Dcm Shriram Limited · NSE:DCMSHRIRAM
Dcm Shriram — Q3 FY2024 Earnings Presentation
29 slides from Dcm Shriram's earnings presentation, Jan 31, 2024
Slide 1: Q3 FY 2024 - Results Presentation
DCM Shriram Ltd. Q3 FY 2024 - Results Presentation January 31, 2024
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 & Q3 FY24 9M FY24 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 15-19 Returns & Leverage 7 Segment Performance 12 Sugar 20-22 Segment
Slide 4: Financial Snapshot – Q3 FY24
Financial Snapshot – Q3 FY24 Revenue (Net) * PBDIT PAT -6% -18% -30% 3,236 3,035 342 588 240 480 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 PBIT Finance Cost ** Depreciation -23% 18% 17% 522 77 404 13 15 66 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 ❑ Net Debt as on 31st December, 2023 is Rs 314 crs vs Rs 681 crs
Slide 5: Revenue Drivers – Q3 FY24
Revenue Drivers – Q3 FY24 Chemicals Vinyl Sugar * -29% -37% 22% 757 891 535 203 728 128 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 • Higher Sugar prices, up 10% • Lower revenues largely led by lower ECU prices • PVC volumes & prices lower by 29% & 12% respectively (down 40% YoY) • Higher distillery volumes
Slide 6: PBDIT Drivers – Q3 FY24
PBDIT Drivers – Q3 FY24 Chemicals Vinyl Sugar -71% 85% 218 19 188 -7 102 63 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 • Led by subdued prices of both carbide and PVC, • Led by higher volumes & prices of both sugar & • Led by significantly lower ECU prices partially ethanol. Sugar margins were also better
Slide 7: Returns & Leverage
Returns & Leverage PBDIT/ Net Sales (%) Gross Debt (GD) & Cash Surplus (CS) -Rs/Cr GD CS GD CS GD -2.3 CS 18.2 15.8 14.9 1,510 1,611 1,582 1,633 1,268 952 Q3'23 Q3'24 FY'23 Q3'23 Q3'24 FY'23 ROCE (%) Capital Employed (Rs/Cr) -17.5 -142 33.5 5,678 27.3 16.1 4,965 4,823 Q3'23 Q3'24 FY'23 Q3'23 Q3'24 F
Slide 8: Segment Performance – Q3 FY24
Segment Performance – Q3 FY24 Revenues PBIT PBIT Margins % Segments YoY % YoY % Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Change Change Chloro-Vinyl 663 960 (31) 25 210 (88) 4 22 Sugar * 891 728 22 163 81 101 18 11 Fenesta 214 179 20 36 34 5 17 19 SFS 596 512 17 179 142 26 30 28 Fertilizer 418 652 (36) 23
Slide 9: Financial Snapshot – 9M FY24
Financial Snapshot – 9M FY24 Revenue (Net)* PBDIT PAT -3% -41% -55% 8,827 8,523 1,354 724 800 329 9M'23 9M'24 9M'23 9M'24 9M'23 9M'24 PBIT Finance Cost ** Depreciation -50% 35% 18% 1,165 55 223 41 189 577 9M'23 9M'24 9M'23 9M'24 9M'23 9M'24 * Net revenue includes operating income. Net of excise duty
Slide 10: Revenue Drivers – 9M FY24
Revenue Drivers – 9M FY24 Chemicals Vinyl Sugar -35% -27% 37% 2,434 2,819 1,581 602 2,055 439 9M'23 9M'24 9M'23 9M'24 9M'23 9M'24 • Domestic Sugar volumes are higher by 29% • Lower revenues led by lower ECU prices by 41% • PVC prices lower by 23%, volumes down by 6% • Dstillery volumes higher by 49%
Slide 11: PBDIT Drivers – 9M FY24
PBDIT Drivers – 9M FY24 Chemicals Vinyl Sugar -84% 168% -100% 292 836 80 137 109 9M'23 9M'24 9M'23 9M'24 9M'23 9M'24 • Led by sharp reduction in ECU prices • Earnings under pressure due to lower product prices • Higher prices & volumes across sugar, ethanol and • Energy costs lower compared to last
Slide 12: Segment Performance – 9M FY24
Segment Performance – 9M FY24 Revenues PBIT PBIT Margins % Segments YoY % YoY % 9M'24 9M'23 9M'24 9M'23 9M'24 9M'23 Change Change Chloro-Vinyl 2,020 3,036 (33) 45 836 (95) 2 28 Sugar * 2,819 2,055 37 215 48 346 8 2 Fenesta 614 523 17 109 93 17 18 18 SFS 1,112 967 15 233 195 19 21 20 Fertilizer 1,165
Slide 13: Management’s Message
Management’s Message Commenting on the performance for the quarter and period ending December 2023, in a joint statement, Mr. Ajay Shriram, Chairman & Senior Managing Director and Mr. Vikram Shriram, Vice Chairman & Managing Director, said: For the last couple of years global economy has been expose
Slide 14: Our Businesses
Our Businesses Chloro-Vinyl Agri Value Added Businesses Businesses Businesses Fenesta Caustic Soda Sugar (41,000 Building (1,869 TPD) TCD) Systems (12,284 TPA) Aluminum Co-Gen Chloride (166 MW) (150 TPD) Distillery . PVC Resins (310 KLD)* (220 TPD) + (250 KLD)** Other Businesses Calcium Fertilizers
Slide 15: Chloro Vinyl Business
Chloro Vinyl Business Revenues PBIT Cap. Employed Particulars (Rs/ Cr) (Rs/Cr) (Rs/Cr) Q3 FY24 663.1 25.1 3,987.8 Q3 FY23 960.1 209.5 2,730.2 % Shift (30.9) (88.0) 46.1 9M FY24 2,020.3 45.0 3,987.8 9M FY23 3,035.9 836.4 2,730.2 % Shift (33.5) (94.6) 46.1 Capital employed includes CWIP of Rs 2,407 cr
Slide 16: Chemicals
Chemicals Operational Financial ECU Caustic Sales Revenues PBIT Particulars Realisations PBIT Margin % (MT) (Rs/Cr) (Rs/Cr) (Rs/MT) Q3 FY24 1,49,492 26,263 535.1 36.0 6.7 Q3 FY23 1,41,087 43,883 756.6 194.5 25.7 % Shift 6.0 (40.2) (29.3) (81.5) (73.9) 9M FY24 4,32,161 27,112 1,580.9 58.1 3.7 9M FY23
Slide 17: Chemicals
Chemicals ▪ Globally prices remained rangebound with United States witnessing some capacity shut downs & lower stocks towards the year end and Europe witnessing lower demand and may look for reducing production. China continue to operate at higher rates in spite of slowing demand & therefore diverte
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) Q3 FY24 12,200 74,147 5,170 63,284 128.0 (10.9) - Q3 FY23 17,228 84,119 6,146 79,039 203.5 15.0 7 % Shift (29.2) (11.9
Slide 19: Vinyl
Vinyl ▪ Global demand of PVC continued to be sluggish led by slow down in housing sector Industry ▪ India registered a growth in PVC demand however due to excessive imports from China the domestic prices Overview continued to be subdued ▪ Capacity utilization for Q3 FY24 at 60% vs 94% LY (due to shu
Slide 20: Sugar
Sugar Revenues * PBIT PBIT Margin Cap. Employed Particulars (Rs/Cr) (Rs/Cr) (%) (Rs/Cr) Q3 FY24 891.1 162.7 18.3 2,741.8 Q3 FY23 727.9 81.1 11.1 2,634.7 % Shift 22.4 100.7 63.9 4.1 9M FY24 2,819.0 215.1 7.6 2,741.8 9M FY23 2,054.7 48.3 2.4 2,634.7 % Shift 37.2 345.5 224.7 4.1 * 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) Q3 FY24 20.9 14.7 3,954 1,004 3.8 348.6 56.2 Q3 FY23 16.5 11.9 3,60
Slide 22: Sugar
Sugar ▪ Revenues for Q3 FY24 up 22% YoY (9M FY24 up 37%) led by both volumes & prices across sugar & ethanol o Domestic sugar prices for Q3 FY24 up at Rs/ qtl 3,954 vs 3,600 LY and for 9M FY24 up at Rs/ qtl 3,786 vs 3,574 LY o Domestic sugar volumes up 24% (9M FY24 up 29%) led by higher releases, pa
Slide 23: Fenesta Building Systems
Fenesta Building Systems Operational Financial Order Book (Rs/Cr) Revenues PBIT PBIT Margin Particulars Retail Projects Total (Rs/Cr) (Rs/Cr) (%) Q3 FY24 146.2 71.3 217.5 213.9 36.2 16.9 Q3 FY23 128.0 72.2 200.1 178.8 34.5 19.3 % Shift 14.2 (1.1) 8.7 19.6 5.0 (12.2) 9M FY24 453.5 277.3 730.8 614.4 1
Slide 24: Shriram Farm Solutions
Shriram Farm Solutions Revenues PBIT PBIT Margin Cap. Employed Particulars (Rs/Cr) (Rs/Cr) (%) (Rs/Cr) Q3 FY24 596.1 178.8 30.0 37.2 Q3 FY23 511.5 142.0 27.8 84.2 % Shift 16.5 25.9 8.1 (55.8) 9M FY24 1,112.3 232.7 20.9 37.2 9M FY23 967.3 195.4 20.2 84.2 % Shift 15.0 19.1 3.6 (55.8) The products incl
Slide 25: Fertilizers (Urea)
Fertilizers (Urea) Operational Financial Sales Realisations Revenues PBIT PBIT Margin Cap. Employed Particulars (MT) (Rs/MT) (Rs/Cr) (Rs/Cr) (%) (Rs/Cr) Q3 FY24 1,08,804 37,117 418.0 22.7 5.4 (46.3) Q3 FY23 1,12,266 54,073 652.2 89.4 13.7 448.4 % Shift (3.1) (31.4) (35.9) (74.7) (60.4) - 9M FY24 3,1
Slide 26: Bioseed
Bioseed Revenues (Rs/Cr) PBIT PBIT Margin Cap. Employed Particulars Bioseed India Subsidiaries Total (Rs/Cr) (%) (Rs/Cr) Q3 FY24 95.5 42.2 137.7 8.0 5.8 468.8 Q3 FY23 74.3 32.3 106.6 2.6 2.4 430.8 % Shift 28.6 30.8 29.2 210.5 140.3 8.8 9M FY24 372.7 105.7 478.4 30.2 6.3 468.8 9M FY23 311.7 87.9 399.
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 142 crs in Q3 FY24 vs Rs. 131 crs in LY(9M FY24 at Rs. 406 crs vs Rs. 386 crs LY). ➢ PBIT for the quarter stood at Rs. 4 crs
Slide 28: Cement
Cement Operational Financial Sales Realisations Revenues PBIT PBIT Margin Particulars (MT) (Rs/MT) (Rs/Cr) (Rs/Cr) (%) Q3 FY24 1,15,206 4,052 57.6 1.7 3.0 Q3 FY23 96,008 3,996 45.9 (7.6) - % Shift 20.0 1.4 25.6 - - 9M FY24 3,21,671 3,991 158.6 (7.4) - 9M FY23 2,55,163 4,053 127.5 (40.9) - % Shift 26
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 bu