Aditya Birla Real Estate Ltd · NSE:ABREL
Aditya Birla Real Estate — Century Textiles and Industries — Q2 FY22 Earnings Presentation
48 slides from Aditya Birla Real Estate's earnings presentation, Oct 14, 2021
Slide 1: Cover letter to stock exchanges
CENTURY Textiles and Industries Limited REGO. OFFICE : "CENTURY BHAVAN", DR. ANNIE BESANT ROAD, WORLI, MUMBAl-400 030. INDIA. TEL.: +91-22-2495 7000 FAX:+ 91-22-2430 9491, +91-22-2436 1980 E-Mail: ctil.ho@birlacentury.com Website: www.centurytextind.com CIN-L17120MH1897PLC000163 OUR REF.: SH/XII/202
Slide 2: Earnings Presentation – Q2 FY22
Century Textiles and Industries Limited Earnings Presentation – Q2 FY22
Slide 3: Table of Contents
2 TABLE OF CONTENTS Summary Real Estate Pulp and Paper Textiles Financials
Slide 4: Q2 FY22 Key Operational Highlights
3 Q2 FY22 KEY OPERATIONAL HIGHLIGHTS • Overall, an excellent performance by the businesses supported by higher operating efficiencies and good turnaround in the market sentiments. • Major approvals obtained for Century Mills, Worli Project. Launch activities initiated and are progressing well. • Lau
Slide 5: Company Overview
4 COMPANY OVERVIEW • Incorporated in 1897, Century Textiles and Industries Limited (CTIL) has evolved from a single unit textile mill into a diversified conglomerate under the visionary leadership of Mr. B. K. Birla. • The company’s 123-years-old legacy is built on a steadfast commitment to the deve
Slide 6: Quarterly Consolidated Performance at a Glance
5 QUARTERLY CONSOLIDATED PERFORMANCE AT A GLANCE (RS. IN CRORES) TURNOVER EBITDA & EBITDA MARGINS PAT 998 133 596 66 32 11.1% 13.3% Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 - Q2 FY21 -11 Q2 FY22 Summary TTM QUARTERLY PERFORMANCE 998 820 832 758 14.4% 14.1% 13.3% 596 11.1% 9.8% - 66 -11 -- 109 37 80 -5 -- 117
Slide 7: Q2 FY22 Segment Wise Consolidated Performance
6 Q2 FY22 SEGMENT WISE CONSOLIDATED PERFORMANCE (RS. IN CRORES) REAL ESTATE PAPER AND PULP TEXTILES 261 50.0% 36 686 35 28.6% 40.0% 30.0% 0.0% 419 125 20.0% 16.6% 12.6% 2.7% 10.0% 10 l 114 -12.0% 7 0.0% 0 53 -10.0% -15 - - - -20.0% - Q2 FY21 - - Q2 FY22 - - -Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Summary R
Slide 8: Half Yearly Consolidated Performance
7 HALF YEARLY CONSOLIDATED PERFORMANCE (RS. IN CRORES) TURNOVER EBITDA & EBITDA MARGINS PAT 1,855 250 58 990 96 9.7% 13.7% H1 FY21 H1 FY22 H1 FY21 H1 FY22 - H1 FY21 -47 H1 FY22 Summary REAL ESTATE PAPER AND PULP TEXTILES 1,263 467 50.0% 71 32.4% 69 40.0% 30.0% 8.7% 719 20.0% 16.6% 1.9% 167 10.0% 23
Slide 9: Real Estate
BlRLA ESTATES Real Estate Over 36 lakh sq. ft. under construction across 3 projects
Slide 10: Executive Summary - Real Estate
9 EXECUTIVE SUMMARY - REAL ESTATE • The B. K. Birla Group forayed into the real estate sector in 2016 Real Estate under the brand name ‘Birla Estates’. REVENUE (RS. IN CRORES) • The company is focused on developing land parcels owned by the 159 Group, as well as growing the business with joint devel
Slide 11: Step Towards More Focus on Growing Business
10 STEP TOWARDS MORE FOCUS ON GROWING BUSINESS BIRLA ESTATES Real Estate Strong Vision & Strategy ■ Opportunities -- Pulp & Paper Strengths Leveraging: Encash on: Strong focus on: ■ ' • Rapid urbanization and nuclearization of • Maintaining a capital efficient, asset light • The Birla Brand families
Slide 12: Q2 FY22 Key Operational Highlights – Real Estate
11 Q2 FY22 KEY OPERATIONAL HIGHLIGHTS – REAL ESTATE Real Estate • Launched the 2nd phase at Birla Vanya, Kalyan in September and received a strong response from the customers. Clocked over ■ - - INR 105 Crs of sales in the 1st month itself. Pulp & Paper • Achieved booking value of INR 245 Crs and co
Slide 13: Market Outlook – Real Estate
12 MARKET OUTLOOK – REAL ESTATE Real Estate • Economic activity is expected to further gain momentum led by favorable monetary conditions and improved customer sentiments due to festive season and fast paced vaccination drives. • Significantly improved job security, robust hiring in the IT/ITeS and
Slide 14: Geographical Presence
13 GEOGRAPHICAL PRESENCE Real Estate (C) - Commercial (R) Residential ■ - - Golf Course Extension, Pulp & Paper Gurugram, NCR BIRLA CENTURION (C) BIRLA NAVYA & GROUP HOUSING (R) Worli, Mumbai ■ Kalyan, Maharashtra ' Textiles Whitefield, Bengaluru BIRLA AURORA (C) Magadi Road, Bengaluru MAGADI ROAD (
Slide 15: Summary of Product Portfolio
14 SUMMARY OF PRODUCT PORTFOLIO Real Estate COMMERCIAL Name of the Project Location Area (Lakh sq. ft) No. of Storeys Annual Leasing Revenues Birla Aurora 2.6 22 Worli Approx. Rs. 125 Cr I Birla Centurion ---~ 3.5 12 ■ - - RESIDENTIAL Pulp & Paper Cumulative Revenue Project Area Saleable Area Bookin
Slide 16: Residential & Commercial Sales Highlights
15 RESIDENTIAL & COMMERCIAL SALES HIGHLIGHTS Real Estate % chg % chg % chg Particulars UOM Q2 FY22 Q2 FY21 Q1 FY22 H2 FY22 H1 FY21 YoY QoQ YoY ■ - - Commercial Pulp & Paper Leasing Income Rs. Cr. 30.9 31.3 -1.8% 30.8 0.3% 61.8 62.8 -1.6% ■ Average Rent Rs./sq.ft. 157.6 159.2 -1.0% 156.5 0.7% 157.0 1
Slide 17: Birla Vanya, Kalyan – Project Update
16 BIRLA VANYA, KALYAN – PROJECT UPDATE (LAUNCHED – Q1 FY20) BIRLA ESTATES Real Estate Location Shahad, Kalyan Area 22 acres ■ - Pulp & Paper 13.2 lakh sq. ft. Saleable Area Phase 1 and 2 – 9.9 lakh sq. ft. launched Revenue Potential Rs. 1,134 Crs ■ ' Tower B Tower A Tower G Tower F Residential – 1
Slide 18: Birla Alokya, Bengaluru – Project Update
17 BIRLA ALOKYA, BENGALURU (Outright) - PROJECT UPDATE (LAUNCHED - Q3 FY20) BIRLA E - - - ,~ E S Real Estate Location Soukya Road, Bengaluru ■ - - Area 8.1 acres Pulp & Paper Saleable Area 5.47 lakh sq. ft. ■ ' Revenue Potential Rs. 393 Crs Textiles Product Type Residential – 3-Bed and 4-Bed Villame
Slide 19: Birla Navya, Gurugram – Project Update
18 BIRLA NAVYA, GURUGRAM (JV) – PROJECT UPDATE - ~ E,~ E S BIRLA Real Estate ---- Location Sector 63 A, Gurugram, NCR Area 65 acres Pulp & Paper 36.5 lakh sq. ft. Saleable Area* Phase 1 – 5.7 lakh sq. ft. launched Revenue Potential Rs. 4,415 Crs * ■ ' Product Type Residential – 2 BHK, 3 BHK & 4 BHK
Slide 20: Pulp & Paper
Pulp & Paper Flag bearer in Paper Industry
Slide 21: Pulp & Paper - Executive Summary
20 PULP & PAPER - EXECUTIVE SUMMARY CENTURY a PuLP PAPER Real Estate • Century Pulp and Paper (CPP) is a producer of excellent quality writing and printing paper, and a leading manufacturer of tissue and board, as well as Rayon Grade Pulp (RGP) products. • Established in 1984, with relentless focus
Slide 22: Step Towards More Focus on Growing Business
21 STEP TOWARDS MORE FOCUS ON GROWING BUSINESS CENTURY a PuLP PAPER Real Estate Strong Vision & Strategy Opportunities Pulp & Paper Strengths • Leveraging: Encash on: Strong focus on: • India’s only integrated Pulp & Paper mill • Growth in tissue paper demand due to providing comprehensive solution
Slide 23: Q2 FY22 Key Operational Highlights – Pulp & Paper
22 Q2 FY22 KEY OPERATIONAL HIGHLIGHTS – PULP & PAPER Real Estate Pulp & Paper • Highest quarterly sales & production volumes since the Plant commenced operations 37 years back. • Marked improvement in the demand for WPP especially in the copier segment with opening of offices & judiciary etc. Textil
Slide 24: Market Outlook – Pulp & Paper
23 MARKET OUTLOOK – PULP & PAPER CENTURY PuLPa PAPER Real Estate • Improved medical infrastructure facilities in the country, has negated the earlier speculation that 3rd Covid wave will be hitting the country in the beginning of Q-3 • Most of the paper consumption points are projected to open compl
Slide 25: Q2 FY22 Production & Sales
24 Q2 FY22 PRODUCTION & SALES CENTURY a PuLP PAPER Real Estate 686 22 1,22,594 1,16,896 79 Pulp & Paper 1,11,283 4,262 12,388 7,830 11,602 11,974 9,000 80,340 419 81,928 303 2,473 15 ■ 7,756 46,628 37 46,826 5,785 45,000 5,426 ' 194 Textiles 37,420 38,067 54,404 281 49,453 51,406 ■ 30,680 34,662 174
Slide 26: H1 FY22 Production & Sales
25 H1 FY22 PRODUCTION & SALES CENTURY a PuLP PAPER Real Estate 1,263 2,36,297 2,16,791 45 2,22,565 151 23,656 8,309 Pulp & Paper 15,660 18,000 22,820 21,888 1,45,424 1,35,065 719 577 90,000 11,582 92,547 17 2,832 ■ 92,323 ' 66 10,391 9,960 Textiles 65,718 60,706 321 98,905 97,274 94,271 490 ■ 57,733
Slide 27: Macros
26 MACROS CENTURY a PuLP PAPER Real Estate NSR MOVEMENT (INR/TONS) 58,255 58,850 57,812 52,594 52,093 YoY QoQ 51,900 55,885 12% 1% Pulp & Paper 49,052 YoY QoQ 47,341 45,183 18% 3% Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 ■ ' -+- Domestic --- Export OVERALL CONTRIBUTION Textiles 57,720 58,682 52,165 5
Slide 28: Environment Social Governance (ESG) – Pulp & Paper
27 ENVIRONMENT SOCIAL GOVERNANCE (ESG) – PULP & PAPER CENTURY • Real Estate ENVIRONMENT SOCIAL GOVERNANCE ~ ft-1c1 ~ fq·~~sra1 3-i1$2.1~ ~ ~ 10 ch °i2>( 3ffi Cf-> ..ff =q < ~-m' • ~ ~ Pulp & Paper .:ts~ fi:R;f ~ &-i'l~.,tf11cf> >rm~ ~ r...·qg-a 1 cln 10 ~ . 10 ~ "q:ci~m~~ ~cfill~~'R~ ~ * , ; r ~ cln
Slide 29: Textiles
Textiles World’s 2nd and India’s 1st LEED V4 certified textile mfg co.
Slide 30: Executive Summary – Century Textiles
29 EXECUTIVE SUMMARY – CENTURY TEXTILES Real Estate • Century Textiles and Industries Limited (CTIL), was incorporated in Mumbai, India, in 1897. A state-of-the-art, vertically integrated plant, Birla Century (A Division of CTIL) was set up at Jhagadia, Bharuch, Gujarat, in the year 2008, using the
Slide 31: Step Towards More Focus on Growing Business
30 STEP TOWARDS MORE FOCUS ON GROWING BUSINESS Real Estate Advantages Growth Drivers Pulp & Paper Strengths ■ • State-of-the-Art Vertically Integrated • US-China trade war has increased demand ' Plant (Fibre to Finishing) • Increased penetration of organised of Indian products in USA retail, better
Slide 32: Q2 FY22 Key Operational Highlights– Textiles
31 Q2 FY22 KEY OPERATIONAL HIGHLIGHTS– TEXTILES Real Estate Pulp & Paper ■ ' • Domestic demand which was subdued for a long time started picking up considering festive season coming up. Textiles • Dispatches have increased, bringing down the inventory to normal level. Production ran at more than 90%
Slide 33: Market Outlook - Textiles
32 MARKET OUTLOOK - TEXTILES Real Estate • Raw material prices have again started increasing, normalcy is expected from Q3 provided new crop brings stability to cotton prices. • Product Development in various cotton blends using sustainable options of viscose, polyester etc seems to be the new Pulp
Slide 34: Macros – Q2 FY22
33 MACROS – Q2 FY22 Real Estate CLOTH – CAPACITY UTILISATION NET SALES REALISATIONS OVERALL CONTRIBUTION (RS. PER/MTR) 9,450 --68% 91% 8,635 YoY 5% QoQ -6% YoY 12% QoQ -7% 02 FY22 (RS. PER/MTR) 231 248 (000 MTRS) 6,400 207 165 157 175 1 11 11 Pulp & Paper TOTAL TOTAL VARIABLE OVERALL PRODUCTION - CL
Slide 35: Sales – Q2 FY22
34 SALES – Q2 FY22 Real Estate CLOTH BED SHEETS YARN OTHERS NET SALES QUANTITY NET SALES QUANTITY NET SALES QUANTITY 9,178 475,381 942 (NO. OF SETS) (000 MTRS) (TONS) 5,638 Pulp & Paper 231,356 266 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 ■ ' Textiles NET SALES NET SALES NET SALES NET SALES 1
Slide 36: Environment Social Governance (ESG) - Textiles
35 ENVIRONMENT SOCIAL GOVERNANCE (ESG) - TEXTILES Real Estate ENVIRONMENT SOCIAL GOVERNANCE I ~~R~~ELETION OF MODULE Pulp & Paper SUSTA I NABLE ~ PPAREL COAL I T I ON Bll1aCentury(A Div. of Century Textiles& lndustnesUd) . oZe q ■ ' Th~ Sustainable utilizes the tt·igg A pparel l~lt ~asure cerfli toC
Slide 37: Financial Summary
Financial Summary 36
Slide 38: Profit & Loss – Q2 FY22
37 PROFIT & LOSS – Q2 FY22 Real Estate (RS. IN CRORES) Q2 FY 22 Variance Q on Q Variance Y on Y Particulars Q2 FY 21 Q1 FY 22 Actual Amount ' % ' Amount i % --- ------ ---- ------ -------- ----...... ................ -- -------- -- -------- ·································:········ r !, ···· ------
Slide 39: Historical Consolidated Income Statement
38 Historical Consolidated Income Statement Real Estate (RS. IN CRORES) Particulars FY19 FY20 FY21 H1 FY22 Continuing Operations Sales Textiles 765 735 582 467 Pulp & Paper 2,643 2,383 1,774 1,263 Pulp & Paper Real Estate 159 146 142 69 Others 66 67 69 31 Total Sales : 3,633 .: 3,331 . 2,567 1,830 E
Slide 40: Cash Flow – Q2 FY22
39 CASH FLOW – Q2 FY22 Real Estate (RS. IN CRORES) Pulp & Birla Yarn & Grand Particulars Textile Rayon H.O. Sub Total Paper ··········-.····························································································································································.- .. ..
Slide 41: Cash Flow – Q2 FY22 (INR Crores)
40 CASH FLOW – Q2 FY22 (INR CRORES) Real Estate ■ Increase ■ Decrease ■ Total 76 Pulp & Paper - - 150 ■ . -13 -11 53 29 Textiles - - -129 8 -44 ■ -12 Financials EBITDA MAT Paid Dividend Collections Project Dev. Wcap Change Capex Interest Interest (bond) Free Cash Flow Real Estate Real Estate
Slide 42: Cash Flow – H1 FY22
41 CASH FLOW – H1 FY22 Real Estate (RS. IN CRORES) Pulp & Birla Yarn & Grand Particulars Textile Rayon H.O. Sub Total Paper ··········-.····························································································································································.- .. ..
Slide 43: Cash Flow – H1 FY22 (INR Crores)
42 CASH FLOW – H1 FY22 (INR CRORES) Real Estate ■ Increase ■ Decrease ■ Total 124 261 Pulp & Paper -19 -11 ■ . Textiles -458 -56 16 -55 -25 ■ Financials -223 EBITDA MAT Paid Dividend Collections Project Dev. Wcap Change Capex Interest Interest (bond) Free Cash Flow Real Estate Real Estate
Slide 44: Statement of Outstanding Loan
43 STATEMENT OF OUTSTANDING LOAN Real Estate (INR CRORES) : Ols as on Ols as on Ols as on Particulars : : 31103121 30106121 30109121 ' : Long Term Loans ! 578 ' Average Rate of Interest 6.85% ': 6.85% j 6.69% Pulp & Paper Average Rate of Interest 4.00% i 3.60% ! 3.83% i- l ■ ' NCD 400 , I I ' I I Av
Slide 45: Outstanding Loan
44 OUTSTANDING LOAN Real Estate 1,362 @ 6.21% 64 1,467 @ 6.19% 1,025 @ 7.17% ■ BEPL- 7.20% 85 44 ■ BEPL- 7.20% 400 ■ BEPL- 7.20% 400 Pulp & Paper 400 ■ NCD- 7.65% ■ NCD- 7,65% ■ NCD- 7.65% 372 ■ . 3 404 ■ STL- 3.60% Textiles ■ STL- 4.00% ■ STL- 3.83% 578 526 ■ 578 ■ LTL- 6.69% ■ LTL- 6.85% ■ LTL- 6.
Slide 46: Financial Performance
45 FINANCIAL PERFORMANCE Real Estate REVENUES (RS. IN CRORES) EBITDA (RS. IN CRORES) PAT (RS. IN CRORES) 1,061 3,947 3,944 499 (RS. IN CRORES) 3,423 851 378 2,616 600 280 1830 Pulp & Paper 285 250 58 - -15 ♦ - FY18 FY19 FY20 FY21 H1 FY22 FY18 FY19 FY20 FY21 H1 FY22 FY18 FY19 FY20 FY21 H1 FY22 ■ . Te
Slide 47: Disclaimer
46 DISCLAIMER Century Textiles and Industries Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinion
Slide 48: Thank You
47 Bringing our century old legacy and expertise into all our businesses while focusing on sustainability, customer centricity, technology and innovation to be future ready Thank You
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