Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q1 FY24 Earnings Presentation
42 slides from Grasim Industries's earnings presentation, Aug 10, 2023
Slide 1: Exchange filing cover letter
Ref No. GIL/CFD/SEC/24/140/SE 10th August 2023 BSE Limited National Stock Exchange of India Limited Dalal Street, Exchange Plaza, 5th Floor, Plot No. C/1, Phiroze Jeejeebhoy Towers, G Block, Bandra - Kurla Complex, Fort, Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Scrip Code: 500300 Symbol: GRA
Slide 2: Grasim Industries Q1FY24 Earnings Presentation
GRASIM INDUSTRIES LIMITED Q1FY24 EARNINGS PRESENTATION AUGUST 2023
Slide 3: Stronglomerate - Big in Your Life
STRONGLOMERATE - BIG IN YOUR LIFE STANDALONE BUSINESSES SUBSIDIARIES 57.27% 52.79% 100% ❖ Market leader in VISCOSE STAPLE FIBRE and VISCOSE # 1 Viscose FILAMENT YARN ❖ Focus on Innovation through SPECIALITY FIBRES ❖ Largest Pan-India player in CHLOR-ALKALI # 1 Chlor-Alkali ❖ One of the most SUSTAINA
Slide 4: Value Creation Strategy
VALUE CREATION STRATEGY PILLARS OF OUR STRATEGY LEADERSHIP ACROSS CAPITAL COST INNOVATION SUSTAINABILITY BUSINESSES ALLOCATION LEADERSHIP Attain Focus Conserve Investment in Continuous Leadership Premiumisation Environment Core and High Growth Cost Optimisation position in all our through innovation
Slide 5: Our Brand Ecosystem
OUR BRAND ECOSYSTEM VISCOSE CHEMICALS TEXTILES * OTHER SUCCESSFUL BRANDS CREATED BY KEY SUBSIDARIES * Using these brands under a license from Soktas Tekstil Sanayi Ve Ticaret Anonim Sirketi in key territories including India, Bangladesh and Nepal & other long list of B2B & B2C brands Grasim Industri
Slide 6: LIVA - Brand to Quality
LIVA - BRAND TO QUALITY LIVA Tagged leading brands LIVA Tagging (Million) SS23 AW23* *WIP for AW 37 SS22 AW22 58 SS21 AW21 53 SS20 AW20 46 SS – Spring Summer (October – March) AW - Autumn Winter (April – September) Grasim Industries Limited | Earnings Presentation | Q1FY24 | 5
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS Grasim Industries Limited | Earnings Presentation | Q1FY24 |
Slide 8: Performance Highlights Q1FY24
PERFORMANCE HIGHLIGHTS Q1FY24 Consolidated Revenue up 11% YoY to ₹31,065 Cr.; EBITDA at ₹4,981 Cr. (down 5% YoY) • Softening of realisations in Standalone businesses and UltraTech Cement impacted profitability Standalone Revenue lower by 14% YoY to ₹6,238 Cr. and EBITDA stood at ₹789 Cr. (down 42% Y
Slide 9: Performance Highlights
PERFORMANCE HIGHLIGHTS CONSOLIDATED Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT* (₹ Cr.) 33,462 1,933 31,065 5,233 4,873 4,981 28,042 1,576 1,369 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 STANDALONE Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT (₹ Cr.) 7,253 1,364 6,646 809 6,238 789 542 355 94 Q1F
Slide 10: Improving Sustainability Performance: Q1FY24
IMPROVING SUSTAINABILITY PERFORMANCE : Q1FY24 Renewable Q1FY24 - 11% Power Share* Steady increase in Renewable Capacity Recycled 47% Water High focus on conserving natural resources Awards & Achievements: ❖ Grasim, Vilayat won CII-ITC award for Excellence in Environment Management ❖ Grasim received
Slide 11: Capex Plan
CAPEX PLAN Capex Spent Planned Capex Particulars (₹ Cr.) Q1FY24 FY24 Viscose Business 148 619 Capacity Expansion (including debottlenecking) 75 217 Modernisation and Maintenance Capex 73 402 Chemicals Business (A+B+C) 160 708 (A) Capacity Expansion - Chlor-Alkali & Chlorine Derivatives 39 183 Causti
Slide 12: Strong Balance Sheet
STRONG BALANCE SHEET Standalone (₹ Cr.) Consolidated (₹ Cr.) Net Debt/ (0.13) 1.11 Net Debt/ 0.24 0.39 0.45 0.42 EBITDA EBITDA 6,687 5,254 19,834 17,899 4,304 15,727 3,474 3,515 4,857 3,172 11,427 10,922 10,850 1,780 6,978 8,985 4,300 (553) FY22 FY23 Q1FY24 FY22 FY23 Q1FY24 Debt Liquid Investments N
Slide 13: Viscose
VISCOSE Grasim Industries Limited | Earnings Presentation | Q1FY24 |
Slide 14: Inter Fibre Dynamics
INTER FIBRE DYNAMICS GLOBAL INDIA Synthetic Cotton Viscose Synthetic Cotton Viscose 3% CAGR 13% CAGR 0% CAGR (1%) CAGR 3% CAGR 4% CAGR CY15 CY22 CY15 CY22 Viscose demand in India is increasing at a faster pace led by intensive business development initiatives and support to textile value chain und
Slide 15: Macro Trends - Viscose
MACRO TRENDS - VISCOSE China Operating Rate (%) China Inventory (in Days) 24 82 86 69 16 13 Q4FY23 Q1FY24 Jun-23 Q4FY23 Q1FY24 Jun-23 Global Prices Trend ($/Kg) Price YoY QoQ Jun Exit Price 4.10 Movement (%) (%) ( over Q1FY24) 3.60 International 1.65 $/Kg 3.10 Grey VSF -14% 1% 2.60 (CCF) ( -1% ) 2.
Slide 16: Key Operational Metrics
KEY OPERATIONAL METRICS VSF Sales (KT) Sales Volume Mix (VSF) Export Sales Standard Fibre 197 12% 82% 192 187 Q1FY24 Q1FY24 88% 18% Q1FY23 Q4FY23 Q1FY24 Domestic Sales Speciality Fibre VFY Sales (KT) Slowdown in downstream demand continues to impact VSF volume growth 11.0 10.3 9.3 VSF capacity utili
Slide 17: Operating Performance – Viscose
OPERATING PERFORMANCE – VISCOSE Revenue (₹ Cr.) EBITDA (₹ Cr.) 4,300 3,764 500 3,584 390 144 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Viscose business revenue stood at ₹3,584 Cr. and EBITDA at ₹390 Cr. in Q1FY24 VSF EBITDA improved on account of gradual reduction in input prices compared to Q4FY23
Slide 18: Chemicals
CHEMICALS Grasim Industries Limited | Earnings Presentation | Q1FY24 |
Slide 19: Growth Across Chemicals Portfolio
GROWTH ACROSS CHEMICALS PORTFOLIO CHLOR-ALKALI 1,530 Q1FY25 1,164 Q4FY26 246 Q2FY24 • Largest Caustic Soda producer in India. Market growing 219 17% 273 at a steady pace with demand from Alumina, Organic 31% 100% 123 & Inorganic Chemicals, Textiles & FMCG industries 1,311 • Maintaining Market leader
Slide 20: Focus on Speciality Chemicals
FOCUS ON SPECIALITY CHEMICALS Major End - Use Applications Chlorine Integration Levels (%) SPECIALITY CHEMICALS* Integration includes chlorine consumption for HCL and pipeline sales for dedicated customers CONSTRUCTION 61% 60% 58% RENEWABLES 57% FY21 FY22 FY23 Q1FY24 WATER TREATMENT Specialty Chemic
Slide 21: Key Operational Metrics - Chemicals
KEY OPERATIONAL METRICS - CHEMICALS CFR SEA Caustic Soda Prices ($/Ton) Grasim – ECU (₹/Ton) 769 53,560 42,136 518 34,729 415 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Caustic Soda Sales (KT) Revenue Break-up of Chemicals Business (%) Chlor-Alkali Speciality Chemicals Chlorine Derivatives 292 286 27
Slide 22: Financial Performance – Chemicals
FINANCIAL PERFORMANCE – CHEMICALS Revenue (₹ Cr.) EBITDA (₹ Cr.) 2,733 806 2,397 2,146 368 358 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 International caustic prices on declining trend from Oct’22, currently at $395/T CFR SEA in Jun’23, due to oversupply situation Revenue for Q1FY24 declined by 21%
Slide 23: New High Growth Businesses
NEW HIGH GROWTH BUSINESSES (Paints & B2B E-commerce) Grasim Industries Limited | Earnings Presentation | Q1FY24 |
Slide 24: Decorative Paints Industry
DECORATIVE PAINTS INDUSTRY Organised Decorative Paints Industry - FY23 Market Share Estimates (%) Key Drivers HOUSING DEMAND • The Decorative Paints Industry size is ~₹67K Cr. of which ~72-75% is organised sector 25-28% URBANISATION • For FY23 Organised Decorative Paints industry revenue grew by ~22
Slide 25: Paints: Project Progress Update
PAINTS: PROJECT PROGRESS UPDATE Commercial launch on track in Q4FY24 Progress on go-to-market, branding, marketing and people hiring is on track Plants construction progressing as plan State of the art R&D pilot plant and laboratory fully operational Work on IT infrastructure and various IT applicat
Slide 26: B2B E-Commerce for Building Materials Industry Opportunity
B2B E-COMMERCE FOR BUILDING MATERIALS INDUSTRY OPPORTUNITY Value Proposition Product Categories COMPETITIVE PRICING CEMENT & STEEL SANITARYWARE, TILES, ASSURED QUALITY One-stop destination for your PIPES & FITTINGS Building Materials needs GUARANTEED DELIVERY PAINTS Build. Grow. Transform 3000+ at:
Slide 27: Launch of Birla Pivot: B2B E-Commerce Platform
LAUNCH OF BIRLA PIVOT: B2B E-COMMERCE PLATFORM www.BirlaPivot.com to provide a seamless and integrated procurement solution with features like Quick and Convenient RFQ, Wide catalogue, Integrated Financing, Complete Track and trace for every order Beta launch of the platform successfully completed w
Slide 28: Other Businesses
OTHER BUSINESSES (Textiles and Insulators) Grasim Industries Limited | Earnings Presentation | Q1FY24 |
Slide 29: Financial Performance – Textiles & Insulators
FINANCIAL PERFORMANCE – Textiles & Insulators TEXTILES Revenue (₹ Cr.) EBITDA (₹ Cr.) No. of EBOs : 210+ MBOs : 8600+ 620 97 Linen performance impacted 549 due to demand slowdown 520 43 and higher flax prices 23 Demand slowdown from value chain due to declining Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1F
Slide 30: Subsidiaries
SUBSIDIARIES Grasim Industries Limited | Earnings Presentation | Q1FY24 |
Slide 31: Financial Performance - UltraTech
FINANCIAL PERFORMANCE - UltraTech Sales volume (Million Ton) Revenue (₹ Cr.) EBITDA (₹ Cr.) 17% 1% 20% 29.96 17,737 3,204 3,223 15,164 25.04 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 UltraTech continues to deliver consistent growth with volumes higher by 20% YoY during the quarter. This was followin
Slide 32: Financial Performance - Aditya Birla Capital
FINANCIAL PERFORMANCE - Aditya Birla Capital Total Lending Book (₹ Cr.)* Revenue (₹ Cr.) PAT (₹ Cr.) 43% 26% 51% 7,045 649 1,00,400 5,590 70,007 429 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Consolidated Revenue and PAT grew by 26% and 51% YoY to ₹7,045 Cr. and ₹649 Cr. respectively. The growth is l
Slide 33: Financial Performance – Aditya Birla Renewables
FINANCIAL PERFORMANCE – Aditya Birla Renewables Aditya Birla Renewables Renewable Power Capacity (MWp) ₹ Cr. 136% Particulars Q1FY23 Q4FY23 Q1FY24 2,016 Revenue ₹ Cr. 69 95 87 EBITDA ₹ Cr. 53 69 69 854 744 551 EBIT ₹ Cr. 37 48 45 Capital Employed ₹ Cr. 2,214 4,153 4,819 (Incl. CWIP) FY22 FY23 Q1FY24
Slide 34: Appendix
APPENDIX Grasim Industries Limited | Earnings Presentation | Q1FY24 |
Slide 35: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT % % Particulars (₹ Cr.) Q1FY24 Q1FY23 Q4FY23 Change Change Revenue from Operations 31,065 28,042 11 33,462 -7 Other Income 296 168 76 220 34 EBITDA 4,981 5,233 -5 4,873 2 EBITDA Margin (%) 16% 19% 14% 10 Finance Cost 361 329 10 338 7 Depreciation 1,183 1,089 9 1,207 -2
Slide 36: Standalone Income Statement
STANDALONE INCOME STATEMENT % % Particulars (₹ Cr.) Q1FY24 Q1FY23 Q4FY23 Change Change Revenue from Operations 6,238 7,253 -14 6,646 -6 Other Income 116 44 165 116 -0 EBITDA 789 1,364 -42 542 45 EBITDA Margin (%) 12% 19% 8% Finance Cost 106 87 22 107 -1 Depreciation 288 255 13 300 -4 PBT 396 1,022 -
Slide 37: Balance Sheet
BALANCE SHEET Standalone (₹ Cr.) Consolidated (₹ Cr.) 30th June'23 31st March'23 EQUITY & LIABILITIES 30th June'23 31st March'23 (Unaudited) (Audited) (Unaudited) (Audited) 47,928 46,955 Net Worth 80,996 78,742 - - Non Controlling Interest 47,287 44,171 - - Borrowings related to financial services 8
Slide 38: Viscose Business Summary
VISCOSE BUSINESS SUMMARY % Change % Change Particulars Q1FY24 Q1FY23 Q4FY23 YoY QoQ Capacity VSF KTPA 824 824 - 824 - VFY KTPA 50 48 4 50 - Production VSF KT 191 193 -1 190 1 VFY KT 11 10 11 12 -3 Sales Volume VSF KT 187 197 -5 192 -3 VFY KT 9 10 -10 11 -16 Revenue ₹ Cr. 3,584 4,300 -17 3,764 -5 EBI
Slide 39: Chemicals Business Summary
CHEMICALS BUSINESS SUMMARY % Change % Change Particulars Q1FY24 Q1FY23 Q4FY23 YoY QoQ Capacity* KTPA 1,311 1,290 2 1,311 - Production* KT 294 286 3 286 2.5 Sales Volume* KT 292 278 5 286 2 Revenue ₹ Cr. 2,146 2,733 -21 2,397 -10 EBITDA ₹ Cr. 358 806 -56 368 -3 EBIT ₹ Cr. 253 718 -65 256 -1 Capital E
Slide 40: Grasim Group Structure
GRASIM GROUP STRUCTURE Grasim Industries Limited Chemicals Overseas Viscose New Businesses Textiles Subsidiaries (1,311K TPA) Pulp & VSF JVs VSF Vilayat Paints AV Group NB Inc. UltraTech Cement (824K TPA) 365K TPA Rishra (Canada) (1,332 MLPA) (57.27%)** 320K TPA (45.0%)* Vilayat Nagda Grey Cement Do
Slide 41: 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 42: Thank You
THANK YOU Investor Relations Team grasim.ir@adityabirla.com +91 22 2499 5657 Grasim Industries Limited | Earnings Presentation | Q1FY24 |