Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q4 FY2014 Earnings Presentation
36 slides from Grasim Industries's earnings presentation, June 2014
Slide 1: Performance Review Quarter 4: 2013-14
Performance Review Quarter 4 : 2013-14 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
Slide 4: Highlights – Quarter 4
Highlights – Quarter 4 Indian economy continues to be in low growth mode 6.0 GDP growth in FY14 estimated to be less than 5% 5.8 GDP growth (%) 5.6 5.4 VSF volume continues to record good growth : 5.4 5.2 5.2 With 4% growth YoY, total volume touches 99k tons 5.0 4.8 4.8 4.7 4.8 Pressure on
Slide 5: Business Review
Business Review VSF Chemical Cement Subsidiary
Slide 6: Viscose Staple Fibre : Highlights
Viscose Staple Fibre : Highlights Global Industry Scenario Quarter 3 Quarter 4 % Change 2013-14 2013-14 2012-13 (YoY) Overcapacity in China continues to impact VSF 377,775 Capacity - Annual (MT) 377,775 352,225 7 realisation, despite growth in demand 94,444 Capacity - Quarter (MT) 94,444 88,056 7
Slide 7: Viscose Staple Fibre : Highlights (Contd….)
Viscose Staple Fibre : Highlights (Contd….) Quarter 4 % Increase in imported pulp prices and rupee Quarter 3 Change 2013-14 2013-14 2012-13 (YoY) depreciation impacted margin Standalone Business: PBIDT declined despite higher volumes 169 PBIDT (` Cr.) 128 216 (41) 13.5% PBIDT Margin (%) 10.0% 17
Slide 8: Viscose Staple Fibre : Outlook
Viscose Staple Fibre : Outlook Margins likely to remain under pressure in near term due to overcapacity in China Anti dumping duty issue and liquidity constraint Change in Chinese cotton pricing policy o China switched from cotton strategic policy to minimum support price to farmer The prese
Slide 9: Chemical : Highlights
Chemical : Highlights Industry Scenario Quarter 3 Quarter 4 % Change ECU realisation improved led by uptick in 2013-14 2013-14 2012-13 (YoY) Chlorine realisations 440,500 Capacity - Annual (MT) 452,500 258,000 75 83,500* Capacity - Quarter (MT) 102,630* 64,500 59 Lower imports during the quarter
Slide 10: Cement : Highlights
Cement : Highlights Quarter 3 Quarter 4% Industry Scenario Change Adverse Macro environment impacted Industry 2013-14 2013-14 2012-13 (YoY) Industry growth expected to be ~1% for the year Grey Cement (Mn. MT) with marginal recovery in Q4 (Est. growth 2-3%) 45.10 Clinker capacity - Annual 46.10 4
Slide 11: Cement : Financials
Cement : Financials Prices remained under pressure Quarter 4 % Quarter 3 Change Variable cost of production marginally up by 2% 2013-14 2013-14 2012-13 (YoY) Energy cost increased by 4% 5,173 Net Revenue (` Cr.) 6,316 5,821 9 o Increase in petcoke prices 928 PBIDT (` Cr.) 1,389 1,451 (4) Raw
Slide 12: Cement : Outlook
Cement : Outlook Cement demand growth should gradually recover to ~8% on improvement in economic environment Industry likely to face oversupply situation till FY17 with 75 % utilisation > 100 Mn. Tons capacity to remain as surplus Likely addition of ~50 Mn. Tons in next 3 years Prices cont
Slide 13: Financial Performance
ADITYA BIRLA GRASIM Financial Performance
Slide 14: Consolidated Revenue
Consolidated Revenue 10% 4 138 108 495 8419 7674 ` Crore Qtr. 4 VSF & JVs Chemical Cement Inter Co. Eliminations Qtr. 4 2012-13 & Others 2013-14 7,674 138 108 495 4 8,419 9
Slide 15: Financial Performance – Consolidated
Financial Performance – Consolidated (` Crore) Full Year % Change Quarter 3 Quarter 4 % Change 2013-14 2012-13 YoY 2013-14 2013-14 2012-13 YoY 29,324 27,909 5 Revenue 7,120 8,419 7,674 10 24,410 21,985 11 Operating Costs 6,083 6,892 6,095 13 5,491 6,543 (16) PBIDT 1,143 1,655 1,786 (7) 447 324 38 Fi
Slide 16: Consolidated PBIDT
Consolidated PBIDT (31) 5 (62) (43) 1786 1655 ` Crore Qtr. 4 VSF & JVs Chemical Cement Others incl. Qtr. 4 2012-13 Inter Co. 2013-14 Eliminations 1,786 (31) 5 (62) (43) 1,655 11
Slide 17: Net Profit
Net Profit (` Crore) Full Year Quarter 3 Quarter 4 2013-14 2012-13 2013-14 2013-14 2012-13 % Change % Change Grasim's Grasim's Grasim's Grasim's Grasim's Total Co. Total Co. Total Co. Total Co. share share share share share 896 1,022 (12) Standalone PAT (Before Exceptional Item) 126 130 168 (22) 2,2
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 Mar'14 31 Mar'13 31 Mar'14 31 Mar'13 Shareholders' Funds 10,828 10,122 Net Worth 21,614 19,657 - - Minority Interest 6,936 6,221 Non Current Liabilities 1,004 981 Long Term Borrowings
Slide 19: Strong Financials
Strong Financials Standalone Consolidated Full Year Full Year Full Year Full Year (` Crore) 2013-14 2012-13 2013-14 2012-13 Net Worth 10,828 10,122 21,614 19,657 Debt 1,302 1,284 9,681 9,550 Net Debt (+) over liquid funds (-) (56) (750) 3,442 2,815 Capital Employed 12,592 11,750 41,035 37,729 Debt:E
Slide 20: Capex
ADITYA BIRLA GRASIM Capex
Slide 21: Capex plan
Capex plan (` Crore) Capex Work in Cash Outflow Capex under Progress Net spent FY15 FY16 Implemen as on Capex during onward -tation $ 01-04-14 FY14 Standalone VSF Expansion : Vilayat (120K TPA) 2,086 Chemical : Vilayat 100 Nagda Revamp 272 Harihar Mill Development Normal Capex : VSF * 367 : Chemical
Slide 22: Summary
ADITYA BIRLA GRASIM Summary
Slide 23: Summary
Summary VSF business performance impacted due to subdued global pricing scenario The environment is not showing any improvement with recent developments in China On-going VSF expansion at Vilayat to drive volumes and profitability Specialty fibre from Vilayat to help better product mix and r
Slide 24: Organizational Structure
Organizational Structure Pulp, Fibre & Allied Chemical UltraTech Cement * Others (60.29%) VSF Overseas VSF Pulp Domestic Overseas 377K TPA JV 70 K TPA Pulp JVs Chemicals 3 Mn. TPA, (UAE, Bangladesh, Sri Lanka) Grasim Nagda Birla Jingwei $ AV Cell $ Caustic Grey Cement Bhiwani 162K TPA 72K TPA, (31%)
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 F Vilayat UltraTech Grinding Units (G) F C Pipavav Nagda Hirmi Raipur Magdalla (G) Awarpur UltraTech W
Slide 26: Thank You
Thank You Contacts: Grasim Industries Limited (Corporate Finance Division) Aditya Birla Centre, S.K. Ahire Marg, Worli, Mumbai - 400 030 CIN: L17124MP1947PLC000410 Sharad Agarwal +91-22-66525062 [email protected]
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
Slide 29: Consolidated Financial Performance
Consolidated Financial Performance (` Crore) Quarter - 4 % Full Year % 2013-14 2012-13 Change 2013-14 2012-13 Change Net Sales & Op. Income 8,418.7 7,673.8 10 29,324.0 27,909.3 5 Other Income 128.3 207.4 (38) 576.6 619.5 (7) PBIDT 1,655.3 1,785.9 (7) 5,491.0 6,543.1 (16) PBIDT Margin (%) 19.4% 22.7%
Slide 30: Standalone Financial Performance
Standalone Financial Performance (` Crore) Quarter 4 Full Year % Change % Change 2013-14 2012-13 2013-14 2012-13 Net Sales & Op. Income 1,548.9 1,396.2 11 5,603.5 5,255.0 7 Other Income 63.0 98.4 (36) 384.8 434.6 (11) PBIDT 221.6 332.2 (33) 1,246.1 1,522.7 (18) PBIDT Margin (%) 13.8% 22.2% 20.8% 26.
Slide 31: Profitability Snapshot
Profitability Snapshot Standalone Consolidated ( ` Crore) FY FY FY FY FY FY FY 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 5,604 21,550 25,244 27,909 29,324 PBIDT 1,817 1,722 1,523 1,246 5,395 6,321 6,543 5,491 PBIDT Margin (%) 36.8
Slide 32: Revenue Chart
Revenue Chart (` Crore) Full Year % Quarter 4 % Quarter 3 Net Revenue 2013-14 2012-13 Change 2013-14 2012-13 Change 2013-14 4,714 4,472 5 Viscose Staple Fibre 1,274 1,216 5 1,250 1,075 951 13 Chemical 337 229 47 260 96 95 Others 22 18 25 (281) (263) Eliminations (Inter Segment) (84) (67) (64) 5,604
Slide 33: PBIDT – Chart
PBIDT – Chart (` Crore) Full Year % PBIDT Quarter 4 % Quarter 3 2013-14 2012-13 Change 2013-14 2012-13 Change 2013-14 724 931 (22) Viscose Staple Fibre 128 216 (41) 169 225 245 (8) Chemical 55 51 9 58 296 347 (15) Others 38 65 (42) 17 1,246 1,523 (18) Standalone PBIDT 222 332 (33) 244 Subsidiaries 4
Slide 34: Viscose Staple Fibre : Summary
Viscose Staple Fibre : Summary Quarter 4 Full Year % Change % Change 2013-14 2012-13 2013-14 2012-13 Capacity* TPA 94,444 88,056 7 3,75,517 3,43,100 9 Production MT 89,507 85,992 4 3,61,012 3,37,492 7 Sales Volumes MT 99,385 95,161 4 3,66,978 3,36,065 9 Net Revenue ` Cr. 1,274 1,216 5 4,714 4,472 5
Slide 35: Chemical : Summary
Chemical : Summary Quarter 4 Full Year % Change % Change 2013-14 2012-13 2013-14 2012-13 Capacity* TPA 1,02,630 64,500 59 3,51,790 2,58,000 36 Production MT 86,438 68,189 27 3,13,479 2,70,191 16 Sales Volumes MT 86,469 66,357 30 3,14,488 2,69,438 17 Net Revenue ` Cr. 337 229 47 1,075 951 13 PBIDT `
Slide 36: Cement : Summary
Cement : Summary Quarter 4 Full Year % Change % Change 2013-14 2012-13 2013-14 2012-13 Grey Cement Capacity Mn. TPA 13.87 13.48 3 54.76 52.28 5 Production Mn. MT 12.81 11.79 9 43.60 42.59 2 Cement Sales Volumes $ Mn. MT 12.83 11.76 9 44.06 42.75 3 Clinker Sales Volumes Mn. MT 0.15 0.29 (47) 0.60 0.8