Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q2 FY2010 Earnings Presentation
46 slides from Grasim Industries's earnings presentation, Oct 29, 2009
Slide 1: Grasim Industries Limited – Performance Review Q2FY10
Grasim Industries Limited A Cement and VSF Major Performance Review Q2FY10 29th October 2009
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: Strategic Highlights
Strategic Highlights Cement Business Restructuring Initiative Grasim Board approves demerger of Cement Business into its wholly owned subsidiary, Samruddhi Cement Ltd. Grasim shareholders to receive 1 equity share of Rs.5 each of Samruddhi for every equity share held in Grasim in addition to t
Slide 5: Strategic Highlights
Strategic Highlights Greenfield VSF plant to be set up at Vilayat, Gujarat at an estimated investment of Rs.1,000 Crs. New cement capacity of 4.1 Mn. Tons operational during the half year Plant Capacity (Mn. TPA) Grasim – Shambhupura II (Raj.) 1.6 - Aligarh Grinding Unit (U.P.) 1.3 - Grasim Tota
Slide 6: Operational Highlights
Operational Highlights All round growth in operating performances from Cement and VSF business Cement volumes up by 17% (YoY) supported by new capacity and robust demand growth - Standalone business show high growth of 23% VSF business continues to show recovery and achieves volume growth of 1
Slide 7: Business Review
Business Review Cement VSF Chemicals 7
Slide 8: Cement : Highlights
Cement : Highlights Quarter -2 Cement capacity up by 22% % Chg. 2009-10 2008-09 Cement production up by 20% due to Grey Cement Capacity Mn. TPA 45.65 37.55 22 addition of new capacities - Grasim * 22.55 18.05 25 Consolidated cement sales volume up - UltraTech 23.10 19.50 18 by 17% Production M
Slide 9: Cement : Highlights (Contd….)
Cement : Highlights (Contd….) Quarter -2 % Chg. White Cement achieves 21% growth 2009-10 2008-09 White Cement with strong demand from housing Sales Volumes $$ MT 128,984 106,597 21 segment Avg. Realisation Rs./MT 8,034 7,958 1 Putty continued to grow at impressive Wall Care Putty Sales Volumes M
Slide 10: Cement : Highlights (Contd….)
Cement : Highlights (Contd….) Quarter -2 Segment revenue up by 19% on higher % Chg. 2009-10 2008-09 volumes and realisations Net Revenue Rs. Crs. 3,621.3 3,036.9 19 Significant increase in operating profit; - Cement - Grasim * 1,864.5 1,439.1 30 - Cement - UltraTech 1,613.0 1,477.2 9 operating m
Slide 11: Cement : Outlook
Cement : Outlook Cement demand expected to grow by 9% during the next five years Improvement in economic environment Government initiatives to boost rural development, infrastructure and housing Commissioning of several new capacities to result into surplus Continuous pressure on margins d
Slide 12: Viscose Staple Fibre : Highlights
Viscose Staple Fibre : Highlights Quarter -2 Production up by 22% helped by impressive % Chg. 2009-10 2008-09 capacity utilisation of 92% despite 8 days of Capacity (TPA) 333,975 333,975 - shutdown at Nagda plant due to water Production (MT) 76,669 62,973 22 shortage Sales Volumes (MT) 73,993 62,5
Slide 13: Viscose Staple Fibre : Outlook
Viscose Staple Fibre : Outlook Volume outlook positive with strong domestic and international demand Signs of revival in consumer offtake in western markets Further price increase difficult due to growing price differential with other textile fibres e.g. polyester, cotton Margins likely to d
Slide 14: Chemical : Highlights
Chemical : Highlights Quarter -2 Sales volume up by 11% resulting from % Chg. 2009-10 2008-09 aggressive marketing Capacity (TPA) 258,000 258,000 - ECU realisation down by 16% in line Production (MT) 56,985 55,137 3 Sales Volumes (MT) 59,119 53,103 11 with the industry Net Revenue (Rs. Crs.) 131
Slide 15: Financial Performance
[GRA STM] Financial Performance 15
Slide 16: Revenue Growth
Revenue Growth Revenue – Quarter 2 Standalone Revenue Consolidated Revenue Rs. Crs. 12% Rs. Crs. 6% 3,250 5,000 4,743 3,026 4,486 4,500 2,750 2,703 4,000 3,500 2,250 3,000 Q2/09 Q2/10 Q2/09 Q2/10 Revenue – Half Year Standalone Revenue Consolidated Revenue 15% 10% 6,500 Rs. Crs. Rs. Crs. 9,875 6,113
Slide 17: Revenue Chart
Revenue Chart Rs. Crores Half Year Quarter -2 % Chg. Net Revenue % Chg. 2009-10 2008-09 2009-10 2008-09 31 4,220 3,225 Cement 2,066 1,593 30 17 1,565 1,336 Viscose Staple Fibre 849 691 23 (8) 251 272 Chemical 131 145 (10) - 111 553 Sponge Iron @ - 304 - - 31 32 Others 16 16 - - (66) (92) Inter Segme
Slide 18: Revenue Mix
Revenue Mix Standalone Q2FY10 Consolidated Q2FY10 1 2 22 32 67 76 Standalone Q2FY09 Consolidated Q2FY09 1 7 2 3 11 21 30 58 67 Cement VSF & Chemical Sponge Iron Textile Others 18
Slide 19: Financial Performance – Quarter 2
Financial Performance – Quarter 2 Quarter - 2: Standalone Quarter - 2 : Consolidated (Rs. Crores) 2009-10 2008-09 % Change 2009-10 2008-09 % Change Revenue 3,026 2,703 12 4,743 4,486 6 PBIDT 1,159 678 71 1,630 1,023 59 Interest 51 28 78 83 75 11 Depreciation 136 107 27 242 211 15 PBT 973 543 79 1,30
Slide 20: Financial Performance – Half year
Financial Performance – Half year Half Year : Standalone Half Year : Consolidated (Rs. Crores) 2009-10 2008-09 % Change 2009-10 2008-09 % Change Revenue 6,113 5,325 15 9,875 8,939 10 PBIDT 2,107 1,512 39 3,311 2,379 39 Interest 98 59 67 165 142 17 Depreciation 273 212 29 482 410 18 PBT 1,736 1,242 4
Slide 21: PBIDT Growth
PBIDT Growth PBIDT – Quarter 2 Standalone PBIDT Consolidated PBIDT 71% 59% 1,250 Rs. Crs. 1,159 1,750 Rs. Crs. 1,630 1,500 1,000 1,250 750 678 1,023 1,000 500 750 250 500 Q2/09 Q2/10 Q2/09 Q2/10 PBIDT – Half year Standalone PBIDT Consolidated PBIDT 39% 39% 2,250 Rs. Crs. 2,107 3,500 Rs. Crs. 3,311 3
Slide 22: PBIDT – Chart
PBIDT – Chart Rs. Crores Half Year Quarter -2 % Chg. Net Revenue % Chg. 2009-10 2008-09 2009-10 2008-09 64 1,423 866 Cement 683 379 80 61 553 343 Viscose Staple Fibre 355 148 140 (24) 72 94 Chemical 36 52 (30) (39) 106 Sponge Iron - 32 98 103 Others 85 68 39 2,107 1,512 Standalone PBIDT 1,159 678 71
Slide 23: Net Profit
Net Profit Rs. Crores Half Year Quarter -2 Net Profit 2009-10 2008-09 % 2009-10 2008-09 29% 1,205 934 Grasim Standalone (Before EO Gain) 674 419 61% 666 428 UltraTech Cement Ltd. 247 167 57% 365 233 - Grasim's Share 54.78% 135 91 49% 2 (1) Grasim Bhiwani Textiles Ltd. 100% 2 0.4 3 3 Samruddhi Swasti
Slide 24: Grasim Financials
Grasim Financials Standalone Consolidated Full Year Half Year Full Year Half Year Strong Balance sheet (Rs. Crores) 2008-09 2009-10 2008-09 2009-10 Net worth at $2.8 Bn. (Rs.13,396 Crs.) Net Worth 9,478 11,017 11,570 13,396 Capital Employed at $4.6 Bn. (Rs.22,225 Crs.) Debt 3,396 3,004 5,916 5
Slide 25: Standalone Balance Sheet (as at 30-Sep-09)
Standalone Balance Sheet ( as at 30-Sep-09) Rs. Crores Grasim Cement Grasim (Pre-Demerger) Division (Post-Demerger) Net Fixed Assets 8,313 6,674 1,639 Investments - UltraTech 2,551 - 2,551 - Other Strategic Investments 995 0.7 994 - Liquid Investments 2,270 - 2,270 Net Working Capital 884 291 593 Ca
Slide 26: Standalone Profit & Loss A/c – Q2FY10
Standalone Profit & Loss A/c – Q2FY10 Rs. Crores VSF & Cement Total Others Net Revenues 2,066 960 3,026 PBIDT 683 476 1,159 PBIDT Margin (%) 33% 45% 37% Depreciation 99 37 136 PBIT 584 439 1,023 26
Slide 27: Capex
[GRA STM] ADITYA BIRTA GROUP Capex 27
Slide 28: 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 H1FY10 Onward Cement Business 5,970 3,883 2,087 1,587 500 424 VSF Business 1,109 -- 1,109 84 1,025 25 Others (Mainly Chemical) 85 -- 85 57 28 17 Grasim
Slide 29: 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 H1FY10 Grasim Cement Business 5,970 3,883 2,087 1,587 500 424 - Projects: Kotputli (4.5 Mn. TPA), Shambhupura (4.4 4,548 3,804 744 Mn. TPA), Dadri - GU (1.3 Mn.
Slide 30: Summary
[GRA STM] Summary 30
Slide 31: 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
Slide 32: 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 Terminal Jawad Bharuch Durgapur(G) UltraTech Cement Plants F Jafrabad Magdalla (G) UltraTech Grinding Units (G) F C Pipav
Slide 33: Thank You
GRASTM ADITYA BIRLA GROUP Thank You
Slide 34: Annexures
Grasim Industries Limited Annexures
Slide 35: 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 35
Slide 36: Consolidated Financial Performance
Consolidated Financial Performance (Rs. Crores) Quarter -2 Half Year Full Year % Chg. % Chg. 2009-10 2008-09 2009-10 2008-09 2008-09 Net Turnover & Op. Income 4,743.3 4,486.5 6 9,874.9 8,938.7 10 18,487.1 Other Income 84.5 67.8 25 141.0 135.1 4 252.6 PBIDT 1,630.4 1,022.7 59 3,311.1 2,379.0 39 4,780
Slide 37: Standalone Financial Performance
Standalone Financial Performance (Rs. Crores) Quarter -2 Half Year Full Year % Chg. % Chg. 2009-10 2008-09 2009-10 2008-09 2008-09 Net Turnover & Op. Income 3,025.8 2,702.8 12 6,113.2 5,324.8 15 10,956.2 Other Income 101.1 83.7 21 129.7 140.0 (7) 214.1 PBIDT 1,159.3 678.4 71 2,106.6 1,512.4 39 2,845
Slide 38: Financial Snapshot
Financial Snapshot Standalone Consolidated March March March Sep. March March March Sep. (Rs. Crores) 2007 2008 2009 2009 2007 2008 2009 2009 Gross Block $ 7,974 10,615 12,280 11,943 14,485 19,262 21,044 20,839 Net Block $ 4,597 7,054 8,308 8,313 8,472 12,922 14,219 14,149 Goodwill 1,844 1,991 2,001
Slide 39: Profitability Snapshot
Profitability Snapshot Standalone Consolidated Half Year Half Year (Rs. Crores) 2006-07 2007-08 2008-09 2006-07 2007-08 2008-09 2009-10 2009-10 Gross Turnover 9,573 11,552 12,089 6,560 15,674 19,112 20,316 10,602 Net Turnover & Op. Income 8,644 10,325 10,956 6,113 14,142 17,141 18,487 9,875 PBIDT 2,
Slide 40: Segmental Performance – Quarter 2
Segmental Performance – Quarter 2 Quarter -2 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 2,066 1,593 683 379 33.0 23.8 584 316 7,018
Slide 41: Segmental Performance – Half Year
Segmental Performance – Half Year Half Year 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 4,220 3,225 1,423 866 33.7 26.9 1,228 741 7,0
Slide 42: Cement : Summary
Cement : Summary Quarter -2 Half Year 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 8.36 6.98 20 17.79 1
Slide 43: Cement : Summary Contd…
Cement : Summary Contd… Quarter -2 Half Year Full Year % Chg. % Chg. 2009-10 2008-09 2009-10 2008-09 2008-09 Wall Care Putty Sales Volumes MT 53,980 37,501 44 97,618 69,044 41 159,880 Realisation Rs./MT 19,409 19,642 (1) 19,329 19,644 (2) 19,698 Net Revenue Rs. Crs. 3,621.3 3,036.9 19 7,680.5 6,167.
Slide 44: Viscose Staple Fibre : Summary
Viscose Staple Fibre : Summary Quarter -2 Half Year 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 76,669 62,973 22 139,021 121,056 15 232,745 Sales Volumes MT 73,993 62,536 18 141,411 119,295 19 238,463 Net Reve
Slide 45: Chemical : Summary
Chemical : Summary Quarter -2 Half Year 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 56,985 55,137 3 109,216 102,221 7 207,226 Sales Volumes MT 59,119 53,103 11 108,964 100,903 8 207,520 Net Revenue Rs. Crs.
Slide 46: UltraTech: Consolidated Financial Performance
UltraTech: Consolidated Financial Performance (Rs. Crores) Quarter -2 Half Year Full Year % Chg. % Chg. 2009-10 2008-09 2009-10 2008-09 2008-09 Revenue 1,613.0 1,477.2 9 3,610.7 3,020.8 20 6,618.7 Other Income 12.2 7.2 70 30.4 17.4 74 45.6 PBIDT 498.2 329.4 51 1,253.5 800.1 57 1,819.2 PBIDT Margin %