Grasim Industries Ltd. · NSE:GRASIM

Grasim Industries — Q3 FY2013-14 Earnings Presentation

36 slides from Grasim Industries's earnings presentation, February 2014

  1. Slide 1: Performance Review Quarter 3: 2013-14

    Performance Review Quarter 3 : 2013-14 Grasim Industries Limited A VSF and Cement Major

  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

  4. Slide 4: Highlights – Quarter 3

    Highlights – Quarter 3 GDP growth (%)  Indian economy continues to be in low growth mode 6.0 5.4 5.5 5.2  Uncertain economic environment and high inflation impacting demand 5.0 4.7 4.8 4.8  VSF business records volume growth 4.4 4.5  Margins impacted due to increase in imported pulp prices and r

  5. Slide 5: Business Review

    Business Review  VSF  Chemical  Cement Subsidiary

  6. Slide 6: Viscose Staple Fibre: Highlights

    Viscose Staple Fibre : Highlights Quarter 3 Global Industry Scenario Quarter 2 % Change  Global over capacity continues to create pressure 2013-14 2013-14 2012-13 (YoY)  Despite continued growth in demand 377,775 Capacity - Annual (MT) 377,775 352,225 7%  Surplus DG pulp capacity resulting into l

  7. Slide 7: Viscose Staple Fibre: Highlights (Contd.)

    Viscose Staple Fibre : Highlights (Contd….) Quarter 3  Cost pressures impacted margin Quarter 2 % Change  Increase in imported pulp prices and rupee 2013-14 2013-14 2012-13 (YoY) depreciation Standalone Business:  Sharp increase in wood cost leading to higher captive pulp cost 240 PBIDT (` Cr.) 1

  8. Slide 8: Viscose Staple Fibre: Outlook

    Viscose Staple Fibre : Outlook  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  Rising population and increasing prosperity in developing economies  However, the present double

  9. Slide 9: Chemical: Highlights

    Chemical : Highlights Quarter 3 Industry Scenario Quarter 2 % Change  ECU realisation improved marginally over Q2 2013-14 2013-14 2012-13 (YoY) led by uptick in Chlorine realisations 440,500 Capacity - Annual (MT) 440,500 258,000 71% 83,500* Capacity - Quarter (MT) 83,500* 64,500 29% Business Perfo

  10. Slide 10: Cement: Highlights

    Cement : Highlights Quarter 3 % Industry Scenario Quarter 2 Change  Industry Volume remained almost flat 2013-14 2013-14 2012-13 (YoY)  Continued weakness in Infrastructure and Housing Grey Cement (Mn. MT) segment 53.90 Cement Capacity - Annual 55.50 51.75 7 13.48 Cement Capacity - Qtr. 13.74 12.9

  11. Slide 11: Cement: Financials

    Cement : Financials Quarter 3  Downward trend in prices continued Quarter 2 % Change  Sharp decline during Dec’ 13 2013-14 2013-14 2012-13 (YoY)  Variable cost of production remained flat YoY 4,870 Net Revenue (` Cr.) 5,173 5,164 --  Energy cost lower by 2% by optimising fuel mix 773 PBIDT (` Cr

  12. Slide 12: Cement: Outlook

    Cement : Outlook  FY14 likely to end with low demand growth of ~2%  Demand growth should gradually recover to around 8% on improvement in economic environment which is expected after elections  Surplus supply scenario likely to continue over the next 3 years, creating pressure on margins  Capaci

  13. Slide 13: Financial Performance

    ri —_ we i Financial Performance

  14. Slide 14: Consolidated Revenue

    Consolidated Revenue 5% 13 8 14 305 7120 ` Crore 6780 Qtr. 3 VSF & JVs Chemical Cement Inter Co. Qtr. 3 2012-13 Eliminations & 2013-14 Others 6,780 305 13 8 14 7,120 9

  15. Slide 15: Financial Performance – Consolidated

    Financial Performance – Consolidated (` Crore) Nine Nine Months Months Change Change Quarter Quarter 33 Change Change Quarter Quarter 22 2013-14 2013-14 2012-13 2012-13 YoY YoY 2013-14 2013-14 2012-13 2012-13 YoY YoY 2013-14 2013-14 20,905 20,905 20,231 20,231 33 Revenue Revenue 7,120 7,120 6,780 6,

  16. Slide 16: Consolidated PBIDT

    Consolidated PBIDT (24) (2) (261) (55) 1485 ` Crore 1143 Qtr. 3 VSF & JVs Chemical Cement Others incl. Qtr. 3 2012-13 Inter Co. 2013-14 Eliminations 1,485 (24) (2) (261) (55) 1,143 11

  17. Slide 17: Net Profit

    Net Profit (` Crore) Nine Months Quarter 3 2013-14 2012-13 % 2013-14 2012-13 % Total Grasim' Total Grasim' Change Total Grasim' Total Grasim' Change Co. s share Co. s share Co. s share Co. s share 766 854 (10) Standalone PAT 126 198 (36) 1,341 809 1,925 1,161 (30) UltraTech Cement 395 238 608 367 (3

  18. Slide 18: Balance Sheet: Grasim

    Balance Sheet : Grasim Standalone Consolidated (` Crore) As on As on As on As on st st EQUITY & LIABILITIES st st 31 Dec'13 31 Mar'13 31 Dec'13 31 Mar'13 Shareholders' Funds 10,898 10,122 Net Worth 21,229 19,657 - - Minority Interest 6,654 6,221 Non Current Liabilities 1,070 981 Long Term Borrowings

  19. Slide 19: Strong Financials

    Strong Financials Standalone Consolidated 9M FY Full Year 9M FY Full Year (` Crore) 2013-14 2012-13 2013-14 2012-13 Net Worth 10,898 10,122 21,229 19,657 Debt 1,524 1,295 9,869 9,561 Net Debt (+) over liquid funds (-) (185) (738) 3,747 2,826 Capital Employed 12,860 11,761 40,392 37,740 Debt:Equity (

  20. Slide 20: Capex

    ri —_ we i Capex

  21. 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 9M Standalone VSF Expansion : Vilayat (120K TPA), Harihar (36K TPA) 2,178 Chemical Expansion : Vilayat (182K TPA) 947 Epoxy Project : Vilayat (51,500 TPA) 23

  22. Slide 22: Summary

    ri —_ we i Summary

  23. Slide 23: Summary

    Summary  Present difficult market conditions affected performance during the quarter  Expected to remain challenging during next few quarters till recovery in overall environment which is expected post general elections  Both businesses to consolidate cost leadership  Continuous cost optimisatio

  24. Slide 24: Organizational Structure

    Organizational Structure Pulp, Fibre & Allied Chemical UltraTech Cement * Others (60.30%) VSF Overseas VSF Pulp Overseas Domestic Overseas 377K TPA Units 70 K TPA Chemicals 3 Mn. TPA, (UAE, Pulp Units Bangladesh, Sri Lanka) Nagda Birla Jingwei $ AV Cell $ Caustic Grey Cement Grasim 162K TPA 72K TPA,

  25. Slide 25: Plant Locations – Grasim & its subsidiaries

    Plant Locations– Grasim & its subsidiaries Bathinda(G) Panipat Bhiwani Dadri T Kotputli Aligarh Jodhpur P T Malanpur Shambhupura Jawad P Katni Bharuch Durgapur(G) UltraTech Cement Plants F Jafrabad FVilayat UltraTech Grinding Units (G) F C Pipavav Nagda Hirmi Raipur Magdalla (G) Awarpur UltraTech Wh

  26. Slide 26: Thank You

    ri —_ we i ADITYA BIRLA GRASIM Thank You

  27. Slide 27: Annexure

    Grasim Industries Limited Annexure

  28. Slide 28: Annexure

    Annexure  Consolidated Financial Performance  Standalone Financial Performance  Consolidated and Standalone Profitability  Revenue & PBIDT Chart  VSF Summary  Chemical Summary  Cement Summary

  29. Slide 29: Consolidated Financial Performance

    Consolidated Financial Performance (` Crore) Quarter - 3 % Nine Months % Full Year 2013-14 2012-13 Change 2013-14 2012-13 Change 2012-13 Net Sales & Op. Income 7,120.5 6,779.5 5 20,905.3 20,230.6 3 27,904.3 Other Income 105.7 177.9 (41) 448.3 413.4 8 619.5 PBIDT 1,143.2 1,484.6 (23) 3,835.7 4,757.3

  30. Slide 30: Standalone Financial Performance

    Standalone Financial Performance (` Crore) Quarter 3 Nine Months Full Year % Change % Change 2013-14 2012-13 2013-14 2012-13 2012-13 Net Sales & Op. Income 1,470.1 1,231.5 19 4,054.7 3,858.8 5 5,255.0 Other Income 34.8 79.3 (56) 321.8 336.2 (4) 434.6 PBIDT 243.7 310.5 (22) 1,024.5 1,190.5 (14) 1,522

  31. Slide 31: Profitability Snapshot

    Profitability Snapshot Standalone Consolidated ( ` Crore) FY FY FY 9M FY FY FY FY 9M 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 4,055 21,550 25,244 27,904 20,905 PBIDT 1,817 1,722 1,523 1,025 5,395 6,321 6,543 3,836 PBIDT Margin (%)

  32. Slide 32: Revenue Chart

    Revenue Chart (` Crore) Nine Months % Quarter 3 % Quarter 2 Net Revenue 2013-14 2012-13 Change 2013-14 2012-13 Change 2013-14 3,441 3,256 6 Viscose Staple Fibre 1,250 1,030 21 1,211 738 723 2 Chemical 260 247 5 254 73 77 Others 25 26 26 (197) (196) Eliminations (Inter Segment) (64) (71) (69) 4,055 3

  33. Slide 33: PBIDT – Chart

    PBIDT – Chart (` Crore) Nine Months % PBIDT Quarter 3 % Quarter 2 2013-14 2012-13 Change 2013-14 2012-13 Change 2013-14 596 715 (17) Viscose Staple Fibre 169 188 (10) 240 170 194 (12) Chemical 58 61 (5) 62 258 282 (8) Others 17 62 (73) 180 1,025 1,191 (14) Standalone PBIDT 244 310 (22) 483 Subsidiar

  34. Slide 34: Viscose Staple Fibre: Summary

    Viscose Staple Fibre : Summary Quarter 3 % Nine Months % Full Year 2013-14 2012-13 Change 2013-14 2012-13 Change 2012-13 Capacity* TPA 94,444 88,056 7 2,81,073 2,55,056 10 3,43,100 Production MT 91,818 88,297 4 2,71,505 2,51,500 8 3,37,492 Sales Volumes MT 97,049 78,579 24 2,67,593 2,40,903 11 3,36,

  35. Slide 35: Chemical: Summary

    Chemical : Summary Quarter 3 % Nine Months % Full Year 2013-14 2012-13 Change 2013-14 2012-13 Change 2012-13 Capacity* TPA 83,500 64,500 29 2,38,750 1,93,500 23 2,58,000 Production MT 76,049 69,210 10 2,27,041 2,02,003 12 2,70,191 Sales Volumes MT 77,634 68,115 14 2,28,018 2,03,081 12 2,69,438 Net R

  36. Slide 36: Cement: Summary

    Cement : Summary Quarter 3 Nine Months Full Year % Change % Change 2013-14 2012-13 2013-14 2012-13 2012-13 Grey Cement Capacity Mn. TPA 13.74 12.94 6 40.89 38.80 5 53.90 Production Mn. MT 10.41 10.39 -- 30.79 30.80 -- 42.59 $ Cement Sales Volumes Mn. MT 10.56 10.41 1 31.23 30.98 -- 42.75 Clinker Sal

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