Aditya Birla Real Estate Ltd · NSE:ABREL
Aditya Birla Real Estate — Century Textiles and Industries — Q2 FY21 Earnings Presentation
46 slides from Aditya Birla Real Estate's earnings presentation, Oct 19, 2020
Slide 1: Regulation 30 disclosure letter to exchanges
CENTURY Textiles and Industries Limited REGD. OFFICE : "CENTURY BHAVAN", DR. ANNIE BESANT ROAD, WORL!, MUMBAI-400 030. INDIA. TEL.: +91-22-24957000 FAX: +91-22-24309491, +91-22-24361980 E-Mail: ctil.ho@birlacentury.com Website: www.centurytextind.com CIN-L 17120MH1897PLC000163 OUR REF. : SHlXIII2020
Slide 2: Earnings Presentation – Q2 FY21
Century Textiles and Industries Limited Earnings Presentation – Q2 FY21
Slide 3: Table of Contents
2 TABLE OF CONTENTS Summary Real Estate Pulp and Paper Textiles Financials
Slide 4: Key Operational Highlights
3 KEY OPERATIONAL HIGHLIGHTS • Business impact due to the pandemic continues despite gradual lift of lockdown hence the quarter is not comparable to other quarters • Very good traction in real estate sales and collections across all three projects • Birla Vanya at Kalyan, Birla Alokya at Bengaluru a
Slide 5: Covid Update
4 COVID UPDATE Real Estate: • Momentum regained at all project sites with gradual opening of the lockdown • Only 2 cases of Covid-19 infection amongst staff and both have since recovered Paper & Pulp: • High dependency on global markets for exports has hit the sector hard due to Covid 19 • Disruptio
Slide 6: Company Overview
5 COMPANY OVERVIEW • Incorporated in 1897, Century Textiles and Industries Limited (CTIL) has evolved from a single unit textile mill into a diversified conglomerate under the visionary leadership of Mr. B. K. Birla. • The company’s 123-year-old legacy is built on a steadfast commitment to the devel
Slide 7: Quarterly Consolidated Performance at a Glance
6 QUARTERLY CONSOLIDATED PERFORMANCE AT A GLANCE (RS. IN CRORES) TURNOVER EBITDA & EBITDA MARGINS PAT 851 187 162 596 19.0% 66 11.1% Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 -10 Q2 FY20 Q2 FY21 Summary TTM QUARTERLY PERFORMANCE 854 770 596 394 158 94 66 83 30 42 -36 -10 TURNOVER EBITDA PAT Q3 FY20 Q4 FY20 Q1
Slide 8: Segment Wise Consolidated Performance
7 SEGMENT WISE CONSOLIDATED PERFORMANCE (RS. IN CRORES) REAL ESTATE PAPER AND PULP TEXTILES 35 35 615 185 4.9% 419 125 28.6% 17.2% 21.8% 10 6 134 12.6% 53 9 -15 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 -12.0% Summary Q2 FY20 Q2 FY21 Rental Income EBITDA EBITDA % Sales EBITDA EBITDA % SALES EBITDA EBITDA % RE
Slide 9: Half Yearly Consolidated Performance
8 HALF YEARLY CONSOLIDATED PERFORMANCE (RS. IN CRORES) EBITDA & EBITDA MARGINS TURNOVER PAT 1,708 353 257 990 20.7% 96 9.7% -47 H1 FY20 H1 FY21 H1 FY20 H1 FY21 H1 FY20 H1 FY21 Summary REAL ESTATE PAPER AND PULP TEXTILES 70 71 369 6.0% 32.4% 1,236 30.0% 23.1% 719 167 21 23 285 11.3% 81 22 -39 H1 FY20
Slide 10: Real Estate
Real Estate Over 34 lakh sq. ft. under construction across 3 projects
Slide 11: Executive Summary - Real Estate
10 EXECUTIVE SUMMARY - REAL ESTATE Real Estate • The B. K. Birla Group forayed into the real estate sector in 2016 with REVENUE (RS. IN CRORES) Birla Estates Private Limited. 159 • The company is focused on developing land parcels owned by the 146 135 Group, as well as growing the business with join
Slide 12: Step Towards More Focus on Growing Business
11 STEP TOWARDS MORE FOCUS ON GROWING BUSINESS Real Estate Strong Vision & Strategy Opportunities Pulp & Paper Strengths Leveraging: Encash on: Strong focus on: • Rapid urbanization and nuclearization of • Maintaining a capital efficient, asset light • The Birla Brand families model Textiles • Deliv
Slide 13: Q2-FY21 Key Operational Highlights – Real Estate
12 Q2-FY21 KEY OPERATIONAL HIGHLIGHTS – REAL ESTATE Real Estate • Achieved highest quarterly sales as compared to past 5 quarters with booking Value of Rs. 96.1 Crs Pulp & Paper • Labour attendance at sites almost back to full strength enabling ramp up of construction activities • Strong lease renta
Slide 14: Market Outlook – Real Estate
13 MARKET OUTLOOK – REAL ESTATE Real Estate • Customer sentiments are gradually picking up with relaxation of lockdown Pulp & Paper • Home loan interest rates at an all time low due to reduction in REPO rate • Developers across the country are offering lucrative payment plans and price cuts Textiles
Slide 15: Birla Estates Has Created Landmark Commercial Projects
14 BIRLA ESTATES HAS CREATED LANDMARK COMMERCIAL PROJECTS Real Estate Birla Aurora, Worli Birla Centurion, Worli • 2.55 Lakh sq. ft. of • 3.5 Lakh sq. ft. of Pulp & Paper commercial space commercial space • 22-storey building • 13-storey building Textiles Overview of the Buildings • Superior Quality
Slide 16: Summary of Portfolio Under Development
15 SUMMARY OF PORTFOLIO UNDER DEVELOPMENT Real Estate Land Area Area under Development Revenue Potential Location (in Acres) (in lakh sq. ft.) (in Rs. Crs) Worli – Residential 20.0 30.0* 9,500 Pulp & Paper Kalyan 22.0 13.1* 1,125 Total - Owned Parcels under 42.0 43.1 10,625 development Sec 63 A, Gur
Slide 17: Residential & Commercial Sales Highlights
16 RESIDENTIAL & COMMERCIAL SALES HIGHLIGHTS Real Estate % Chg Particulars UOM Q2 FY21 Q2 FY20 % chg YoY Q1 FY21 YTD FY21 YTD FY20 % chg YoY QoQ Commercial Pulp & Paper Leasing Income Rs/Cr 31.6 33.4 -5% 32.9 -4% 64.5 67.9 -5% Average Rent Rs/sft 161.0 169.7 -5% 167.4 -4% 164.2 172.9 -5% Realisation
Slide 18: Birla Vanya, Kalyan – Project Details
17 BIRLA VANYA, KALYAN – PROJECT DETAILS (LAUNCHED – Q1 FY20) Real Estate Location Shahad, Kalyan Area 22 acres 13.12 lakh sq. ft. Pulp & Paper Saleable Area Phase 1 – 5.24 lakh sq. ft. launched Revenue Potential Rs. 1,125 Crs Architect Arch. Hafeez Contractor Textiles Residential – 1 BHK, 2 BHK, 3
Slide 19: Birla Alokya, Bengaluru – Project Details
18 BIRLA ALOKYA, BENGALURU (Outright) - PROJECT DETAILS (LAUNCHED - Q3 FY20) Real Estate Location Soukya Road, Bengaluru Area 8.1 acres Pulp & Paper Saleable Area 5.47 lakh sq. ft. Revenue Potential Rs. 385 Crs Architect Synergy Textiles Product Type Residential – 3-Bed and 4-Bed Villaments Cumulati
Slide 20: Birla Navya, Gurugram – Project Details
19 BIRLA NAVYA, GURUGRAM (JV) – PROJECT DETAILS Real Estate Location Sector 63 A, Gurugram, NCR Area 65 acres Pulp & Paper Saleable Area 36.5 lakh sq. ft. Revenue Potential Rs. 4,415 Crs R Corp Textiles Architect Product Type Residential – 2 BHK, 3 BHK & 4 BHK Launch Year FY 21 Financials RERA Appro
Slide 21: Century Mills, Worli – Project Details
20 CENTURY MILLS, WORLI – PROJECT DETAILS Real Estate Location Worli, Mumbai Area 20 acres Pulp & Paper Saleable Area 30 lakh sq. ft. Revenue Potential Rs. 9,500 Crs Foster & Partners Textiles Architect Residential – 2 BHK, 3 BHK, 4 BHK and Product Type 5 BHK Penthouse Launch Year FY 22 Financials C
Slide 22: Magadi Road, Bengaluru – Project Details
21 MAGADI ROAD, BENGALURU (JV) – PROJECT DETAILS Real Estate Location Magadi Road, Bengaluru Area 4.75 acres Pulp & Paper Saleable Area 5.97 lakh sq. ft. Revenue Potential Rs. 559 Crs RSP Textiles Architect Residential – 2 BHK, 2.5 BHK, 3 BHK & Product Type 4 BHK Launch Year FY 22 Financials Current
Slide 23: Future Outlook – Real Estate
22 FUTURE OUTLOOK – REAL ESTATE Real Estate • Revival measures announced by RBI and Government is expected to provide relief to the sector • Improved customer demand, shift in the customer preference for branded players and trust in the Birla Brand will help achieve Pulp & Paper annual goals • Press
Slide 24: Pulp & Paper
Pulp & Paper Flag bearer in Paper Industry
Slide 25: Pulp & Paper - Executive Summary
24 PULP & PAPER - EXECUTIVE SUMMARY Real Estate • Century Pulp and Paper (CPP) is a producer of excellent quality writing and printing paper, and a leading manufacturer of tissue and board, as well as Rayon Grade Pulp (RGP) products. • Established in 1984, with relentless focus on quality, the compa
Slide 26: Step Towards More Focus on Growing Business
25 STEP TOWARDS MORE FOCUS ON GROWING BUSINESS Real Estate Strong Vision & Strategy Opportunities Pulp & Paper Strengths Leveraging: Encash on: Strong focus on: • India’s only integrated Pulp & Paper mill • Growth in tissue paper demand due to providing comprehensive solution from • Cash Conservatio
Slide 27: Q2-FY21 Key Operational Highlights – Pulp & Paper
26 Q2-FY21 KEY OPERATIONAL HIGHLIGHTS – PULP & PAPER Real Estate Pulp & Paper • Consumption and demand for paper was at its lowest levels due to the lockdown as major consumption centers were shut Textiles • Overall demand continued to be low in all the three segments of paper – writing & printing,
Slide 28: Market Outlook – Pulp & Paper
27 MARKET OUTLOOK – PULP & PAPER Real Estate • Short term market conditions are gloomy with worldwide paper & paper products’ consumption and demand having slowed down • Closure of educational institutes, schools and colleges are adversely affecting consumption of paper • Low global demand saw vario
Slide 29: Production & Sales
28 PRODUCTION & SALES Real Estate PRODUCTION QUANTITY (IN TONS) NET SALES QUANTITY (IN TONS) NET SALES (RS. IN CRORES) 56,404 54,458 310 49,453 PAPER 34,662 30,680 174 PRO RATA CAPACITY Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 45,000 236 Pulp & Paper 42,266 194 BOARD 41,846 LAYER MULTI 38,067
Slide 30: Macros: Net Sales Realisations
29 MACROS Real Estate NET SALES REALISATIONS (RS. PER/T) YoY (11)% QoQ (4)% YoY (10)% QoQ (6)% 58,973 52,594 55,062 54,564 52,385 49,052 Pulp & Paper DOMESTIC EXPORT Q2 FY21 Q2 FY20 Q1 FY21 Textiles Financials 39,165 12,550
Slide 31: Future Outlook – Pulp & Paper
30 FUTURE OUTLOOK – PULP & PAPER Real Estate • Order flows expected to improve due to partial opening of Education Institutions, multiplexes, entertainment parks and relaxation in social gathering • Increase in demand due to forthcoming festive season, may give some relief to Boards business Pulp &
Slide 32: Textiles
Textiles World’s 2nd and India’s 1st LEED V4 certified textile mfg co.
Slide 33: Executive Summary – Century Textiles
32 EXECUTIVE SUMMARY – CENTURY TEXTILES Real Estate • Century Textiles and Industries Limited (CTIL), was incorporated in Mumbai, India, in 1897. A state-of-the-art, vertically integrated plant, Birla Century (A Division of CTIL) was set up at Jhagadia, Bharuch, Gujarat, in the year 2009, using the
Slide 34: Step Towards More Focus on Growing Business
33 STEP TOWARDS MORE FOCUS ON GROWING BUSINESS Real Estate Advantages Growth Drivers Pulp & Paper Strengths • State-of-the-Art Vertically Integrated • US-China trade war has increased demand Plant (Fibre to Finishing) • Increased penetration of organised of Indian products in USA retail, better demo
Slide 35: Q2-FY21 Key Operational Highlights – Textiles
34 Q2-FY21 KEY OPERATIONAL HIGHLIGHTS– TEXTILES Real Estate Pulp & Paper Textiles • Aggressive efforts to maintain optimum capacity utilization resulted in the plant running around 74% capacity in September • Orders from the export market for Bed Linen improved and capacity is fully utilized with in
Slide 36: Market Outlook - Textiles
35 MARKET OUTLOOK - TEXTILES Real Estate • Bed Linen orders from USA are flowing to India considering anti-China sentiments • Sheet sets consumption increased in USA due to more home stays and psychological effects • Domestic demand is low and overall realizations are under pressure despite gradual
Slide 37: Macros: Capacity, Realisations and Contribution
36 MACROS Real Estate CLOTH – CAPACITY UTILISATION NET SALES REALISATIONS OVERALL CONTRIBUTION (RS. PER/MTR) YoY QoQ YoY QoQ 92% 69% (0.6)% (23)% (2)% (17)% 9,319 8,596 250 (RS. PER/MTR) 204 207 211 6,400 (000 MTRS) 157 158 Pulp & Paper PRODUCTION - CLOTH DOMESTIC EXPORT PRO RATA CAPACITY Q2 FY20 Q2
Slide 38: Sales by Product
37 SALES Real Estate CLOTH BED SHEETS YARN OTHERS NET SALES QUANTITY NET SALES QUANTITY NET SALES QUANTITY 8,505 378,242 345 (NO. OF SETS) Pulp & Paper 266 (000 MTRS) 5,638 231,356 (TONS) Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Textiles NET SALES NET SALES NET SALES NET SALES 37 9 4 0% 4 135
Slide 39: Future Outlook - Textiles
38 FUTURE OUTLOOK - TEXTILES Real Estate • Overall demand is expected to improve in retail and export as people accept moving with the new normal • Market is expected to open up towards the end of the 4th quarter and normalize by mid of FY 22. Pulp & Paper • Positive response for ‘Birla Care’ produc
Slide 40: Financial Summary
Financial Summary 39
Slide 41: Profit & Loss – Q2 FY21
40 PROFIT & LOSS – Q2 FY21 (RS. IN CRORES) Real Estate Q2 FY 21 Variance Q on Q Variance Y on Y Particulars Q2 FY 20 Q1 FY 21 Actual Amount % Amount % Continuing Operations Sales Textiles 185 42 125 83 198% -60 -32% Pulp & Paper 615 300 419 119 40% -196 -32% Pulp & Paper Real Estate 35 36 35 -1 -3%
Slide 42: Cash Flow – Q2 FY21
41 CASH FLOW – Q2 FY21 (RS. IN CRORES) Real Estate Pulp & Birla Sub Yarn & Grand Particulars Textile Rayon H.O. Paper Estates Total Denim Total EBITDA (15) 13 53 10 5 66 (7) 59 MAT Paid - - Pulp & Paper Dividend Paid (Including Tax) (34) (34) (34) Net Change in Working Capital 26 (11) 86 (33) 68 - 6
Slide 43: Statement of Outstanding Loan
42 STATEMENT OF OUTSTANDING LOAN (RS. IN CRORES) Real Estate O/s as on O/s as on O/s as on Particulars 3/31/20 31/06/2020 30/9/2020 Long Term Loans 202 465 465 Average Rate of Interest 7.79% 7.55% 6.85% Pulp & Paper Short Term and Working Capital Loans 57 586 440 Average Rate of Interest 6.48% 5.28%
Slide 44: Financial Analysis
43 FINANCIAL ANALYSIS Real Estate REVENUES (RS. IN CRORES) EBITDA (RS. IN CRORES) PAT (RS. IN CRORES) 951 3,947 3,944 805 499 (RS. IN CRORES) 3,423 565 378 280 Pulp & Paper 990 96 -47 FY18 FY19 FY20 H1- FY21 FY18 FY19 FY20 H1- FY21 FY18 FY19 FY20 H1- FY21 Textiles NET WORTH (RS. IN CRORES) NET DEBT
Slide 45: Disclaimer
44 DISCLAIMER Century Textiles and Industries Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinion
Slide 46: Thank You
45 Bringing our century old legacy and expertise into all our businesses while focusing on sustainability, customer centricity, technology and innovation to be future ready Thank You
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