Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q4 FY23 Earnings Presentation
45 slides from Grasim Industries's earnings presentation, May 26, 2023
Slide 1: Exchange filing cover letter for results presentation
Ref No. GIL/CFD/SEC/24/051/SE 26th May 2023 BSE Limited National Stock Exchange of India Limited Dalal Street, Exchange Plaza, 5th Floor, Plot No. C/1, Phiroze Jeejeebhoy Towers, G Block, Bandra - Kurla Complex, Fort, Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Scrip Code: 500300 Symbol: GRASIM
Slide 2: Grasim Industries Limited Q4FY23 Earnings Presentation
GRASIM INDUSTRIES LIMITED Q4FY23 EARNINGS PRESENTATION MAY 2023
Slide 3: Stronglomerate - Big in Your Life
STRONGLOMERATE - BIG IN YOUR LIFE STANDALONE BUSINESSES SUBSIDIARIES 57.27% 54.15% 100% ❖ Market leader in VISCOSE STAPLE FIBRE and VISCOSE # 1 Viscose FILAMENT YARN ❖ Focus on Innovation through SPECIALITY FIBRES ❖ Largest Pan-India player in CHLOR-ALKALI # 1 Chlor-Alkali ❖ One of the most SUSTAINA
Slide 4: Value Creation Strategy
VALUE CREATION STRATEGY PILLARS OF OUR STRATEGY LEADERSHIP ACROSS CAPITAL COST INNOVATION SUSTAINABILITY BUSINESSES ALLOCATION LEADERSHIP Attain Focus Conserve Investment in Continuous Leadership Premiumisation Environment Core and High Growth Cost Optimisation position in all our through innovation
Slide 5: Our Brand Ecosystem
OUR BRAND ECOSYSTEM VISCOSE CHEMICALS TEXTILES * OTHER SUCCESSFUL BRANDS CREATED BY KEY SUBSIDARIES * Using these brands under a license from Soktas Tekstil Sanayi Ve Ticaret Anonim Sirketi in key territories including India, Bangladesh and Nepal & other long list of B2B & B2C brands Grasim Industri
Slide 6: LIVA - Brand to Quality
LIVA - BRAND TO QUALITY LIVA Tagged leading brands LIVA Tagging (Million) SS23 AW23* *WIP for AW 37 SS22 AW22 58 SS21 AW21 53 SS20 AW20 46 SS – Spring Summer (October – March) AW - Autumn Winter (April – September) Grasim Industries Limited | Earnings Presentation | Q4 FY23 | 5
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS Grasim Industries Limited | Earnings Presentation | Q4 FY23 |
Slide 8: Performance Highlights Q4FY23
PERFORMANCE HIGHLIGHTS Q4FY23 Consolidated Revenue up 16% YoY to ₹33,462 Cr.; EBITDA at ₹4,873 Cr. (up 5% YoY) • EBITDA down due to softening of realisation in key Standalone businesses Standalone Revenue up 4% YoY to ₹6,646 Cr. and EBITDA stood at ₹542 Cr. (down 35% YoY) • EBITDA was impacted by su
Slide 9: Consolidated Performance Highlights
CONSOLIDATED PERFORMANCE HIGHLIGHTS Q4FY23 Revenue (₹ Cr.) EBITDA (₹ Cr.) Adjusted PAT^ (₹ Cr.) 1,419 1,369 33,462 28,811 28,638 4,647 4,873 1,024* 3,834* Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 FY23 Revenue (₹ Cr.) EBITDA (₹ Cr.) Adjusted PAT^ (₹ Cr.) 1,17,627 17,772 17,723*
Slide 10: Standalone Performance Highlights
STANDALONE PERFORMANCE HIGHLIGHTS Q4FY23 Revenue (₹ Cr.) EBITDA (₹ Cr.) Adjusted PAT^ (₹ Cr.) 6,646 840 365 6,376 6,196 580 542 257 94 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 FY23 Revenue (₹ Cr.) EBITDA (₹ Cr.) Adjusted PAT^ (₹ Cr.) 2,247 2,212 26,840 4,111 4,198 20,857 12,386
Slide 11: Improving Sustainability Performance: FY23
IMPROVING SUSTAINABILITY PERFORMANCE : FY23 RE Power FY23 - 8% FY22 - 5% Fresh Water Consumption Intensity 15% Lower YoY GHG Emission Intensity 6%^ Reduction ^From the baseline year of FY19 Grasim Industries Limited | Earnings Presentation | Q4 FY23 | 10
Slide 12: Awards & Achievements
AWARDS & ACHIEVEMENTS ❖ Grasim won Sustainability 100+ Leadership Award under category “Water Stewardship” organised by Network18 ❖ Birla Cellulose won 2022 Excellence Awards in Innovation from Just-Style.com ❖ Renukoot unit of Chlor-Alkali business received Gold Award for the 3rd time in a row and
Slide 13: Capex Plan
CAPEX PLAN Capex Spent Capex Spent Particulars (₹ Cr.) Q4FY23 FY23 Viscose Business 309 951 Capacity Expansion (including debottlenecking) 88 313 Modernisation and Maintenance Capex 221 638 Chemicals Business (A+B+C) 607 1,215 (A) Capacity Expansion - Chlor-Alkali & Chlorine Derivatives 327 500 Caus
Slide 14: Strong Balance Sheet
STRONG BALANCE SHEET Standalone (₹ Cr.) Consolidated (₹ Cr.) Net Debt/ 0.44 (0.13) 0.42 Net Debt/ 0.55 0.24 0.39 EBITDA EBITDA 25,879 5,254 4,163 4,304 17,899 15,727 17,249 4,857 3,474 11,427 10,922 3,249 1,780 8,630 6,978 914 4,300 (553) FY21 FY22 FY23 FY21 FY22 FY23 Debt Liquid Investments Net Deb
Slide 15: Capital Allocation - Standalone
CAPITAL ALLOCATION - STANDALONE Sources of Funds (₹ Cr.) Application of Funds (₹ Cr.) 5,555 3,436 5,539 4,132 4,150 2,532 3,400 1,183 3,293 4,011 329 268 1,641 179 262 592 955 650 3,269 346 1,341 1,617 657 1,590 1,256 229 407 940 643 669 (146) (1,112) (538) (954) FY21 FY22 FY23 FY21 FY22 FY23 Capita
Slide 16: Viscose
VISCOSE Grasim Industries Limited | Earnings Presentation | Q4 FY23 |
Slide 17: Inter Fibre Dynamics
INTER FIBRE DYNAMICS GLOBAL INDIA Synthetic Cotton Viscose Synthetic Cotton Viscose 4% CAGR 13% CAGR 0.3% CAGR 1% CAGR 3.1% CAGR 3% CAGR 2015 2022 2015 2022 Viscose demand in India is increasing at a faster pace led by intensive business development initiatives and support to textile value chain u
Slide 18: Macro Trends - Viscose
MACRO TRENDS - VISCOSE China Operating Rate (%) China Inventory (in Days) 80 69 27 66 24 23 Q3FY23 Q4FY23 Mar-23 Q3FY23 Q4FY23 Mar-23 Global Prices Trend ($/Kg) Price YoY QoQ Mar Exit Price 4.10 Movement (%) (%) (D over Q4FY23) 3.60 Grey VSF - 1.68 $/Kg 3.10 -6% 4% CCF ( 2% ) 2.60 2.10 2.10 $/Kg Cot
Slide 19: Key Operational Metrics
KEY OPERATIONAL METRICS VSF Sales (KT) Sales Volume Mix (VSF) 18% Export Sales Standard Fibre 711 9% 81% 602 179 192 153 FY23 FY23 91% 19% Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Domestic Sales Speciality Fibre VFY Sales (KT) Highest ever VSF Sales volumes of 711 KT in FY23 44.0 44.0 VSF capacity utilisation
Slide 20: Operating Performance - Viscose
OPERATING PERFORMANCE – VISCOSE Revenue (₹ Cr.) EBITDA (₹ Cr.) 24% (40%) 15,149 1,721 12,210 252 3,766 3,764 3,182 1,031 144 63 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Viscose business revenue stood at ₹3,764 Cr. and EBITDA at ₹144 Cr. in Q4FY23 VSF EBITDA turned positive durin
Slide 21: Chemicals
CHEMICALS Grasim Industries Limited | Earnings Presentation | Q4 FY23 |
Slide 22: Growth Across Chemicals Portfolio
GROWTH ACROSS CHEMICALS PORTFOLIO CHLOR-ALKALI Capacity Expansion (KTPA) • Largest Caustic Soda producer in India. Market growing 1,530 Q3FY24 1,164 Q4FY26 246 Q2FY24 at a steady pace with demand from Alumina, Organic & 219 Inorganic Chemicals, Textiles & FMCG industries 17% 273 31% 100% 123 • Maint
Slide 23: Focus on Speciality Chemicals
FOCUS ON SPECIALITY CHEMICALS Major End - Use Applications Chlorine Integration Levels (%) SPECIALITY CHEMICALS* Integration includes chlorine consumption for HCL and pipeline sales for dedicated customers 60% CONSTRUCTION 58% 57% 57% RENEWABLES FY20 FY21 FY22 FY23 WATER TREATMENT Specialty Chemical
Slide 24: Key Operational Metrics - Chemicals
KEY OPERATIONAL METRICS - CHEMICALS CFR SEA Caustic Soda Prices ($/Ton) Grasim – ECU (₹/Ton) 33% 19% 47,258 46,685 47,951 719 694 42,136 659 36,034 518 556 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Caustic Soda Sales (KT) Revenue Break-up of Chemicals Business (%) 10% Chlor-Alkal
Slide 25: Financial Performance - Chemicals
FINANCIAL PERFORMANCE – CHEMICALS Revenue (₹ Cr.) EBITDA (₹ Cr.) 48% 32% 2,271 10,422 7,888 1,534 499 488 2,487 2,582 368 2,397 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Global caustic market remain oversupplied with subdued demand. Caustic prices reduced from $694/T CFR SEA in Q
Slide 26: New High Growth Businesses
NEW HIGH GROWTH BUSINESSES (Paints & B2B E-commerce) Grasim Industries Limited | Earnings Presentation | Q4 FY23 |
Slide 27: Decorative Paints Industry
DECORATIVE PAINTS INDUSTRY Organised Decorative Paints Industry - FY23 Market Share Estimates (%) Key Drivers Indian Decorative Organised Paint market estimated at ₹45-50,000 Cr. HOUSING DEMAND and expected to grow at 8-10% CAGR 28% URBANISATION 72% CHANGING ASPIRATIONS PREMIUMISATION Organised Unor
Slide 28: Paints: Project Progress Update
PAINTS: PROJECT PROGRESS UPDATE Plants construction progressing as planned at all six sites, all requisite approvals in place State of the art R&D laboratory and Pilot Plant fully operational Business plan implementation activities progressing for commercial launch in phases beginning Q4FY24 Overall
Slide 29: B2B E-Commerce: Business Proposition
B2B E-COMMERCE: BUSINESS PROPOSITION Value Proposition Product Categories COMPETITIVE PRICING CEMENT & STEEL SANITARYWARE, TILES, PIPES & ASSURED QUALITY FITTINGS GURANTEED DELIVERY PAINTS FINANCING SOLUTIONS DOORS, WINDOWS & KITCHEN Industry is estimated at ~$100 bn with current digital penetrati
Slide 30: B2B Ecommerce: Project Progress Update
B2B ECOMMERCE: PROJECT PROGRESS UPDATE Pilot scale operations started in Q4FY23 with satisfactory results. Full scale Platform launch is on track for launch in Q2FY24 Active development in progress across various technology workstreams - facilitating commerce transactions, enabling credit and order
Slide 31: Other Businesses
OTHER BUSINESSES (Textiles and Insulators) Grasim Industries Limited | Earnings Presentation | Q4 FY23 |
Slide 32: Financial Performance - Textiles & Insulators
FINANCIAL PERFORMANCE – Textiles & Insulators TEXTILES Revenue (₹ Cr.) EBITDA (₹ Cr.) 35% 50% 2,293 240 1,696 569 49 160 483 520 49 23 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Linen Brand • Very high brand equity value for Linen Fabric & Fabric • Largest market share in India at
Slide 33: Subsidiaries
SUBSIDIARIES Grasim Industries Limited | Earnings Presentation | Q4 FY23 |
Slide 34: Financial Performance - UltraTech
FINANCIAL PERFORMANCE - UltraTech Sales volume (Million Ton) Revenue (₹ Cr.) EBITDA (₹ Cr.) 12% 20% (7%) 105.70 63,240 12,022 11,123 93.99 52,599 FY22 FY23 FY22 FY23 FY22 FY23 Commissioned cement capacity of 5.6 MTPA in Q4FY23, taking India capacity to 126.95 MTPA Achieved milestone of 100 Mn MTPA o
Slide 35: Financial Performance - Aditya Birla Capital
FINANCIAL PERFORMANCE - Aditya Birla Capital Total Lending Book (₹ Cr.)* Revenue (₹ Cr.) PAT (₹ Cr.) 40% 23% 33% 94,364 27,416 2,057 22,230 67,308 1,545 FY22 FY23 FY22 FY23 FY22 FY23 Strong quarterly performance with accelerated growth momentum across businesses • Q4FY23 revenue at ₹8,025 Cr, higher
Slide 36: Financial Performance - Aditya Birla Renewables
FINANCIAL PERFORMANCE – Aditya Birla Renewables Aditya Birla Renewables Renewable Power Capacity (MWp) ₹ Cr. Particulars 177% 2,062 FY22 FY23 % Change Revenue ₹ Cr. 233 288 24 EBITDA ₹ Cr. 188 210 12 744 551 EBIT ₹ Cr. 129 137 6 Capital Employed ₹ Cr. 2,030 4,153 105 FY22 FY23 FY24E (Incl. CWIP) FY2
Slide 37: Appendix
APPENDIX Grasim Industries Limited | Earnings Presentation | Q4 FY23 |
Slide 38: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (₹ Cr.) Q4FY23 Q4FY22 FY23 FY22 Revenue from Operations 33,462 28,811 1,17,627 95,701 Other Income 220 180 858 821 EBITDA 4,873 4,647 17,723* 17,772 EBITDA Margin (%) 14% 16% 15% 18% Finance Cost 338 314 1,320 1,296 Depreciation 1,207 1,128 4,552 4,161 Share
Slide 39: Standalone Income Statement
STANDALONE INCOME STATEMENT Particulars (₹ Cr.) Q4FY23 Q4FY22 FY23 FY22 Revenue from Operations 6,646 6,376 26,840 20,857 Other Income 116 87 1,018 895 EBITDA 542 840 4,198 4,111 EBITDA Margin (%) 8% 13% 15% 19% Finance Cost 107 81 368 247 Depreciation 300 283 1,097 914 PBT 135 476 2,733 2,950 Add/(
Slide 40: Balance Sheet
BALANCE SHEET Standalone (₹ Cr.) Consolidated (₹ Cr.) 31st March'23 31st March'22 EQUITY & LIABILITIES 31st March'23 31st March'22 (Audited) (Audited) (Audited) (Audited) 46,955 48,616 Net Worth 78,742 75,698 - - Non Controlling Interest 44,171 40,476 - - Borrowings related to financial services 83,
Slide 41: Viscose Business Summary
VISCOSE BUSINESS SUMMARY % Change % Change Particulars Q4FY23 Q4FY22 Q3FY23 YoY QoQ Capacity VSF KTPA 824 824 0 824 - VFY KTPA 50 48 4 50 - Production VSF KT 190 177 7 147 29 VFY KT 12 11 5 12 -1 Sales Volume VSF KT 192 179 7 153 25 VFY KT 11 12 -6 10 5 Revenue ₹ Cr. 3,764 3,766 -0 3,182 18 EBITDA ₹
Slide 42: Chemicals Business Summary
CHEMICALS BUSINESS SUMMARY % Change % Change Particulars Q4FY23 Q4FY22 Q3FY23 YoY QoQ Capacity* KTPA 1,311 1,290 2 1,311 - Production* KT 286 274 4 289 -1.0 Sales Volume* KT 286 273 5 284 1 Revenue ₹ Cr. 2,397 2,487 -4 2,582 -7 EBITDA ₹ Cr. 368 499 -26 488 -25 EBIT ₹ Cr. 256 389 -34 396 -35 Capital
Slide 43: Grasim Group Structure
GRASIM GROUP STRUCTURE Grasim Industries Limited Chemicals Overseas Viscose New Businesses Textiles Subsidiaries (1,311K TPA) Pulp & VSF JVs VSF Vilayat Paints Jayshree Textile AV Group NB Inc. UltraTech Cement (824K TPA) 365K TPA (Canada) (1,332 MLPA) (57.27%)** 320K TPA (45.0%)* Vilayat Nagda Vikr
Slide 44: 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 45: Thank You
THANK YOU Investor Relations Team grasim.ir@adityabirla.com +91 22 2499 5657 Grasim Industries Limited | Earnings Presentation | Q4 FY23 |