Grasim Industries Ltd. · NSE:GRASIM

Grasim Industries — Q2 FY2012-13 Earnings Presentation

49 slides from Grasim Industries's earnings presentation, Oct 29, 2012

  1. Slide 1: Performance Review Quarter 2: 2012-13

    Performance Review Quarter 2 : 2012-13 Grasim Industries Limited A VSF and Cement Major

  2. Slide 2: Cautionary Statement

    Cautionary Statement Statements in this “Presentation” describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or impl

  3. Slide 3: Contents

    Contents  Highlights  Business Review  Financial Performance  Capex Plan  Summary 3

  4. Slide 4: Highlights – Quarter 2 (Operational)

    Highlights – Quarter 2 Operational  Q2 records improved performance at Consolidated as well as Standalone Level  While Consolidated Revenue was up by 15%, Net Profit rose sharply by 48% on Y-o-Y basis  In Cement:  Domestic volumes grew by 1%  Prices remained stable during monsoons  In VSF:  V

  5. Slide 5: Highlights – Quarter 2 (Strategic)

    Highlights – Quarter 2 Strategic  Brownfield expansions commissioned during the quarter  VSF - Harihar, Karnataka : 18,250 TPA (Phase I)  Pulp - Domsjo, Sweden : 45,000 TPA  Expansion projects in Cement and VSF are generally on track  Cement capacity to increase by 20% from 52 Mn. TPA to 62 Mn.

  6. Slide 6: Business Review

    Business Review  VSF  Chemical  Cement Subsidiary 6

  7. Slide 7: Viscose Staple Fibre: Highlights

    Viscose Staple Fibre : Highlights Quarter 2 % Global Industry Scenario Quarter 1 Change  Textile industry remain affected by 2012-13 2012-13 2011-12 (YoY) 333,975 Capacity (TPA) 352,225 333,975 5 continued slowdown in Eurozone, nominal growth in US and lower demand in China 83,404 Production (MT) 7

  8. Slide 8: Viscose Staple Fibre: Highlights (Contd)

    Viscose Staple Fibre : Highlights (Contd….) Quarter 2  PBIDT impacted by higher cost Quarter 1 % Change  Increase in Caustic, Coal and Sulphur 2012-13 2012-13 2011-12 (YoY) cost Standalone Business: o Chemical business, however, 276.0 PBIDT (` Cr.) 251.3 307.9 (18) benefitted from increase in caus

  9. Slide 9: Viscose Staple Fibre: Outlook

    Viscose Staple Fibre : Outlook  In the short term, environment continues to be challenging given the prevailing global slowdown  Global slowdown and surplus capacities in China to impact market conditions and margins despite softening in pulp prices  Profitability will also be influenced by compe

  10. Slide 10: Viscose Staple Fibre: Outlook

    Viscose Staple Fibre : Outlook  Expansions are progressing as per schedule Present capacity Expanded Commissioning (KTPA) capacity (KTPA) Target Vilayat, Gujarat - 120 Line wise commissioning will start in Q4 2012-13 and will be over by middle of Q1 2013-14 Harihar, Karnataka 69 87 Phase I commissi

  11. Slide 11: Chemical: Highlights

    Chemical : Highlights Quarter 2 Industry Scenario Quarter 1 % 2012-13 Change  Industry utilisation impacted due to low 2012-13 2011-12 (YoY) chlorine offtake 258,000 Caustic Capacity (TPA) 258,000 258,000 --  As a result ECU realisation remained 69,166 Production (MT) 63,627 65,907 (3) firm 69,466

  12. Slide 12: Cement: Highlights

    Cement : Highlights Quarter 1 Quarter 2 % Industry Scenario Change 2012-13 2012-13 2011-12 (YoY)  Subdued demand growth * Grey Cement 51.75 Capacity (Mn. TPA) 51.75 51.75 --  Sector Capacity at 338 Mn. TPA  19 Mn. TPA capacity commissioned in first 10.76 Production (Mn. MT) 9.65 9.51 1 half Sales

  13. Slide 13: Cement: Financials

    Cement : Financials  Net Revenue up by 19% Quarter 2 % Quarter 1 Change  Prices remained firm sequentially 2012-13 2012-13 2011-12 (YoY)  Increase in variable cost by 8% 5,360.2 Net Revenue (` Cr.) 4,969.9 4,192.2 19  Raw Material cost up by 15% due to 1,390.3 PBIDT (` Cr.) 1,112.5 691.3 61 subs

  14. Slide 14: Cement: Outlook

    Cement : Outlook  Demand growth linked to GDP growth ; implementation of reforms  At present with 6% - 6.5% GDP growth rate, expected growth rate of ~8%  Surplus supply scenario likely to continue over the next 3 years  Likely capacity addition of 66 Mn. Tons by FY15  Capacity utilisation expec

  15. Slide 15: Financial Performance

    ADITYA BIRLA GRASIM Financial Performance 15

  16. Slide 16: Consolidated Revenue

    Consolidated Revenue (50) 15% 778 88 31 ` Crore 6602 5755 Quarter 2 VSF & Pulp JV Chemical Cement Inter Co. Quarter 2 2011-12 Eliminations & 2012-13 Others 5,755 88 31 778 (50) 6,602 Improved performance from all the businesses 16

  17. Slide 17: Revenue Chart

    Revenue Chart ` Crore Half Year % Quarter 2 % Quarter 1 Change Net Revenue Change 2012-13 2011-12 2012-13 2011-12 2012-13 YoY YoY 2,226 1,980 12 Viscose Staple Fibre 1,164 1,079 8 1,062 460 347 32 Chemical 225 194 16 234 51 53 Others 26 27 25 (125) (89) 41 Eliminations (Inter Segment) (62) (53) (63)

  18. Slide 18: Financial Performance – Consolidated

    Financial Performance – Consolidated ` Crore Half Year % Change Quarter 2 % Change Quarter 1 2012-13 2011-12 YoY ( ` Crore) 2012-13 2011-12 YoY 2012-13 13,431 11,660 15 Revenue 6,602 5,755 15 6,829 10,394 9,020 15 Operating Costs 5,197 4,738 10 5,197 3,273 2,883 14 PBIDT 1,505 1,135 33 1,767 161 184

  19. Slide 19: Financial Performance – Standalone

    Financial Performance – Standalone ` Crore Half Year % Change Quarter 2 % Change Quarter 1 2012-13 2011-12 YoY ( ` Crore) 2012-13 2011-12 YoY 2012-13 2,612 2,291 14 Revenue 1,353 1,247 9 1,258 1,988 1,588 1,582 25 Operating Costs 1,045 912 15 944 880 960 (8) PBIDT 500 506 380 14 21 (35) Interest 8 1

  20. Slide 20: Consolidated PBIDT

    Consolidated PBIDT (10) 33% 421 (61) 20 1505 ` Crore 1135 Quarter 2 VSF & Pulp JV Chemical Cement Inter Co. Quarter 2 2011-12 Eliminations & 2012-13 Others 1,135 (61) 20 421 (10) 1,505 Improved profitability of Cement & Chemical businesses 20

  21. Slide 21: PBIDT – Chart

    PBIDT – Chart ` Crore Half Year % Change PBIDT Quarter - 2 % Change Quarter 1 2012-13 2011-12 YoY 2012-13 2011-12 YoY 2012-13 527 658 (20) Viscose Staple Fibre 251 308 (18) 276 133 81 64 Chemical 67 47 43 66 219 221 Others 182 152 37 880 960 (8) Standalone PBIDT 500 506 380 Subsidiaries 2,503 1,950

  22. Slide 22: Net Profit

    Net Profit ` Crore Half Year Quarter - 2 2012-13 2011-12 % 2012-13 2011-12 % Total Grasim's Total Grasim's Change Total Grasim's Total Grasim's Change Co. share Co. share Co. share Co. share 656 659 Standalone PAT 383 345 11 1,316 794 934 564 41 UltraTech Cement 553 333 265 160 109 3 3 4 4 Grasim Bh

  23. Slide 23: Balance Sheet: Grasim (Liabilities)

    Balance Sheet : Grasim ` Crore Standalone Consolidated As on As on As on As on EQUITY & LIABILITIES 30.09.12 31.03.12 30.09.12 31.03.12 SHAREHOLDERS' FUNDS 91.8 91.7 Share Capital 91.8 91.7 - - Other Share Capital 44.3 41.9 9,670.5 9,007.7 Reserves & Surplus 18,310.2 16,935.0 - - Minority Interest 5

  24. Slide 24: Balance Sheet: Grasim (Assets)

    Balance Sheet : Grasim ` Crore Standalone Consolidated As on As on As on As on ASSETS 30.09.12 31.03.12 30.09.12 31.03.12 NON-CURRENT ASSETS 1,786.9 1,548.5 Net Fixed Assets 15,565.0 15,052.7 1,880.2 965.2 Capital WIP & Advances 6,404.5 4,258.9 3,667.2 2,513.7 21,969.4 19,311.6 - - Goodwill on Conso

  25. Slide 25: Strong Financials

    Strong Financials Standalone Consolidated H1 Full Year H1 Full Year (` Crore) 2012-13 2011-12 2012-13 2011-12 Net Worth 9,762 9,099 18,446 17,069 Debt 1,045 720 8,015 7,036 Net Debt (Net of liquidity) (1,372) (2,089) 1,990 674 Capital Employed 10,277 10,058 34,306 31,317 Debt:Equity (x) 0.11 0.08 0.

  26. Slide 26: Capex

    ADITYA BIRLA GRASIM Capex 26

  27. Slide 27: Capex plan

    Capex plan ` Crore Work in Cash Outflow Capex spent Capex under Progress during Implemen- FY13 FY14 as on tation H1 2012-13 01-04-12 Standalone VSF Expansion : Vilayat (120K TPA), Harihar (36K TPA) 2,257 Chemical Expansion : Vilayat (182K TPA) 807 Epoxy Project : Vilayat (51,500 TPA) 223 Normal Cape

  28. Slide 28: Summary

    ADITYA BIRLA GRASIM Summary 28

  29. Slide 29: Summary

    Summary  Cement business reported improved performance  VSF business records satisfactory performance, despite textile value chain under pressure  Leadership position and cost competitiveness in both the businesses will be further strengthened on ongoing basis  Both businesses to consolidate lea

  30. Slide 30: Organizational Structure

    Organizational Structure VSF VSF JV Pulp Chemical Cement Textile Telecom AV Cell $ Birla Jingwei $ (45%) UltraTech Grasim Idea # (31%) Cement * Bhiwani* (5.17%) (60.32%) (100%) AV Nackawic $ (45%) Domsjo # (33.33%) Terrace Bay $ (40%) * Subsidiary, $ JV, # Associate 30

  31. Slide 31: Plant Locations – Grasim & its subsidiaries

    Plant Locations– Grasim & its subsidiaries Bathinda(G) Panipat Bhiwani Dadri T Kotputli Aligarh Jodhpur T Malanpur Shambhupura Jawad Bharuch Durgapur(G) UltraTech Cement Plants F Jafrabad F Vilayat UltraTech Grinding Units (G) F C Pipavav Nagda Hirmi Raipur Magdalla (G) Awarpur B UltraTech Bulk Ceme

  32. Slide 32: Thank You

    ADITYA BIRLA GRASIM Thank You

  33. Slide 33: Annexure

    Grasim Industries Limited Annexure

  34. Slide 34: Annexure

    Annexure  Consolidated Financial Performance  Standalone Financial Performance  Consolidated and Standalone Profitability  Businesswise Performance  VSF Summary  Chemical Summary  Cement Summary 34

  35. Slide 35: Consolidated Financial Performance

    Consolidated Financial Performance (` Crore) Quarter - 2 % Half Year % Full Year 2012-13 2011-12 Change 2012-13 2011-12 Change 2011-12 Net Sales & Op. Income 6,602.1 5,755.3 15 13,431.3 11,660.3 15 25,236.3 Other Income 99.8 117.3 (15) 235.5 242.4 (3) 745.4 PBIDT 1,505.2 1,134.7 33 3,272.6 2,883.1 1

  36. Slide 36: Standalone Financial Performance

    Standalone Financial Performance (` Crore) Quarter - 2 % Half Year % Full Year 2012-13 2011-12 Change 2012-13 2011-12 Change 2011-12 Net Sales & Op. Income 1,353.4 1,247.0 9 2,611.6 2,291.2 14 4,969.7 Other Income 191.7 170.6 12 256.8 251.1 2 463.5 PBIDT 500.4 506.2 880.1 960.1 (8) 1,721.8 PBIDT Mar

  37. Slide 37: Profitability Snapshot

    Profitability Snapshot Standalone Consolidated ( ` Crore) FY FY FY H1 FY FY FY H1 2009-10 * 2010-11 2011-12 2012-13 2009-10 2010-11 2011-12 2012-13 Net Turnover & Op. Income 8,313 4,640 4,970 2,612 20,195 21,550 25,236 13,431 PBIDT 2,972 1,817 1,722 880 6,322 5,395 6,320 3,273 PBIDT Margin (%) 34.8

  38. Slide 38: Consolidated Businesswise Performance – Quarter 2

    Consolidated Businesswise Performance – Quarter 2 (` Crore) PBIDT Margin Capital ROAvCE (%) Business Revenue PBIDT PBIT (%) Employed (PBIT basis) 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 Cement * 4,970 4,192 1,112 691 22.2 16.3 860 454 24,434 20

  39. Slide 39: Consolidated Businesswise Performance – Half Year

    Consolidated Businesswise Performance – Half Year (` Crore) PBIDT Margin Capital ROAvCE (%) Business Revenue PBIDT PBIT (%) Employed (PBIT basis) 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 Cement * 10,330 8,781 2,503 1,950 24.0 22.0 2,003 1,476 24

  40. Slide 40: Viscose Staple Fibre: Summary

    Viscose Staple Fibre : Summary Quarter - 2 % Half Year % Full Year 2012-13 2011-12 Change 2012-13 2011-12 Change 2011-12 Capacity TPA 3,52,225 3,33,975 5 3,52,225 3,33,975 5 3,33,975 Production MT 79,798 83,516 (4) 1,63,202 1,53,414 6 3,21,085 Sales Volumes MT 85,312 78,959 8 1,62,324 1,33,798 21 3,

  41. Slide 41: Chemical: Summary

    Chemical : Summary Quarter - 2 % Half Year % Full Year 2012-13 2011-12 Change 2012-13 2011-12 Change 2 2011-12 0 Capacity TPA 2,58,000 2,58,000 2,58,000 2,58,000 2,58,000 Production MT 63,627 65,907 (3) 1,32,793 1,23,287 8 2,60,326 Sales Volumes MT 65,500 67,321 (3) 1,34,966 1,21,745 11 2,65,816 Net

  42. Slide 42: Cement: Summary

    Cement : Summary Quarter 2 % Half Year % Full Year 2012-13 2011-12 Change 2012-13 2011-12 Change 2011-12 Grey Cement Capacity Mn. TPA 51.75 51.75 51.75 51.75 51.75 Production Mn. MT 9.65 9.51 1 20.41 19.83 3 42.11 Cement Sales Volumes $ Mn. MT 9.74 9.76 20.57 20.10 2 42.60 Clinker Sales Volumes Mn.

  43. Slide 43: Press Release: Grasim Reports Improved Financial Results for Q2 FY12-13

    Press Release Mumbai, 29th October, 2012 Grasim Reports Improved Financial Results for Q2 FY12-13 Consolidated Net Revenue : ` 6,602 Cr. up 15% Consolidated PBIDT : ` 1,505 Cr. up 33% Consolidated Net Profit :` 620 Cr. up 48% Capacity addition under implementation - VSF : 146K TPA (up 40%) - Cement

  44. Slide 44: Press Release: Chemical Business and Capex

    Chemical Business The Chemical business also performed well with improvement in ECU realisations. However, capacity utilization across industry was impacted due to lower Chlorine off take in markets. As a result caustic prices remained firm. Caustic sales volumes were marginally down by 3% to 65,500

  45. Slide 45: Unaudited Consolidated Financial Results

    UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30-09-2012 PART I: STATEMENT OF CONSOLIDATED UNAUDITED RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30-09-2012 ` Crore Three Months Ended Six Months Ended Year Ended Particulars 30-09-2012 30-06-2012 30-09-2011 30-09-2012 30

  46. Slide 46: Unaudited Consolidated Segment Wise Results

    UNAUDITED CONSOLIDATED SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER AND HALF YEAR ENDED 30-09-2012 ` Crore Particulars Three Months Ended Six Months Ended Year Ended 30-09-2012 30-06-2012 30-09-2011 30-09-2012 30-09-2011 31-03-2012 (Unaudited) (Unaudited) (Unaudited) (Unaudited

  47. Slide 47: Consolidated Statement of Assets and Liabilities

    GRASIM INDUSTRIES LIMITED Consolidated Statement of Assets and Liabilities as on 30th September, 2012: ` Crore AS AT PARTICULARS 30-09-2012 31-03-2012 (Unaudited) (Audited) A. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital 91.76 91.72 (b) Share Capital (Other than Equity) 44.25 41.9

  48. Slide 48: Notes to Results

    GRASIM INDUSTRIES LIMITED NOTES: 1. The Company has opted to publish Consolidated Financial Results. Key numbers of Standalone Financial Results of the Company for the quarter and half year ended 30th September, 2012 are as under: ` Crore Particulars Three Months Ended Six Months Ended Year Ended 30

  49. Slide 49: Notes to Results (Contd)

    GRASIM INDUSTRIES LIMITED 6. During the quarter, the Company has allotted 19,019 fully paid up equity shares of ` 10 each upon exercise of stock options granted under the Employee Stock Option Scheme, 2006. 7. a. Previous periods’figures have been regrouped / rearranged wherever necessary to conform

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