Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q3 FY2007 Earnings Presentation
50 slides from Grasim Industries's earnings presentation, Jan 23, 2007
Slide 1: Performance Review – Q3FY07
Grasim Industries Limited Performance Review – Q3FY07 23rd January 2007
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: Consolidated Financial Performance – Q3FY07
Consolidated Financial Performance – Q3FY07 % z Net Profit at record high, up by 184% Rs. Crs. Change z Impressive growth in revenue, up by 46% TOTAL REVENUE 3,688 46 z PBIDT more than doubles, up by 134% PBIDT ¾ Excellent performance by Grasim’s Cement 1,180 134 (including minority share) Business
Slide 4: Consolidated Financial Performance – 9MFY07
Consolidated Financial Performance – 9MFY07 % z Consolidated Revenue up by 37% Rs. Crs. Change z PBIDT higher by 90% TOTAL REVENUE 10,083 37 ¾ Excellent performance from Grasim’s 3,047 90 Cement Business and subsidiary UltraTech PBIDT (including minority share) ¾ Excellent performance from VSF busin
Slide 5: Consolidated Financial Performance
Consolidated Financial Performance (Rs. Crores) Q3FY07 Q3FY06 % Chg. 9MFY07 9MFY06 % Chg. FY06 Net Turnover & Op. Income 3,688.2 2,520.4 46 10,082.7 7,348.7 37 10,274.9 Other Income 64.7 29.6 118 167.3 149.8 12 217.3 PBIDT 1,179.7 504.6 134 3,046.7 1,606.0 90 2,330.5 Interest 51.6 53.0 (3) 159.2 163
Slide 6: Consolidated Segmental Performance – Q3FY07
Consolidated Segmental Performance – Q3FY07 Revenue Mix PBIDT Mix Sponge Iron Others VSF VSF Others 21% 5% 2% 20% 4% Chemical Sponge Iron Chemical 2% 2% 2% Textiles 2% * Cement Cement 69% 71% (Rs.3,688 Crs.) (Rs.1,180 Crs.) z VSF (incl. Chemical) contributed 22% (24%) to Revenue and 23% (30%) in PBI
Slide 7: Standalone Financial Performance – Q3FY07
Standalone Financial Performance – Q3FY07 % z Net Profit at record high, up by 154% Rs. Crs. Change z Impressive growth in revenue, up by 37% TOTAL REVENUE 2,279 37 z PBIDT more than doubles, up by 113% PBIDT 710 113 ¾ Excellent performance by Cement and VSF businesses Interest Charges 24 2 ¾ Improv
Slide 8: Standalone Financial Performance – 9MFY07
Standalone Financial Performance – 9MFY07 % z Revenue up by 27% Rs. Crs. Change z PBIDT up by 64% ¾ Excellent performance by Cement and VSF TOTAL REVENUE 6,182 27 businesses ¾ Subdued performance from Sponge Iron PBIDT 1,844 64 ¾ Chemical business impacted by shutdown in one of the Captive Power Pla
Slide 9: Standalone Financial Performance
Standalone Financial Performance (Rs. Crores) Q3FY07 Q3FY06 % Chg. 9MFY07 9MFY06 % Chg. FY06 Net Turnover & Op. Income 2,279.4 1,660.1 37 6,181.9 4,873.7 27 6,703.5 Other Income 44.4 15.2 191 132.1 111.6 18 169.1 PBIDT 710.4 334.3 113 1,843.6 1,126.8 64 1,590.9 Interest 24.0 23.5 2 71.6 73.7 (3) 97.
Slide 10: Standalone Segmental Performance – Q3FY07
Standalone Segmental Performance– Q3FY07 Revenue Mix PBIDT Mix Sponge Iron Sponge Others 8% VSF Iron 3% 4% 28% VSF 31% Chemical 3% Cement Chemical Cement Textiles 59% 3% 58% 3% (Rs.2,279 Crs.) (Rs.710 Crs.) z VSF (incl. Chemical) contributed 31% (36%) to Revenue and 34% (45%) in PBIDT mix z Cement c
Slide 11: Business Review – Q3FY07
Business Review – Q3FY07 VSF Chemicals Cement Sponge Iron Textiles 11
Slide 12: Viscose Staple Fibre: Q3FY07 Highlights
Viscose Staple Fibre : Q3FY07 Highlights % z Impressive capacity utilisation at 103% (96%) Q3FY07 Q3FY06 Chg. Capacity (TPA) 266,450 257,325 4 z Production up by 11% Production (MT) 68,784 61,862 11 z Highest ever sales volumes Sales Volumes (MT) 67,061 66,025 2 ¾ Strong demand, both from domestic a
Slide 13: Viscose Staple Fibre: Outlook
Viscose Staple Fibre : Outlook z Business outlook remains positive ¾ Robust demand in the global and domestic markets ¾ Prices remain firm despite fall in prices of competitive fibres z Margins likely to remain stable at current levels z Capacity enhancement thru’ brownfield and de-bottlenecking to
Slide 14: Chemical: Q3FY07 Highlights
Chemical : Q3FY07 Highlights % z Production and sales volume impacted Q3FY07 Q3FY06 Chg. due to shutdown in one of the captive Caustic Capacity (TPA) 190,800 190,800 -- power plants Caustic Production (MT) 29,962 44,039 (32) Caustic Sales Volumes (MT) 29,337 44,283 (34) z ECU realisation up by 12% o
Slide 15: Cement: Q3FY07 Highlights
Cement : Q3FY07 Highlights % z Excellent performance Q3FY07 Q3FY06 Chg. z High capacity utilisation at 112% (106%) Grey Cement Capacity (Mn. TPA) 13.12 13.12 -- z Sales volume increased by 5% Production (Mn. MT) 3.67 3.49 5 z Realisation 49% higher from depressed Sales Volumes* (Mn. MT) 3.72 3.53 5
Slide 16: Cement: Q3FY07 Highlights (contd..)
Cement : Q3FY07 Highlights (contd..) zCement : Highlights (Contd..) z Cost pressures on account of higher fuel and freight cost z Margins moved up from 21% to 33% Grey Cement Sales volumes and Realisation /Tonne z Operating profit rose by 140% Vol. Grey Realisation ‘000 MT Rs./Ton z 20 MW TPP commis
Slide 17: Cement: Outlook
Cement : Outlook z Strong growth in demand maintained; Industry grew by 10% during 9MFY07 z Industry witnessing tight supply scenario ¾ Demand – supply balanced across regions z Demand expected to grow by about 9% in the long term ¾ Strong macro economic environment ¾ Robust demand from residential
Slide 18: Sponge Iron: Q3FY07 Highlights
Sponge Iron : Q3FY07 Highlights z Production higher by 29% ¾ Increased working days % ¾ Marginally higher use of alternate fuels Q3FY07 Q3FY06 Chg. z Sales volume up by 50% Capacity (TPA) 900,000 900,000 -- ¾ Higher production and strong demand from end use industry Production (MT) 116,996 90,972 29
Slide 19: Textiles: Q3FY07 Highlights and Outlook
Textiles : Q3FY07 Highlights and Outlook z Fabric volumes up by 30% Q3 Q3 % FY07 FY06 Chg. ¾ Higher sales to global brands and Sales Volumes domestic RMG segment - Fabrics (lac Mtrs.) 34 26 30 z Lower operating profit due to higher - Synthetic Yarn (MT) 1,458 1,665 (12) Net Turnover (Rs. Crs.) 53.7
Slide 20: Capex
Capex 20
Slide 21: Capex plans
Capex plans z Capex Summary Rs. Crores Cash Outflow Total FY07 FY08 Cement 3,663 1,358 2,205 - 4 Mn. TPA Greenfield Project at Kotputli, Rajasthan 1,275 - 4 Mn. TPA Project at Shambhupura, Rajasthan 1,220 - Thermal Power plants (4 Nos, 102 MW, Project Cost Rs.455 Crs.) 391 - Grinding unit - North (1
Slide 22: UltraTech Cement Limited (Consolidated) Performance Review
UltraTech Cement Limited (Consolidated) Performance Review 22
Slide 23: UltraTech: Consolidated Financial Performance – Q3FY07
UltraTech: Consolidated Financial Performance – Q3FY07 (Rs. Crores) z Net Turnover* increased by 58% due to Q3 Q3 % FY07 FY06 Chg. improved volumes and realisations Net Turnover* 1,220.2 772.2 58 z PBIDT margins improve from 17% to 33% Other Income 16.9 7.2 136 ¾Higher domestic cement realisations a
Slide 24: UltraTech Consolidated: Highlights
UltraTech Consolidated: Highlights Q3 Q3 % z Capacity utilisation at 103% as against FY07 FY06 Chg. 88% in Q3FY06 Production (Mn. MT) z Sales volume up by 16% Clinker 0.77 0.40 17 ¾ Domestic dispatches higher by 9% helped Cement 3.59 3.32 by strong demand growth Sales volumes (Mn. MT) ¾ Strong growt
Slide 25: Shree Digvijay Cement Company Limited (SDCC) Performance Review
Shree Digvijay Cement Company Limited (SDCC) Performance Review 25
Slide 26: SDCC Financial Performance - Q3FY07
SDCC Financial Performance - Q3FY07 (Rs. Crores) z Sales volume up by 3% Q3 Q3 % FY07 FY06 Chg. z Realisations higher by 30% from Production (Lac MT) 2.40 2.42 (1) depressed levels in Q3FY06 Sales Volumes (Lac MT) 2.48 2.41 3 z Significant improvement in operating Realisation (Rs./MT) 2,783 2,145 30
Slide 27: Plant Locations – Grasim & its subsidiaries
Plant Locations– Grasim & its subsidiaries Bathinda(G) Proposed Cement Projects Panipat Proposed Grinding Units Bhiwani Grey cement plants Kotputli T Dadri Grinding Units (G) Shambhupura Jodhpur T Gwalior B Bulk Cement Terminal Jawad Bharuch Durgapur(G) UltraTech Cement Plants F Jafrabad Magdalla (G
Slide 28: Thank You
GRAS TM, ADITYA BIRLA GROUP Thank You
Slide 29: Annexure
Grasim Industries Limited Annexure
Slide 30: Index of Annexure
Index of Annexure Page Nos. Consolidated and Standalone Profitability snapshot 31 Consolidated and Standalone Financial snapshot 32 Segmental Performance – Q3 & 9M FY07 33-34 VSF Summary 35 Chemical Summary 36 Cement Summary 37 Sponge Iron Summary 38 Textiles Summary 39 Production,
Slide 31: Profitability Snapshot
Profitability Snapshot Standalone Consolidated 9M 9M (Rs. Crores) FY99 FY05 FY06 FY04 FY05 FY06 FY07 FY07 Gross Turnover 4,325 7,201 7,655 6,852 9,189 10,776 11,763 11,170 Net Turnover 3,757 6,229 6,668 6,148 7,782 9,292 10,240 10,048 PBIDT 674 1,785 1,591 1,844 1,909 2,272 2,331 3,047 PBIDT Margin
Slide 32: Financial Snapshot
Financial Snapshot Standalone Consolidated (Rs. Crores) FY99 FY05 FY06 9MFY07 FY04 FY05 FY06 9MFY07 Gross Block 4,937 6,052 6,417 7,376 10,702 11,317 11,932 13,494 Net Block 3,354 3,204 3,307 4,069 6,394 6,299 6,416 7,660 Goodwill - - - - 2,037 1,958 1,773 1,881 Cement Subs. Investment 56 2,362 2,35
Slide 33: Segmental Performance-Q3FY07
Segmental Performance-Q3FY07 Standalone Rs. Crores ROAvCE (%) Business Revenue PBIDT PBIDT Margin (%) PBIT Capital Employed (PBIT basis) Q3FY07 Q3FY06 Q3FY07 Q3FY06 Q3FY07 Q3FY06 Q3FY07 Q3FY06 Q3FY07 Q3FY06 Q3FY07 Q3FY06 VSF 653.7 515.8 223.3 124.2 34.5 24.1 204.7 107.6 1,181 903 80.6 47.9 Chemical
Slide 34: Segmental Performance-9MFY07
Segmental Performance-9MFY07 Standalone Rs. Crores ROAvCE (%) Business Revenue PBIDT PBIDT Margin (%) PBIT Capital Employed (PBIT basis) 9MFY07 9MFY06 9MFY07 9MFY06 9MFY07 9MFY06 9MFY07 9MFY06 9MFY07 9MFY06 9MFY07 9MFY06 VSF 1,665.8 1,433.9 511.9 339.3 31.1 23.9 459.3 291.6 1,181 903 60.3 43.3 Chemi
Slide 35: Viscose Staple Fibre: Summary
Viscose Staple Fibre : Summary Q3 Q3 9M 9M % Chg. % Chg. FY06 FY07 FY06 FY07 FY06 Capacity TPA 266,450 257,325 4 266,450 257,325 4 257,325 Production MT 68,784 61,862 11 179,061 164,376 9 228,981 Sales Volumes MT 67,061 66,025 2 182,137 181,764 -- 242,399 Net Turnover Rs. Crs. 647.0 515.2 26 1,647.7
Slide 36: Chemical: Summary
Chemical : Summary Q3 Q3 9M 9M % Chg. % Chg. FY06 FY07 FY06 FY07 FY06 Capacity TPA 190,800 190,800 -- 190,800 190,800 -- 190,800 Production MT 29,962 44,039 (32) 89,610 122,822 (27) 165,509 Sales Volumes MT 29,337 44,283 (34) 90,121 121,717 (26) 165,853 Net Turnover Rs. Crs. 76.7 93.0 (18) 224.8 296
Slide 37: Cement: Summary
Cement : Summary Q3 FY07 Q3 FY06 % Chg. 9M FY07 9M FY06 % Chg. FY06 Grey Cement Capacity Mn. MT 13.12 13.12 -- 13.12 13.12 -- 13.12 Production Mn. MT 3.67 3.49 5 10.54 10.05 5 13.83 Sales Volumes * Mn. MT 3.72 3.53 5 10.59 10.12 5 13.99 Net Turnover * Rs. Crs. 1,175.5 760.5 55 3,261.3 2,207.9 48 3,1
Slide 38: Sponge Iron: Summary
Sponge Iron : Summary Q3 Q3 9M 9M % Chg. % Chg. FY06 FY07 FY06 FY07 FY06 Capacity TPA 900,000 900,000 -- 900,000 900,000 -- 900,000 Production MT 116,996 90,972 29 357,503 396,732 (10) 505,825 Sales Volumes MT 147,339 98,440 50 399,184 382,342 4 478,291 Net Turnover Rs. Crs. 195.2 132.9 47 511.3 523
Slide 39: Textiles: Summary
Textiles : Summary Q3 Q3 9M 9M % Chg. % Chg. FY06 FY07 FY06 FY07 FY06 Net Turnover Rs. Crs. 53.7 50.9 6 187.4 172.1 9 236.9 PBIDT Rs. Crs. (0.3) 0.2 -- 2.3 4.5 (50) 3.4 PBIDT Margin % (0.5)% 0.4% -- 1.2% 2.6% -- 1.4% PBIT Rs. Crs. (2.9) (1.3) -- (3.1) 0.1 -- (3.0) Capital Employed Rs. Crs. 128 100 2
Slide 40: Production Data (MT)
Production Data (MT) Q3 FY07 Q3 FY06 FY06 Product Capacity Capacity Capacity Production % Production % Production % TPA TPA TPA VSF 266,450 68,784 103 257,325 61,862 96 257,325 228,981 90 Caustic Soda 190,800 29,962 63 190,800 44,039 92 190,800 165,509 87 Grey Cement * 13.12 3.67 112 13.12 3.49 106
Slide 41: Divisional Turnover (Qty.) & Realisation
Divisional Turnover (Qty.) & Realisation Quantity (MT) Realisation (Rs./MT) Product Q3 FY07 Q3 FY06 FY06 Q3 FY07 Q3 FY06 FY06 VSF 67,061 66,025 242,399 90,389 72,816 73,786 Caustic Soda * 29,337 44,283 165,853 21,035 18,846 20,594 Grey Cement # 3.72 3.53 13.99 2,918 1,959 2,046 White Cement 93,571 9
Slide 42: UltraTech: Consolidated Financial Performance
UltraTech: Consolidated Financial Performance (Rs. Crores) Q3 FY07 Q3 FY06 % Chg. 9M FY07 9M FY06 % Chg. FY06 Cement Production (Mn. MT) 3.59 3.32 8 10.46 9.70 8 13.71 Sales Volume(Mn. MT): Cement-Domestic* 3.21 2.95 9 9.49 8.59 10 12.20 Cement-Exports 0.36 0.38 (6) 0.94 1.10 (15) 1.51 Clinker 0.77
Slide 43: SDCC: Financial Performance
SDCC : Financial Performance (Rs. Crores) Q3 Q3 9M 9M % Chg. % Chg. FY06 FY07 FY06 FY07 FY06 Net Turnover 69.0 51.6 34 185.3 149.6 24 214.4 Other Income 0.7 0.6 11 3.6 3.3 11 4.8 PBIDT 20.5 8.3 145 43.5 30.1 44 44.4 PBIDT Margin % 29.6% 16.2% -- 23.5% 20.1% -- 20.7% Interest 0.3 0.4 (11) 1.1 2.8 (61
Slide 44: Press Release Mumbai, January 23, 2007
Press Release Mumbai, January 23, 2007 GRASIM, THE ADITYA BIRLA GROUP’s FLAGSHIP COMPANY REPORTS EXCELLENT PERFORMANCE FOR Q3FY 2007 Consolidated Net Profit at Rs.555 Crs., Up by 184% Consolidated Net Revenue at Rs.3,688 Crs., Up by 46% Consolidated Financial Performance: Rs. Crores Q3 Q3 % 9-months
Slide 45: Viscose Staple Fibre (VSF) Business
On a stand-alone basis too, the results have been very impressive. While Revenues were up by 37% at Rs.2,279 crores (Rs.1,660 crores), Net Profit clocked a growth of 154% at Rs.412 crores (Rs.162 crores). Highlights of Grasim’s operations: Q3FY07 Q3FY06 % Change Production - Viscose Staple Fibre M.T
Slide 46: Cement Business Sponge Iron Business
Cement Business The Cement business’ performance has been excellent, propelled by strong growth in demand and realisations. Capacity utilisation was higher at 112% (106%). Revenues increased by 55% led by strong realizations. The share of blended cement increased from 49% to 61%. Higher dispatches t
Slide 47: Chemical Business and Outlook
improvement in supply of natural gas expected by December, 2007, the business’ prospects could improve thereafter. Chemical Business The Captive Power plant attached to the Chemical division remained shut for the entire quarter. This impacted production and consequently, sales volumes were lower by
Slide 48: Unaudited Financial Results for the Quarter Ended 31 December 2006
UNAUDITED FINANCIAL RESULTS st FOR THE QUARTER ENDED 31 DECEMBER 2006 I. CONSOLIDATED RESULTS : Rs in Crores Three Months Three Months Nine Months Nine Months Full Year Ended 31st Ended 31st Ended 31st Ended 31st Ended 31st December 2006 December 2005 December 2006 December 2005 March 2006 ( Audited
Slide 49: Segment Reporting - Consolidated
-2- III. SEGMENT REPORTING - CONSOLIDATED Rs. in Crores Three Months Three Months Nine Months Nine Months Full Year Ended 31st Ended 31st Ended 31st Ended 31st Ended 31st December 2006 December 2005 December 2006 December 2005 March 2006 ( Audited ) 1. SEGMENT REVENUE a Fibre & Pulp 736.79 529.63 1,
Slide 50: Notes
-3- 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) is