Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Aditya Birla Nuvo — FY2016 Earnings Presentation
47 slides from Grasim Industries's earnings presentation, May 2016
Slide 1: Financial Results — FY 2015-16
Aditya Birla Nuvo Limited Financial Results — FY 2015-16 Mumbai, 20** May 2016 ADITYA BIRLA NUVO Stock Code: BSE: 500303 NSE: ABIRLANUVO Reuters : ABRL.BO/ABRL.NS Bloomberg : ABNL IN Investor presentation
Slide 2: Contents and Glossary
Key Highlights 3 – 11 Business-wise Performance 12 – 26 Going Forward 27 Financials and other Annexure 28 – 47 Note 1 : The financial results of ABNL are consolidated financials unless otherwise specified Note 2 : The financial figures in this presentation have been rounded off to the nearest ` 1 Cr
Slide 3: ABNL Group Structure
DIVISIONS SOLAR Jaya Shree* Solar Power JV Life Insurance$ Aditya Birla Financial Services Ltd. (100%)^ Telecom$# (51%)$ (51%) (23.26%) Agri* 49% NBFC (100%)^ 51% Payments Rayon* Housing Finance (100%)^ Bank $ Asset Management (51%)$ Insulators* General Insurance Advisory (50.01%)^ Private Equity (1
Slide 4: Vision and Values
To be a premium conglomerate building leadership in businesses and creating value for all the stakeholders Investing in promising sectors Integrity Building leadership in businesses Commitment A platform to drive synergy of resources Passion Delivering best value to all the stakeholder
Slide 5: Key Highlights: Solar Power, Payments Bank, Health Insurance
Solar Power Entered into a 51:49 JV with the Abraaj Group to invest in Solar Power in India ABNL has won a total of 60 MW Solar Power projects in Karnataka in Mar’16 Signing of PPA expected in Q1FY17 & project commissioning targeted in Q4FY17 Payments Bank Received in-principle approval from RBI in
Slide 6: Aditya Birla Financial Services
Aditya Birla Financial Services Industry Positioning (in India) Broad based Portfolio Among top 5 fund managers (excl. LIC) With 12 lines of businesses A leading NBFC # 4 in Life Insurance1 Corporate Action # 4 in Asset Management Sun Life raises its stake in Life # 1 in Online Personal Finance Mana
Slide 7: Telecom (Idea Cellular) and Divisions
Telecom (Idea Cellular) Industry Positioning Balance sheet Revenue (FY16) 6th largest1 in the world Net Debt to EBITDA : 3.25x USD 5.5 billion 3rd largest2 in India (Standalone as on 31st Mar’16) (` 35,935 Cr., 14%↑y-o-y) Outperforming Industry Standalone Cash profit EBITDA (FY16) RMS @ 18.9%2 USD 1
Slide 8: Standalone Net Debt and Ratios
Standalone Net Debt Standalone Ratios ( ` Crore) Net Debt/annualised EBITDA Net Debt/Equity 3,584 3,786 3,196 4.5 3.0 2.6 1,193 O/s 0.42 0.44 1,151 1,112 0.39 Fertilisers Mar'14 Mar'15 Mar'16 Subsidy Mar'14 Mar'15 Mar'16 Standalone balance sheet has been ABNL’s growth engine & a platform to drive sy
Slide 9: Fashion De-merger, Life Insurance Stake Sale, CSR
De-merger of Fashion business Created India’s largest pure play branded apparel company providing shareholders an opportunity to participate directly in the fashion space through Aditya Birla Fashion & Retail Winning combination of India’s # 1 Menswear player and # 1 Womenswear retailer Stake sale i
Slide 10: Revenue, EBITDA, Net Profit
Revenue EBITDA Net Profit ( ` Crore) ( ` Crore) ( ` Crore) 6,425 5,673 1,781 1,378 333 327 Q4 13% 29% 2% FY15 FY16 FY15 FY16 FY15 FY16 Like-to-Like1 Reported Like-to-Like1 Reported Like-to-Like1 Reported 23,129 20,798 6,535 5,272 Full 1,886 2 Year 11% 24% 1,447 30% FY15 FY16 FY15 FY16 FY15 FY16 Like
Slide 11: Segment Revenue and Segment EBIT
Segment Revenue Segment EBIT Telecom Telecom 36% 48% Financial ` 23,129 Cr. ` 3,101 Cr. Services Financial 40% Services 31% Divisions Divisions 24% 21% 11
Slide 12: Performance highlights: FY 2015-16 (Financial Services)
A significant non-bank financial services group Performance highlights : FY 2015-16 12
Slide 13: Financial Services: diversified non-bank group
A significant and well diversified non-bank financial services group Scaled up operations from 7 lines of business in Mar’11 to a diversified portfolio of 12 lines of business in Mar’16 Assets under Management at ` 184,276 Cr. (12%↑ y-o-y) Lending book (incl. Housing Finance) at ` 27,728 Cr. (57%↑ y
Slide 14: Aditya Birla Finance Ltd. - NBFC lending book
Aditya Birla Finance Ltd. (ABFL) - NBFC Lending book expanded to ` 25,755 Cr. (47%↑ y-o-y, 16%↑ q-o-q) Lending Book (₹ Crore) Scaled up at a CAGR of 69% p.a. in past 5 years CAGR 69% Built a well diversified portfolio for sustainable growth 25,755 17,564 SME Retail & Bonds 11% 3% Large Corp. 9% 1,85
Slide 15: ABFL earnings growth and return ratios
Aditya Birla Finance Ltd. (ABFL) - NBFC Quality of business reflecting in the strong earnings growth … Revenue EBT Net Worth (₹ Crore) (₹ Crore) (₹ Crore) CAGR 66% CAGR 63% CAGR 49% 3,696 2,442 626 1,776 2,585 411 196 55 497 FY11 FY15 FY16 FY11 FY15 FY16 Mar'11 Mar'15 Mar'16 … and improved Opex & Re
Slide 16: Birla Sun Life Insurance Co. Ltd.
Birla Sun Life Insurance Co. Ltd. (BSLI) Ranks # 4 in India with new business1 market share at 7.6% Gross Premium Income In FY16, new business premium grew y-o-y by 15% to ` 2,220 Cr. (` Crore) Group segment FYP rose by 28% to ` 1,509 Cr. New business Renewal Individual Life FYP declined by 7% to `
Slide 17: Birla Sun Life Asset Management Co. Ltd.
Birla Sun Life Asset Management Co. Ltd. (BSLAMC) Ranks # 4 in India with AAUM market share at 10.1% (Q4FY16) Growth in AAUM Equity Fixed Income Offshore & Alternate assets Equity ranking improved to #4 with an enhanced 7.61% market share CAGR 18% Total AUM grew at a CAGR of 18% in 5 years to ` 152,
Slide 18: Insurance Brokers, Housing Finance, Health Insurance
ABIBL Market share Aditya Birla Insurance Brokers Ltd. (ABIBL: General Insurance Advisory) 1.68% In FY16, ABIBL’s premium placement rose y-o-y by 43% to ` 1,624 Cr. 1.16% 1.33% while industry premium grew by 14%. Consistently outperforming industry and gaining market share FY14 FY15 FY16 Aditya Birl
Slide 19: Private Equity, Aditya Birla Money
Aditya Birla Private Equity (ABPE) Funds under management (net) at ` 1,037 Cr. Both, Fund I and Sunrise Fund, have invested their net deployable corpus Aditya Birla Money (Broking, Wealth Management & Online Money Management) Wealth Management (ABMM) : Avg. equity Assets under Advisory in Q4FY16 ros
Slide 20: Financial Services revenue and EBT by business
Revenue from the established businesses rose by 16% to ` 9,192 Cr. EBT from the established businesses surged by 21% to ` 1,110 Cr. Revenue EBT (` Crore) Remarks on profitability FY15 FY16 ∆% FY15 FY16 ∆% 1,776 2,442 37% NBFC 411 626 52% Expansion of lending book (47%↑ y-o-y) 5,267 5,708 8% Life Ins
Slide 21: Performance highlights: FY 2015-16 (Telecom)
3rd largest Cellular Operator in India Performance highlights : FY 2015-16 21
Slide 22: Idea Cellular performance
Fastest growing large Indian mobile operator for straight 8th year Revenue Market Share1 Key metrics2 FY15 FY16 Δ% 18.9% 17.5% Minutes of Use (billion) 683 786 +15.0% 16.1% 14.4% 14.8% Average Realisation per minute (`) 0.455 0.452 - 0.6% Cost per minute (`) 0.319 0.306 -4.0% Q3FY12 Q3FY13 Q3FY14 Q3
Slide 23: Performance highlights: FY 2015-16 (Divisions)
Leading manufacturer of Linen, Urea, VFY and Insulators in India Performance highlights : FY 2015-16 23
Slide 24: Divisions: market positioning and free cash flow
Aditya Birla Nuvo has a strong market positioning across its divisions Largest manufacturer of Viscose Filament Yarn, Linen Yarn & Fabric and Insulators in India The 8th largest urea manufacturer and among the top 2 best energy efficient urea plants in India Steady Free Cash Flow (FCF) generation fr
Slide 25: Divisions revenue and EBITDA
Revenue at ` 5,466 Cr. (1%↑ y-o-y) was marginally up y-o-y due to pass through of reduction in natural gas prices in the Agri business on account of gas pooling policy effective from 1 st June 2015 EBITDA at ` 764 Cr. (24%↑ y-o-y) mainly driven by Rayon and Agri businesses ROACE improved y-o-y from
Slide 26: Payments Bank and Solar Power
Payments Bank Incorporated ‘Aditya Birla Idea Payments Bank Limited’ in a 51:49 joint venture with Idea Cellular The JV is in the process of appointing senior management team, selecting the right IT system and defining innovative products & cost efficient processes before starting services. Likely t
Slide 27: Going Forward
Financial Services NBFC: Expanding offerings to diversify portfolio & tap growth opportunities while sustaining asset quality Life Insurance: Strengthening channel relationships & enriching product suite to gain market share & drive quality sales. Enhancing quality of business through improvement in
Slide 28: Annexure I: Financials
Annexure | Financials
Slide 29: Segment Revenue
(` Crore) Quarter - 3 Quarter 4 Revenue Full Year 2015-16 2014-15 2015-16 2014-15 2015-16 (CY) (PY) (CY) (PY) (CY) 2,104 2,585 3,029 Aditya Birla Financial Services 7,926 9,299 1,191 1,825 2,041 Life Insurance 5,267 5,708 914 761 990 Other Financial Services* 2,665 3,598 (1) (2) (2) Elimination (7)
Slide 30: Segment EBIT
(` Crore) Quarter - 3 Quarter 4 EBIT Full Year 2015-16 2014-15 2015-16 2014-15 2015-16 (CY) (PY) (CY) (PY) (CY) 237 182 249 Aditya Birla Financial Services 814 977 28 45 38 Life Insurance 285 140 209 137 211 Other Financial Services* 529 837 350 367 382 Telecom (Nuvo's share)@ 1,305 1,484 158 71 134
Slide 31: Consolidated Profit & Loss Account
(` Crore) Quarter - 3 Quarter 4 Full Year Consolidated 2015-16 2014-15 2015-16 Profit & Loss Account 2014-15 2015-16 (CY) (PY) (CY) (PY) (CY) 5,584 7,073 6,425 Revenue 26,516 23,129 1,598 1,527 1,781 EBITDA 5,798 6,535 407 318 479 Less : NBFC Interest expenses 1,105 1,600 157 171 258 Less : Other In
Slide 32: Balance Sheet
(` Crore) Standalone Consolidated Mar-15 Dec-15 Mar-16 Mar-15 Dec-15 Mar-16 Balance Sheet 8,519 8,569 8,559 Net Worth 12,871 14,314 14,535 - - - Minority Interest 802 828 857 Remo 3,688 3,241 3,904 Debt 11,299 12,380 13,570 - - - NBFC borrowings (incl. Housing) 14,686 19,754 22,914 106 170 173 Defer
Slide 33: Standalone Profit & Loss Account
(` Crore) Standalone Quarter - 3 Quarter 4 Full Year Profit & Loss Account 2015-16 2014-15 2015-16 2014-15 2015-16 (CY) (PY) (CY) (PY) (CY) 1,387 2,071 1,189 Revenue 8,938 5,466 200 257 181 EBITDA 1,186 846 72 71 70 Interest Expenses 263 280 128 186 111 EBDT 922 566 30 52 31 Depreciation 189 119 98
Slide 34: Standalone Revenue, EBITDA, Net Profit
Revenue EBITDA Net Profit ( ` Crore) ( ` Crore) ( ` Crore) 1,134 1,189 181 Q4 5% 108 62 67% 18 248% FY15 FY16 FY15 FY16 FY15 FY16 Like-to-Like1 Reported Like-to-Like1 Reported Like-to-Like1 Reported 5,405 5,466 846 710 Full 360 Year 1% 325 19% 11% FY15 FY16 FY15 FY16 FY15 FY16 Like-to-Like1 Reported
Slide 35: Annexure II: Business-wise Financials
Annexure Il Business-wise Financials
Slide 36: Financial Services revenue and EBT
Quarter 4 Full Year Revenue EBT ` Crore Revenue EBT 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 (PY) (CY) (PY) (CY) (PY) (CY) (PY) (CY) 504 695 117 186 Aditya Birla Finance 1,776 2,442 411 626 1,825 2,041 45 38 Birla Sun Life Insurance 5,267 5,708 285 140 184 182 49 63 Birla Sun
Slide 37: Aditya Birla Housing Finance Ltd.
Spread Analysis FY15 FY16 13.1% 12.6% Capital Adequacy ratio at 16.2% (Tier I : 13.7 % & Tier II : 2.5%) Total Income / Avg. Loan book Competitive borrowings profile 8.2% 7.8% Interest Cost / Avg. Loan book Long term debt account for 70% of total debt Net Interest Income (Incl. Fee income) 5.0% 4.8%
Slide 38: Birla Sun Life Insurance results
Industry Quarter 4 Full Year In FY16, industry’s total new business premium1 grew by 11% 2014-15 2015-16 ` Crore 2014-15 2015-16 (PY) (CY) (PY) (CY) while private sector grew by 14%. In individual life segment, industry grew by 8% while private sector grew by 14%. 710 950 New Business Premium (Gross
Slide 39: Asset management industry AAUM and BSLAMC
Industry AAUM at an all time high of ` 13.5 trillion in Q4FY16 (14%↑ y-o-y) Average AUM ` Crore Equity AUM grew y-o-y by 15% to ` 4.2 trillion contributing to Q4FY15 Q3FY16 Q4FY16 (PY) (PQ) (CY) 33% of industry’s AUM growth in past one year Domestic Equity 25,881 32,681 31,891 Debt and Liquid assets
Slide 40: Insurance Brokers and Aditya Birla Money
> Aditya Birla Insurance Brokers Ltd. (General insurance advisory) In FY16, revenue rose by 33% to ` 97 Cr. and EBT increased by 23% to ` 33 Cr. > Aditya Birla Money (Broking, Wealth Management & Online Money Management ) Broking: In FY16, industry volumes fell by 8% in retail cash equity while grew
Slide 41: Idea Cellular consolidated results
Base of 184 million VLR (active) subscribers provides Idea a unique platform for future growth in Mobile Voice, Wireless Quarter 4 ` Crore Full Year Broadband, Digital Content and Mobile banking services 2014-15 2015-16 2014-15 2015-16 (Consolidated Results) FY16 Y-o-Y Δ% (PY) (CY) (PY) (CY) Idea’s
Slide 42: Jaya Shree results
Revenue grew marginally to ` 1,459 Cr. Quarter 4 Full Year Linen segment revenue is lower by 4% ` Crore 2014-15 2015-16 2014-15 2015-16 Yarn & Fabric volumes de-grew y-o-y by 11% & 3% (PY) (CY) (PY) (CY) respectively due to subdued demand in H2. 196 156 Linen Segment 765 737 Reduction in prices of c
Slide 43: Agri (Indo-Gulf Fertilisers) results
Government’s gas pooling policy & allowing 100% production of Quarter 4 Full Year neem coated urea benefitted efficient urea manufacturers by ` Crore 2014-15 2015-16 2014-15 2015-16 promoting higher production & reducing the subsidy receivables (PY) (CY) (PY) (CY) After taking shutdown for over a mo
Slide 44: Rayon results
Posted its highest ever earnings Quarter 4 Full Year 2014-15 2015-16 ` Crore 2014-15 2015-16 Revenue at ` 928 Cr. rose y-o-y by 7% (PY) (CY) (PY) (CY) VFY VFY segment revenue grew by 7% 4,632 5,171 Manufactured VFY Sales Volumes (MT) 18,839 20,412 Lower imports led to higher VFY offtake while 172 19
Slide 45: Insulators results
Sluggish demand in domestic market mainly due to poor Quarter 4 Full Year financial health of state utilities has impacted new projects & ` Crore 2014-15 2015-16 2014-15 2015-16 caused delay in execution of ongoing projects. (PY) (CY) (PY) (CY) While imports of ceramic insulators have declined post
Slide 46: Forward-looking statements disclaimer
Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements” including, but not limited to, those relating to general business plans & strategy of Aditya Birla Nuvo Limited ("ABNL"), its future outlook & growth prospects, fu
Slide 47: Contact Us
Contact Us Aditya Birla Nuvo Limited Corporate Identity Number L17199GJ1956PLC001107 Regd. Office: Indian Rayon Compound, Veraval – 362 266 (Gujarat) Corporate Office: 4th Floor ‘A’ Wing, Aditya Birla Center, S.K. Ahire Marg, Worli, Mumbai – 400 030 Website: www.adityabirlanuvo.com or www.adityabirl