Dcm Shriram Limited · NSE:DCMSHRIRAM
Dcm Shriram — Q1 FY23 Earnings Presentation
25 slides from Dcm Shriram's earnings presentation, Jul 19, 2022
Slide 1: DCM Shriram Ltd. Q1 FY23 Results Presentation
DCM Shriram Ltd. Q1 FY23 - Results Presentation July 19, 2022
Slide 2: Safe Harbour
Certain statements in this document may be forward-looking. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, Safe Harbour technological risks, and many other factors that could cause our actual results t
Slide 3: Table of Contents
Table of Contents Q1 FY23 Management Message & Segments Financial Snapshot 4 Management’s Message 9 Revenue Drivers 5 Our Businesses 10 PBDIT Drivers 6 Chloro-Vinyl Businesses 11-15 Returns & Leverage 7 Sugar 16-18 Segment Performance 8 Agri Input Businesses 19-21 Other Businesses 22-24 3
Slide 4: Financial Snapshot – Q1 FY23
Financial Snapshot – Q1 FY23 Revenue (Net*) PBDIT Depreciation 2,851 464 46% 1,957 55% 61 300 57 6% Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 PBIT Finance Cost** PAT 403 254 66% 61% 243 158 27 17 -39% Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 * Net of excise duty of Rs 51 crs and Rs 120
Slide 5: Revenue Drivers – Q1 FY23
Revenue Drivers – Q1 FY23 Positive Revenue Drivers Chemicals Vinyl Sugar* 896 243 186 710 117% 31% 563 412 26% Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 • ECU prices up 103% YoY. Product prices across • Driven by higher prices and volumes. • Sugar and Ethanol volumes up 20% and 12% YoY. catego
Slide 6: PBDIT Drivers – Q1 FY23
PBDIT Drivers – Q1 FY23 Positive PBDIT Drivers Negative PBDIT Drivers Chemicals Fertilizers Bioseed 368 33 227% 27 -17 20 -25% 113 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 • Led by higher product prices and volumes. • Lower volumes and higher energy consumption due • Earnings in Philippines o
Slide 7: Returns & Leverage
Returns & Leverage PBDIT to Net Sales Net Debt / EBITDA 19.6% 16.3% 0.024 15.3% 0.002 0.004 FY22 Q1 FY22 Q1 FY23 FY22 Q1 FY22 Q1 FY23 ROCE % Capital Employed (Rs. Crs) 36.6% 33.7% 5,064 5,014 4,612 23.2% FY22 Q1 FY22 Q1 FY23 FY22 Q1 FY22 Q1 FY23 Note: ROCE and Net Debt/ EBITDA Calculated on TTM basi
Slide 8: Segment Performance – Q1 FY23
Segment Performance – Q1 FY23 Rs crs Revenues PBIT PBIT Margins % YoY % YoY % Segments Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Change Change Chloro-Vinyl 1,140 598 90 413 178 132 36 30 Sugar 710 563 26 2 23 (91) 0 4 SFS 218 212 3 18 16 13 8 7 Bioseed 205 188 9 18 25 (27) 9 13 Fertilizer 321
Slide 9: Management’s Message
Management’s Message Commenting on the performance for the quarter and period ending June 2022, in a joint statement, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managing Director, said: We are witnessing very high inflation levels across the globe
Slide 10: Our Businesses
Our Businesses Chloro-Vinyl Agri Other Businesses Businesses Businesses Fenesta Caustic Sugar Building Soda (1,845 (38,000 Systems TPD) TCD) (8,600 TPA) Aluminum Cement Co-Gen Chloride (400,000 (155 MW) (60 TPD) TPA) PVC Resins Distillery Polymer India (220 TPD) (350 KLD)* Compounds Calcium Hariyali
Slide 11: Chloro Vinyl Business
Chloro Vinyl Business The Chloro-Vinyl business of the Company has highly integrated operations with multiple revenue streams and 225 MW captive power generation facilities. Chemicals operations are at two locations (Kota – Rajasthan and Bharuch – Gujarat), while Vinyl is at Kota only. Products incl
Slide 12: Chemicals
Chemicals Operational Financial Caustic Sales ECU Realisations Revenues PBIT PBIT Margin Particulars (MT) (Rs/MT) (Rs/Cr) (Rs/Cr) (%) Q1 FY23 151,707 49,468 896 347 39 Q1 FY22 134,606 24,309 412 92 22 % Shift 13 103 117 276 73 Caustic Soda - Import Prices & DCM Realizations 745 755 725 715 DCM Reali
Slide 13: Chemicals
Chemicals The average operating rates in India was around 80% due to lower chlorine off take resulting from Industry pressure on downstream (dyes and pigments) industry. Overview Trade flows (net exports) higher by 0.56 lac MT vs LY (Exports at 0.64 vs 0.49; Imports at 0.11 vs 0.52) Revenues u
Slide 14: Vinyl
Vinyl Operational Financial PVC Sales PVC XWR Carbide Sales Carbide XWR Revenues PBIT PBIT Margin Particulars (MT) (Rs/MT) (MT) (Rs/MT) (Rs/Cr) (Rs/Cr) (%) Q1 FY23 14,706 128,748 4,571 101,550 243 66 27 Q1 FY22 12,960 125,003 1,942 85,777 186 86 46 % Shift 13 3 135 18 31 -23 -41 PVC - Import Prices
Slide 15: Vinyl
Vinyl PVC India demand up 21% vs LY Qtr however China is witnessing slowdown in construction Industry activities & therefore participating in exports aggressively thereby softening PVC prices. Overview Carbide India demand up 33% vs LY Qtr & China not participating due to lockdowns in Shanghai.
Slide 16: Sugar
Sugar Particulars Revenues* (Rs. Cr.) PBIT (Rs. Cr.) PBIT Margin % Cap. Employed (Rs. Cr.) Q1 FY23 710 2 0.3 2,804 Q1 FY22 563 23 4.1 2,383 % Shift 26 -91 -93 18 Capital employed includes CWIP of Rs 304 crs at 30th June, 2022 vs Rs 17 crs at 30th June, 2021. * Net of excise duty on country liquor sa
Slide 17: Sugar
Sugar Distillery Distillery Distillery Sugar Sugar Sales Sugar Power XWR Distillery Power Sales XWR - Cane XWR - B XWR - C Particulars Production (Domestic) (Domestic) (Rs/ unit) Sales (Lac Units) Juice Heavy Heavy (Rs/ (Lac Qtls) (Lac Qtls) XWR (Rs/Qtl) (Lac Units) (Lac Ltrs) (Rs/ Ltrs) (Rs/ Ltrs)
Slide 18: Sugar
Sugar Revenues for Q1 FY23 up 26% YoY at Rs 710 crs. o Sugar volumes were up 20% YoY driven by higher domestic monthly releases impacting revenues by Rs 78 crs. Domestic sugar prices were also up 7% YoY at Rs/qtl 3,563 vs 3,315. o Distillery revenues were higher driven by both volumes and prices.
Slide 19: Shriram Farm Solutions
Shriram Farm Solutions Revenues PBIT Cap. Employed Particulars PBIT Margin % (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) Q1 FY23 218 18 8 103 Q1 FY22 212 16 7 36 % Shift 3 13 10 190 The products includes Seeds, Pesticides, Soluble Fertilizer, Micro-nutrients etc. This business is seasonal in nature and the result
Slide 20: Bioseed
Bioseed Revenues (Rs. Cr.) PBIT Cap. Employed Particulars PBIT Margin % (Rs. Cr.) (Rs. Cr.) India International Total Q1 FY23 178 28 205 18 9 405 Q1 FY22 136 53 188 25 13 506 % Shift 31 -48 9 -27 -33 -20 Business is intensely research based and is diversified across key crops (Cotton, Corn, Paddy, B
Slide 21: Fertilizers (Urea)
Fertilizers (Urea) Operational Financial Particulars Sales Revenues PBIT Cap. Employed Realizations PBIT Margin % (MT) (Rs./MT) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) Q1 FY23 63,948 48,128 321 -20 -6 451 Q1 FY22 75,641 23,322 220 30 14 293 % Shift -15 106 46 - - 54 Revenues for Q1 FY23 up 46% YoY. o Prices
Slide 22: Other Businesses
Other Businesses The ‘Others’ Segment in the financial results, includes Cement, Fenesta Building Systems, Vinyl compounding business and Hariyali Kisaan Bazaar. Revenues under ‘Others’ stood at Rs 299 crs in Q1 FY23 from Rs. 204 crs in Q1 FY22. PBIT for the quarter stood at Rs. 12 crs vis-à-vis
Slide 23: Fenesta Building Systems
Fenesta Building Systems Operational Financial Particulars Order Book (Rs Crores) Revenues PBIT PBIT Margin % Retail Projects Total (Rs. Cr.) (Rs. Cr.) Q1 FY23 95 89 185 167 28 17 Q1 FY22 57 30 87 108 9 8 % Shift 69 197 113 54 218 107 Fenesta a pan India brand has become synonymous with UPVC windows
Slide 24: Cement
Cement Operational Financial Particulars Sales Revenues PBIT Realizations PBIT Margin % (MT) (Rs./MT) (Rs. Cr.) (Rs. Cr.) Q1 FY23 83,860 4,251 43 -19 -45 Q1 FY22 107,581 3,622 47 -1 -2 % Shift -22 17 -7 - - The Cement business is small, since its capacity is driven by the waste generated from carbid
Slide 25: 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 power at all key manufacturi