Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q1 FY22 Earnings Presentation
39 slides from Grasim Industries's earnings presentation, Aug 13, 2021
Slide 1: Cover letter to stock exchanges on Q1 FY22 results presentation
Ref No.: GIL/CFD/SEC/22/077/SE 13th August 2021 BSE Limited The National Stock Exchange of India Limited Dalal Street, Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No. C/1, G Block, Bandra-Kurla Complex, Fort, Mumbai - 400 001 Bandra (East), Mumbai 400051 Scrip Code: 500300 Symbol: GRA
Slide 2: Grasim Industries Q1FY22 Earnings Presentation
Table of Content PEOPLE - PLANET - PROSPERITY GRASIM INDUSTRIES LIMITED Q1FY22 EARNINGS PRESENTATION 13th August 2021
Slide 3: Big in Your Life
BIG IN YOUR LIFE # 1 In Viscose @ # 1 In Chlor - Alkali* 57.28% 54.20% Market Cap (August 12, 2021): INR 98,208 Crore (USD 13.23 Billion) Market Cap Market Cap (August 12, 2021): (August 12, 2021) INR 2.16 Lakh Crore INR 28,128 Crore (USD 29.02 Billion) (USD 3.79 Billion) Cement Producer Asset Manag
Slide 4: Performance Highlights Q1FY22
PERFORMANCE HIGHLIGHTS Q1FY22 Grasim Industries Limited | Earnings Presentation | Q1 FY22 | PEOPLE-PLANET-PROSPERITY 3
Slide 5: Performance Highlights Q1FY22
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix PERFORMANCE HIGHLIGHTS Q1FY22 Consolidated revenue up 53% YoY to Rs.19,919 Cr. and standalone revenue up 182% to Rs.3,763 Cr.; Consolidated PAT surged 6x YoY During the quarter, the domestic demand was impacted on account of s
Slide 6: Performance Highlights Q1FY22
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix PERFORMANCE HIGHLIGHTS Q1FY22 Consolidated Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT1 (Rs. Cr.) 24,399 5,142 4,736 1,715 1,667 19,919 13,044 2,545 234 Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22 Standalone Reve
Slide 7: Capex Plan
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix CAPEX PLAN Capex spent Balance Strategic Capex Particulars (Rs. Cr.) Q1 FY22 Budget • Long Term Focus : Viscose Staple Fibre • Increase VAP mix to 40% by 2025 in both VSF (from 578 KTPA to 810 KTPA) and chemicals • Lower cost
Slide 8: Strong Balance Sheet
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix STRONG BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) Net Debt/ EBITDA Net Debt/ EBITDA 0.56x 0.47x (Annualised 12M EBITDA) (Annualised 12M EBITDA) Mar-21 Mar-21 Rs.914 Cr. 25,429 Rs.8,630 Cr. 4,857 Increased by Inc
Slide 9: Business Performance
BUSINESS PERFORMANCE Grasim Industries Limited | Earnings Presentation | Q1 FY22 | PEOPLE-PLANET-PROSPERITY 8
Slide 10: Industry Performance - Viscose
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix INDUSTRY PERFORMANCE - VISCOSE Deceleration in pipeline restocking witnessed in Q4 and seasonal factors led to lower VSF demand in China resulting in moderation in VSF prices The inventory went from a low of 13 days in Q4FY21
Slide 11: Industry Performance - Viscose Price Movement
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix INDUSTRY PERFORMANCE - VISCOSE China VSF prices moderated to ~12,871 RMB in Jun-21 from ~15,805 RMB in Mar-21 and are stable at current level Cotton prices have remained firm leading to widening of gap between cotton and VSF p
Slide 12: Financial Performance - Viscose
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix FINANCIAL PERFORMANCE - VISCOSE Revenue1 (Rs. Cr.) EBITDA1 (Rs. Cr.) 2,583 625 2,103 488 558 (113) Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22 Viscose Q1FY22 performance was impacted by lower domestic sales volume due to COVID l
Slide 13: Financial Performance - Viscose
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix FINANCIAL PERFORMANCE - VISCOSE VSF Sales (KT) Sales Volume Mix 160% Export Sales Grey VSF YoY 147 31% 74% 112 43 69% 26% Q1FY21 Q4FY21 Q1FY22 Domestic Sales VAP VFY Sales (KT) VAP share in overall portfolio increased to 26% 7
Slide 14: Financial Performance - Chemicals
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix FINANCIAL PERFORMANCE - CHEMICALS Caustic Realisation Grasim – ECU 40,453 41,000 38,342 37,216 41,000 36,000 37,856 36,000 37,036 30,348 31,000 31,000 26,637 26,108 26,000 26,000 24,171 27,805 23,203 21,000 25,649 21,000 22,76
Slide 15: Caustic - Key Operational Metrics
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix CAUSTIC – KEY OPERATIONAL METRICS Caustic Soda Sales (KT) Chlorine & HCl Consumption in VAP (Tons) 71% 83% YoY 267 YoY 68,329 64,530 238 139 35,282 Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22 The capacity utilization of Caustic
Slide 16: Financial Performance - Chemicals
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix FINANCIAL PERFORMANCE - CHEMICALS Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 49% 1,472 1,436 573% QoQ YoY 275 185 702 41 Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22 The YoY improvement in Chlor-Alkali business was driven by higher sales
Slide 17: Financial Performance - Other Businesses
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix FINANCIAL PERFORMANCE – OTHER BUSINESSES Textile Insulators Revenue (Rs. Cr.) Revenue (Rs. Cr.) 369 325 115 65 44 76 Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22 EBITDA (Rs. Cr.) EBITDA (Rs. Cr.) 39 14 22 (8) (63) (15) Q1FY21 Q4F
Slide 18: Financial Performance - UltraTech
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix FINANCIAL PERFORMANCE – UltraTech Sales volume (Million Ton) Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 47% 54% 49% YoY YoY YoY 11,830 3,512 21.53 14.67 7,671 2,357 Q1FY21 Q1FY22 Q1FY21 Q1FY22 Q1FY21 Q1FY22 Consolidated sales volume g
Slide 19: Financial Performance - ABCL
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix FINANCIAL PERFORMANCE – ABCL Lending Book (Rs. Cr.)* AMC Domestic AAUM (Rs. Cr.) 28% 58,073 YoY 57,182 275,454 214,592 Q1FY21 Q1FY22 Q1FY21 Q1FY22 Consolidated revenue and net profit after minority interest for Q1FY22 are up 7
Slide 20: Financial Performance - Aditya Birla Renewables
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix FINANCIAL PERFORMANCE – Aditya Birla Renewables Aditya Birla Renewables (Solar Power) Solar Power Capacity (MWp) Rs. Cr. 845 Particulars Q1FY21 Q4FY21 Q1FY22 671 Revenue 38 60 59 502 EBITDA 30 46 49 EBIT 21 32 36 Capital Emplo
Slide 21: Financial Performance - Pulp JVs
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix FINANCIAL PERFORMANCE – PULP JV’s Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 67% 8% YoY QoQ 119% 185 1,407 QoQ 1,306 845 84 Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22 (23) Production Volume (Tons) Sales Volume (Tons) 14% YoY 213,882 20
Slide 22: Sustainability Performance FY21
Sustainability Performance FY21 Grasim Industries Limited | Earnings Presentation | Q1 FY22 | PEOPLE-PLANET-PROSPERITY 21
Slide 23: Timelines for Meeting EU BAT and Progress So Far
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix Timelines for meeting EU BAT and progress so far EU BAT is one of the most stringent Global norm for VSF production. We endeavour to meet EU BAT norms for VSF production at our sites and our progress so faror VSF production at
Slide 24: Select Environmental Targets & Performance
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix Select Environmental Targets & Performance VSF Indicator/Parameter Target Baseline Status in FY21 Implemented at 1 site (Vilayat) Adoption of EU BAT technology EU BAT implementation Sulphur emission reduction by for VSF manufa
Slide 25: Sustainability Indicators Performance for Grasim FY21
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix Sustainability Indicators Performance for Grasim FY21 TOTAL WATER WITHDRAWAL GHG EMISSIONS AIR EMISSIONS WASTE (million mᶟ)- SOURCE (million tCO₂e) (MT) (MT) Scope 1 Scope 2 Water from Municipality/Water SOx NOx Utility Total
Slide 26: Vilayat VSF Expansion Project
Vilayat VSF Expansion Project Grasim Industries Limited | Earnings Presentation | Q1 FY22 | PEOPLE-PLANET-PROSPERITY 25
Slide 27: Viscose: Vilayat Expansion Project (Aerial View - July 2021)
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix VISCOSE: Vilayat Expansion Project (Aerial View –July 2021) Overall project progressing as per plan with target commissioning in two phases; Line 1 and Line 2 in Q2FY22 Q3FY22 respectively Dry run trial completed for major equ
Slide 28: Viscose: Vilayat Expansion Project
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix VISCOSE: Vilayat Expansion Project Acid Plant CAP Water Treatment CPP Grasim Industries Limited | Earnings Presentation | Q1 FY22 | PEOPLE-PLANET-PROSPERITY 27
Slide 29: Viscose: Vilayat Expansion Project
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix VISCOSE: Vilayat Expansion Project ISBL Cooling Towers Auxiliary Section Pulp Feeding System Central Control Room Grasim Industries Limited | Earnings Presentation | Q1 FY22 | PEOPLE-PLANET-PROSPERITY 28
Slide 30: Appendix
APPENDIX Grasim Industries Limited | Earnings Presentation | Q1 FY22 | PEOPLE-PLANET-PROSPERITY 29
Slide 31: Quarterly Income Statement
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix QUARTERLY INCOME STATEMENT Standalone Consolidated Particulars (Rs. Cr.) Q1FY22 Q1FY21 Q1FY22 Q1FY21 Revenue from Operations 3,763 1,336 19,919 13,044 Other Income 65 99 270 377 EBITDA 805 (126) 4,736 2,545 EBITDA Margin (%) 2
Slide 32: Balance Sheet
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix BALANCE SHEET Standalone (Rs. Cr.) Consolidated (Rs. Cr.) 30th Jun'21 31st Mar'21 EQUITY & LIABILITIES 30th Jun'21 31st Mar'21 44,134 42,948 Net Worth 67,913 65,494 - - Non Controlling Interest 37,915 37,068 - - Borrowings rel
Slide 33: Viscose Business Summary
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix VISCOSE BUSINESS SUMMARY Quarterly Particulars % Change Q4FY21 % Change Q1FY22 Q1FY21 Capacity VSF KTPA 591 566 4 591 - VFY KTPA 48 46 4 48 - Production VSF KT 133 38 255 143 (7) VFY KT 10 1 900 11 (9) Sales Volume VSF KT 112
Slide 34: Chemical Business Summary
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix CHEMICAL BUSINESS SUMMARY Quarterly Particulars % Change Q4FY21 % Change Q1FY22 Q1FY21 Capacity* KTPA 1,147 1,147 - 1,147 - Production* KT 242 139 74 265 (9) Sales Volume* KT 238 139 71 267 (11) Revenue Rs. Cr. 1,436 702 105 1
Slide 35: Grasim Group Structure
Financial Overview Business Performance PEOPLE-PLANET-PROSPERITY Appendix GRASIM GROUP STRUCTURE Grasim Industries Limited VSF - 591K TPA Caustic Soda - Overseas UTCL (57.28%)** ABCL (54.20%)** VFY - 48K TPA 1147K TPA Others Pulp - 74K TPA Pulp & VSF JVs Subsidiary Subsidiary Epoxy – 123K TPA Nagda
Slide 36: Forward Looking and Cautionary Statement
FORWARD LOOKING AND CAUTIONARY STATEMENT Certain statements in this report may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to t
Slide 37: Notes
NOTES Grasim Industries Limited | Earnings Presentation | Q1 FY22 | PEOPLE-PLANET-PROSPERITY 36
Slide 38: Glossary
GLOSSARY Abbreviation Particulars AAUM Average Asset Under Management ECU Electro Chemical Unit Epoxy Name of Chemical FY Financial Year KTPA Thousand Ton per annum MTPA Million Ton per annum NBFC Non Banking Financial Company PMT Per Metric Ton ROAvCE Return on Average Capital Employed TPD Ton per
Slide 39: Thank you
Thank you Grasim Industries Ltd. Aditya Birla Centre 'A' Wing, 2nd Floor ,S.K. Ahire Marg ,Worli Mumbai 400 030 ,India Investor Relations Team Email: pradeep.a@adityabirla.com saket.sah@adityabirla.com sheetal.daga@adityabirla.com