Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q2 FY2013-14 Earnings Presentation
43 slides from Grasim Industries's earnings presentation, Oct 30, 2013
Slide 1: Performance Review Quarter 2: 2013-14
Performance Review Quarter 2 : 2013-14 Grasim Industries Limited A VSF and Cement Major
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
Slide 3: Contents
Contents Highlights Business Review Financial Performance Capex Plan Summary
Slide 4: Highlights – Quarter 2
Highlights – Quarter 2 Indian economy continues to face headwinds High volatility in currency (INR /USD range in Q2: from 59.31 to 68.80 and back to 61.75) Declining growth rate o FY13 – Q1: 5.4%, Q2 : 5.2%, Q3 : 4.7%, Q4: 4.8%; Q1FY14 : 4.4% General shortage of finance impacting availabilit
Slide 5: Business Review
Business Review VSF Chemical Cement Subsidiary
Slide 6: Viscose Staple Fibre: Highlights
Viscose Staple Fibre : Highlights Quarter 2 % Global Industry Scenario Quarter 1 Change Over capacity continue to prevail in China 2013-14 2013-14 2012-13 (YoY) affecting global sentiments 377,775 Capacity - Annual (MT) 377,775 352,225 7 Surplus DG pulp capacity built at the time of 92,185* Capa
Slide 7: Viscose Staple Fibre: Highlights (Contd.)
Viscose Staple Fibre : Highlights (Contd….) Quarter 2 Cost of production maintained Quarter 1 % Change Decline in Caustic and Sulphur prices and energy 2013-14 2013-14 2012-13 (YoY) cost Standalone Business: However cost of imported pulp increased due to rupee depreciation 187 PBIDT (` Cr.) 24
Slide 8: Viscose Staple Fibre: Outlook
Viscose Staple Fibre : Outlook Rupee depreciation should improve competitiveness of Indian Textile industry In long term, VSF continues to hold favorable position in comparison to other fibres Preference for comfort fabric leading to increase in demand for high quality cellulosic fibre Risin
Slide 9: Chemical: Highlights
Chemical : Highlights Quarter 1 Quarter 2 % Industry Scenario Change 2013-14 Caustic realisation, though declined on YoY 2013-14 2012-13 (YoY) basis, improved over Q1 due to lower imports 440,500 Capacity - Annual (MT) 440,500 258,000 71 71,750* Capacity - Quarter (MT) 83,500* 64,500 29 Business P
Slide 10: Cement: Highlights
Cement : Highlights Quarter 2 Industry Scenario Quarter 1 % Change Demand growth continued to remain sluggish in 2013-14 2013-14 2012-13 (YoY) line with weak macro economic indicators Grey Cement (Mn. MT) Volume remained almost flat 41.80 Clinker capacity - Annual 45.10 38.50 17 Good monsoon 5
Slide 11: Cement: Financials
Cement : Financials Quarter Quarter 2 % Prices remained under pressure during Aug. and Sep. 1 Change Average realisation down by 7% 2013-14 2013-14 2012-13 (YoY) 5,294 Net Revenue (` Cr.) 4,870 4,972 (2) Net Revenue decline restricted to 2% with better volume of White cement and Putty 1,268 PB
Slide 12: Cement: Outlook
Cement : Outlook Demand growth in FY14 likely to be 5% linked with expected GDP growth rate at ~5% Demand growth has potential to recover to + 8% on improvement in economic environment Surplus supply scenario likely to continue over the next 3 years with capacity addition of 55 Mn. Tons by FY1
Slide 13: Financial Performance
ri —_ we i Financial Performance
Slide 14: Consolidated Revenue
Consolidated Revenue 4% 145 18 (102) 18 155 ` Crore 6849 6615 Qtr. 2 VSF & JVs* AV Chemical Cement Inter Co. Qtr. 2 2012-13 Terrace Bay # Eliminations & 2013-14 Others 6,615 155 145 18 (102) 18 6,849 * Includes revenue of Domsjo (` 128 cr) consolidated as JV as against ‘Associate’ till September 201
Slide 15: Financial Performance – Consolidated
Financial Performance – Consolidated (` Crore) Half Year % Quarter 2 % Quarter 1 2013-14 2012-13 Change 2013-14 2012-13 Change 2013-14 13,785 13,451 2 Revenue 6,849 6,615 4 6,936 11,435 10,414 10 Operating Costs 5,814 5,210 12 5,620 2,693 3,273 (18) PBIDT 1,143 1,505 (24) 1,549 214 161 33 Finance Co
Slide 16: Consolidated PBIDT
Consolidated PBIDT 10 (2) (5) (339) (26) 1505 ` Crore 1143 Qtr. 2 VSF & JVs * AV Chemical Cement Others incl. Qtr. 2 2012-13 Terrace Inter Co. 2013-14 Bay# Eliminations 1,505 10 (2) (5) (339) (26) 1,143 # Acquired in July’ 12 * Includes Domsjo (Rs. 38 crore) consolidated as JV as against associate t
Slide 17: Net Profit
Net Profit (` Crore) Half Year Quarter 2 2013-14 2012-13 % 2013-14 2012-13 % Total Grasim's Total Grasim's Change Total Grasim's Grasim's Change Total Co. Co. share Co. share Co. share share 640 656 (2) Standalone PAT 414 383 8 946 570 1,316 794 (28) UltraTech Cement 280 169 553 333 (49) 7 7 3 3 Gra
Slide 18: Balance Sheet: Grasim
Balance Sheet : Grasim (` Crore) Standalone Consolidated As on As on As on As on EQUITY & LIABILITIES 30th Sep'13 31st Mar'13 30th Sep'13 31st Mar'13 Shareholders' Funds 10,771 10,122 Net Worth 20,937 19,657 - - Minority Interest 6,495 6,221 Non Current Liabilities 1,111 981 Long Term Borrowings 7,0
Slide 19: Strong Financials
Strong Financials Standalone Consolidated H1 FY Full Year H1 FY Full Year (` Crore) 2013-14 2012-13 2013-14 2012-13 Net Worth 10,771 10,122 20,937 19,657 Debt 1,459 1,295 10,130 9,561 Net Debt (+) over liquid funds (-) (416) (739) 3,700 2,826 Capital Employed 12,616 11,761 40,073 37,740 Debt:Equity
Slide 20: Capex
ri —_ we i Capex
Slide 21: Capex plan
Capex plan (` Crore) Capex Work in Cash Outflow Capex under Progress Net spent FY14 FY15 Implemen as on Capex during onward -tation $ 01-04-13 H1 Standalone VSF Expansion : Vilayat (120K TPA), Harihar (36K TPA) 2,178 Chemical Expansion : Vilayat (182K TPA) 947 Epoxy Project : Vilayat (51,500 TPA) 23
Slide 22: Summary
ri —_ we i Summary
Slide 23: Summary
Summary Businesses impacted by slowdown in economy Surplus capacities will continue to exert pressure till environment improves Continuous cost optimisation measures and R&D to help meet these challenges Both businesses to consolidate leadership On-going Capacity Expansions nearing complet
Slide 24: Organizational Structure
Organizational Structure Pulp, Fibre & Allied Chemical UltraTech Cement * Others (60.32%) VSF Overseas VSF Pulp Overseas Chemicals Domestic Overseas 377K TPA Units 70 K TPA Pulp Units 3 Mn. TPA, (UAE, 440K TPA 51 Mn. TPA Bangladesh, Sri Lanka) Nagda Birla Jingwei $ AV Cell $ Nagda 11 Composite Grasi
Slide 25: Plant Locations – Grasim & its subsidiaries
Plant Locations– Grasim & its subsidiaries Bathinda(G) Panipat Bhiwani Dadri T Kotputli Aligarh Jodhpur T Malanpur Shambhupura Jawad P Katni Bharuch Durgapur(G) UltraTech Cement Plants F Jafrabad F Vilayat UltraTech Grinding Units (G) F C Pipavav Nagda Hirmi Raipur Magdalla (G) Awarpur UltraTech Whi
Slide 26: Thank You
ri —_ we i ADITYA BIRLA GRASIM Thank You
Slide 27: Annexure
Grasim Industries Limited Annexure
Slide 28: Annexure
Annexure Consolidated Financial Performance Standalone Financial Performance Consolidated and Standalone Profitability Revenue & PBIDT Chart VSF Summary Chemical Summary Cement Summary
Slide 29: Consolidated Financial Performance
Consolidated Financial Performance (` Crore) Quarter - 2 % Half Year % Full Year 2013-14 2012-13 Change 2013-14 2012-13 Change 2012-13 Net Sales & Op. Income 6,848.7 6,614.9 4 13,784.8 13,451.0 2 27,904.3 Other Income 109.1 99.8 9 342.6 235.5 45 619.1 PBIDT 1,143.3 1,505.2 (24) 2,692.5 3,272.6 (18)
Slide 30: Standalone Financial Performance
Standalone Financial Performance (` Crore) Quarter 2 % Half Year % Full Year 2013-14 2012-13 Change 2013-14 2012-13 Change 2012-13 Net Sales & Op. Income 1,421.4 1,364.1 4 2,584.5 2,627.4 (2) 5,255.0 Other Income 205.3 191.7 7 287.0 256.8 12 434.6 PBIDT 482.5 500.4 (4) 780.8 880.1 (11) 1,522.7 PBIDT
Slide 31: Profitability Snapshot
Profitability Snapshot Standalone Consolidated ( ` Crore) FY FY FY H1 FY FY FY FY H1 FY 2010-11 2011-12 2012-13 2013-14 2010-11 2011-12 2012-13 2013-14 Net Turnover & Op. Income 4,640 4,974 5,255 2,585 21,550 25,244 27,904 13,785 PBIDT 1,817 1,722 1,523 781 5,395 6,321 6,543 2,693 PBIDT Margin (%) 3
Slide 32: Revenue Chart
Revenue Chart (` Crore) Half Year % Quarter 2 % Quarter 1 Net Revenue 2013-14 2012-13 Change 2013-14 2012-13 Change 2013-14 2,191 2,226 (2) Viscose Staple Fibre 1,211 1,164 4 980 478 475 1 Chemical 254 236 8 224 49 51 Others 26 26 23 (133) (125) Eliminations (Inter Segment) (69) (62) (64) 2,585 2,62
Slide 33: PBIDT – Chart
PBIDT – Chart (` Crore) Half Year % PBIDT Quarter 2 % Quarter 1 2013-14 2012-13 Change 2013-14 2012-13 Change 2013-14 427 527 (19) Viscose Staple Fibre 240 251 (4) 187 112 133 (16) Chemical 62 67 (8) 50 242 219 10 Others 180 182 (1) 61 781 880 (11) Standalone PBIDT 483 500 (4) 298 Subsidiaries 2,041
Slide 34: Viscose Staple Fibre: Summary
Viscose Staple Fibre : Summary Quarter 2 % Half Year % Full Year 2013-14 2012-13 Change 2013-14 2012-13 Change 2012-13 Capacity* TPA 94,444 83,500 13 1,86,629 1,67,000 12 3,43,100 Production MT 91,995 79,798 15 1,79,687 1,63,202 10 3,37,492 Sales Volumes MT 93,025 85,312 9 1,70,544 1,62,324 5 3,36,0
Slide 35: Chemical: Summary
Chemical : Summary Quarter 2 % Half Year % Full Year 2013-14 2012-13 Change 2013-14 2012-13 Change 2012-13 Capacity* TPA 83,500 64,500 29 1,55,250 1,29,000 20 2,58,000 Production MT 79,957 63,627 26 1,50,992 1,32,793 14 2,70,191 Sales Volumes MT 78,356 65,500 20 1,50,384 1,34,966 11 2,69,438 Net Rev
Slide 36: Cement: Summary
Cement : Summary Quarter 2 % Half Year % Full Year 2013-14 2012-13 Change 2013-14 2012-13 Change 2012-13 Grey Cement Capacity Mn. TPA 13.48 12.94 4 26.95 25.86 4 53.90 Production Mn. MT 9.71 9.65 1 20.38 20.41 (0) 42.59 Cement Sales Volumes $ Mn. MT 9.88 9.74 1 20.67 20.57 -- 42.75 Clinker Sales Vol
Slide 37: Unaudited Consolidated Financial Results
UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30-09-2013 PART I: STATEMENT OF CONSOLIDATED UNAUDITED RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30-09-2013 ` Crore Three Months Ended Six Months Ended Year Ended Particulars 30-09-2013 30-06-2013 30-09-2012 30-09-2013
Slide 38: Unaudited Consolidated Segment Wise Revenue, Results and Capital Employed
UNAUDITED CONSOLIDATED SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER AND SIX MONTHS ENDED 30-09-2013 ` Crore Particulars Three Months Ended Six Months Ended Year Ended 30-09-2013 30-06-2013 30-09-2012 30-09-2013 30-09-2012 31-03-2013 (Unaudited) (Unaudited) (Unaudited) (Unaudite
Slide 39: Notes to Financial Results
Grasim Industries Limited NOTES: 1. a. The Company has opted to publish Consolidated Financial Results. The Standalone Financial Results are available at the Company’s websites, www.adityabirla.com and www.grasim.com and on the websites of the Stock Exchanges, www.bseindia.com and www.nseindia.com.
Slide 40: Notes: UltraTech Gujarat Cement Unit Acquisition
Grasim Industries Limited 6. UltraTech Cement Ltd. (UltraTech), a subsidiary of the Company, has signed an agreement with Jaypee Cement Corporation Limited (JCCL) and its holding company Jaiprakash Associates Limited to acquire the Gujarat Cement Unit of JCCL comprising of an integrated cement unit
Slide 41: Consolidated Statement of Assets and Liabilities
Grasim Industries Limited 9. Consolidated Statement of Assets and Liabilities as at 30th September, 2013: ` Crore AS AT Particulars 30-09-2013 31-03-2013 (Unaudited) (Audited) A. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital 91.82 91.79 (b) Share Capital (Other than Equity) 49.55 4
Slide 42: Press Release: Grasim Reports Financial Results for Q2 FY 2013-14
Press Release Mumbai, 30th October, 2013 Grasim Reports Financial Results for Q2 FY 2013-14 Consolidated Net Revenue : ` 6,849 Cr. PBIDT : ` 1,143 Cr. PAT : ` 450 Cr. Consolidated Financial Performance: Grasim Industries Limited, an Aditya Birla Group Company, has reported Revenue of ` 6,849 crore a
Slide 43: VSF & Chemical Capex, Cement Capex, Outlook
VSF & Chemical Capex The VSF project (120,000 TPA) at Vilayat in Gujarat is expected to be commissioned in a phased manner in Quarter 4 and Epoxy project (51,000 TPA) in Quarter 3. The commissioning has been delayed by recent floods at Vilayat, causing damage to power plants and other equipments. Ce
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