Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q2 FY24 Earnings Presentation
28 slides from Grasim Industries's earnings presentation, Nov 13, 2023
Slide 1: Cover letter to stock exchanges
Ref No. GIL/CFD/SEC/24/236/SE 13th November 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: G
Slide 2: Grasim Industries Limited Q2FY24 Earnings Presentation
GRASIM INDUSTRIES LIMITED Q2FY24 EARNINGS PRESENTATION November 2023
Slide 3: Performance Highlights Q2FY24
PERFORMANCE HIGHLIGHTS Q2FY24 Consolidated Revenue up 10% YoY to ₹30,221 Cr. and EBITDA up by 19% YoY to ₹4,509 Cr. • Contributed by performance of key subsidiaries: UltraTech Cement and Aditya Birla Capital Standalone Revenue stood at ₹6,442 Cr. and EBITDA at ₹1,354 Cr.; down by 4% & 21% YoY respec
Slide 4: Performance Highlights
PERFORMANCE HIGHLIGHTS CONSOLIDATED Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT#^ (₹ Cr.) 4,981 1,577 31,065 30,221 4,509 27,486 3,783 1,164 1,097 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 STANDALONE Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT# (₹ Cr.) 1,712 1,052 6,745 6,442 1,354 6,238 795 628*
Slide 5: Viscose
VISCOSE Grasim Industries Limited | Earnings Presentation | Q2FY24 |
Slide 6: Macro Trends - Viscose
MACRO TRENDS - VISCOSE China Operating Rate (%) China Inventory (in Days) 82 85 24 69 16 12 Q4FY23 Q1FY24 Q2FY24 Q4FY23 Q1FY24 Q2FY24 Source: Company estimates, Industry data and CCF Group China average operating rates stood at 85% in Q2FY24. The steady improvement in operating rate appears to be le
Slide 7: Macro Trends - Viscose
MACRO TRENDS - VISCOSE Global Prices Trend ($/Kg) YoY QoQ Price Movement 4.10 (%) (%) 3.60 3.10 International Grey VSF -18% -7% (CCF) 2.60 2.10 1.60 Cotton -23% 2% 1.10 (Cotlook) 0.60 International PSF -12% -2% (CCF) Grey VSF - CCF Cotton (Cotlook) PSF Source: Company estimates, Industry data and CC
Slide 8: Key Operational Metrics
KEY OPERATIONAL METRICS VSF Sales (KT) Sales Volume Mix (VSF) Export Sales Standard Fibre 210 10% 81% 187 169 Q2FY24 Q2FY24 90% 19% Q2FY23 Q1FY24 Q2FY24 Domestic Sales Speciality Fibre VFY Sales (KT) VSF sales volume stood at 210 KT 11.8 11.0 9.3 Domestic demand during the quarter improved led by fe
Slide 9: Operating Performance – Viscose
OPERATING PERFORMANCE – VISCOSE Revenue (₹ Cr.) EBITDA (₹ Cr.) 468 3,903 3,889 3,584 390 324 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 VSF realisations declined 17% YoY due to weakness in global prices Lower key input prices during the quarter helped in improvement of EBITDA Margins for VFY impacted
Slide 10: Chemicals
CHEMICALS Grasim Industries Limited | Earnings Presentation | Q2FY24 |
Slide 11: Key Operational Metrics - Chemicals
KEY OPERATIONAL METRICS - CHEMICALS CFR SEA Caustic Soda Prices* ($/Ton) Grasim – ECU (₹/Ton) *Source: Company estimates, Industry data, IHS 657 49,503 34,729 415 417 32,008 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Caustic Soda Sales (KT) Break-up of Revenue of Chemicals Business (%) 306 296 17% 20
Slide 12: Financial Performance – Chemicals
FINANCIAL PERFORMANCE – CHEMICALS Revenue (₹ Cr.) EBITDA (₹ Cr.) 2,708 609 2,146 1,988 358 236 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Caustic volumes grew by 3% YoY (+5% QoQ) though revenue declined on account of lower realisations in line with the global prices Continued over supply of chlorine
Slide 13: High Growth Businesses (Paints & B2B E-commerce)
HIGH GROWTH BUSINESSES (Paints & B2B E-commerce) Grasim Industries Limited | Earnings Presentation | Q2FY24 |
Slide 14: Birla Opus: Progress Update
BIRLA OPUS: PROGRESS UPDATE Consent to Operate received for Panipat, Ludhiana and Cheyyar plants • Operations commencement estimated in Q4FY24 “Allwood” Italian wood finishes range launched, and field validations are being conducted Painting services offering “PaintCraft” launched in 8 major Indian
Slide 15: Birla Pivot: Progress Update
BIRLA PIVOT: PROGRESS UPDATE Private label “Birla Pivot Tiles” launched in tiles segment Experiencing repeat rate of direct buyers in certain segments Experiencing demand for Credit program offering Financing Solutions to MSMEs Exploring group synergies for captive customers Streamlining of sales te
Slide 16: Other Businesses (Textiles and Insulators)
OTHER BUSINESSES (Textiles and Insulators) Grasim Industries Limited | Earnings Presentation | Q2FY24 |
Slide 17: Financial Performance – Textiles & Insulators
FINANCIAL PERFORMANCE – Textiles & Insulators TEXTILES Revenue (₹ Cr.) EBITDA (₹ Cr.) Festive demand in high- 71 end textile products 584 549 560 remained subdued 43 41 Higher flax fibre prices resulted decline in EBITDA Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 INSULATORS Revenue (₹ Cr.) EBITDA (₹
Slide 18: Subsidiaries
SUBSIDIARIES Grasim Industries Limited | Earnings Presentation | Q2FY24 |
Slide 19: Financial Performance - UltraTech
FINANCIAL PERFORMANCE - UltraTech Sales volume (Million Ton) Revenue (₹ Cr.) EBITDA (₹ Cr.) 15% 35% 16% 26.69 2,718 16,012 23.10 13,893 2,013 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Consolidated Net Sales increased by 15% to ₹16,012 Cr. over the corresponding period of the previous year. EBITDA wa
Slide 20: Financial Performance - Aditya Birla Capital
FINANCIAL PERFORMANCE - Aditya Birla Capital Total Lending Book (₹ Cr.)* Revenue (₹ Cr.) PAT (₹ Cr.) 41% 13% 44% 1,08,961 7,721 705 6,830 77,536 488 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Consolidated Revenue and PAT grew by 13% and 44% YoY to ₹7,721 Cr. and ₹705 Cr. respectively The overall lend
Slide 21: Financial Performance – Aditya Birla Renewables
FINANCIAL PERFORMANCE – Aditya Birla Renewables Aditya Birla Renewables Renewable Power Capacity (MWp) 854 744 551 FY22 FY23 Q2FY24 Consolidated revenue increased by 55% to ₹86 Cr. over the corresponding period of the previous year. EBITDA was up by 49% to ₹56 Cr. compared to ₹37 Cr. Approximately 4
Slide 22: Appendix
APPENDIX Grasim Industries Limited | Earnings Presentation | Q2FY24 |
Slide 23: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT % Particulars (₹ Cr.) Q2FY24 Q2FY23 % Change Q1FY24 Change Revenue from Operations 30,221 27,486 10 31,065 -3 Other Income 285 252 13 296 -4 EBITDA 4,509 3,783 19 4,981 -9 EBITDA Margin (%) 15% 14% 16% Finance Cost 398 313 27 361 10 Depreciation 1,245 1,116 12 1,183 5 S
Slide 24: Standalone Income Statement
STANDALONE INCOME STATEMENT % % Particulars (₹ Cr.) Q2FY24 Q2FY23 Q1FY24 Change Change Revenue from Operations 6,442 6,745 -4 6,238 3 Other Income 760 756 1 116 556 EBITDA 1,354 1,712 -21 789 72 EBITDA Margin (%) 19% 23% 12% Finance Cost 107 85 26 106 1 Depreciation 292 266 10 288 1 PBT 955 1,361 -3
Slide 25: Balance Sheet
BALANCE SHEET Standalone (₹ Cr.) Consolidated (₹ Cr.) 30th Sep'23 31st Mar'23 EQUITY & LIABILITIES 30th Sep'23 31st Mar'23 (Unaudited) (Audited) (Unaudited) (Audited) 49,798 46,955 Net Worth 83,170 78,742 - - Non Controlling Interest 47,722 44,171 - - Borrowings related to Financial Services 97,636
Slide 26: Grasim Group Structure
GRASIM GROUP STRUCTURE Grasim Industries Limited Overseas Viscose Chemicals New Businesses Textiles Subsidiaries Pulp & VSF JVs AV Group NB Inc. UltraTech Cement VSF Vilayat Paints Rishra (Canada) (57.27%)** (45.0%)* Vilayat Nagda Grey Cement Domestic Panipat Domsjo (Sweden) Malanpur (33.3%)* Rehla
Slide 27: 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 28: Thank You
THANK YOU Investor Relations Team grasim.ir@adityabirla.com +91 22 2499 5657 Grasim Industries Limited | Earnings Presentation | Q2FY24 |