliminations (Inter Segment) (67) (60) (71

  34. Slide 34: PBIDT – Chart

    PBIDT – Chart ` Crore Full Year % Change PBIDT Quarter 4 % Change Quarter 3 2012-13 2011-12 YoY 2012-13 2011-12 YoY 2012-13 931.0 1,167.5 (20) Viscose Staple Fibre 216 232 (7) 188 245 161 52 Chemical 51 32 57 61 347 394 (12) Others 65 103 (36) 62 1,523 1,722 (12) Standalone PBIDT 332 367 (9) 310 Sub

  35. Slide 35: Viscose Staple Fibre : Summary

    Viscose Staple Fibre : Summary Quarter 4 Full Year % Change % Change 2012-13 2011-12 2012-13 2011-12 Capacity TPA 3,52,225 3,33,975 5 3,52,225 3,33,975 5 Production MT 85,992 83,439 3 3,37,492 3,21,085 5 Sales Volumes MT 95,161 94,904 -- 3,36,065 3,06,917 9 Net Revenue ` Cr. 1,216 1,228 (1) 4,472 4,

  36. Slide 36: Chemical : Summary

    Chemical : Summary Quarter 4 Full Year % Change % Change 2012-13 2011-12 2012-13 2011-12 Capacity TPA 2,58,000 2,58,000 2,58,000 2,58,000 Production MT 68,189 68,298 2,70,191 2,60,326 4 Sales Volumes MT 66,357 72,839 (9) 2,69,438 2,65,816 1 Net Revenue ` Cr. 229 224 2 951.2 780.6 22 PBIDT ` Cr. 51 3

  37. Slide 37: Cement : Summary

    Cement : Summary Quarter 4 % Full Year % 2012-13 2011-12 Change 2012-13 2011-12 Change Grey Cement Capacity Mn. TPA 53.90 51.75 4 53.90 51.75 4 Production Mn. MT 11.79 11.84 - 42.59 42.11 1 Cement Sales Volumes $ Mn. MT 11.76 12.06 (2) 42.75 42.60 -- Clinker Sales Volumes Mn. MT 0.29 0.32 (10) 0.89

  38. Slide 38: Audited Consolidated Financial Results

    AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31-03-2013 PART I: STATEMENT OF CONSOLIDATED AUDITED RESULTS FOR THE QUARTER AND YEAR ENDED 31-03-2013 ` Crore Three Months Ended Year Ended 31-03-2013 31-12-2012 31-03-2012 31-03-2013 31-03-2012 Particulars (Audited) (Unaudited)

  39. Slide 39: Audited Consolidated Segment Wise Revenue, Results and Capital Employed

    AUDITED CONSOLIDATED SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER AND YEAR ENDED 31-03-2013 ` Crore Particulars Three Months Ended Year Ended 31-03-2013 31-12-2012 31-03-2012 31-03-2013 31-03-2012 (Audited) (Unaudited) (Audited) (Audited) (Audited) Refer Note 1(b) Refer Note 1(

  40. Slide 40: Notes to Results

    Grasim Industries Limited NOTES: 1. a. The Company has opted to publish Consolidated Financial Results. The Standalone Financial Results are available at the Company’s websites, www.adityabirla.com and www.grasim.com and on the websites of the Stock Exchanges, www.bseindia.com and www.nseindia.com.

  41. Slide 41: Notes to Results (Contd.)

    Grasim Industries Limited 5. For the purpose of consolidated financial results of the company for the Quarter and Year ended 31st March 2013, the Financial Statements of AV Cell Inc., Canada and AV Nackawic Inc., Canada, Joint Ventures (JVs) of the Company, as prepared in accordance with Internation

  42. Slide 42: Consolidated Statement of Assets and Liabilities

    Grasim Industries Limited 11. Consolidated Statement of Assets and Liabilities as on 31st March, 2013: ` Crore AS AT PARTICULARS 31-03-2013 31-03-2012 (Audited) (Audited) A. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital 91.79 91.72 (b) Share Capital (Other than Equity) 42.66 41.92

  43. Slide 43: Press Release: Grasim Reports Better Performance for FY 2012-13

    Press Release Mumbai, 4th May, 2013 Grasim Reports Better Performance for Financial Year 2012-13 Consolidated Net Revenue : ` 27,904 Cr. 11% PBIDT : ` 6,543 Cr. 4% PAT : ` 2,704 Cr. 2% Projects commissioned: VSF – Harihar Phase II: 18K TPA and Caustic – Vilayat: 182K TPA Cement – Rawan Clinkerisatio

  44. Slide 44: Press Release: Business Performance

    higher Caustic prices led to pressure on margins. The Chemical business, however, benefited from the increase in Caustic prices. The performance of the Company’s pulp JVs was adversely affected due to fall in realisations. Cement Subsidiary (UltraTech Cement) The combined cement and clinker sales fo

  45. Slide 45: Outlook

    Outlook Given the prevailing global economic conditions, coupled with the surplus capacity in China, the VSF industry is expected to remain under pressure in the short term. In Cement, the demand is expected to grow by an average 8% in the long term with housing, infrastructure and allied spending b

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