Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q3 FY2014-15 Earnings Presentation
37 slides from Grasim Industries's earnings presentation, February 2015
Slide 1: Performance Review Quarter 3: 2014-15
Performance Review Quarter 3 : 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 3
Highlights – Quarter 3 Business Environment : 6.0 GDP growth (%) 5.7 Global business environment is mixed 5.5 5.3 While USA is improving, Euro problems have intensified 5.0 4.7 4.8 4.8 4.6 4.4 4.4 4.5 Growth in Chinese economy has slowed down 4.0 Cotton policy changes creating pressure on te
Slide 5: Highlights – Quarter 3
Highlights – Quarter 3 Operating Performance: VSF Business performance affected by lower realisation While production was higher by 15%, sales volumes were impacted due to slowdown in supply chain Cement Business reported higher profitability on 9% volume growth Benign cost environment also
Slide 6: Business Review
Business Review VSF Chemical Cement Subsidiary
Slide 7: Viscose Staple Fibre : Highlights
Viscose Staple Fibre : Highlights Quarter 3 Global Industry Scenario Quarter 2 % Change No respite from over supply; pricing pressure 2014-15 2014-15 2013-14 (YoY) intensified with falling prices of competing 454,425 Capacity - Annual (MT) 454,425 377,775 20 fibres 107,220* Capacity - Quarter (MT)
Slide 8: Viscose Staple Fibre : Highlights
Viscose Staple Fibre : Highlights Quarter 3 % Lower pulp prices helped in reduction of Quarter 2 Change 2014-15 ….) 2014-15 2013-14 (YoY) variable cost YoY, despite sharp increase in Standalone Business: Sulphur Has helped in partially negating the impact of 151 PBIDT (` Cr.) 136 169 (20) fallin
Slide 9: Viscose Staple Fibre : Outlook
Viscose Staple Fibre : Outlook New capacity at Vilayat, with higher share of premium specialty fibre, to drive volumes gradually Concerted market and product development activities leading to market expansion in domestic segment Co branding with leading apparel retail chains Focus on improvi
Slide 10: Chemical : Highlights
Chemical : Highlights Quarter Quarter 3 Industry Scenario % 2 Change ECU realisation further softened in line with 2014-15 2014-15 2013-14 (YoY) international prices 452,500 Capacity - Annual (MT) 452,500 440,500 3 113,125 Capacity - Quarter (MT) 113,125 83,500* 35 Business Performance 101,639 Pro
Slide 11: Cement : Highlights
Cement : Highlights Quarter 2 Quarter 3 % Industry Scenario Change 2014-15 2014-15 2013-14 (YoY) Moderate Cement demand growth for the Grey Cement (Mn. MT) quarter at 3-4% v/s 8% growth in the first half 49.70 Clinker capacity - Annual 49.70 45.10 10 Demand from Infrastructure and capex yet to p
Slide 12: Cement : Financials
Cement : Financials Quarter 3 Cement prices improved 6% YoY , declined from Quarter 2 % Change Q2 due to weak demand and festivals 2014-15 2014-15 2013-14 (YoY) Revenue increased by 15% backed by higher 5,772 Net Revenue (` Cr.) 5,947 5,170 15 volumes 987 PBIDT (` Cr.) 1,058 928 14 Variable Co
Slide 13: Cement : Outlook
Cement : Outlook Cement demand growth should accelerate going forward, likely to be over 8% in long term Demand revival from infrastructure projects supported by regulatory reforms Housing demand to improve with higher Government focus and softening in interest rates Prices continue to remai
Slide 14: Financial Performance
ADITYA BIRLA GRASIM Financial Performance
Slide 15: Consolidated Revenue
Consolidated Revenue 13% 7,000 5,947 6,000 5,170 5,000 4,000 ` Crore 3,000 2,000 1,613 1,607 260 442 1,000 75 41 - VSF & E Pulp JVs Chemical Cement Others Q3FY14 Q3FY15 7,117 (5) 182 777 (35) 8,036 10
Slide 16: Financial Performance – Consolidated
Financial Performance – Consolidated (` Crore) Nine Months % Change Quarter 3 % Change Quarter 2 2014-15 2013-14 YoY 2014-15 2013-14 YoY 2014-15 24,026 20,905 15 Revenue 8,036 7,117 13 7,945 20,431 17,518 17 Operating Costs 6,834 6,080 12 6,770 4,025 3,836 5 PBIDT 1,260 1,143 10 1,277 485 339 43 Fin
Slide 17: Consolidated PBIDT
Consolidated PBIDT 10% 1,200 1,058 1,000 928 800 600 ` Crore 400 200 129 112 58 67 28 23 - VSF & Pulp JVs Chemical Cement Others Q3FY14 Q3FY15 1,143 (17) 9 130 (5) 1,260 12
Slide 18: Net Profit
Net Profit (` Crore) Nine Months Quarter 2 Quarter 3 2014-15 2013-14 % 2014-15 2014-15 2013-14 % Total Grasim's Total Grasim's Change Grasim's Total Grasim's Total Grasim's Change Co. share Co. share share Co. share Co. share 499 766 (35) 299 Standalone PAT 94 126 (26) 1,441 864 1,341 809 7 250 Ultr
Slide 19: Balance Sheet : Grasim
Balance Sheet : Grasim (` Crore) Standalone Consolidated As on As on As on As on st st EQUITY & LIABILITIES st 31 Dec'14 31 Mar'14 31stDec'14 31 Mar'14 Shareholders' Funds 11,325 10,828 Net Worth 22,943 21,614 - - Minority Interest 7,440 6,936 Non Current Liabilities 929 1,004 Long Term Borrowings 6
Slide 20: Strong Financials
Strong Financials Standalone Consolidated 9M Full Year 9M Full Year (` Crore) 2014-15 2013-14 2014-15 2013-14 Net Worth 11,325 10,828 22,943 21,614 Debt 1,180 1,302 12,758 9,681 Net Debt (+) over liquid funds (-) 147 (57) 6,915 3,442 Capital Employed 13,095 12,592 46,239 41,035 Debt:Equity (x) 0.10
Slide 21: Capex
Capex
Slide 22: 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 9M Standalone VSF Expansion : Vilayat (120K TPA) 2,132 Chemical : Vilayat 100 Nagda Revamp 272 Normal Capex : VSF 358 : Chemical & Others 248 Standalone Cape
Slide 23: Summary
ADITYA BIRLA GRASIM Summary
Slide 24: Summary
Summary VSF business performance remain impacted with global slowdown and decline in competing fibre prices Ramping up of production at Vilayat to drive volumes, better product mix and profitability Cement business achieved improved performance though profitability impacted due to higher inter
Slide 25: Organizational Structure
Organizational Structure Pulp, Fibre & Allied Chemical UltraTech Cement * Others (60.25%) VSF Overseas VSF Pulp Domestic Overseas 476K 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
ADITYA BIRLA GRASIM 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 - 3 % Nine Months % Full Year 2014-15 2013-14 Change 2014-15 2013-14 Change 2013-14 Net Sales & Op. Income 8,036.5 7,117.3 13 24,026.2 20,905.3 15 29,324.0 Other Income 57.1 105.7 (46) 429.3 448.3 (4) 576.6 PBIDT 1,259.6 1,143.2 10 4,024.9 3,835.7
Slide 31: Standalone Financial Performance
Standalone Financial Performance (` Crore) Quarter 3 Nine Months Full Year % Change % Change 2014-15 2013-14 2014-15 2013-14 2013-14 Net Sales & Op. Income 1,559.3 1,470.1 6 4,597.9 4,054.7 13 5,603.5 Other Income 30.8 34.8 (12) 297.3 321.8 (8) 384.8 PBIDT 211.8 243.7 (13) 833.2 1,024.5 (19) 1,246.1
Slide 32: Profitability Snapshot
Profitability Snapshot (` Crore) Standalone Consolidated FY FY FY 9M FY FY FY 9M 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 4,598 25,244 27,909 29,324 24,026 PBIDT 1,722 1,523 1,246 833 6,321 6,543 5,491 4,025 PBIDT Margin (%) 31.7 26.
Slide 33: Revenue Chart
Revenue Chart (` Crore) Nine Months % Quarter 3 % Quarter 2 ` 2014-15 2013-14 Change 2014-15 2013-14 Change 2014-15 3,568 3,441 4 Viscose Staple Fibre 1,203 1,250 (4) 1,271 1,271 738 72 Chemical 442 260 70 416 67 73 Others 19 25 22 (308) (197) Eliminations (Inter Segment) (105) (64) (109) 4,598 4,05
Slide 34: PBIDT – Chart
PBIDT – Chart (` Crore) Nine Months % PBIDT Quarter 3 % Quarter 2 2014-15 2013-14 Change 2014-15 2013-14 Change 2013-14 368 596 (38) Viscose Staple Fibre 136 169 (20) 151 237 170 40 Chemical 67 58 16 79 228 258 (12) Others 8 17 (49) 196 833 1,025 (19) Standalone PBIDT 212 244 (13) 425 Subsidiaries 3
Slide 35: Viscose Staple Fibre : Summary
Viscose Staple Fibre : Summary Quarter 3 % Nine Months % Full Year 2014-15 2013-14 Change 2014-15 2013-14 Change 2013-14 * Capacity TPA 1,13,605 94,445 20 3,15,270 * 2,81,075 12 3,57,517 Production MT 1,05,834 91,818 15 2,96,611 2,71,505 9 3,61,012 Sales Volumes MT 97,001 97,049 - 2,84,317 2,67,593
Slide 36: Chemical : Summary
Chemical : Summary Quarter 3 % Nine Months % Full Year 2014-15 2013-14 Change 2014-15 2013-14 Change 2013-14 Capacity TPA 1,13,125 83,500* 35 3,39,375 2,38,750 * 42 3,51,790 Production MT 1,06,332 76,049 40 3,08,134 2,27,041 36 3,13,479 Sales Volumes MT 1,06,516 77,634 37 3,02,661 2,28,018 33 3,14,4
Slide 37: Cement : Summary
Cement : Summary ` Quarter 3 % Nine Month % Full Year 2014-15 2013-14 Change 2014-15 2013-14 Change 2013-14 Grey Cement Capacity Mn. TPA 15.79 13.74 14 46.67 40.70 15 54.76 Production Mn. MT 11.31 10.41 9 34.26 30.79 11 43.60 Cement Sales Volumes $ Mn. MT 11.48 10.56 9 34.57 31.23 11 44.06 Clinker S
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