Dcm Shriram Limited · NSE:DCMSHRIRAM
Dcm Shriram — H1 FY2019 Earnings Presentation
32 slides from Dcm Shriram's earnings presentation, Oct 29, 2018
Slide 1: Q2 & H1 FY19 Results Presentation
DCM Shriram Ltd. Q2 & H1 FY19 - Results Presentation October 29, 2018 1
Slide 2: Safe Harbour
Safe Harbour Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actua
Slide 3: Table of Content
Table of Content Title Slide No. Q2 FY19 4-7 Key Highlights 4-5 Financial Snapshot 6 Segment Performance 7 H1 FY19 8-9 Financial Snapshot 8 Segment Performance 9 Q2 FY19 Performance Overview & Outlook 10-13 Projects under Implementation 14 Management’s Message 15 Segmental Details 16-31 Chloro-Vinyl
Slide 4: Q2 FY'19 – Key Highlights
Q2 FY’19 – Key Highlights 1. Net Revenues up by 6% (Rs 1,700 crore vs Rs 1,605 crore for same period last year): a. Own Products – Revenues increased by 7% YoY. i. Chemicals – Revenues up by 23% YoY with increase in net realizations by 16% and volumes gain of 5%. ii. Sugar – Overall revenues lower b
Slide 5: Q2 FY'19 – Key Highlights
Q2 FY’19 – Key Highlights 3. PAT stood at Rs 169 crore vs Rs 172 crore for same period previous year. EPS for the quarter stood at Rs 10.56 vs Rs 10.59 in Q2 FY18. 4. Gross Debt as on September 30, 2018 stood at Rs. 915 crore vs. Rs 673 crore as on September 30, 2017. Cash and Cash equivalents stood
Slide 6: Q2 FY19 – Financial Snapshot
Q2 FY19 – Financial Snapshot Revenue (Net) PBDIT Depreciation 1,605 1,700 306 313 36 38 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Finance Cost PBIT PAT 41 270 276 172 169 20 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Note: All figures in Rs. crore Net revenue includes operating income DCM
Slide 7: Q2 FY19 - Segment Performance
Q2 FY19 - Segment Performance Rs. crore Revenues PBIT PBIT Margins % YoY % YoY % Segments Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Change Change Chloro Vinyl 484.7 553.2 14.1 178.7 195.8 9.6 36.9 35.4 Sugar 516.5 478.9 (7.3) 74.1 87.4 18.0 14.3 18.2 - Sugar 516.5 397.4 (23.1) 74.0 35.6 (51.8)
Slide 8: H1 FY19 – Financial Snapshot
H1 FY19 – Financial Snapshot Revenue (Net) PBDIT Depreciation 3,768 3,551 648 661 67 74 H1 FY18 H1 FY19 H1 FY18 H1 FY19 H1 FY18 H1 FY19 Finance Cost PBIT PAT 581 587 77 406 387 44 H1 FY18 H1 FY19 H1 FY18 H1 FY19 H1 FY18 H1 FY19 Note: All figures in Rs. crore Net revenue includes operating income DCM
Slide 9: H1 FY19 - Segment Performance
H1 FY19 - Segment Performance Rs. crore Revenues PBIT PBIT Margins % YoY % YoY % Segments H1 FY18 H1 FY19 H1 FY18 H1 FY19 H1 FY18 H1 FY19 Change Change Chloro Vinyl 930.0 1,166.1 25.4 321.7 470.7 46.3 34.6 40.4 Sugar 1,142.2 1,097.0 (4.0) 182.2 84.6 (53.5) 16.0 7.7 - Sugar 1,116.5 926.1 (17.1) 168.1
Slide 10: Q2 FY19 - Performance Overview & Outlook
Q2 FY19 - Performance Overview & Outlook Net revenue higher by 14% YoY, Earnings up 10%. Chemicals o Caustic ECU prices increased by 16% YoY. o Volumes increased by 5% YoY for Q2 FY19 and 9% YoY for H1 FY19. One of the plant had maintenance shut down during Q2 FY19. Operations normalized now. o
Slide 11: Q2 FY19 - Performance Overview & Outlook
Q2 FY19 - Performance Overview & Outlook Overall revenues lower by 7% YoY. Sugar revenues declined by 23% YoY. The net realizations were lower by 14% & the volumes lower by 9% due to sales restriction by government. Molasses prices down to almost zero. Sugar prices presently ~ Rs 3,250/ Qtl, s
Slide 12: Q2 FY19 - Performance Overview & Outlook
Q2 FY19 - Performance Overview & Outlook Overall revenues up by 3% YoY. Revenues from bulk fertilizer down by 50% and revenues from value added inputs up by 40% in line with the strategy to focus on value added inputs and reduce activities under bulk products. Earnings improved due to higher vol
Slide 13: Q2 FY19 - Performance Overview & Outlook
Q2 FY19 - Performance Overview & Outlook Revenues up 26% primarily due to higher prices (ie reflection of higher energy cost, a pass through). Plant had a stoppage for 9 days during the quarter. Stabilized now. Subsidy outstanding as on 30th September, 2018 stood at Rs 360 crore vs Rs 283 cror
Slide 14: Projects Under Implementation
Projects Under Implementation Projects Under Implementation Project Completion Business Project Capacity Timeline Cane Crushing Expansion 5000 TCD Q3 FY19 Sugar Distillery 200 KLD Q3 FY20 Power Co-Gen 30 MW Q3 FY19 Caustic Soda Expansion 332 TPD -Bharuch 186 TPD Chemicals Q1 FY20 -Bharuch 146 TPD Al
Slide 15: Management's Message
Management’s Message Commenting on the performance for the quarter and financial year, in a joint statement, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managing Director, said: “We are happy with satisfactory performance of the company during the q
Slide 16: Segmental Details
Segmental Details • Chemicals • PVC Resins Chloro-Vinyl Businesses • Calcium carbide • Power • Agri- Inputs o Shriram Farm Solutions Agri o Bioseeds Businesses o Fertilizers • Sugar • Fenesta Building Systems Other Businesses • Cement • Polymer Compounds • Hariyali Kisaan Bazaar DCM Shriram Ltd. – Q
Slide 17: Chloro Vinyl Business
Chloro Vinyl Business Revenues PBIT Cap. Employed Particulars (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) Q2 FY19 553.2 195.8 1,194.1 Q2 FY18 484.7 178.7 1,038.7 % Shift 14.1 9.6 15.0 H1 FY19 1,166.1 470.7 1,194.1 H1 FY18 930.0 321.7 1,038.7 % Shift 25.4 46.3 15.0 The Chloro-Vinyl business of the Company has high
Slide 18: Chemicals
Chemicals Operational Financial Sales Realisations Revenues PBIT Particulars (MT) (Rs./MT) (Rs Cr.) (Rs. Cr.) Q2 FY19 108,362 33,330 416.9 182.9 Q2 FY18 103,445 28,751 338.3 146.7 % Shift 4.8 15.9 23.2 24.7 H1 FY19 220,801 34,565 885.9 431.0 H1 FY18 202,836 27,212 633.1 256.6 % Shift 8.9 27.0 39.9 6
Slide 19: Chemicals
Chemicals Q2 FY19 revenue increased by 23% YoY with volume growth of 5% and increase in net realizations by 16%. Revenue declined by 11% QoQ with realizations down by 7%. Performance One of the plant had a maintenance shut down during Q2 FY19. Operations normalized now. Overview 168 TPD capaci
Slide 20: Plastics
Plastics Operational Financial PVC XWR Carbide XWR PVC Sales Carbide Sales Revenues PBIT Particulars Realisations Realisations (MT) (MT) (Rs Cr.) (Rs. Cr.) (Rs./MT) (Rs./MT) Q2 FY19 12,795 76,692 6,712 52,443 136.3 13.0 Q2 FY18 15,744 70,035 8,032 43,783 146.4 32.0 % Shift (18.7) 9.5 (16.4) 19.8 (6.
Slide 21: Plastics
Plastics Import and DCM PVC Prices 1,010 79,000 1,000 1,000 78,077 985 78,000 990 76,534 77,943 980 75,967 77,000 Prices - $ Prices - Rs 970 76,788 972 76,000 960 953 950 961 75,000 956 940 73,918 74,000 930 920 73,000 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 PVC Prices (CFR-India $/MT) DCM Realiza
Slide 22: Sugar
Sugar YoY % Particulars Q2 FY18 Q2 FY19 YoY % Change H1 FY18 H1 FY19 Change Revenues (Rs. cr.) Sugar 516.5 397.4 (23.1) 1,116.5 926.1 (17.1) Power 0.0 7.5 27380.4 25.7 60.5 135.1 Distillery - 74.0 - - 110.5 - Total 516.5 478.9 (7.3) 1,142.2 1,097.0 (4.0) PBIT (Rs cr.) Sugar 74.0 35.6 (51.8) 168.1 (3
Slide 23: Sugar
Sugar Sales (Volume) Sugar Realizations Cap. Employed Particulars Sugar Power Distillery (Rs/ Qtl) (Rs Cr.) (Lac Qtls) (Lac Units) (Lac Ltrs) Q2 FY19 12.0 145.5 180.2 3207 1054.1 Q2 FY18 13.2 1.0 - 3724 476.9 % Shift (8.7) 14,450.4 - (13.9) 121.0 H1 FY19 30.0 1,162.9 267.3 2,947 1054.1 H1 FY18 28.9
Slide 24: Sugar Segment
Sugar Segment Overall revenues down by 7% YoY in Q2 FY19. Sugar revenues declined by 23% YoY. Sugar volume declined by 9% due to sales restriction by central government. Sugar realizations down by 14%. Realizations of molasses remained under pressure during the quarter. Overall earnings up by
Slide 25: Agri- Input Businesses
Agri- Input Businesses The Agri input businesses contributed to 29% of the Company’s revenues during Q2 FY19. The Company continues to focus on these businesses given the huge opportunity in this area where the Company can capitalize on its long understanding of varied Agri businesses and the rural
Slide 26: Shriram Farm Solutions
Shriram Farm Solutions Revenues (Rs. Cr.) PBIT (Rs. Cr.) Cap. Employed Particulars Bulk Value Added Total Bulk Value Added Total (Rs. Cr.) Q2 FY19 30.2 126.7 156.9 (5.3) 6.6 1.3 274.4 Q2 FY18 61.1 90.6 151.7 2.4 4.4 6.8 347.5 % Shift (50.5) 39.8 3.4 - 50.6 (80.5) (21.1) H1 FY19 84.9 283.5 368.3 (2.9
Slide 27: Bioseed
Bioseed Revenues (Rs. Cr.) PBIT Cap. Employed Particulars India International Total (Rs. Cr.) (Rs. Cr.) Q2 FY19 69.1 13.7 82.7 (4.0) 468.3 Q2 FY18 57.9 22.1 80.0 (2.2) 491.0 % Shift 19.3 (38.1) 3.4 - (4.6) H1 FY19 320.4 44.3 364.7 43.8 468.3 H1 FY18 332.0 54.5 386.5 77.1 491.0 % Shift (3.5) (18.7) (
Slide 28: Fertilizers (Urea)
Fertilizers (Urea) Operational Financial Sales Realisations Revenues PBIT Cap. Employed Particulars (MT) (Rs./MT) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) Q2 FY19 94,363 23,107 247.0 17.6 435.7 Q2 FY18 106,340 18,137 196.4 33.2 340.9 % Shift (11.3) 27.4 25.8 (47.2) 27.8 H1 FY19 185,820 23,472 474.7 26.2 435.7
Slide 29: Other Businesses
Other Businesses The ‘Others’ Segment in the financial results, includes Cement, Fenesta Building Systems and Hariyali Kisaan Bazar. Revenues under ‘Others’ stood at Rs 192 crore in Q2 FY19 from Rs. 189 crore in Q2 FY18. PBIT for the quarter stood . at Rs. 13 crore vis-à-vis Rs. 11 crore in Q2 FY18.
Slide 30: Fenesta Building Systems
Fenesta Building Systems Operational Financial Order Book (Rs Cr.) Revenues Particulars Retail Projects Total (Rs Cr.) Q2 FY19 80.6 28.2 108.8 99.0 Q2 FY18 61.8 32.1 94.0 85.1 % Shift 30.3 (12.3) 15.8 16.4 H1 FY19 151.1 62.4 213.5 191.5 H1 FY18 123.9 46.6 170.4 162.3 % Shift 22.0 33.9 25.2 18.0 Fene
Slide 31: Cement
Cement Operational Financial Sales Realizations Revenues PBIT Particulars (MT) (Rs./MT) (Rs. Cr.) (Rs. Cr.) Q2 FY19 103,672 3,063 40.3 (0.3) Q2 FY18 111,407 3,008 44.6 3.4 % Shift (6.9) 1.8 (9.7) - H1 FY19 216,148 2,994 82.0 0.6 H1 FY18 238,555 3,131 94.1 8.5 % Shift (9.4) (4.4) (12.9) (92.8) The Ce
Slide 32: About Us & Investor Contacts
About Us & Investor Contacts DCM Shriram Ltd. is an integrated business entity, with extensive and growing presence across the entire Agri value chain and Chloro-Vinyl industry. The Company has added innovative value- added businesses in these domains primarily Bioseed and Fenesta. Access to captive