Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q3 FY2012-13 Earnings Presentation
43 slides from Grasim Industries's earnings presentation, January 2013
Slide 1: Performance Review Quarter 3: 2012-13
Performance Review Quarter 3 : 2012-13 Grasim Industries Limited A VSF and Cement Major
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
Slide 3: Contents
Contents Highlights Business Review Financial Performance Capex Plan Summary 3
Slide 4: Highlights – Quarter 3
Highlights – Quarter 3 Operational The businesses remained affected by present global and domestic market condition In VSF : Global textile trends affected VSF business PBIDT declined due to lower realisation in line with global trends JVs performance impacted due to substantial fall in pu
Slide 5: Business Review
Business Review VSF Chemical Cement Subsidiary 5
Slide 6: Viscose Staple Fibre : Highlights
Viscose Staple Fibre : Highlights Quarter Quarter 3 Global Industry Scenario % 2 Change Market conditions for the textile industry 2012-13 2012-13 2011-12 (YoY) 352,225 Capacity - Annual (MT) 352,225 333,975 5 continue to be challenging, compounded by Surplus VSF capacity in China 88,056 Capacit
Slide 7: Viscose Staple Fibre : Highlights (Contd….)
Viscose Staple Fibre : Highlights (Contd….) Quarter 3 Softening of Pulp prices neutralised by rupee Quarter 2 % Change depreciation 2012-13 2012-13 2011-12 (YoY) Higher caustic prices affected the variable Standalone Business: cost o Chemical business, however, gained 251 PBIDT (` Cr.) 188 278 (
Slide 8: Viscose Staple Fibre : Outlook
Viscose Staple Fibre : Outlook Industry to remain under pressure in the near term given the prevailing slowdown in global economy including textiles Surplus capacity in China to exert pressure on volumes and prices Profitability will also be influenced by competing fibre dynamics However, in
Slide 9: Chemical : Highlights
Chemical : Highlights Quarter 3 Industry Scenario Quarter 2 % Change 2012-13 Caustic prices remained firm, pushing ECU 2012-13 2011-12 (YoY) realisation 258,000 Capacity - Annual (MT) 258,000 258,000 -- As industry utilisation impacted due to low 64,500 Capacity - Quarter (MT) 64,500 64,500 -- c
Slide 10: Cement : Highlights
Cement : Highlights Quarter 2 Quarter 3 % Industry Scenario Change 2012-13 2012-13 2011-12 (YoY) Subdued demand growth Grey Cement (Mn. MT) Slowdown in investment cycle 51.75 Capacity – Annual 51.75 51.75 -- Supply constraints for sand and aggregates 12.95 Capacity – Qtr. 12.95 12.95 -- affect
Slide 11: Cement : Financials
Cement : Financials Quarter 3 % Net Revenue up by 8% supported by 7% Quarter 2 Change 2012-13 2012-13 2011-12 (YoY) increase in realisation on YoY basis 4,972 Net Revenue (` Cr.) 5,164 4,800 8 Variable cost remained flat YoY Raw material cost up by 14% due to substantial 1,113 PBIDT (` Cr.) 1,
Slide 12: Cement : Outlook
Cement : Outlook Demand growth linked to GDP growth ; implementation of reforms Likely growth of > 8% in the long term Surplus supply scenario likely to continue over the next 3 years Capacity addition pace to slowdown (Likely capacity addition of 49 Mn. Tons by FY16) Industry capacity uti
Slide 13: Financial Performance
ae __ we Financial Performance 13
Slide 14: Consolidated Revenue
Consolidated Revenue 7% 364 46 (7) (86) 125 26 6722 6768 ` Crore 6300 Quarter 3 VSF & Domsjo Chemical Cement Inter Co. Quarter 3 Terrace Quarter 3 2011-12 Existing Eliminations 2012-13 Bay 2012-13 Pulp JV & Others After inc. Terrace Bay 6,300 (86) 125 26 364 (7) 6,722 46 6,768 14
Slide 15: Financial Performance – Consolidated
Financial Performance – Consolidated ` Crore For Comparable PAT, a) Corresponding Quarter / 9 Months results have been recasted, excluding interest subsidy received by UltraTech pertaining to earlier period, and b) Proportionate share in loss of AV Terrace Bay, for the current quarter has been exclu
Slide 16: Consolidated PBIDT
Consolidated PBIDT 4% (117) (24) 65 1 (7) 13 ` Crore 1554 1509 1485 Quarter 3 VSF & Existing Domsjo Chemical Cement Others incl. Inter Quarter 3 Terrace Quarter 3 2012-13 2011-12 Pulp JV Co. Eliminations 2012-13 Bay After inc. Terrace Bay 1,554 * (117) (7) 13 65 1 1,509 (24) 1,485 * Includes interes
Slide 17: Net Profit
Net Profit ` Crore Nine Months Quarter 3 2012-13 2011-12 % 2012-13 2011-12 % Change Total Grasim's Total Grasim's Change Total Grasim's Total Grasim's Co. share Co. share Co. share Co. share 854 933 Standalone PAT 198 274 1,925 1,161 1,532 924 26 UltraTech Cement 608 367 598 361 2 5 5 5 5 Grasim Bhi
Slide 18: Balance Sheet : Grasim
Balance Sheet : Grasim ` Crore Standalone Consolidated As on Dec'12 As on Mar'12 EQUITY & LIABILITIES As on Dec'12 As on Mar'12 SHAREHOLDERS' FUNDS 9,964 9,099 Net Worth 19,136 17,069 - - Minority Interest 5,930 5,233 NON CURRENT LIABILITIES 924 567 Long Term Borrowings 6,665 5,701 354 239 Deferred
Slide 19: Strong Financials
Strong Financials Standalone Consolidated 9M Full Year 9M Full Year (` Crore) 2012-13 2011-12 2012-13 2011-12 Net Worth 9,964 9,099 19,136 17,069 Debt 1,156 720 8,984 7,036 Net Debt (Net of liquidity) (1,006) (2,089) 2,757 674 Capital Employed 11,473 10,058 36,237 31,317 Debt:Equity (x) 0.12 0.08 0.
Slide 20: Capex
ADITYA BIRLA Re Capex 20
Slide 21: Capex plan
Capex plan ` Crore Work in Cash Outflow Capex spent Capex under Progress during Implemen- FY13 FY14 as on tation onwards 9M 2012-13 01-04-12 Standalone VSF Expansion : Vilayat (120K TPA), Harihar (36K TPA) 2,257 Chemical Expansion : Vilayat (182K TPA) 807 Epoxy Project : Vilayat (51,500 TPA) 223 Nor
Slide 22: Summary
ADITYA BIRLA Re Summary 22
Slide 23: Summary
Summary Cement business reported satisfactory performance VSF business records satisfactory performance, given textile value chain under pressure Leadership position and cost competitiveness in both the businesses will be further strengthened on ongoing basis Both businesses to consolidate l
Slide 24: Organizational Structure
Organizational Structure UltraTech Cement Others Pulp, Fibre & Allied Chemical * (60.32%) VSF Overseas Pulp Overseas Chemicals Domestic Overseas 352K TPA VSF Units 70 K TPA Pulp Units 3 Mn. TPA, (UAE, 258K TPA 49 Mn. TPA Bangladesh, Sri Lanka) Nagda Birla Jingwei $ AV Cell $ Nagda 11 Composite Grasi
Slide 25: Plant Locations – Grasim & its subsidiaries
Plant Locations– Grasim & its subsidiaries Bathinda(G) Panipat Bhiwani Dadri T Kotputli Aligarh Jodhpur T Malanpur Shambhupura Jawad Bharuch Durgapur(G) UltraTech Cement Plants F Jafrabad FVilayat UltraTech Grinding Units (G) F C Pipavav Nagda Hirmi Raipur Magdalla (G) Awarpur B UltraTech Bulk Cemen
Slide 26: Thank You
ADITYA BIRLA GRASIM Thank You
Slide 27: Annexure
Grasim Industries Limited Annexure
Slide 28: Annexure
Annexure Consolidated Financial Performance Standalone Financial Performance Consolidated and Standalone Profitability Revenue & PBIDT Chart VSF Summary Chemical Summary Cement Summary 28
Slide 29: Consolidated Financial Performance
Consolidated Financial Performance (` Crore) Quarter - 3 % Nine Months % Full Year 2012-13 2011-12 Change 2012-13 2011-12 Change 2011-12 Net Sales & Op. Income 6,767.8 6,300.4 7 20,203.2 17,961.6 12 25,241.0 Other Income 177.9 204.8 (13) 413.4 444.8 (7) 745.4 PBIDT 1,484.6 1,554.2 (4) 4,757.3 4,437.
Slide 30: Standalone Financial Performance
Standalone Financial Performance (` Crore) Quarter 3 % Nine Months % Full Year 2012-13 2011-12 Change 2012-13 2011-12 Change 2011-12 Net Sales & Op. Income 1,219.7 1,266.3 (4) 3,831.4 3,557.5 8 4,969.7 Other Income 79.3 85.9 (8) 336.2 337.0 -- 463.5 PBIDT 310.5 394.7 (21) 1,190.5 1,354.8 (12) 1,721.
Slide 31: Profitability Snapshot
Profitability Snapshot Standalone Consolidated ( ` Crore) FY FY FY 9M FY FY FY 9M 2009-10 * 2010-11 2011-12 2012-13 2009-10 2010-11 2011-12 2012-13 Net Turnover & Op. Income 8,313 4,640 4,970 3,831 20,195 21,550 25,241 20,203 PBIDT 2,972 1,817 1,722 1,191 6,322 5,395 6,320 4,757 PBIDT Margin (%) 34.
Slide 32: Revenue Chart
Revenue Chart ` Crore Nine Months % Quarter 3 % Quarter 2 Change Net Revenue Change 2012-13 2011-12 2012-13 2011-12 2012-13 YoY YoY 3,256 3,065 6 Viscose Staple Fibre 1,030 1,084 (5) 1,164 695 557 25 Chemical 236 210 12 225 77 81 Others 26 28 26 (196) (145) 36 Eliminations (Inter Segment) (71) (56)
Slide 33: PBIDT – Chart
PBIDT – Chart ` Crore Nine Months % Change PBIDT Quarter - 3 % Change Quarter 2 2012-13 2011-12 YoY 2012-13 2011-12 YoY 2012-13 715 935 (24) Viscose Staple Fibre 188 278 (32) 251 194 128 51 Chemical 61 47 28 67 282 291 Others 62 70 182 1,191 1,355 (12) Standalone PBIDT 310 395 (21) 500 Subsidiaries
Slide 34: Viscose Staple Fibre : Summary
Viscose Staple Fibre : Summary Quarter 3 % Nine Months % Full Year 2012-13 2011-12 Change 2012-13 2011-12 Change 2011-12 Capacity TPA 3,52,225 3,33,975 5 3,52,225 3,33,975 5 3,33,975 Production MT 88,297 84,233 5 2,51,500 2,37,647 6 3,21,085 Sales Volumes MT 78,579 78,216 1 2,40,903 2,12,013 14 3,06
Slide 35: Chemical : Summary
Chemical : Summary Quarter 3 % Nine Months % Full Year 2012-13 2011-12 Change 2012-13 2011-12 Change 2 2011-12 0 Capacity TPA 2,58,000 2,58,000 2,58,000 2,58,000 2,58,000 Production MT 69,210 68,741 1 2,02,003 1,92,028 5 2,60,326 Sales Volumes MT 68,115 71,232 (4) 2,03,081 1,92,977 5 2,65,816 Net Re
Slide 36: Cement : Summary
Cement : Summary Quarter 3 % Nine Months % Full Year 2012-13 2011-12 Change 2012-13 2011-12 Change 2011-12 Grey Cement Capacity Mn. TPA 51.75 51.75 -- 51.75 51.75 -- 51.75 Production Mn. MT 10.39 10.44 -- 30.80 30.27 2 42.11 Cement Sales Volumes $ Mn. MT 10.41 10.43 -- 30.98 30.54 1 42.60 Clinker Sa
Slide 37: Press Release: Grasim Reports Financial Results for Q3 FY 2012-13
Press Release Mumbai, 31st January, 2013 Grasim Reports Financial Results for Q3 FY 2012-13 Consolidated Net Revenue : ` 6,768 Cr. Up 7% Consolidated PBIDT : ` 1,485 Cr. Maintained New capacities to be commissioned by Q1 FY 2013-14 - VSF : 146K TPA (Up 40%) - Cement : 9.2 Mn. TPA (Up 20%) Consolidat
Slide 38: Viscose Staple Fibre (VSF)
Viscose Staple Fibre (VSF) Market conditions for the textile industry, the key consumer of VSF, continued to be challenging. This was compounded by the surplus VSF capacity in China and depressed cotton prices. Despite the difficult environment, sales volumes at 78,579 tons have been sustained. Howe
Slide 39: Disposal of Investments and Outlook
Disposal of Investments In line with the Company’s long term strategy of exiting from unrelated investments, the Company has entered into agreement to sell its entire holding of 15% unquoted equity shares in Alexandria Carbon Black Co. (ACB) and 2.75% quoted equity shares in Thai Carbon Black Public
Slide 40: Unaudited Consolidated Financial Results
UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31-12-2012 PART I: STATEMENT OF CONSOLIDATED UNAUDITED RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31-12-2012 ` Crore Three Months Ended Nine Months Ended Year Ended Particulars 31-12-2012 30-09-2012 31-12-2011 31-12-20
Slide 41: Unaudited Consolidated Segment Wise Revenue, Results and Capital Employed
UNAUDITED CONSOLIDATED SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER AND NINE MONTHS ENDED 31-12-2012 ` Crore Particulars Three Months Ended Nine Months Ended Year Ended 31-12-2012 30-09-2012 31-12-2011 31-12-2012 31-12-2011 31-03-2012 (Unaudited) (Unaudited) (Unaudited) (Unaudi
Slide 42: Notes to the Results
GRASIM INDUSTRIES LIMITED NOTES: 1. The Company has opted to publish Consolidated Financial Results. Key numbers of Standalone Financial Results of the Company for the quarter and nine months ended 31st December, 2012 are as under: ` Crore Particulars Three Months Ended Nine Months Ended Year Ended
Slide 43: Notes to the Results (Contd.)
GRASIM INDUSTRIES LIMITED 5. No provision has been made in the Results for any liability that may arise from the order of the Competition Commission of India dated 20th June, 2012 imposing a penalty of ` 1,175.49 Crore on UTCL along with certain other cement manufacturing companies for alleged carte
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