Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q2 FY2007 Earnings Presentation
50 slides from Grasim Industries's earnings presentation, Oct 18, 2006
Slide 1: Grasim Industries Limited Performance Review – Q2FY07
Grasim Industries Limited Performance Review – Q2FY07 18th October 2006
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: Consolidated Financial Performance – Q2FY07
Consolidated Financial Performance – Q2FY07 % z Consolidated revenue up by 36% Rs. Crs. Change z PBIDT higher by 94% TOTAL REVENUE 3,184 36 ¾ Excellent performance from Grasim’s Cement Business & Cement Subsidiaries PBIDT 895 94 (including minority share) ¾ Excellent performance from VSF business In
Slide 4: Consolidated Financial Performance – H1FY07
Consolidated Financial Performance – H1FY07 % z Consolidated revenue up by 32% Rs. Crs. Change z PBIDT higher by 70% TOTAL REVENUE 6,394 32 ¾ Excellent performance from Grasim’s Cement Business & Cement Subsidiaries PBIDT 1,867 70 (including minority share) ¾ Higher operating profits in VSF business
Slide 5: Consolidated Financial Performance
Consolidated Financial Performance (Rs. Crores) Q2FY07 Q2FY06 % Chg. H1FY07 H1FY06 % Chg. FY06 Net Turnover & Op. Income 3,183.8 2,343.5 36 6,394.5 4,828.3 32 10,274.9 Other Income 53.4 44.6 20 102.6 120.1 (15) 217.3 PBIDT 894.8 460.9 94 1,867.1 1,101.4 70 2,330.5 Interest 55.1 53.9 2 107.7 110.6 (3
Slide 6: Consolidated Segmental Performance – Q2FY07
Consolidated Segmental Performance – Q2FY07 Revenue Mix PBIDT Mix Sponge Iron Others VSF VSF Others 21% 4% 2% Chemical 21% 6% Sponge Iron 1% Chemical 1% 2% Textiles * 3% Cement Cement 68% 71% (Rs.3,184 Crs.) (Rs.895 Crs.) z VSF (incl. Chemical) contributed 23% (26%) to Revenue and 22% (34%) in PBIDT
Slide 7: Standalone Financial Performance – Q2FY07
Standalone Financial Performance – Q2FY07 % z Revenue up by 22% Rs. Crs. Change z PBIDT up by 65% TOTAL REVENUE 2,011 22 ¾ Excellent performance by Cement business and VSF business PBIDT 582 65 ¾ Chemical business impacted by shutdown in CPP Interest Charges 24 1 ¾ Sponge Iron performance continues
Slide 8: Standalone Financial Performance – H1FY07
Standalone Financial Performance – H1FY07 % z Revenue up by 21% Rs. Crs. Change z PBIDT up by 43% ¾ Excellent performance by Cement business TOTAL REVENUE 3,903 21 ¾ Higher operating profits in VSF business despite plant closure in first quarter PBIDT 1,133 43 ¾ Chemical business impacted by shutdow
Slide 9: Standalone Financial Performance
Standalone Financial Performance (Rs. Crores) Q2FY07 Q2FY06 % Chg. H1FY07 H1FY06 % Chg. FY06 Net Turnover & Op. Income 2,010.8 1,649.2 22 3,902.6 3,213.6 21 6,703.5 Other Income 50.2 30.8 63 87.7 96.3 (9) 169.1 PBIDT 582.4 352.6 65 1,133.1 792.5 43 1,590.9 Interest 24.1 23.7 1 47.5 50.3 (5) 97.4 Gro
Slide 10: Standalone Segmental Performance – Q2FY07
Standalone Segmental Performance– Q2FY07 Revenue Mix PBIDT Mix Sponge Iron Sponge Others 7% VSF Iron 6% 1% 27% VSF 30% Chemical 4% Cement Chemical Cement Textiles 61% 2% 58% 4% (Rs.2,011 Crs.) (Rs.582 Crs.) z VSF (incl. Chemical) contributed 31% (36%) to Revenue and 32% (45%) in PBIDT mix z Cement c
Slide 11: Business Review – Q2FY07
Business Review – Q2FY07 VSF Chemicals Cement Sponge Iron Textiles 11
Slide 12: Viscose Staple Fibre: Q2FY07 Highlights
Viscose Staple Fibre : Q2FY07 Highlights % z All plants working at full capacity Q2FY07 Q2FY06 Chg. Capacity (TPA) 266,450 253,675 5 z Sales volumes bounced back from Q1FY07 Production (MT) 65,083 50,231 30 ¾ Strong demand both from domestic and Sales Volumes (MT) 63,119 62,776 1 export segments Net
Slide 13: Viscose Staple Fibre: Outlook
Viscose Staple Fibre : Outlook z Volumes and price outlook remains positive ¾ Backed by strong VSF demand ¾ Firm prices of competing textile fibres augur well for VSF ¾ Price increase of Rs.6 per kg from October 06 z Margins expected to improve despite rise in pulp prices z China acquisition thru’ J
Slide 14: Chemical: Q2FY07 Highlights
Chemical : Q2FY07 Highlights z Performance impacted due to shutdown % Q2FY07 Q2FY06 Chg. in one of the captive power plants Caustic Capacity (TPA) 190,800 190,800 -- ¾ Lower production and sales volumes Caustic Production (MT) 28,911 42,766 (32) z ECU realisation lower by 4% due to fall Caustic Sale
Slide 15: Cement: Q2FY07 Highlights
Cement : Q2FY07 Highlights % z Excellent performance Q2FY07 Q2FY06 Chg. z Capacity utilisation at 101% (98%) Grey Cement z Sales volume up by 4% Capacity (Mn. TPA) 13.12 13.12 -- z Realisation 42% higher from depressed Production (Mn. MT) 3.31 3.21 3 levels in Q2FY06 Sales Volumes* (Mn. MT) 3.38 3.2
Slide 16: Cement: Q2FY07 Highlights contd..
Cement : Q2FY07 Highlights contd.. zCement : Highlights (Contd..) z Cost pressure on account of higher freight cost z Cost reduction measures continued Grey Cement Sales volumes and Realisation /Tonne ¾ Despatches thru’ rail increased from 34% Vol. Grey Realisation to 49% ‘000 MT Rs./Ton 3900 3000 ¾
Slide 17: Cement: Outlook
Cement : Outlook z Industry witnessing tight supply scenario ¾ Demand – supply balanced across regions z Demand expected to grow by about 9% in the long term ¾ Strong macro economic environment ¾ Robust demand from residential and commercial construction ¾ Aided by industrial investment and augmenta
Slide 18: Sponge Iron: Q2FY07 Highlights
Sponge Iron : Q2FY07 Highlights z Capacity utilisation lower due to inadequate availability of Natural Gas % Q2FY07 Q2FY06 Chg. z Reduction in sales volumes as a result Capacity (TPA) 900,000 900,000 -- z Realisation up marginally with higher global scrap prices Production (MT) 113,567 125,944 (10)
Slide 19: Textiles: Q2FY07 Highlights and Outlook
Textiles : Q2FY07 Highlights and Outlook z Fabric volumes up by 20% Q2 Q2 % FY07 FY06 Chg. ¾ Increased supplies to global brands Sales Volumes ¾ Improved sales in domestic OTC - Fabrics (lac Mtrs.) 54 45 20 business - Synthetic Yarn (MT) 1,641 1,591 3 Net Turnover (Rs. Crs.) 80.9 70.7 14 z PBIDT low
Slide 20: Capex
Capex 20
Slide 21: Capex plans
Capex plans z Capex Summary Rs. Crores Cash Outflow Total FY07 FY08 Cement 3,642 1,304 2,237 - 4 Mn. TPA Greenfield Project at Kotputli, Rajasthan 1,275 - 4 Mn. TPA Project at Shambhupura, Rajasthan 1,200 - Thermal Power plants (4 Nos, 102 MW, Project Cost Rs.455 Crs.) 390 - Grinding unit - North (1
Slide 22: UltraTech Cement Limited (Consolidated) Performance Review
UltraTech Cement Limited (Consolidated) Performance Review 22
Slide 23: UltraTech: Consolidated Financial Performance – Q2FY07
UltraTech: Consolidated Financial Performance – Q2FY07 (Rs. Crores) Q2 Q2 % z Strong performance continued FY07 FY06 Chg. z Turnover* up by 63% backed by higher Net Turnover* and 1,007.9 618.4 63 sales volumes and realisations Other Income PBIDT 271.0 78.5 245 z Operating margins increased substanti
Slide 24: UltraTech Consolidated: Highlights
UltraTech Consolidated: Highlights Q2 Q2 z Capacity utilisation at 84% (69%) % Chg. FY07 FY06 ¾ Performance impacted in Q2FY06 due to Production (Mn. MT) floods and maintenance shutdown Clinker 0.58 0.22 22 z Sales Volume up by 22% Cement 3.00 2.71 ¾ Domestic despatches up by 13% aided by Sales volu
Slide 25: Shree Digvijay Cement Company Limited (SDCC) Performance Review
Shree Digvijay Cement Company Limited (SDCC) Performance Review 25
Slide 26: SDCC Financial Performance - Q2FY07
SDCC Financial Performance - Q2FY07 (Rs. Crores) Q2 Q2 % z Capacity utilisation declined to (Lac MT) FY07 FY06 Chg. 75% (83%) Cement Production 2.03 1.87 (9) ¾ Operations affected due to heavy Clinker Production -- 0.36 rains in August 06 Sales Volumes z Sales volumes lower by 10% - Cement 2.07 1.94
Slide 27: Plant Locations – Grasim & its subsidiaries
Plant Locations– Grasim & its subsidiaries Bathinda(G) Proposed Cement Projects Panipat Proposed Grinding Units Bhiwani Grey cement plants Kotputli T Dadri Grinding Units (G) Shambhupura Jodhpur T Gwalior B Bulk Cement Terminal Jawad Bharuch Durgapur(G) UltraTech Cement Plants F Jafrabad Magdalla (G
Slide 28: Thank You
GRAS TM, ADITYA BIRLA GROUP Thank You
Slide 29: Grasim Industries Limited Annexure
Grasim Industries Limited Annexure
Slide 30: Index of Annexure
Index of Annexure Page Nos. Consolidated and Standalone Profitability snapshot 31 Consolidated and Standalone Financial snapshot 32 Segmental Performance – Q2 & H1 FY07 33-34 VSF Summary 35 Chemical Summary 36 Cement Summary 37 Sponge Iron Summary 38 Textiles Summary 39 Production,
Slide 31: Profitability Snapshot
Profitability Snapshot Standalone Consolidated H1 H1 (Rs. Crores) FY99 FY05 FY06 FY04 FY05 FY06 FY07 FY07 Gross Turnover 4,325 7,201 7,655 4,333 9,189 10,776 11,763 7,101 Net Turnover 3,757 6,229 6,668 3,880 7,782 9,292 10,240 6,372 PBIDT 674 1,785 1,591 1,133 1,909 2,272 2,331 1,867 PBIDT Margin (%
Slide 32: Financial Snapshot
Financial Snapshot Standalone Consolidated (Rs. Crores) FY99 FY05 FY06 H1FY07 FY04 FY05 FY06 H1FY07 Gross Block 4,937 6,052 6,417 6,963 10,702 11,317 11,932 12,829 Net Block 3,354 3,204 3,307 3,734 6,394 6,299 6,416 7,130 Goodwill - - - - 2,037 1,958 1,773 1,863 Cement Subs. Investment 56 2,362 2,35
Slide 33: Segmental Performance-Q2FY07
Segmental Performance-Q2FY07 Standalone (Rs. Crores) PBIDT Margin Capital ROAvCE (%) Revenue PBIDT PBIT Business (%) Employed (PBIT basis) Q2FY07 Q2FY06 Q2FY07 Q2FY06 Q2FY07 Q2FY06 Q2FY07 Q2FY06 Q2FY07 Q2FY06 Q2FY07 Q2FY06 VSF 565.7 499.8 174.3 123.4 31.1 25.4 156.7 107.3 1,098 952 63.9 46.3 Chemica
Slide 34: Segmental Performance-H1FY07
Segmental Performance-H1FY07 Standalone (Rs. Crores) PBIDT Margin Capital ROAvCE (%) Revenue PBIDT PBIT Business (%) Employed (PBIT basis) H1FY07 H1FY06 H1FY07 H1FY06 H1FY07 H1FY06 H1FY07 H1FY06 H1FY07 H1FY06 H1FY07 H1FY06 VSF 1,012.1 918.1 288.6 215.1 28.8 23.8 254.6 184.0 1,098 952 51.9 39.7 Chemi
Slide 35: Viscose Staple Fibre: Summary
Viscose Staple Fibre : Summary Q2 Q2 H1 H1 % Chg. % Chg. FY06 FY07 FY06 FY07 FY06 Capacity TPA 266,450 253,675 5 266,450 253,675 5 257,325 Production MT 65,083 50,231 30 110,277 102,513 8 228,981 Sales Volumes MT 63,119 62,776 1 115,076 115,738 (1) 242,399 Net Turnover Rs. Crs. 559.6 485.1 15 1,000.
Slide 36: Chemical: Summary
Chemical : Summary Q2 Q2 H1 H1 % Chg. % Chg. FY06 FY07 FY06 FY07 FY06 Capacity TPA 190,800 190,800 -- 190,800 190,800 -- 190,800 Production MT 28,911 42,766 (32) 59,648 78,783 (24) 165,509 Sales Volumes MT 30,072 41,585 (28) 60,784 77,434 (22) 165,853 Net Turnover Rs. Crs. 76.5 103.9 (26) 148.1 203.
Slide 37: Cement: Summary
Cement : Summary Q2 FY07 Q2 FY06 % Chg. H1 FY07 H1 FY06 % Chg. FY06 Grey Cement Capacity Mn. MT 13.12 13.12 -- 13.12 13.12 -- 13.12 Production Mn. MT 3.31 3.21 3 6.87 6.56 5 13.83 Sales Volumes * Mn. MT 3.38 3.25 4 6.88 6.59 4 13.99 Net Turnover * Rs. Crs. 1,049.6 713.2 47 2,085.8 1,447.4 44 3,140.5
Slide 38: Sponge Iron: Summary
Sponge Iron : Summary Q2 Q2 H1 H1 % Chg. % Chg. FY06 FY07 FY06 FY07 FY06 Capacity TPA 900,000 900,000 -- 900,000 900,000 -- 900,000 Production MT 113,567 125,944 (10) 240,507 305,760 (21) 505,825 Sales Volumes MT 110,933 140,275 (21) 251,845 283,902 (11) 478,291 Net Turnover Rs. Crs. 140.8 170.4 (17
Slide 39: Textiles: Summary
Textiles : Summary Q2 Q2 H1 H1 % Chg. % Chg. FY06 FY07 FY06 FY07 FY06 Net Turnover Rs. Crs. 80.9 70.7 14 133.6 121.2 10 236.9 PBIDT Rs. Crs. 1.4 3.4 (59) 2.5 4.3 (41) 3.4 PBIDT Margin % 1.7% 4.8% -- 1.9% 3.5% -- 1.4% PBIT Rs. Crs. (0.1) 1.9 -- (0.3) 1.3 -- (3.0) Capital Employed Rs. Crs. 124 106 18
Slide 40: Production Data (MT)
Production Data (MT) Q2 FY07 Q2 FY06 FY06 Product Capacity Capacity Capacity Production % Production % Production % TPA TPA TPA VSF 266,450 65,083 98 253,675 50,231 79 257,325 228,981 90 Caustic Soda 190,800 28,911 61 190,800 42,766 90 190,800 165,509 87 Grey Cement * 13.12 3.31 101 13.12 3.21 98 13
Slide 41: Divisional Turnover (Qty.) & Realisation
Divisional Turnover (Qty.) & Realisation Quantity (MT) Realisation (Rs./MT) Product Q2 FY07 Q2 FY06 FY06 Q2 FY07 Q2 FY06 FY06 VSF 63,119 62,776 242,399 83,279 72,160 73,786 Caustic Soda * 30,072 41,585 165,853 21,081 21,884 20,594 Grey Cement # 3.38 3.25 13.99 2,822 1,993 2,046 White Cement 90,253 8
Slide 42: UltraTech: Consolidated Financial Performance
UltraTech: Consolidated Financial Performance (Rs. Crores) Q2 FY07 Q2 FY06 % Inc. H1 FY07 H1 FY06 % Inc. FY06 Cement Production (Mn. MT) 3.00 2.71 11 6.87 6.38 8 13.71 Sales Volume(Mn. MT):Cement-Domestic * 2.80 2.47 13 6.28 5.65 11 12.20 Cement –Exports 0.23 0.26 (12) 0.58 0.72 (19) 1.51 Clinker 0.
Slide 43: SDCC: Financial Performance
SDCC : Financial Performance (Rs. Crores) % % Q2 FY07 Q2 FY06 H1FY07 H1FY06 FY06 Chg. Chg. Net Turnover & Op. Income 55.7 44.4 25 116.2 98.0 19 214.4 Other Income 0.9 2.3 (63) 2.7 2.7 -- 4.8 PBIDT 10.0 9.4 7 22.8 21.8 5 44.4 PBIDT Margin 18.0% 21.2% -- 19.6% 22.2% -- 20.7% Interest 0.4 1.1 (62) 0.7
Slide 44: Press Release Mumbai, October 18, 2006
Press Release Mumbai, October 18, 2006 GRASIM, THE ADITYA BIRLA GROUP’s FLAGSHIP COMPANY REPORTS EXCELLENT PERFORMANCE FOR Q2FY 2007 Consolidated Net Profit at Rs.418 Crs., Up by 109% Consolidated Net Revenue at Rs.3,184 Crs., Up by 36% Consolidated Financial Performance: Rs. Crores Q2 Q2 % H1 H1 %
Slide 45: Viscose Staple Fibre (VSF) Business
Stand-alone Financial Performance: Rs. Crores Q2 Q2 % H1 H1 % FY07 FY06 Change FY07 FY06 Change Net Revenue 2,010.8 1,649.2 21.9 3,902.6 3,213.6 21.4 Gross Profit 558.3 328.9 69.7 1,085.6 742.2 46.3 Depreciation 75.6 71.9 5.0 149.7 142.4 5.1 Total Tax Expenses 144.9 69.3 109.1 286.2 161.2 77.5 Net P
Slide 46: Cement Business
Upon the completion of expansion and modernization at an outlay of Rs.664 crores, the Company’s capacity will stand increased from its current level 266,450 tons to 315,725 tons per annum by FY08. This would enable the Company to cater to the increasing demand for VSF in India and South Asian countr
Slide 47: Grasim Industries Limited
The Company also plans to invest Rs.1,166 crores over the next 2 years on modernization, de-bottlenecking, setting up of grinding unit at Dadri (Capacity: 1.3 Mn. MT), RMC plants and captive power plants. The Company is buoyant about its Cement business. The growing upsurge in demand from housing an
Slide 48: Unaudited Financial Results for the Quarter Ended 30 September 2006
UNAUDITED FINANCIAL RESULTS th FOR THE QUARTER ENDED 30 SEPTEMBER 2006 I. CONSOLIDATED RESULTS : Rs in Crores Three Months Three Months Six Months Six Months Full Year Ended 30th Ended 30th Ended 30th Ended 30th Ended 31st September 2006 September 2005 September 2006 September 2005 March 2006 ( Audi
Slide 49: Segment Reporting - Consolidated
-2- III. SEGMENT REPORTING - CONSOLIDATED Three Months Three Months Six Months Six Months Full Year Ended 30th Ended 30th Ended 30th Ended 30th Ended 31st September 2006 September 2005 September 2006 September 2005 March 2006 ( Audited ) 1. SEGMENT REVENUE a Fibre & Pulp 670.83 513.70 1,195.85 947.2
Slide 50: Notes
-3- V. NOTES 1 Consolidated Results have been prepared in accordance with Accounting Standard on Consolidated Financial Statements (AS-21), Accounting Standard on Accounting for Investments in Associates (AS-23), and Accounting Standard on Financial Reporting of Interest in Joint Ventures (AS-27) is