Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q2 FY2020 Earnings Presentation
36 slides from Grasim Industries's earnings presentation, November 2019
Slide 1: Grasim Industries Limited Earnings Presentation Q2FY20
Grasim Industries Limited BIG IN YOUR LIFE Earnings Presentation Q2FY20
Slide 2: Big in Your Life
BIG IN YOUR LIFE # 1 In Viscose Staple Fibre# # 1 In& Specialty Caustic Soda Chemicals* # 1 In Premium Fabric 57% 57% Market Cap (Sep 30, 2019): INR 48,000 Crore (USD 6.8 Billion) Total Market Cap Total Market Cap (Sep 30, 2019): (Sep 30, 2019): INR 1.20 Lakh Crore INR 18,688 Crore (USD 16.9 Billion
Slide 3: Table of Content
Table of Content Key Highlights 01 Financial Overview 02 Business Performance 03 Appendix 04
Slide 4: Key Highlights
Key Highlights
Slide 5: Q2FY20: Key Highlights
Key Highlights Financial Overview Business Performance Appendix Q2FY20: KEY HIGHLIGHTS Consolidated Revenue and EBITDA up by 3% & 7% on YoY basis respectively Global prices of VSF softened further on account of capacity overhang and continuing U.S- China Trade war Global Caustic Soda prices remained
Slide 6: Financial Overview
ADITYA BIRLA Financial Overview
Slide 7: Financial Overview: Quarterly
Key Highlights Financial Overview Business Performance Appendix FINANCIAL OVERVIEW: QUARTERLY Consolidated Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 20,088 16% 22% 17% 17,892 18,430 4,461 3,180 2,972 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 Standalone Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 25% 18% 19%
Slide 8: Strong Balance Sheet
Key Highlights Financial Overview Business Performance Appendix STRONG BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) Net Debt/ Net Debt/ EBITDA EBITDA 0.51x (H1FY20 1.48x (H1 FY20 Annualized) Annualized) 4,492 31,559 23,092 2,652 1,840 8,467 Sep-19 Sep-19 Debt Liquid investments Net Debt
Slide 9: Capex Plan
Key Highlights Financial Overview Business Performance Appendix CAPEX PLAN VSF Capacity (KTPA) Caustic Soda Capacity (KTPA) 43% 27% 788 1,457 BB’Puram (146 KTPA) Vilayat expansion 146 H2 FY21 (219 KTPA) H2 FY21 438 Vilayat expansion (2 phases of 1,147 (73 KTPA) 300 TPD each) H2 FY21 383 365 365 549
Slide 10: Capex Plan
Key Highlights Financial Overview Business Performance Appendix CAPEX PLAN Capex Capex Cash Outflow (Net of CWIP spent Particulars (Rs. Cr.) as on YTD H2 FY21 1/4/2019) Sep'19 FY20 Onwards Capital expenditure for Capacity Expansion Viscose Staple Fibre 3,279 624 1,300 1,355 Viscose Filament Yarn 182
Slide 11: The Taxation Law Amendment Ordinance 2019: Impact Analysis
Key Highlights Financial Overview Business Performance Appendix THE TAXATION LAW AMENDMENT ORDINANCE – 2019: IMPACT ANALYSIS Revised New Comments Old Rates Rate Tax • Saving of 9.77% 34.94% 25.17% Profit • Existing incentives will be withdrawn Book Profit 17.47%* NA • No MAT Credit available * Earli
Slide 12: Business Performance
ADITYA BIRLA Business Performance
Slide 13: Viscose Industry
Key Highlights Financial Overview Business Performance Appendix VISCOSE INDUSTRY Global Prices Trend ($/Kg) Price YoY QoQ Sep Exit Price 2.30 Movement (%) (%) (D over Q2FY20) 2.10 1.90 1.70 Grey 1.33 $/Kg -23% -8% 1.50 VSF (-4%) 1.30 1.10 0.90 1.57 $/Kg Cotton -23% -11% 0.70 (-2%) Q1 Q2 Q3 Q4 APR MA
Slide 14: Viscose – Key Operational Metrics
Key Highlights Financial Overview Business Performance Appendix VISCOSE – KEY OPERATIONAL METRICS VSF Sales (KT) Sales Volume Mix Export Sales Grey VSF 138 142 136 12% 80% 88% 20% Q2FY19 Q1FY20 Q2FY20 Domestic Sales Specialty Fibre Pulp CCF prices vs Consumption Prices Share of domestic sales in tot
Slide 15: Financial Performance - Viscose
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE - VISCOSE Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 2,605 2,509 576 2,431 442 381 VFY VFY VFY VFY VFY VFY VFY VFY VFY Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 VSF reported a strong operating performance with producti
Slide 16: Viscose – Key Sustainability Initiatives
Key Highlights Financial Overview Business Performance Appendix VISCOSE – KEY SUSTAINABILITY INITIATIVES 2 1 4 Birla Cellulose is Grasim carbon neutral in participated in scope 1 and 2 Encouraging 2019 CSA emissions, 3 response from (Corporate ahead of global Sustainability competition in leading br
Slide 17: Chlor Alkali Industry: Caustic Soda Prices
Key Highlights Financial Overview Business Performance Appendix CHLOR ALKALI INDUSTRY Caustic Soda Prices 39,631 40,276 38,287 37,845 37,070 37,198 34,522 31,310 28,660 30,357 Caustic Realization - Grasim (Rs./MT) Caustic Realization - IHS SEA in Rs./MT ECU - Grasim (Rs./MT) Source: Company data and
Slide 18: Caustic – Key Operational Metrics
Key Highlights Financial Overview Business Performance Appendix CAUSTIC – KEY OPERATIONAL METRICS Caustic Soda Sales (KT) Chlorine Sales (KT) 258 182 175 179 238 241 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 Caustic soda sales were impacted by slowdown in major application segments like metals & tex
Slide 19: Financial Performance - Chemicals
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE - CHEMICALS Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 1,612 1,503 456 446 1,347 273 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 Caustic soda Revenue & EBITDA impacted by lower sales volume and sharp fall in the realizat
Slide 20: Financial Performance – Other Businesses
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – OTHER BUSINESSES Fertilisers Textile Insulators Net Revenue (Rs. Cr.) Net Revenue (Rs. Cr.) Net Revenue (Rs. Cr.) 743 721 437 420 111 110 697 97 276 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20
Slide 21: JV with Maschinenfabrik Reinhausen: Composite Insulators
Key Highlights Financial Overview Business Performance Appendix JV with Maschinenfabrik Reinhausen GmbH (“MR”), Germany: Composite Insulators MR is the global leader for power transformer automation and control solutions Grasim MR Almost 50% of the electricity generated worldwide MR flows throug
Slide 22: Dow Jones Sustainability Index (DJSI)
Key Highlights Financial Overview Business Performance Appendix DOW JONES SUSTAINABILITY INDEX (DJSI) Grasim has largely outperformed the global Industry average score Environmental Policy & Management Systems Corporate Citizenship and Philanthropy Grasim DJSI Customer Relationship Management Perfor
Slide 23: Financial Performance – UltraTech
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – UltraTech Sales volume (MT) Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 1% 4% 33% 18.88 9,620 2,072 18.69 9,249 1,564 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Cement demand was impacted due to heavy rains/ floods in
Slide 24: Financial Performance – ABCL
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – ABCL Lending Book(Rs. Cr.)* AAUM(Rs. Cr.)** 60,447 2,71,556 2,69,393 57,945 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Revenue and net profit after minority interest for Q2FY20 are at Rs.3,976 Cr. and Rs.256 Cr. up 11% and 37%
Slide 25: Financial Performance – Other Subsidiaries
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – OTHER SUBSIDIARIES Solar subsidiaries Grasim Premium Fabrics (Brand Soktas) Particulars (Rs. Cr.) Q2FY20 Q1FY20 Particulars (Rs. Cr.) Q2FY20 Q1FY20 Net Revenue Rs. Cr. 20 26 Net Revenue Rs. Cr. 45 48 EBITDA Rs. C
Slide 26: Financial Performance – Pulp JVs
Key Highlights Financial Overview Business Performance Appendix FINANCIAL PERFORMANCE – PULP JV’s Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 1,302 1,215 1,283 124 121 117 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 Production Volume (Tons) Sales Volume (Tons) 2,15,563 2,13,715 1,94,717 2,00,020 Q2FY19 Q2F
Slide 27: Appendix
ADITYA BIRLA Appendix
Slide 28: Balance Sheet
Key Highlights Financial Overview Business Performance Appendix BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) 31st Mar'19 30th Sep'19 31st Mar'19 EQUITY & LIABILITIES 30th Sep'19 (Restated) 39,524 41,959 Net Worth 57,056 58,018 - - Non Controlling Interest 31,560 30,502 - - Borrowings re
Slide 29: Income Statement - Standalone
Key Highlights Financial Overview Business Performance Appendix INCOME STATEMENT - STANDALONE Quarterly Half Year Particulars (Rs. Cr.) Q2FY20 Q2FY19 H1FY20 H1FY19 Net Revenue from Operations 4,797 5,118 9,798 9,907 Other Income* 286 275 371 372 EBITDA 946 1,352 1,874 2,528 EBITDA Margin (%) 19% 25%
Slide 30: Income Statement – Consolidated
Key Highlights Financial Overview Business Performance Appendix INCOME STATEMENT – CONSOLIDATED Quarterly Half Year Particulars (Rs. Cr.) Q2FY20 Q2FY19 H1FY20 H1FY19 Net Revenue from Operations 18,430 17,892 38,519 35,298 Other Income 223 252 457 435 EBITDA 3,180 2,972 7,641 6,288 EBITDA Margin (%)
Slide 31: Viscose Business Summary
Key Highlights Financial Overview Business Performance Appendix VISCOSE BUSINESS SUMMARY Quarter 2 % Half Year % Particulars (Rs. Cr.) 2019-20 2018-19 Change 2019-20 2018-19 Change Capacity VSF KTPA 566 546 4 566 546 4 VFY KTPA 46 46 - 46 46 0 Production VSF KT 148 137 8 288 271 6 VFY KT 11 12 -8 22
Slide 32: Chemical Business Summary
Key Highlights Financial Overview Business Performance Appendix CHEMICAL BUSINESS SUMMARY Quarter 2 % Half Yearly % Particulars (Rs. Cr.) 2019-20 2018-19 Change 2019-20 2018-19 Change Capacity* KTPA 1,147 1,140 1 1,147 1,140 1 Production* KT 249 254 -2 491 490 0 Sales Volume* KT 241 258 -7 479 493 -
Slide 33: Grasim Group Structure
Key Highlights Financial Overview Business Performance Appendix GRASIM GROUP STRUCTURE Grasim Industries Limited VSF - 566K TPA Caustic Soda - Overseas UTCL (60.21%)* ABCL (55.99)* VFY - 47K TPA ~1147K TPA Others Pulp - 74K TPA Pulp & VSF JVs Subsidiary Subsidiary Epoxy – 123K TPA Nagda Nagda Fertil
Slide 34: 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 35: Notes
NOTES Grasim Industries Limited | Earnings Presentation Q2 FY20 35
Slide 36: Thank you
Thank you Grasim Industries Ltd. Aditya Birla Centre 'A' Wing, 2nd Floor ,S.K. Ahire Marg ,Worli Mumbai 400 030 ,India Investor Relations Team Email: pradeep.a@adityabirla.com saket.sah@adityabirla.com