Grasim Industries Ltd. · NSE:GRASIM

Grasim Industries — Q3 FY2010 Earnings Presentation

54 slides from Grasim Industries's earnings presentation, Jan 22, 2010

  1. Slide 1: Grasim Industries Limited: Performance Review Q3FY10

    Grasim Industries Limited A Cement and VSF Major Performance Review Q3FY10 22nd January 2010

  2. 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

  3. Slide 3: Contents

    Contents  Highlights  Business Review  Financial Performance  Capex Plan  Summary 3

  4. Slide 4: Highlights

    Highlights Cement Restructuring Initiative progressing as per schedule  Demerger of Cement Business into Samruddhi Cement Ltd.  Final hearings should be completed by Mid March, 2010  Merger of Samruddhi into UltraTech  Petition filed by UltraTech with High Court admitted and Court convened meeti

  5. Slide 5: Highlights

    Highlights Growth Plans  Greenfield VSF plant to be set up at Vilayat, Gujarat at an estimated investment of Rs.1,000 Crs.  Working on New Growth Plans for Cement Business  ~25 Mn. TPA required in next 5 years to maintain market share Operational Highlights  Strong performances from Cement and V

  6. Slide 6: Business Review

    Business Review  Cement  VSF  Chemicals 6

  7. Slide 7: Cement: Highlights

    Cement : Highlights Quarter -3 % Chg. Industry Scenario 2009-10 2008-09  Growth momentum continues, demand Grey Cement Capacity Mn. TPA 45.65 37.55 22 grew by 10.5% in the quarter - Grasim * 22.55 18.05 25  Cement prices impacted due to excess - UltraTech 23.10 19.50 18 capacity Production Mn. MT

  8. Slide 8: Cement: Highlights (Contd)

    Cement : Highlights (Contd….) Quarter -3  White Cement achieves 18% growth on % Chg. 2009-10 2008-09 the back of demand from housing White Cement Sales Volumes $$ MT 130,188 109,972 18 segment Avg. Realisation Rs./MT 8,202 7,976 3 Wall Care Putty  Putty registers impressive volume Sales Volumes MT

  9. Slide 9: Cement: Highlights (Contd)

    Cement : Highlights (Contd….) Quarter -3  Segment revenue up by 7% on higher % Chg. 2009-10 2008-09 volumes Net Revenue Rs. Crs. 3,635.2 3,383.5 7 - Cement - Grasim * 1,814.3 1,561.8 16  Consolidated PBIDT increase by 19% - Cement - UltraTech 1,688.8 1,668.8 1 on higher volumes and lower energy -

  10. Slide 10: Cement: Outlook

    Cement : Outlook  Cement demand expected to grow > 10%  Robust growth in Indian economy  Government initiatives to boost rural development, infrastructure and housing  Emerging surplus scenario; which is expected to last for next 18 to 24 months  Continuous pressure on margins  Hardening trend

  11. Slide 11: Viscose Staple Fibre: Highlights

    Viscose Staple Fibre : Highlights Quarter -3 Industry Scenario % Chg. 2009-10 2008-09  Increase in consumer spending on textiles Capacity (TPA) 333,975 333,975 - on the back of global economic recovery Production (MT) 81,991 51,777 58  Entire value chain i.e. fibre, yarn and fabric Sales Volumes (

  12. Slide 12: Viscose Staple Fibre: Highlights (Contd)

    Viscose Staple Fibre : Highlights (Contd….)  Realisation up by 13% on improved demand VSF Volumes & Realisation 90000 120000  Both, higher volumes and realisation resulted 80000 70000 105000 in highest ever turnover 60000 90000  Improvement in operating margins, as a 50000 40000 75000 combination

  13. Slide 13: Viscose Staple Fibre: Outlook

    Viscose Staple Fibre : Outlook  Demand outlook expected to be stable in short to medium term  Margins likely to decline from current level  Upward trend in pulp and sulphur prices  Plans to set up 80,000 TPA Greenfield project at Vilayat, Gujarat at a cost of Rs.1,000 Crs. to meet expected growt

  14. Slide 14: Chemical: Highlights

    Chemical : Highlights Quarter -3  Sales volume up by 12% on higher % Chg. 2009-10 2008-09 captive use Capacity (TPA) 258,000 258,000 -  ECU realisation down by 20% due to Production (MT) 60,591 52,176 16 Sales Volumes (MT) 61,326 54,688 12 lower caustic prices Net Revenue (Rs. Crs.) 121.3 127.7 (5

  15. Slide 15: Financial Performance

    [GRA STM] Financial Performance 15

  16. Slide 16: Revenue Growth

    Revenue Growth Revenue – Quarter 3 Standalone Revenue Consolidated Revenue 15% 5% 3,250 Rs. Crs. 5,000 Rs. Crs. 4,844 3,088 4,610 4,500 2,750 2,695 4,000 2,250 3,500 Q3/09 Q3/10 Q3/09 Q3/10 Revenue – Nine Months Standalone Revenue Consolidated Revenue 15% 9% 9,500 Rs. Crs. 9,198 Rs. Crs. 14,715 15,0

  17. Slide 17: Revenue Chart

    Revenue Chart Rs. Crores Nine Months Quarter -3 % Chg. Net Revenue % Chg. 2009-10 2008-09 2009-10 2008-09 26 6,247 4,955 Cement 2,030 1,730 17 33 2,529 1,899 Viscose Staple Fibre 962 564 71 (7) 373 400 Chemical 121 128 (5) - 111 850 Sponge Iron @ - 298 - - 47 46 Others 16 14 - - (109) (130) Inter Se

  18. Slide 18: Revenue Mix

    Revenue Mix Standalone Q3FY10 Consolidated Q3FY10 1 2 24 34 65 74 Standalone Q3FY09 Consolidated Q3FY09 1 6 2 3 11 16 25 63 73 Cement VSF & Chemical Sponge Iron Textile Others 18

  19. Slide 19: Financial Performance – Quarter

    Financial Performance – Quarter 3 Quarter - 3: Standalone Quarter - 3 : Consolidated (Rs. Crores) 2009-10 2008-09 % Change 2009-10 2008-09 % Change Revenue 3,088 2,695 15 4,844 4,610 5 Operating Costs 2,066 2,160 (4) 3,404 3,610 (6) PBIDT 1,075 580 85 1,511 1,073 41 Interest 50 44 15 79 94 (15) Depr

  20. Slide 20: Financial Performance – Nine Months

    Financial Performance – Nine Months Nine Months : Standalone Nine Months : Consolidated (Rs. Crores) 2009-10 2008-09 % Change 2009-10 2008-09 % Change Revenue 9,198 8,020 15 14,715 13,549 9 Operating Costs 6,197 6,113 1 10,104 10,305 (2) PBIDT 3,181 2,092 52 4,822 3,452 40 Interest 148 102 45 245 23

  21. Slide 21: PBIDT Growth

    PBIDT Growth PBIDT – Quarter 3 Standalone PBIDT Consolidated PBIDT 85% 41% 1,250 Rs. Crs. 1,600 Rs. Crs. 1,511 1,075 1,000 1,350 1,073 750 1,100 580 500 850 250 600 Q3/09 Q3/10 Q3/09 Q3/10 PBIDT – Nine Months Standalone PBIDT Consolidated PBIDT 52% 40% 3,300 Rs. Crs. 3,181 5,250 Rs. Crs. 4,822 2,800

  22. Slide 22: PBIDT – Chart

    PBIDT – Chart Rs. Crores Nine Months Quarter -3 % Chg. PBIDT % Chg. 2009-10 2008-09 2009-10 2008-09 59 2,028 1,274 Cement 605 407 49 135 957 407 Viscose Staple Fibre 404 64 536 (21) 100 127 Chemical 28 33 (15) (39) 152 Sponge Iron - 47 135 132 Others 38 29 52 3,181 2,092 Standalone PBIDT 1,075 580 8

  23. Slide 23: Net Profit

    Net Profit Rs. Crores Nine Months Quarter -3 Net Profit 2009-10 2008-09 % 2009-10 2008-09 43% 1,801 1,263 Grasim Standalone (Before EO Gain) 596 330 81% 864 666 UltraTech Cement Ltd. 198 237 30% 474 365 - Grasim's Share 54.78% 109 132 (18)% 3 (1) Grasim Bhiwani Textiles Ltd. 100% 1 0.2 3 3 Samruddhi

  24. Slide 24: Grasim Financials

    Grasim Financials Standalone Consolidated  Strong Balance sheet Nine Nine Full Year Full Year (Rs. Crores) 2008-09 Months 2008-09 Months  Net worth at $3.0 Bn. (Rs.14,108 Crs.) 2009-10 2009-10 Net Worth 9,478 11,614 11,570 14,108  Capital Employed at $5.0 Bn. (Rs.23,372 Crs.) Debt 3,396 3,323 5,9

  25. Slide 25: Financial Performance – Q3FY10 post demerger

    Financial Performance – Q3FY10 post demerger* * Key financial numbers considering Cement Business demerger w.e.f 1st Oct. 09 Rs. Crores Standalone Consolidated Quarter 3 Nine Months Quarter 3 Nine Months 2009-10 2009-10 2009-10 2009-10 Revenue - Original 3,087.9 9,197.8 4,843.5 14,715.2 - Restated 1

  26. Slide 26: Capex

    [GRA STM] ADITYA BIRTA GROUP Capex 26

  27. Slide 27: Capex plan

    Capex plan  Capex Summary Rs. Crores Net Capex Cash Outflow Incurred Total Spent under Project upto last Implemen- FY10 FY11 & in Cost year tation 9MFY10 Onward Cement Business - Projects 6,735 5,646 1,089 622 467 280 - Other Capex 3,103 82 3,021 1,178 1,843 530 VSF Business - Projects 1,000 -- 1,0

  28. Slide 28: Capex plan

    Capex plan Rs. Crores Net Capex Cash Outflow Incurred Total Spent under Project upto last Implemen- FY11 & in Cost year FY10 tation Onward 9MFY10 Grasim Cement Business 5,941 3,871 2,070 1,230 840 618 - Projects: Kotputli (4.5 Mn. TPA), Shambhupura (4.4 4,618 3,792 826 Mn. TPA), Dadri - GU (1.3 Mn.

  29. Slide 29: Summary

    [GRA STM] Summary 29

  30. Slide 30: Summary

    Summary  Grasim – A Cement and VSF major  With strong competitive edge  Global size operations  Consolidating leadership position with strong organic growth  Domestic leadership in Cement  Leveraging investments in capacity & TPPs for volume and cost leadership  Focus on greater efficiency th

  31. Slide 31: Plant Locations – Grasim & its subsidiaries

    Plant Locations– Grasim & its subsidiaries Bathinda(G) Panipat Bhiwani Dadri T Grey Cement plants Kotputli Aligarh Grinding Units (G) Jodhpur T Malanpur Shambhupura B Bulk Cement Terminals Jawad Bharuch Durgapur(G) UltraTech Cement Plants F Jafrabad Magdalla (G) UltraTech Grinding Units (G) F C Pipa

  32. Slide 32: Thank You

    GRASTM ADITYA BIRLA GROUP Thank You

  33. Slide 33: Annexures

    Grasim Industries Limited Annexures

  34. Slide 34: Annexures

    Annexures  Consolidated Financial Performance  Standalone Financial Performance  Consolidated and Standalone Financial  Consolidated and Standalone Profitability  Segmental Performance  Cement Summary  VSF Summary  Chemical Summary  UltraTech Performance 34

  35. Slide 35: Consolidated Financial Performance

    Consolidated Financial Performance (Rs. Crores) Quarter -3 Nine Months Full Year % Chg. % Chg. 2009-10 2008-09 2009-10 2008-09 2008-09 Net Turnover & Op. Income 4,843.5 4,610.4 5 14,715.2 13,549.1 9 18,487.1 Other Income 71.2 72.5 (2) 210.5 207.7 1 252.6 PBIDT 1,511.1 1,072.6 41 4,822.2 3,451.7 40 4

  36. Slide 36: Standalone Financial Performance

    Standalone Financial Performance (Rs. Crores) Quarter -3 Nine Months Full Year % Chg. % Chg. 2009-10 2008-09 2009-10 2008-09 2008-09 Net Turnover & Op. Income 3,087.9 2,695.3 15 9,197.8 8,020.0 15 10,956.2 Other Income 52.8 44.8 18 180.8 184.8 (2) 214.1 PBIDT 1,074.7 579.6 85 3,181.3 2,092.0 52 2,84

  37. Slide 37: Financial Snapshot

    Financial Snapshot Standalone Consolidated March March March Dec. March March March Dec. (Rs. Crores) 2007 2008 2009 2009 2007 2008 2009 2009 Gross Block $ 7,974 10,615 12,280 12,113 14,485 19,262 21,044 21,139 Net Block $ 4,597 7,054 8,308 8,344 8,472 12,922 14,219 14,209 Goodwill 1,844 1,991 2,001

  38. Slide 38: Profitability Snapshot

    Profitability Snapshot Standalone Consolidated Nine Nine (Rs. Crores) 2006-07 2007-08 2008-09 Months 2006-07 2007-08 2008-09 Months 2009-10 2009-10 Gross Turnover 9,573 11,552 12,089 9,882 15,674 19,112 20,316 15,795 Net Turnover & Op. Income 8,644 10,325 10,956 9,198 14,142 17,141 18,487 14,715 PBI

  39. Slide 39: Segmental Performance – Quarter

    Segmental Performance – Quarter 3 Quarter -3 Standalone Rs. Crores ROAvCE (%) Business Revenue PBIDT PBIDT Margin (%) PBIT Capital Employed (PBIT basis) 2009-10 2008-09 2009-10 2008-09 2009-10 2008-09 2009-10 2008-09 2009-10 2008-09 2009-10 2008-09 Cement 2,030 1,730 605 407 29.8 23.5 500 331 6,937

  40. Slide 40: Segmental Performance – Nine Months

    Segmental Performance – Nine Months Nine Months Standalone Rs. Crores ROAvCE (%) Business Revenue PBIDT PBIDT Margin (%) PBIT Capital Employed (PBIT basis) 2009-10 2008-09 2009-10 2008-09 2009-10 2008-09 2009-10 2008-09 2009-10 2008-09 2009-10 2008-09 Cement 6,247 4,955 2,028 1,274 32.4 25.7 1,728 1

  41. Slide 41: Cement: Summary

    Cement : Summary Quarter -3 Nine Months Full Year % Chg. % Chg. 2009-10 2008-09 2009-10 2008-09 2008-09 Grey Cement Capacity Mn. TPA 45.65 37.55 22 45.65 37.55 22 41.55 - Grasim * 22.55 18.05 25 22.55 18.05 25 19.65 - UltraTech 23.10 19.50 18 23.10 19.50 18 21.90 Production Mn. MT 8.99 7.98 13 26.78

  42. Slide 42: Cement: Summary Contd

    Cement : Summary Contd… Quarter -3 Nine Months Full Year % Chg. % Chg. 2009-10 2008-09 2009-10 2008-09 2008-09 Wall Care Putty Sales Volumes MT 59,973 43,611 38 157,592 112,655 40 159,880 Realisation Rs./MT 19,338 19,625 (1) 19,332 19,636 (2) 19,698 Net Revenue Rs. Crs. 3,635.2 3,383.5 7 11,307.7 9,

  43. Slide 43: Viscose Staple Fibre: Summary

    Viscose Staple Fibre : Summary Quarter -3 Nine Months Full Year % Chg. % Chg. 2009-10 2008-09 2009-10 2008-09 2008-09 Capacity TPA 333,975 333,975 - 333,975 333,975 - 333,975 Production MT 81,991 51,777 58 221,011 172,832 28 232,745 Sales Volumes MT 81,306 53,758 51 222,717 173,054 29 238,463 Net Re

  44. Slide 44: Chemical: Summary

    Chemical : Summary Quarter -3 Nine Months Full Year % Chg. % Chg. 2009-10 2008-09 2009-10 2008-09 2008-09 Capacity TPA 258,000 258,000 -- 258,000 258,000 -- 258,000 Production MT 60,591 52,176 16 169,807 154,397 10 207,226 Sales Volumes MT 61,326 54,688 12 170,290 155,591 9 207,520 Net Revenue Rs. C

  45. Slide 45: UltraTech: Consolidated Financial Performance

    UltraTech: Consolidated Financial Performance (Rs. Crores) Quarter -3 Nine Months Full Year % Chg. % Chg. 2009-10 2008-09 2009-10 2008-09 2008-09 Revenue 1,688.8 1,668.8 1 5,294.6 4,689.6 13 6,618.7 Other Income 12.7 14.1 (10) 43.1 31.6 37 45.6 PBIDT 419.1 451.8 (7) 1,672.6 1,251.8 34 1,819.2 PBIDT

  46. Slide 46: Press Release: Grasim Reports Excellent Performance for Q3 FY2010

    Press Release Mumbai, January 22, 2010 GRASIM REPORTS EXCELLENT PERFORMANCE FOR Q3 FY2010 Consolidated Net Profit Rs.715 Crs. 56% Consolidated Net Revenue Rs.4,844 Crs. 5% Consolidated Financial Performance: Rs. Crores Quarter ended 9- months ended 31.12.09 31.12.08 % 31.12.09 31.12.08 % Change Chan

  47. Slide 47: Press release: comparable results and operations highlights

    The Consolidated as well as the Standalone results for the quarter are not strictly comparable with the results of the corresponding quarter. This is due to the sale of sponge Iron business on 22nd May, 2009 and the consolidation of Idea Cellular Limited as an Associate from 1st January, 2009, as ag

  48. Slide 48: Press release: Cement and VSF Outlook

    Cement Outlook Industry demand is likely to grow by ov er 10%, driv en by the robust growth in the India n economy and the Gov ernment’s initiativ es to boost rural dev elopment, infrastructure and housing. The industry is expected to witness a surplus scenario ov er the next 18 to 24 months which m

  49. Slide 49: Press release: Restated results and Outlook

    Rs. Crores For the Quarter ended 31st December, 2009 Stand-alone Consolidated Published Restated Published Restated Revenue 3,088 1,058 4,844 4,844 Profit Before Interest & Tax (PBIT) 932 432 1,256 1,256 Net Profit before Extraordinary Item 596 358 715 676 (after Minority Share in Consolidated Resul

  50. Slide 50: Unaudited Financial Results: Consolidated Results

    UNAUDITED FINANCIAL RESULTS FOR THE PERIOD ENDED 31 st DECEMBER 2009 I. CONSOLIDATED RESULTS : Rs in Crores Particulars Three Months Three Months Nine Months Nine Months Year Ended Ended Ended Ended Ended 31st Dec. '09 31st Dec. '08 31st Dec. '09 31st Dec. '08 31st Mar. '09 ( Audited ) Net Sales / I

  51. Slide 51: Standalone Results

    II. STANDALONE RESULTS : Rs. in Crores Particulars Three Months Three Months Nine Months Nine Months Year Ended Ended Ended Ended Ended 31st Dec. '09 31st Dec. '08 31st Dec. '09 31st Dec. '08 31st Mar. '09 ( Audited ) Net Sales / Income from Operations 3,051.89 2,658.77 9,086.39 7,928.19 10,819.89 O

  52. Slide 52: Segment Reporting – Consolidated

    III. SEGMENT REPORTING - CONSOLIDATED Rs. in Crores Particulars Three Months Three Months Nine Months Nine Months Year Ended Ended Ended Ended Ended 31st Dec. '09 31st Dec. '08 31st Dec. '09 31st Dec. '08 31st Mar. '09 ( Audited ) 1. SEGMENT REVENUE a Viscose Staple Fibre & Wood Pulp 1,050.26 623.16

  53. Slide 53: Segment Reporting – Standalone

    IV. SEGMENT REPORTING - STANDALONE Rs. in Crores Particulars Three Months Three Months Nine Months Nine Months Year Ended Ended Ended Ended Ended 31st Dec. '09 31st Dec. '08 31st Dec. '09 31st Dec. '08 31st Mar. '09 ( Audited ) 1. SEGMENT REVENUE a Viscose Staple Fibre 962.42 563.91 2,529.49 1,899.4

  54. Slide 54: Notes: Scheme of Arrangement for Cement demerger

    -5- V. NOTES 1 The Company has filed a Scheme of Arrangement under Sections 391 to 394 of the Companies Act, 1956 to demerge it's Cement Business, subject to necessary approvals. Under the Scheme, the Cement Business of the Company is proposed to be transferred to it's wholly owned subsidiary, Samru

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