Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q2 FY25 Earnings Presentation
42 slides from Grasim Industries's earnings presentation, Nov 14, 2024
Slide 1: Presentation on Unaudited Financial Results
Ref No. GIL/CFD/SEC/25/250/SE 14th November 2024 BSE Limited National Stock Exchange of India Limited Scrip Code: 500300 / 890190 Symbol: GRASIM / GRASIMPP1 Dear Sir/Madam, Sub: Presentation on Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter and half year end
Slide 2: Grasim Industries Limited Earnings Presentation Q2FY25
A FORCE FOR GOOD GRASIM INDUSTRIES LIMITED Earnings Presentation Q2FY25 November 2024 CREATING AND SCALING GROWTH ENGINES FOR A GROWING ECONOMY
Slide 3: Grasim's Leadership Across Key Components of Growing Economy
GRASIM’s LEADERSHIP ACROSS KEY COMPONENTS OF GROWING ECONOMY • Cellulosic Staple Fibre • Grey Cement • Cellulosic Fashion Yarn • White Cement • Linen Textiles Infrastructure • Ready Mix Concrete • Premium Cotton Aspirational & Housing • Wall Putty Fabrics Consumption Demand • Decorative Paints • Chl
Slide 4: Track Record of Consistent Growth
TRACK RECORD OF CONSISTENT GROWTH TTM Revenue TTM EBITDA TTM PAT^ ₹ 1,37,116 Cr. ₹ 20,148 Cr. ₹ 4,482 Cr. Consolidated Revenue (₹ Cr.) Consolidated EBITDA (₹ Cr.) 1,30,978 1,37,116 1,17,627 20,837 20,148 17,723* 26,840 25,847 27,685 4,198 3,573 3,467 23% 20% 20% 24% 17% 17% FY23 FY24 TTM FY23 FY24 T
Slide 5: Macro Updates
ADITYA BIRLA MACRO UPDATES
Slide 6: Macro Indicators
MACRO INDICATORS Industrial Production – IIP Growth (% YoY) India Merchandise Exports ($bn) IIP (% growth YoY) Average (FY24) 120.0 5.9 107.2 108.3 105.9 6.3 103.3 5.2 4.7 4.7 3.1 -0.1 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Manufacturing sector witnessed slowdow
Slide 7: Financial Highlights
ADITYA BIRLA FINANCIAL HIGHLIGHTS
Slide 8: Performance Highlights – Q2FY25
PERFORMANCE HIGHLIGHTS – Q2FY25 Consolidated Revenue ₹33,563 Cr. up 11% YoY; EBITDA at ₹4,042 Cr. down 10% YoY • Consolidated EBITDA was down due to lower margins in cement business and initial investments for building consumer facing Paints business Cellulosic Fibres: Highest ever CSF quarterly sal
Slide 9: Performance Highlights - Q2FY25
PERFORMANCE HIGHLIGHTS - Q2FY25 Consolidated Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT^@ (₹ Cr.) 33,861 33,563 4,509 4,760 30,221 4,042 1,164 1,189 473 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 Standalone Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT ^ (₹ Cr.) 795 771 7,623 1,619 6,442 6,894 1,35
Slide 10: Performance Highlights - H1FY25
PERFORMANCE HIGHLIGHTS - H1FY25 Consolidated Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT^@ (₹ Cr.) 67,424 61,286 9,490 8,802 2,740 1,662 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 Standalone Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT ^ (₹ Cr.) 14,517 2,143 12,680 2,037 1,150 * 655 * 1,189 719 1,488 848 H1FY24 H1FY25
Slide 11: Strong Balance Sheet
STRONG BALANCE SHEET Consolidated As on As on Particulars 31st Mar 2024 30th Sep 2024 Net worth (₹ Cr.) 88,652 92,918 Debt - Equity Ratio 0.97 1.07 Debt* - Equity Ratio 0.19 0.25 Net debt* (₹ Cr.) 15,436 23,539 Total debts to Total assets 0.33 0.35 Consolidated Net debt* to TTM EBITDA stood at 1.16x
Slide 12: Improving Sustainability Performance
IMPROVING SUSTAINABILITY PERFORMANCE* 11% 11% 52% 50% 8% 46% Increasing 44% Increasing 5% proportion of Renewable recycled water Power Share to freshwater consumption FY22 FY23 FY24 H1FY25 ^ FY22 FY23 FY24 H1FY25 ^ Awards & Achievements: ➢ Grasim achieved its highest ever S&P Global ESG score of 71
Slide 13: Cellulosic Fibres (CSF & CFY)
CELLULOSIC FIBRES (CSF & CFY)
Slide 14: Cellulosic Fibres: Fastest Growing in the Fibre Basket
CELLULOSIC FIBRES: FASTEST GROWING IN THE FIBRE BASKET GLOBAL INDIA INDIA CELLULOSIC 12.8% CAGR FIBRE GROWING 4.0% CAGR FASTEST WITH CAGR >2x 0.3% CAGR (0.8%) CAGR OF OTHER FIBRES 3.8% CAGR 4.5% CAGR CY15 CY23 CY15 CY23 Synthetic Cotton Cellulosic Fibres Synthetic Cotton Cellulosic Fibres GROWTH 6%
Slide 15: Macro Trends - Cellulosic Fibres
MACRO TRENDS - CELLULOSIC FIBRES China Operating Rate (in Percentage) China Inventory (in Days) 86 14 85 84 84 82 12 12 10 8 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Global Prices Trend ($/Kg) Price Movement 3.62 YoY QoQ Sep Exit Price Fibres (%) (%) (D over Q2FY25) 2.11
Slide 16: Key Operational Metrics
KEY OPERATIONAL METRICS CSF Sales (KT) Sales Volume Mix (CSF) Export Sales Standard Fibre 219 431 79% 210 212 397 5% Q2FY25 Q2FY25 95% 21% Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Domestic Sales Speciality Fibre CFY Sales (KT) Highest ever quarterly CSF sales volume at 219 KT, up 4% YoY 20.3 20.6 11.0 11.
Slide 17: Operating Performance – Cellulosic Fibres
OPERATING PERFORMANCE – CELLULOSIC FIBRES Revenue (₹ Cr.) EBITDA (₹ Cr.) 4,125 7,472 7,912 899 3,889 3,787 468 494 858 405 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Revenue grew 6% YoY led by volume growth and improved realisation globally EBITDA was higher by 6% YoY main
Slide 18: Chemicals
CHEMICALS (CHLOR-ALKALI, CHLORINE DERIVATIVES & SPECIALITY CHEMICALS)
Slide 19: Diversified Chemicals Portfolio
DIVERSIFIED CHEMICALS PORTFOLIO FY26 1,168 Q1FY27 CHLOR-ALKALI 1,530 172 13% 139 14% ➢ Largest Chlor-Alkali producer in India. Market growing at a steady pace with demand from Alumina, Organic & Inorganic Chemicals, Textiles & FMCG industries. 1,359 1,029 246 ➢ Maintaining Market leadership position
Slide 20: Focus on Speciality Chemicals
FOCUS ON SPECIALITY CHEMICALS MAJOR END-USE APPLICATIONS CHLORINE INTEGRATION LEVELS (%) Integration includes chlorine SPECIALITY CHEMICALS* consumption for HCL and pipeline 65% CONSTRUCTION sales for dedicated customers 62% 60% 58% RENEWABLES FY22 FY23 FY24 Q2FY25 CHEMICALS REVENUE BREAK-UP (Q2FY25
Slide 21: Key Operational Metrics - Chemicals
KEY OPERATIONAL METRICS - CHEMICALS CFR SEA Caustic Soda Prices ($/Ton)# Grasim – ECU (₹/Ton) 469 471 470 417 416 32,008 32,529 33,338 30,650 31,569 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Caustic Soda Sales (KT) Revenue Break-up of Chemicals Business (%) 306 295 598 28
Slide 22: Financial Performance - Chemicals
FINANCIAL PERFORMANCE - CHEMICALS Revenue (₹ Cr.) EBITDA (₹ Cr.) 310 1,988 2,066 2,054 4,134 4,120 273 595 583 236 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 International average Caustic soda prices (CFR-SEA) improved by 13% YoY to $471/MT in Q2FY25. However, domestic mar
Slide 23: Building Materials
BUILDING MATERIALS (CEMENT, PAINTS & B2B E-COMMERCE)
Slide 24: India Cement Industry
INDIA CEMENT INDUSTRY India is the second largest cement producer in the world, but remains a highly underpenetrated market Global Cement Production Per capita Consumption (kg/annum) 1,410-1,420 1,110-1,130 32.2% 950-970 750-770 51.1% World average: 500-550 420-470 420-430 1.6% 300-330 ~295 280-290
Slide 25: Performance Update - Cement (UltraTech)
PERFORMANCE UPDATE - CEMENT (ULTRATECH) Domestic sales volume grew 3% YoY to 26.42 million tons as against flat growth in the industry Grey cement capacity expanded by 9.9 MT till Oct’24 (YTDFY25). Expect to add another 6 MT, taking total grey cement capacity (India and Overseas) to 162.4* Mn TPA by
Slide 26: Growing India Decorative Paints Market
GROWING INDIA DECORATIVE PAINTS MARKET INDUSTRY SIZE – FY25e Estimated CAGR of UN-ORGANISED MARKET PER-CAPITA CONSUMPTION ~₹80,000 Cr. ~25% 3.5 kg (Global average of 10 kg/annum) >10% over the next decade Housing Urbanisation Demand 2nd Largest Player* in Indian Decorative Paints Industry MANUFACTUR
Slide 27: Performance Update - Paints (Birla Opus)
PERFORMANCE UPDATE - PAINTS (BIRLA OPUS) • Production steadily ramping up at three commissioned plants in Q1FY25 - Ludhiana, Panipat and Cheyyar • Business recording robust month on month growth • Trial run started at Chamarajanagar and Mahad in Q2FY25 129 products with over 900 SKUs are already pla
Slide 28: Digitisation of Construction Materials Trade
DIGITISATION OF CONSTRUCTION MATERIALS TRADE Digital shifting of Construction Materials market with end-to-end solutions (Demand prediction, Product assortment, Sourcing, Logistics and Financing) VALUE PROPOSITION PRODUCT CATEGORIES CEMENT & STEEL SANITARYWARE COMPETITIVE PRICING ASSURED QUALITY PIP
Slide 29: Performance Update - B2B Ecommerce (Birla Pivot)
PERFORMANCE UPDATE – B2B ECOMMERCE (BIRLA PIVOT) Healthy revenue scale up across categories, geographies and new customers • The business is on track to achieve revenue target of $1 billion by FY27 Continuous upgradation of the platform for seamless user experience and building new features for a co
Slide 30: Financial Performance - Building Materials
FINANCIAL PERFORMANCE - BUILDING MATERIALS Revenue (₹ Cr.) EBITDA (₹ Cr.) 18,701 35,384 2,909 5,753 16,156 16,683 34,023 2,610 4,795 1,886 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Revenue grew by 3% YoY to ₹16,683 Cr. aided by new growth businesses at standalone level •
Slide 31: Financial Services
ADITYA BIRLA FINANCIAL SERVICES
Slide 32: Performance Update - Financial Services (Aditya Birla Capital)
PERFORMANCE UPDATE - FINANCIAL SERVICES (ADITYA BIRLA CAPITAL) Revenue# (₹ Cr.) Total Lending Book (₹ Cr.)* 10,252 8,807 1,37,946 1,27,705 7,708 1,08,961 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 Consolidated Revenue stood at ₹10,252 Cr. up 33% YoY • All segments reported robust growth: NBFC up by 1
Slide 33: Other Businesses (Textiles, Insulators & Renewables)
OTHER BUSINESSES (TEXTILES, INSULATORS & RENEWABLES)
Slide 34: Financial Performance - Other Businesses
FINANCIAL PERFORMANCE - OTHER BUSINESSES Revenue (₹ Cr.) EBITDA (₹ Cr.) 798 111 109 761 778 1,515 1,576 241 154 45 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Revenue from other businesses was up 2% YoY, EBITDA down by 60% YoY mainly due to subdued performance of textiles b
Slide 35: Appendix
ADITYA BIRLA APPENDIX
Slide 36: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT *Net of Finance Cost relating to NBFC/HFC’s businesses ^PAT adjusted for exceptional items for like-to-like comparison. 35
Slide 37: Standalone Income Statement
STANDALONE INCOME STATEMENT * * *Includes Dividend Income; ^PAT adjusted for exceptional items for like-to-like comparison. 36
Slide 38: Capex Plan - Standalone
CAPEX PLAN - STANDALONE The Board has approved an investment of ₹287 Cr. (FY25 spend at ₹118 Cr.) for additional pulp capacity at Harihar and ₹20 Cr. for Textiles business ^Cumulative Capex for Paints business stood at ~₹8,470 Cr. till 30th September 2024. 37
Slide 39: Balance Sheet
BALANCE SHEET Standalone (₹ Cr.) Consolidated (₹ Cr.) 30th Sep'24 31st Mar'24 EQUITY & LIABILITIES 30th Sep'24 31st Mar'24 (Unaudited) (Audited) (Unaudited) (Audited) 55,003 52,115 Net Worth 92,918 88,652 - - Non Controlling Interest 52,804 50,286 - - Borrowings related to Financial Services 1,19,56
Slide 40: Grasim Group Structure
GRASIM GROUP STRUCTURE Grasim Industries Limited Cellulosic Fibres Chemicals New Businesses Textiles Overseas Pulp & CSF JVs Subsidiaries AV Group NB Inc. (Canada) CSF Vilayat Paints Rishra UltraTech Cement (57.27%)** (45.0%)* Domsjo (Sweden) Grey Cement Vilayat Nagda Panipat Malanpur (33.3%)* o Ind
Slide 41: Forward Looking and Cautionary Statement
FORWARD LOOKING AND CAUTIONARY STATEMENT This presentation is issued by Grasim Industries Limited (the “Company”) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constit
Slide 42: Thank You
THANK YOU Investor Relations Team grasim.ir@adityabirla.com +91 22 2499 5657