Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q4 FY2014-15 Earnings Presentation
37 slides from Grasim Industries's earnings presentation, 2015
Slide 1: Performance Review Quarter 4: 2014-15
Performance Review Quarter 4 : 2014-15 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: Business Environment
Highlights – Quarter 4 Business Environment : Global Economy : divergent signs continue US economy appears to be on road to recovery, though concerns continue Growth affected in China amidst investment slowdown European economy remains fragile US dollar appreciated sharply against major cu
Slide 5: Highlights – Quarter 4: Strategic Action / Projects
Highlights – Quarter 4 Strategic Action / Projects : VSF Greenfield project at Vilayat fully commissioned Intensive business development and strengthening of supply chain through launch of brand LIVA Consolidation of Chemical business initiated with proposal to merge Aditya Birla Chemicals (In
Slide 6: Business Review
Business Review VSF Chemical Cement Subsidiary
Slide 7: Viscose Staple Fibre : Highlights
Viscose Staple Fibre : Highlights Quarter 4 % Global Industry Scenario Quarter 3 Change VSF continues to be in over capacity scenario, 2014-15 2014-15 2013-14 (YoY) though VSF demand is fastest growing among 454,425 Capacity - Annual (MT) 498,225 377,775 32 competing fibres Pricing pressure furt
Slide 8: Viscose Staple Fibre : Highlights
Viscose Staple Fibre : Highlights Quarter 4 Variable cost have declined by 7% with Quarter 3 % Change reduction in Pulp cost by 13% 2014-15 ….) 2014-15 2013-14 (YoY) This has helped in partially offsetting the impact Standalone Business: of lower VSF realisation However fixed costs have gone u
Slide 9: Viscose Staple Fibre : Outlook
Viscose Staple Fibre : Outlook Amidst difficult conditions, new capacity additions have slowed down, which should gradually improve industry utilisation Stabilisation of Vilayat unit and gradual conversion to specialty product should improve volume and realisations Concerted market and product
Slide 10: Chemical : Highlights
Chemical : Highlights Quarter 4 % Industry Scenario Quarter 3 Change ECU realisation maintained sequentially with 2014-15 2014-15 2013-14 (YoY) 452,500 Capacity - Annual (MT) 452,500 452,500 -- decline in caustic imports but reduced on YoY basis 113,125 Capacity - Quarter (MT) 113,125 102,630* 10
Slide 11: Cement : Highlights
Cement : Highlights Quarter 3 Quarter 4% Industry Scenario Change 2014-15 2014-15 2013-14 (YoY) Renewed focus on infrastructure still not started Grey Cement (Mn. MT) yielding results 49.70 Clinker capacity - Annual 51.70 46.10 12 Low infrastructure spending, subdued housing 63.15 Cement Capacit
Slide 12: Cement : Financials
Cement : Financials Quarter 4 Cement realisation improved on YoY basis to Quarter 3 % Change pass increase in cost 2014-15 2014-15 2013-14 (YoY) Total variable cost increased by 5% 5,947 Net Revenue (` Cr.) 6,597 6,315 4 Manufacturing Variable Cost increased marginally 1,058 PBIDT (` Cr.) 1,43
Slide 13: Cement : Outlook
Cement : Outlook Cement demand expected to grow linked with GDP Demand revival from infrastructure projects supported by higher budgetary allocation Housing demand to improve with higher Government focus and softening in interest rates Capacity utilisation to improve gradually with expected
Slide 14: Financial Performance
ri —_ we i Financial Performance
Slide 15: Consolidated Revenue
Consolidated Revenue 5% (21) 49 92 282 6,315 6,597 7,000 6,000 5,000 4,000 8820 ` Crore 8418 3,000 2,000 1,717 1,766 1,000 337 429 49 28 - VSF & E Pulp JVs Chemical Cement Others Q4FY14 Q4FY15 Q4 VSF & JVs Chemical Cement Inter Co. Q4 FY2013-14 Eliminations & FY 2014-15 Others 8,418 49 92 282 (21) 8
Slide 16: Financial Performance – Consolidated
Financial Performance – Consolidated (` Crore) Full Year % Change Quarter 4 % Change 2014-15 2013-14 YoY 2014-15 2013-14 YoY 32,847 29,323 12 Revenue 8,820 8,418 5 27,703 24,409 13 Operating Costs 7,271 6,891 6 5,683 5,491 4 PBIDT 1,658 1,655 - 667 447 49 Finance cost 183 108 69 1,563 1,457 7 Deprec
Slide 17: Consolidated PBIDT
Consolidated PBIDT 46 (14) (29) -- 1,600 1,435 1,389 1,400 1,200 1,000 1655 800 1658 ` Crore 600 400 157 128 200 55 55 54 40 - VSF & Pulp JVs Chemical Cement Others Q4FY14 Q4FY15 Qtr. 4 VSF & JVs Chemical Cement Others incl. Qtr. 4 2013-14 Inter Co. 2014-15 Eliminations 1,655 (29) -- 46 (14) 1,658 1
Slide 18: Net Profit
Net Profit (` Crore) Full Year Quarter 3 Quarter 4 2014-15 2013-14 % 2014-15 2014-15 2013-14 % Total Grasim' Total Grasim' Change Grasim's Total Grasim' Total Grasim' Change Co. s share Co. s share share Co. s share Co. s share 556 896 (38) Standalone PAT 57 130 (56) 530 896 94 Standalone PAT (After
Slide 19: 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'15 31 Mar'14 31 Mar'15 31 Mar'14 Shareholders' Funds 11,183 10,828 Net Worth 23,140 21,614 - - Minority Interest 7,682 6,936 Non Current Liabilities 857 1,004 Long Term Borrowings
Slide 20: Strong Financials
Strong Financials Standalone Consolidated Full Year Full Year Full Year Full Year (` Crore) 2014-15 2013-14 2014-15 2013-14 Net Worth 11,183 10,828 23,140 21,614 Debt 1,115 1,302 11,930 9,681 Net Debt (+) over liquid funds (-) 19 (57) 6,140 3,442 Capital Employed 12,912 12,592 46,162 41,035 Debt:Equ
Slide 21: Capex
ri —_ we i Capex
Slide 22: Capex plan
Capex plan (` Crore) Capex Work in Cash Outflow Capex under Progress Net spent FY16 FY17 Implemen as on Capex during onward -tation $ 01-04-15 FY15 Standalone VSF Expansion : Vilayat (120K TPA) – Residual Capex 429 Nagda Revamp 253 Normal Capex : VSF * 341 : Chemical & Others * 219 Standalone Capex
Slide 23: Summary
ri —_ we i Summary
Slide 24: Summary
Summary VSF business performance impacted on account of lower realisation in line with decline in competing fibre prices coupled with overcapacity Ramping up of production at Vilayat to drive volumes, better product mix and profitability ABCIL merger to drive Chemical business volumes and prof
Slide 25: Organizational Structure
Organizational Structure Pulp, Fibre & Allied Chemical UltraTech Cement * Others (60.25%) VSF Overseas VSF Pulp Domestic Overseas 498K TPA JV 70K TPA Pulp JVs Chemicals 3 Mn. TPA, (UAE, Bangladesh, Sri Lanka) Grasim Nagda Birla Jingwei $ AV Cell $ Grey Cement Bhiwani Caustic Textiles * 162K TPA 72K
Slide 26: 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 Sewagram Bharuch Durgapur(G) UltraTech Cement Plants Wanakbori F Jafrabad F C Vilayat UltraTech Grinding Units (G) F C Pipavav Nagda Hirmi Raipur Magdalla (G
Slide 27: Thank You
ri —_ we i ADITYA BIRLA GRASIM Thank You
Slide 28: Annexure
Grasim Industries Limited Annexure
Slide 29: Annexure
Annexure Consolidated Financial Performance Standalone Financial Performance Consolidated and Standalone Profitability Revenue & PBIDT Chart VSF Summary Chemical Summary Cement Summary
Slide 30: Consolidated Financial Performance
Consolidated Financial Performance (` Crore) Quarter - 4 % Full Year % 2014-15 2013-14 Change 2014-15 2013-14 Change Net Sales & Op. Income 8,819.6 8,418.0 5 32,847.4 29,323.3 12 Other Income 109.6 128.0 (14) 539.0 576.3 (6) PBIDT 1,658.5 1,655.3 - 5,683.4 5,491.0 4 PBIDT Margin (%) 18.6% 19.4% 17.0
Slide 31: Standalone Financial Performance
Standalone Financial Performance (` Crore) Quarter 4 Full Year % Change % Change 2014-15 2013-14 2014-15 2013-14 Net Sales & Op. Income 1,733.2 1,548.9 12 6,332.6 5,603.5 13 Other Income 50.7 63.0 (19) 348.1 384.8 (10) PBIDT 179.9 221.6 (19) 1,013.0 1,246.1 (19) PBIDT Margin (%) 10.1% 13.8% 15.2% 20
Slide 32: Profitability Snapshot
Profitability Snapshot Standalone Consolidated (` Crore) FY FY FY FY FY FY FY FY 2011-12 2012-13 2013-14 2014-15 2011-12 2012-13 2013-14 2014-15 Net Turnover & Op. Income 4,974 5,255 5,604 6,333 25,244 27,909 29,324 32,847 PBIDT 1,722 1,523 1,246 1,013 6,321 6,543 5,491 5,683 PBIDT Margin (%) 31.7 2
Slide 33: Revenue Chart
Revenue Chart (` Crore) Full Year % Quarter 4 % Quarter 3 ` 2014-15 2013-14 Change 2014-15 2013-14 Change 2014-15 4,974 4,714 6 Viscose Staple Fibre 1,405 1,274 10 1,203 1,701 1,075 58 Chemical 429 337 27 443 89 96 Others 22 22 19 (431) (281) Eliminations (Inter Segment) (122) (84) (105) 6,333 5,604
Slide 34: PBIDT – Chart
PBIDT – Chart (` Crore) Full Year % PBIDT Quarter 4 % Quarter 3 2014-15 2013-14 Change 2014-15 2013-14 Change 2014-15 465 724 (36) Viscose Staple Fibre 97 128 (25) 136 292 225 29 Chemical 55 55 - 67 257 296 (13) Others 29 38 (25) 8 1,013 1,246 (19) Standalone PBIDT 180 222 (19) 212 Subsidiaries 4,77
Slide 35: Viscose Staple Fibre : Summary
Viscose Staple Fibre : Summary Quarter 4 % Full Year % 2014-15 2013-14 Change 2014-15 2013-14 Change Capacity * TPA 1,17,450 94,444 24 4,33,600 3,75,520 15 Production MT 1,11,341 89,507 24 4,07,952 3,61,012 13 Sales Volumes MT 1,18,486 99,385 19 4,02,802 3,66,978 10 Net Revenue ` Cr. 1,405 1,274 10
Slide 36: Chemical : Summary
Chemical : Summary Quarter 4 % Full Year % 2014-15 2013-14 Change 2014-15 2013-14 Change * * Capacity * TPA 1,13,125 1,02,630 10 4,52,500 3,51,790 29 Production MT 1,03,603 86,438 20 4,11,738 3,13,479 31 Sales Volumes MT 1,05,012 86,469 21 4,09,220 3,14,488 30 Net Revenue ` Cr. 429 337 27 1,701 1,07
Slide 37: Cement : Summary
Cement : Summary Quarter 4 % Full Year % 2014-15 2013-14 Change 2014-15 2013-14 Change Grey Cement Capacity Mn. TPA 15.80 13.87 14 63.15 56.95 11 Production Mn. MT 12.46 12.81 (3) 46.71 43.60 7 Cement Sales Volumes $ Mn. MT 12.52 12.83 (2) 47.09 44.06 7 Clinker Sales Volumes Mn. MT 0.26 0.15 69 1.08
Grasim Industries — Q4 FY2014-15 Earnings Presentation on 6ix