Dcm Shriram Limited · NSE:DCMSHRIRAM
Dcm Shriram — Q4 FY23 Earnings Presentation
29 slides from Dcm Shriram's earnings presentation, May 2, 2023
Slide 1: DCM Shriram Ltd. Q4 FY23 Results Presentation
DCM Shriram Ltd. Q4 FY23 - Results Presentation May 2, 2023
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 Management Message & Q4 FY23 FY23 Segments Financial Snapshot 4 Financial Snapshot 9 Management’s Message 13 Revenue Drivers 5 Revenue Drivers 10 Our Businesses 14 PBDIT Drivers 6 PBDIT Drivers 11 Chloro-Vinyl Businesses 15-19 Returns & Leverage 7 Segment Performance 12 Sugar 20-22
Slide 4: Financial Snapshot – Q4 FY23
Financial Snapshot – Q4 FY23 Revenue (Net) * PBDIT PAT -3% -44% -53% 2,796 2,720 663 372 401 187 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 PBIT Finance Cost ** Depreciation -50% -32% 17% 17 602 12 71 61 301 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Net Debt as on 31st March, 2023 is Rs 681 cr vs Rs 4 cr as on
Slide 5: Revenue Drivers – Q4 FY23
Revenue Drivers – Q4 FY23 Chemicals Vinyl Sugar -13% -44% 24% 865 750 297 939 168 755 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 • ECU down 17% YoY • PVC and Carbide prices lower by 35% and 26% • Sugar volumes up at 16.7 vs 13.2 lac qtls • Volumes up by ~2% YoY respectively • Distillery volumes up at 351 v
Slide 6: PBDIT Drivers – Q4 FY23
PBDIT Drivers – Q4 FY23 Chemicals Vinyl Sugar -53% 10% 369 122 193 213 174 1 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 • Lower earnings led by decline in ECUs • Lower earnings led by significantly lower product • Earnings led by better product prices especially • Inputs costs esp. energy prices have start
Slide 7: Returns & Leverage
Returns & Leverage PBDIT/ Net Sales (%) Gross Debt (GD) & Cash Surplus (CS) -Rs/Cr GD CS GD -10.0 CS 23.7 1,509 1,505 1,633 13.7 952 Q4'22 Q4'23 Q4'22 Q4'23 ROCE (%) Capital Employed (Rs/Cr) -6.4 614 5,064 5,678 33.7 27.3 Q4'22 Q4'23 Q4'22 Q4'23 Note: All nos / ratios are on consolidated basis. ROCE
Slide 8: Segment Performance – Q4 FY23
Segment Performance – Q4 FY23 Rs/Cr Revenues PBIT PBIT Margins % Segments YoY % YoY % Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Change Change Chloro-Vinyl 918 1,162 (21) 147 465 (68) 16 40 Sugar * 939 755 24 189 173 9 20 23 SFS 66 112 (41) (12) 1 - - 1 Fenesta 173 153 13 28 28 1 16 18 Bioseed 84 61 38 (27
Slide 9: Financial Snapshot – FY23
Financial Snapshot – FY23 Revenue (Net) * PBDIT PAT -9% -15% 20% 11,547 1,888 1,726 1,067 911 9,627 FY22 FY23 FY22 FY23 FY22 FY23 PBIT Finance Cost ** Depreciation -11% 9% -38% 1,650 85 260 1,466 238 53 FY22 FY23 FY22 FY23 FY22 FY23 * Net revenue includes operating income. Net of excise duty of Rs 5
Slide 10: Revenue Drivers – FY23
Revenue Drivers – FY23 Chemicals Vinyl Sugar 27% -31% 21% 3,184 1,119 2,498 769 2,994 2,474 FY22 FY23 FY22 FY23 FY22 FY23 • ECU up 26% YoY led by prices of Lye, primarily in • PVC and Carbide prices lower by 27% and 18% • Revenue growth was mainly led by higher sugar first 9M. respectively vs LY vol
Slide 11: PBDIT Drivers – FY23
PBDIT Drivers – FY23 Chemicals Vinyl Sugar 15% -84% -20% 1,010 493 875 400 81 322 FY22 FY23 FY22 FY23 FY22 FY23 • Higher ECU prices in the first 9M of the year • Earnings were significantly impacted due to • Increase in Sugarcane prices in last season not • Higher input costs viz. energy and salt im
Slide 12: Segment Performance – FY23
Segment Performance – FY23 Rs/Cr Revenues PBIT PBIT Margins % Segments YoY % YoY % FY23 FY22 FY23 FY22 FY23 FY22 Change Change Chloro-Vinyl 3,954 3,616 9 983 1,267 (22) 25 35 Sugar * 2,994 2,474 21 237 323 (27) 8 13 SFS 1,034 949 9 184 135 36 18 14 Fenesta 696 529 32 121 69 77 17 13 Bioseed 483 406
Slide 13: Management’s Message
Management’s Message Commenting on the performance for the quarter and period ending March 2023, in a joint statement, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managing Director, said: The world economy is still recovering from the unprecedented
Slide 14: Our Businesses
Our Businesses Value Chloro-Vinyl Agri Added Businesses Businesses Businesses Fenesta Caustic Sugar Building Soda (1,869 (41,000 Systems TPD) TCD) (8,600 TPA) Aluminum Co-Gen Chloride (166 MW) (75 TPD) Distillery . PVC Resins (440 KLD)* India (220 TPD) + (120 KLD)** Other Calcium Businesses Fertiliz
Slide 15: Chloro Vinyl Business
Chloro Vinyl Business Revenues PBIT Cap. Employed Particulars (Rs/ Cr) (Rs/Cr) (Rs/Cr) Q4 FY23 917.8 147.0 3,122.0 Q4 FY22 1,161.6 465.4 1,912.1 % Shift (21.0) (68.4) 63.3 FY23 3,953.7 983.4 3,122.0 FY22 3,616.5 1,266.6 1,912.1 % Shift 9.3 (22.4) 63.3 Capital employed includes CWIP of Rs 1,715 cr at
Slide 16: Chemicals
Chemicals Operational Financial ECU Caustic Sales Revenues PBIT Particulars Realisations PBIT Margin % (MT) (Rs/Cr) (Rs/Cr) (Rs/MT) Q4 FY23 1,57,173 37,687 750.3 150.2 20.0 Q4 FY22 1,54,571 45,420 864.7 347.3 40.2 % Shift 1.7 (17.0) (13.2) (56.7) (50.1) FY23 5,96,769 43,629 3,184.5 919.1 28.9 FY22 5
Slide 17: Chemicals
Chemicals Both demand and ECU prices were under pressure owing to recessionary trends impacting demand, capacity utilisation picking up in Europe and China and new capacity additions in India. This further aggravated as Industry domestically the end use industries except alumina refineries are exp
Slide 18: Vinyl
Vinyl Operational Financial PVC XWR Carbide XWR PVC Sales Carbide Sales Revenues PBIT PBIT Margin Particulars Realisations Realisations (MT) (MT) (Rs/Cr) (Rs/Cr) (% ) (Rs/MT) (Rs/MT) Q4 FY23 12,523 86,985 6,466 77,625 167.5 -3.3 -1.9 Q4 FY22 17,001 1,34,574 5,571 1,04,221 296.9 118.1 39.8 % Shift (2
Slide 19: Vinyl
Vinyl India PVC demand has surpassed the pre pandemic levels. Imports continue to be higher given the poor demand Industry from construction sector in China, US & Europe. Overview Matters of anti dumping duty and reduction in customs duty still remain unaddressed by the Govt. Plant operating a
Slide 20: Sugar
Sugar Revenues PBIT PBIT Margin Cap. Employed Particulars (Rs/Cr) (Rs/Cr) (% ) (Rs/Cr) Q4 FY23 939.2 188.7 20.1 3,353.7 Q4 FY22 754.8 173.3 23.0 2,954.2 % Shift 24.4 8.9 (12.5) 13.5 FY23 2,993.9 237.0 7.9 3,353.7 FY22 2,473.7 322.7 13.0 2,954.2 % Shift 21.0 (26.6) (39.3) 13.5 * Net of excise duty on
Slide 21: Sugar
Sugar Operational Sugar Sugar Sales Sugar Power XWR Power Sales Distillery Sales Distillery XWR Particulars Production (Domestic) (Domestic) (Rs/ unit) (Lac Units) (Lac Ltrs) (Rs/ Ltrs) (Lac Qtls) (Lac Qtls) XWR (Rs/Qtl) (Lac Units) Q4 FY23 35.5 13.3 3,499 1,524 3.7 350.9 60.0 Q4 FY22 30.2 11.6 3,49
Slide 22: Sugar
Sugar Revenues for Q4 FY23 up 24% YoY (FY23 up 21%) o Sugar volumes were up due to higher domestic releases and exports. o Domestic prices for Q4 FY23 up marginally at Rs/ qtl 3499 vs 3490 LY and for FY23 up at Rs/ qtl 3554 vs 3475 LY. o Exports of 3.34 lac qtl @ Rs 3864 Rs/ qtl vs. 1.6 lac qtl @
Slide 23: Shriram Farm Solutions
Shriram Farm Solutions Revenues PBIT PBIT Margin Cap. Employed Particulars (Rs/Cr) (Rs/Cr) (% ) (Rs/Cr) Q4 FY23 66.2 (11.8) (17.9) 50.6 Q4 FY22 112.0 1.0 0.9 15.1 % Shift (40.9) - - 234.9 FY23 1,033.5 183.6 17.8 50.6 FY22 948.9 134.6 14.2 15.1 % Shift 8.9 36.4 25.2 234.9 The products includes Seeds,
Slide 24: Fenesta Building Systems
Fenesta Building Systems Operational Financial Order Book (Rs/Cr) Revenues PBIT PBIT Margin Particulars Retail Projects Total (Rs/Cr) (Rs/Cr) (% ) Q4 FY23 112.3 122.8 235.1 172.5 28.3 16.4 Q4 FY22 104.6 108.4 213.0 153.3 27.9 18.2 % Shift 7.3 13.3 10.4 12.6 1.3 (10.0) FY23 408.0 417.7 825.7 695.5 12
Slide 25: Bioseed
Bioseed Revenues (Rs/Cr) PBIT PBIT Margin Cap. Employed Particulars India International Total (Rs/Cr) (% ) (Rs/Cr) Q4 FY23 39.6 44.0 83.6 (26.7) (32.0) 405.0 Q4 FY22 40.2 20.5 60.7 (51.7) (85.1) 391.7 % Shift (1.6) 114.5 37.6 - - 3.4 FY23 351.2 131.9 483.1 (9.0) (1.9) 405.0 FY22 283.8 122.2 406.0 (7
Slide 26: Fertilizers (Urea)
Fertilizers (Urea) Operational Financial Sales Realisations Revenues PBIT PBIT Margin Cap. Employed Particulars (MT) (Rs/MT) (Rs/Cr) (Rs/Cr) (% ) (Rs/Cr) Q4 FY23 1,11,270 35,956 428.5 25.4 5.9 308.8 Q4 FY22 1,06,673 40,693 446.7 16.9 3.8 478.3 % Shift 4.3 (11.6) (4.1) 49.7 56.1 (35.4) FY23 3,97,933
Slide 27: Other Businesses
Other Businesses The ‘Others’ Segment in the financial results, includes Cement, Vinyl compounding business and Hariyali Kisaan Bazaar. Revenues under ‘Others’ stood at Rs 139 cr in Q4 FY23 from Rs 144 cr in LY. PBIT for the quarter stood at -ve Rs 8 cr vs. –ve Rs 3 cr in LY. 27
Slide 28: Cement
Cement Operational Financial Sales Realisations Revenues PBIT PBIT Margin Particulars (MT) (Rs/MT) (Rs/Cr) (Rs/Cr) (% ) Q4 FY23 1,14,254 3,970 54.2 (8.1) (14.9) Q4 FY22 1,10,724 3,759 50.0 (8.0) (16.0) % Shift 3.2 5.6 8.5 - - FY23 3,69,417 4,030 181.7 (49.0) (27.0) FY22 4,06,874 3,706 181.4 (23.5) (
Slide 29: About Us & Investor Contacts
DCM Shriram Ltd. is a diversified and an integrated business entity, with extensive and growing presence across the Agri Rural value chain and Chloro- Vinyl industry. The Company also has an innovative value-added business Fenesta. Access to captive power at all key manufacturing units enables the b