Grasim Industries Ltd. · NSE:GRASIM

Grasim Industries — Q4 FY2009 Earnings Presentation

49 slides from Grasim Industries's earnings presentation, May 19, 2009

  1. Slide 1: Grasim Industries Limited Performance Review Q4FY09

    Grasim Industries Limited Performance Review Q4FY09 19th May 2009

  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: Consolidated Financial Performance – Q4FY09

    Consolidated Financial Performance – Q4FY09 Rs. Crs. % Change  Revenue up by 5%  Cash Profit of Rs.1,114 Crs. (Rs.781 Crs.), up by Revenue 5,020 5 43% despite impact of economic slowdown PBIDT 1,329 1  Impressive performance by cement business Interest 73 21  Lower current tax  PBIDT up by 1% D

  4. Slide 4: Consolidated Financial Performance – FY09

    Consolidated Financial Performance – FY09 Rs. Crs. % Change  Revenue up by 9%  Cash Profit of Rs.3,938 Crs. (Rs.3,729 Revenue 18,603 9 Crs.), higher by 6% PBIDT 4,783 (12)  PBIDT lower by 12%  Higher input and energy cost Interest 310 40  Weak performance from VSF and Sponge Iron Depreciation 8

  5. Slide 5: Consolidated Financial Performance

    Consolidated Financial Performance (Rs. Crores) Q4 FY09 Q4 FY08 % Chg. FY09 FY08 % Chg. Net Turnover & Op. Income 5,020.0 4,764.6 5 18,602.9 17,141.3 9 Other Income 45.7 67.7 (33) 254.3 295.3 (14) PBIDT 1,329.1 1,314.5 1 4,782.8 5,422.0 (12) Interest 72.9 60.2 21 310.4 222.1 40 Gross Profit 1,256.2

  6. Slide 6: Standalone Financial Performance – Q4FY09

    Standalone Financial Performance – Q4FY09 Rs. Crs. % Change  Revenue up by 6%  Cash Profit of Rs.619 Crs. (Rs.466 Crs.), up by Revenue 2,932 6 33% despite impact of economic slowdown  Impressive performance by cement business PBIDT 754 (3)  Lower current tax Interest Charges 38 42  PBIDT lower

  7. Slide 7: Standalone Financial Performance – FY09

    Standalone Financial Performance – FY09 Rs. Crs. % Change  Revenue up by 6%  Cash Profit maintained at Rs.2,362 Crs. Revenue 10,940 6 (Rs.2,365 Crs.) PBIDT 2,847 (17)  PBIDT lower by 17%  Higher input and energy cost Interest Charges 142 33  Weak performance from VSF and Sponge Iron business, i

  8. Slide 8: Standalone Financial Performance

    Standalone Financial Performance (Rs. Crores) Q4 FY09 Q4 FY08 % Chg. FY09 FY08 % Chg. Net Turnover & Op. Income 2,931.5 2,763.8 6 10,940.4 10,325.2 6 Other Income 29.3 97.3 (70) 214.1 267.7 (20) PBIDT 753.8 781.1 (3) 2,847.0 3,424.5 (17) Interest 38.5 27.2 42 142.2 107.0 33 Gross Profit 715.3 753.9

  9. Slide 9: Consolidated Segmental Performance – FY09

    Consolidated Segmental Performance – FY09 Net Revenues PBIDT Mix Capital Employed Rs.18,603 Crs. Rs.4,783 Crs. Rs.20,745 Crs. 1 5 22 3 5 10 3 14 19 13 72 73 78 Cement VSF & Chemical Sponge Iron Textile Others * Including Minority share 9

  10. Slide 10: Standalone Segmental Performance – FY09

    Standalone Segmental Performance – FY09 Net Revenues PBIDT Mix Capital Employed Rs.10,940 Crs. Rs.2,847 Crs. Rs.13,734 Crs. 1 4 9 5 19 27 24 12 49 63 67 4 16 Cement VSF & Chemical Sponge Iron Textile Others Inv. In Cement Sub. * Including Minority share 10

  11. Slide 11: Financial Highlights

    [GRA STM] Financial Highlights 11

  12. Slide 12: Grasim Consolidated Financials

    Grasim Consolidated Financials (Rs. Crores) FY06 FY07 FY08 FY09  Strong Balance sheet Net Turnover 10,224 14,069 16,973 18,404  Net worth at $2.3 Bn.  Capital Employed at $4.1 Bn. PBIDT 2,337 4,290 5,422 4,783  Debt-equity at 0.45 PAT#(After Minority share) 1,037 1,967 2,609 2,187  Net leveragi

  13. Slide 13: Grasim Standalone Financials

    Grasim Standalone Financials (Rs. Crores) FY06 FY07 FY08 FY09  Strong Balance sheet Net Turnover 6,653 8,572 10,215 10,804  Low gearing at 0.36 PBIDT 1,597 2,619 3,424 2,847  Net gearing lower at 0.20  High interest cover PAT * 859 1,499 2,002 1,648  ROAvCE in FY09 at 23.2% Net Worth 4,978 6,22

  14. Slide 14: Business Review – Q4FY09

    Business Review – Q4FY09  Cement  VSF  Chemicals  Sponge Iron 14

  15. Slide 15: Cement : Q4FY09 Highlights

    Cement : Q4FY09 Highlights Q4FY09 Q4FY08 % Chg.  Overall improved performance from Grey Cement cement business Capacity Mn. TPA 19.65 16.75 17 Production Mn. MT 4.68 4.20 11  Achieved milestone of Rs.2,000 Crores Sales Volumes * Mn. MT 4.82 4.27 13 revenue in a quarter Realisation Rs./MT 3,448 3,2

  16. Slide 16: Cement Project Status

    Cement Project Status  4.4 Mn. TPA Shambhupura, Raj. : Grinding facility partially commissioned, Balance commissioning in Q1FY10 : Split Grinding unit in Aligarh, UP commissioning in Q1FY10  4.5 Mn. TPA Kotputli, Raj. : Clinkerisation plant commissioned in Q4FY09 : Grinding capacity likely in H1FY

  17. Slide 17: Cement : Outlook

    Cement : Outlook  Cement demand likely to grow at par with estimated lower GDP growth  Uncertain economic environment and its impact on real estate and corporate capex  Uncertainty of new infrastructure spending  Availability of funds for large infrastructure projects still uncertain  New capac

  18. Slide 18: Viscose Staple Fibre : Q4FY09 Highlights

    Viscose Staple Fibre : Q4FY09 Highlights  Production reduced to liquidate inventory Q4FY09 Q4FY08 % Chg.  Partial recovery in sales volumes; sequentially Capacity (TPA) 333,975 333,975 -- volumes up by 22% Production (MT) 59,913 70,828 (15)  Largely due to restocking by customers Sales Volumes (M

  19. Slide 19: Viscose Staple Fibre : Outlook

    Viscose Staple Fibre : Outlook  Business outlook remains challenging despite spurt in volumes in the 4th quarter  Sustained recovery of textile sector expected to be slow with fluctuation in demand and realisation globally  Marginal recovery in prices in Q1FY10, however long term outlook remains

  20. Slide 20: Chemical : Q4FY09 Highlights & Outlook

    Chemical : Q4FY09 Highlights & Outlook  Production up by 14% aided by Q4FY09 Q4FY08 % Chg. uninterrupted power supply Caustic Capacity (TPA) 258,000 258,000 -- Caustic Production (MT) 52,830 46,491 14  ECU realisation up by 10% Caustic Sales Volumes (MT) 51,930 44,872 16  Higher caustic prices pa

  21. Slide 21: Sponge Iron : Q4FY09 Highlights

    Sponge Iron : Q4FY09 Highlights  Business impacted due to global recession and its adverse impact on Steel industry Q4FY09 Q4FY08 % Chg.  Sales volume down by 30% Capacity (TPA) 900,000 900,000 --  Sluggish demand for finished steel Production (MT) 95,376 134,490 (29)  Cheap import of scrap Sale

  22. Slide 22: Capex

    [GRA STM] ADITYA BIRTA GROUP Capex 22

  23. Slide 23: Capex plan

    Capex plan  Capex Summary Rs. Crores Cash Outflow Total Net Project Capex * Cost FY10 FY11 Cement Business 5,410 1,587 1,303 274 - Projects: Kotputli (4.5 Mn. TPA), Shambhupura (4.4 Mn. 4,534 730 TPA), Dadri - GU (1.3 Mn. TPA), (96 MW TPP) - New Product & RMC Plants (3 Nos., Capacity 5 lac cu. mtrs

  24. Slide 24: Capex plan

    Capex plan  Capex Summary Rs. Crores Total Cash Outflow Project Net Cost Capex * FY10 FY11 UltraTech Cement - 4.9 Mn. TPA Tadpatri Project, A.P. (incl. 50 MW TPP) 2,099 246 - 1 No. Power Plant (25 MW), Waste Heat Recovery System (11 250 250 MW) - Grinding and Jetty Capacity Expansion at Pipavav / J

  25. Slide 25: UltraTech Performance

    IG RA STM] UltraTech Performance 25

  26. Slide 26: UltraTech: Consolidated Financial Performance – Q4FY09

    UltraTech: Consolidated Financial Performance – Q4FY09 (Rs. Crores)  Revenue up by 17% on increased volume Q4 Q4 % of cement, clinker and RMC FY09 FY08 Chg.  Operating margins declined due to Revenue 1,929.0 1,647.1 17 higher energy and raw material cost Other Income 14.2 6.6 --  Higher interest

  27. Slide 27: UltraTech Consolidated: Highlights – Q4FY09

    UltraTech Consolidated: Highlights – Q4FY09  Domestic sales volume up by 11% against Q4 Q4 % Chg. industry growth of 8.6% FY09 FY08 Capacity (Mn. TPA) 21.9 18.2 20  Total volumes up by 13% Production (Mn. MT)  Sharp fall in export prices sequentially, Cement 4.60 4.22 9 outlook remains challengin

  28. Slide 28: Summary

    [GRA STM] Summary 28

  29. Slide 29: 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

  30. Slide 30: Plant Locations – Grasim & its subsidiaries

    Plant Locations– Grasim & its subsidiaries Bathinda(G) Proposed Cement Projects Panipat Proposed Grinding Units Bhiwani Dadri T Grey Cement plants Kotputli Aligarh Grinding Units (G) Jodhpur T Gwalior Shambhupura B Bulk Cement Terminal Jawad Bharuch Durgapur(G) UltraTech Cement Plants F Jafrabad Mag

  31. Slide 31: Thank You

    GRASTM ADITYA BIRLA GROUP Thank You

  32. Slide 32: Annexures

    Grasim Industries Limited Annexures

  33. Slide 33: Annexures

    Annexures  Consolidated and Standalone Financial  Consolidated and Standalone Profitability  Segmental Performance – Q4 FY09 & FY09  Cement Summary  VSF Summary  Chemical Summary  Sponge Iron Summary  UltraTech Performance 33

  34. Slide 34: Financial Snapshot

    Financial Snapshot Standalone Consolidated (Rs. Crores) FY05 FY06 FY07 FY08 FY09 FY05 FY06 FY07 FY08 FY09 Gross Block $ 6,052 6,416 7,974 10,615 12,277 11,312 11,927 14,481 19,258 21,041 Net Block $ 3,204 3,307 4,593 7,050 8,305 6,294 6,411 8,468 12,918 14,215 Goodwill 1,958 1,773 1,844 1,991 2,001

  35. Slide 35: Profitability Snapshot

    Profitability Snapshot Standalone Consolidated (Rs. Crores) FY05 FY06 FY07 FY08 FY09 FY05 FY06 FY07 FY08 FY09 Gross Turnover 7,201 7,638 9,573 11,552 12,073 10,776 11,746 15,674 19,112 20,432 Net Turnover 6,229 6,653 8,572 10,215 10,804 9,292 10,224 14,069 16,973 18,404 PBIDT 1,785 1,597 2,619 3,424

  36. Slide 36: Segmental Performance – Q4FY09

    Segmental Performance – Q4FY09 Standalone Rs. Crores ROAvCE (%) Business Revenue PBIDT PBIDT Margin (%) PBIT Capital Employed (PBIT basis) Q4FY09 Q4FY08 Q4FY09 Q4FY08 Q4FY09 Q4FY08 Q4FY09 Q4FY08 Q4FY09 Q4FY08 Q4FY09 Q4FY08 Cement 2,051 1,692 637 483 31.1 28.6 557 427 6,715 5,459 36.6 40.0 VSF 634 71

  37. Slide 37: Segmental Performance – FY09

    Segmental Performance – FY09 Standalone Rs. Crores ROAvCE (%) Business Revenue PBIDT PBIDT Margin (%) PBIT Capital Employed (PBIT basis) FY09 FY08 FY09 FY08 FY09 FY08 FY09 FY08 FY09 FY08 FY09 FY08 Cement 6,995 5,922 1,912 1,876 27.3 31.7 1,630 1,678 6,715 5,459 26.8 39.3 VSF 2,534 3,011 516 1,097 20

  38. Slide 38: Cement : Summary

    Cement : Summary Q4 FY09 Q4 FY08 % Chg. FY09 FY08 % Chg. Grey Cement Capacity Mn. TPA 19.65 16.75 17 19.65 16.75 17 Production Mn. MT 4.68 4.20 11 16.32 15.36 6 Sales Volumes Mn. MT 4.82 4.27 13 16.54 15.54 6 Avg. Realisation Rs./MT 3,448 3,267 6 3,415 3,192 7 RMC Sales Volumes Lac Cu. Mtr. 5.40 5.9

  39. Slide 39: Viscose Staple Fibre : Summary

    Viscose Staple Fibre : Summary Q4 FY09 Q4 FY08 % Chg. FY09 FY08 % Chg. Capacity TPA 333,975 333,975 - 333,975 333,975 - Production MT 59,913 70,828 (15) 232,745 279,901 (17) Sales Volumes MT 65,409 61,650 6 238,463 269,781 (12) Net Revenue Rs. Crs. 634.1 718.4 (12) 2,533.6 3,010.7 (16) Avg. Realisat

  40. Slide 40: Chemical : Summary

    Chemical : Summary Q4 FY09 Q4 FY08 % Chg. FY09 FY08 % Chg. Capacity TPA 258,000 258,000 -- 258,000 258,000 -- Production MT 52,830 46,491 14 207,226 188,537 10 Sales Volumes MT 51,930 44,872 16 207,520 187,356 11 Net Revenue Rs. Crs. 122.9 101.2 21 522.5 417.6 25 Avg. Realisation Rs./MT 20,859 19,04

  41. Slide 41: Sponge Iron : Summary

    Sponge Iron : Summary Q4 FY09 Q4 FY08 % Chg. FY09 FY08 % Chg. Capacity TPA 900,000 900,000 -- 900,000 900,000 -- Production MT 95,376 134,490 (29) 420,156 562,000 (25) Sales Volumes MT 98,826 140,317 (30) 423,414 557,187 (24) Net Revenue Rs. Crs. 157.3 275.8 (43) 1,007.6 950.7 6 Avg. Realisation Rs.

  42. Slide 42: UltraTech: Consolidated Financial Performance

    UltraTech: Consolidated Financial Performance (Rs. Crores) Q4 FY09 Q4 FY08 % Chg. FY09 FY08 % Chg. Cement Production (Mn. MT) 4.60 4.22 9 15.87 15.07 5 Sales Volume(Mn. MT): Cement-Domestic 4.49 4.03 11 15.32 14.25 7 Cement-Exports 0.21 0.21 -- 0.80 0.90 (11) Clinker 0.74 0.58 29 2.36 2.09 13 Total

  43. Slide 43: Press Release Mumbai, 19th May 2009

    Press Release Mumbai, 19th May, 2009 GRASIM, AN ADITYA BIRLA GROUP COMPANY PERFORMANCE FOR Q4FY2009 Consolidated Net Revenue Rs.5,020 Crs. Consolidated Net Profit Rs.569 Crs. Consolidated Financial Performance: Rs. Crores Q4 FY09 Q4 FY08 FY09 FY08 Net Revenue 5,020 4, 765 18,603 17,141 Profit before

  44. Slide 44: Stand-alone Financial Performance

    Stand-alone Financial Performance: Rs. Crores Q4 Q4 FY09 FY08 FY09 FY08 Net Revenue 2,932 2,764 10,940 10,325 Profit before Taxes * 590 660 2,248 2,964 Net Profit * 385 441 1,648 2,002 EPS (Rs.) * 42 48 180 218 Cash Profit * 619 466 2,362 2,365 * For proper comparison, all profit numbers and EPS are

  45. Slide 45: Cement Subsidiary: UltraTech Cement Ltd.

    Cement Subsidiary: UltraTech Cement Ltd. (UltraTech), a subsidiary of Grasim, reported PAT of Rs.312 crores as against Rs.285 crores in the corresponding quarter. Net revenues improved by 17% at Rs.1,929 crores, driven by a volume growth of 13%. Cement Capex plan: The Company’s major projects are ne

  46. Slide 46: VSF and Chemical Plant press release

    Although the VSF business improved its performance in Q4FY09 as compared to Q3FY09, the outlook for the business is expected to remain subdued. Though there has been a marginal recovery in prices in Q1FY10, the long term outlook remains uncertain due to VSF overcapacity in China and relative prices

  47. Slide 47: Audited Financial Results for the Year Ended 31st March 2009

    AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31st MARCH 2009 I. CONSOLIDATED RESULTS : Rs in Crores Three Months Three Months Year Year ended 31st ended 31st ended 31st ended 31st March 2009 March 2008 March 2009 March 2008 (Audited) (Audited) Net Sales / Income from Operations 4,956.89 4,700.69 18,

  48. Slide 48: Segment Reporting - Consolidated

    III. SEGMENT REPORTING - CONSOLIDATED Rs. in Crores Three Months Three Months Year Year ended 31st ended 31st ended 31st ended 31st March 2009 March 2008 March 2009 March 2008 (Audited) (Audited) 1. SEGMENT REVENUE a Fibre & Pulp 774.95 837.21 3,046.61 3,456.41 b Cement 3,947.20 3,394.27 13,486.99 1

  49. Slide 49: Notes

    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) issued

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