Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q3 FY2010-11 Earnings Presentation
40 slides from Grasim Industries's earnings presentation, January 2011
Slide 1: Performance Review Quarter 3: 2010-11
Performance Review Quarter 3 : 2010-11 Grasim Industries Limited A Cement and VSF 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 z Highlights z Business Review z Financial Performance z Capex Plan z Summary S 3
Slide 4: Highlights – Quarter 3
Highlights – Quarter 3 z Consolidated results have shown improvement after sharp dip in Quarter 2 z VSF business continued to post excellent performance ¾ Plants are running at full capacity ¾ Firm trend in realisations - strong demand and rising prices of competing fibres ¾ Sharper run in input cos
Slide 5: Business Review
Business Review VSF Chemical Cement Subsidiary 5
Slide 6: Viscose Staple Fibre : Highlights
Viscose Staple Fibre : Highlights Global Industry Scenario Quarter – 3 % Chg. z Strong demand for VSF with 2010-11 2009-10 ¾ Shortage of cotton Capacity (TPA) 333,975 333,975 --- ¾ General revival of textile industry Production (MT) 83,026 81,991 1 z As a result, VSF prices continued to rise support
Slide 7: Viscose Staple Fibre : Highlights (Contd….)
Viscose Staple Fibre : Highlights (Contd….) Quarter – 3 z Highest ever consolidated PBIDT despite % Chg. 2010-11 2009-10 marginal reduction in standalone results PBIDT (Rs. Crs.) 388.6 403.7 (4) ¾ On Standalone basis, Q3 last year have PBIDT Margin (%) 34.3% 41.8% -- shown high profits supported by
Slide 8: Viscose Staple Fibre : Outlook
Viscose Staple Fibre : Outlook z VSF demand will continue to grow in long term ¾ Textile consumption in India is increasing with growth in population and standard of living ¾ Usage of VSF in various allied applications like Non Woven etc. globally z Besides growth, trends in China as well as prices
Slide 9: Chemical : Highlights
Chemical : Highlights Quarter -3 Industry Scenario % Chg. z Improvement in caustic prices in 2010-11 2009-10 Caustic Capacity (TPA) 258,000 258,000 - international markets Production (MT) 66,917 60,591 10 z Demand from major end user industry Sales Volumes (MT) 67,136 61,326 9 showed growth signal N
Slide 10: Cement : Industry Scenario
Cement : Industry Scenario Zone wise Industry Growth Rate (YoY) z Overcapacity continues to impact industry Growth % 24 25 ¾ Against annual installed capacity of 290 Mn. 20 Tons, quarterly dispatches were 51 Mn. Tons 15 13 z Industry recorded only 2% growth in the 12 12 11 11 10 9 9 8 Quarter 5 4 5
Slide 11: Cement : Highlights
Cement : Highlights Quarter -3 z Total capacity up by 13% on YoY basis % Chg. 2010-11 2009-10 ¾ New 3 Mn. TPA grinding capacity was added Grey Cement Capacity Mn. TPA 51.75 45.65 13 in March 10 at Kotputli (7% YoY) - Domestic 48.75 45.65 7 ¾ Acquisition of 3 Mn. TPA Star Cement - Star Cement 3.00 -
Slide 12: Cement : Financials
Cement : Financials Quarter -3 z Domestic realisations were down by 2% % Chg. 2010-11 2009-10 z Net Revenue up by 9% Realisation Rs. /MT ¾ Addition of Star Cement - Domestic Cement 3,279 3,330 (2) ¾ White Cement revenue up by 24% - Clinker 1,765 1,512 17 - Star Cement 2,491 - - z Operating profit do
Slide 13: Cement : Outlook
Cement : Outlook z Cement Demand expected to grow at 10% over long term linked to ¾ Govt. initiative to boost infrastructure spending ¾ Rural demand emanating from agricultural growth ¾ Revival in corporate capex cycle to boost demand ¾ Growth rate can decline in short term if the present market con
Slide 14: Financial Performance
ADITYA BIRLA Financial Performance 14
Slide 15: Consolidated Revenue
Consolidated Revenue 65 311 72 167 5461 Rs. Crorees 4846 Quarter 3 VSF Pulp JVs Cement Textile, Chemical Quarter 3 2009-10 & Inter Co. 2010-11 Eliminations 4,846 167 72 311 65 5,461 All businesses contribute to revenue growth 15
Slide 16: Revenue Chart
Revenue Chart Rs. Crores Nine Months Quarter -3 % Chg. Net Revenue % Chg. 2010-11 2009-10 2010-11 2009-10 12 2,841 2,530 Viscose Staple Fibre 1,129 962 17 4 386 373 Chemical 148 121 22 - 56 47 Others 19 16 - - (99) (109) Inter Segment Eliminations (Intra Company) (39) (42) - 12 3,184 2,840 Standalon
Slide 17: Financial Performance – Quarter 3
Financial Performance – Quarter 3 17
Slide 18: Financial Performance – Nine Months
Financial Performance – Nine Months * Restated figures exclude Cement and Sponge Iron businesses from H1FY10 reported numbers for comparison purpose 18
Slide 19: Consolidated PBIDT
Consolidated PBIDT 22 28 250 ores 1511 Rs. Cro 1267 Quarter-3 Standalone PBIDT Pulp JVs & Others Cement (Lower Quarter -3 2009-10 realisation & higher 2010-11 energy cost) 1,511 (22) 28 (250) 1,267 19
Slide 20: PBIDT – Chart
PBIDT – Chart Rs. Crores Nine Months PBIDT Quarter -3 % Chg. % Chg. 2010-11 2009-10 2010-11 2009-10 1 966 957 Viscose Staple Fibre 389 404 (4) (5) 95 100 Chemical 31 28 11 174 135 Others 28 38 4 1,234 1,192 Standalone PBIDT of the continued Business 448 470 (5) Discontinued Businesses - 1,423 Cement
Slide 21: Net Profit (Before Extraordinary Gain)
Net Profit (Before Extraordinary Gain) Rs. Crores Nine Months Quarter -3 2010-11 2009-10 2010-11 2009-10 Total Net Grasim's Total Net Grasim's Total Net Grasim's Total Net Grasim's Profit share Profit share Profit share Profit share 786 695 Grasim Standalone - Continued Businesses 283 262 - Disconti
Slide 22: Grasim Financials
Grasim Financials Standalone Consolidated Nine Nine Full Year Full Year (Rs. Crores) Months Months 2009-10 2009-10 2010-11 2010-11 Net Worth 7,145 7,934 12,525 13,900 Debt 1,038 818 5,599 6,635 Capital Employed 8,435 8,997 23,884 26,629 Debt:Equity (x) 0.15 0.10 0.34 0.37 Interest Cover ^ 15.5 29.3
Slide 23: Capex
ae _ J ie Capex 23
Slide 24: Capex plan
Capex plan Rs. Crores Net Capex Cash Outflow to be spent as on FY11 FY12 & 01.04.10 Onward VSF Business - Vilayat (120,000 TPA) and Harihar 2,139 Project (36,500 TPA) - Other Capex 330 Chemical Plant – Vilayat (182,500 TPA) 772 Chemical Business and Other Capex 138 Standalone Capex (A) 3,379 293 3,0
Slide 25: Summary
ADITYA BIRLA Summaty 25
Slide 26: Summary
Summary z Businesses showed mixed performance ¾ VSF continued to perform well ¾ Cement working affected by over capacity and slowdown ¾ Improvement witnessed in Q3 over Q2 in both businesses z Aggressive capacity expansions under implementation in both businesses – Cement, VSF and allied Chemical, s
Slide 27: Plant Locations– Grasim & its subsidiaries
Plant Locations– Grasim & its subsidiaries Bathinda(G) Panipat Bhiwani Dadri T Kotputli Aligarh Jodhpur T Malanpur Shambhupura Jawad Bharuch Durgapur(G) UltraTech Cement Plants F Jafrabad Magdalla (G) UltraTech Grinding Units (G) F C Pipavav Nagda Hirmi Raipur Awarpur B UltraTech Bulk Cement Termina
Slide 28: Thank You
ADITYA BIRLA GRASIM Thank You
Slide 29: Annexure
Grasim Industries Limited Annexure
Slide 30: Annexure
Annexure Consolidated Financial Performance Standalone Financial Performance Consolidated and Standalone Financial Consolidated and Standalone Profitability Businesswise Performance Cement Summary VSF Summary Chemical Summary 30
Slide 31: Consolidated Financial Performance
Consolidated Financial Performance (Rs. Crores) Quarter - 3 Nine Months Full Year % Chg. % Chg. 2010-11 2009-10 2010-11 2009-10 2009-10 Net Turnover & Op. Income 5,461.2 4,845.5 13 15,083.1 14,720.4 2 20,194.7 Other Income 70.5 71.9 (2) 264.9 206.9 28 273.6 PBIDT 1,267.4 1,511.1 (16) 3,614.6 4,822.2
Slide 32: Standalone Financial Performance
Standalone Financial Performance (Rs. Crores) Quarter - 3 Nine Months * Full Year % Chg. % Chg. 2010-11 2009-10 2010-11 2009-10 2009-10 Net Turnover & Op. Income 1,257.3 1,058.0 19 3,184.3 7,171.7 (56) 8,312.6 Other Income 40.5 51.9 (22) 212.7 180.0 18 235.3 PBIDT 447.6 469.5 (5) 1,234.2 2,576.1 (52
Slide 33: Financial Snapshot
Financial Snapshot Standalone Consolidated March March March December March March March December (Rs. Crores) 2008 2009 2010 * 2010 * 2008 2009 2010 2010 Gross Block $ 10,615 12,280 3,145 3,216 19,262 21,044 21,717 23,662 Net Block $ 7,054 8,308 1,829 1,780 12,922 14,219 14,553 15,512 Goodwill 1,991
Slide 34: Profitability Snapshot
Profitability Snapshot Standalone Consolidated Nine Nine (Rs. Crores) 2007-08 2008-09 2009-10 * Months 2007-08 2008-09 2009-10 Months 2010-11* 2010-11 Gross Turnover 11,552 12,097 8,842 3,352 19,112 20,325 21,710 16,519 Net Turnover & Op. Income 10,325 10,965 8,313 3,184 17,141 18,496 20,195 15,083
Slide 35: Consolidated Businesswise Performance - Quarter 3
Consolidated Businesswise Performance - Quarter 3 Rs. Crores ROAvCE (%) Business Revenue PBIDT PBIDT Margin (%) PBIT Capital Employed (PBIT basis) 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 Cement * 3,949 3,638 774 1,024 19.5 28.0 529 820 19,280 1
Slide 36: Consolidated Businesswise Performance – Nine Months
Consolidated Businesswise Performance – Nine Months Rs. Crores ROAvCE (%) Business Revenue PBIDT PBIDT Margin (%) PBIT Capital Employed (PBIT basis) 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 Cement * 11,207 11,314 2,342 3,697 20.7 32.5 1,663 3,10
Slide 37: Cement : Summary
Cement : Summary Quarter -3 Nine Months Full Year % Chg. % Chg. 2010-11 2009-10 2010-11 2009-10 2009-10 Grey Cement Capacity Mn. TPA 51.75 45.65 13 51.75 45.65 13 48.75 - Domestic 48.75 45.65 7 48.75 45.65 7 48.75 - Star Cement 3.00 - - 3.00 - - - Production 10.07 9.00 12 28.60 26.78 7 37.02 - Domes
Slide 38: Cement : Summary Contd…
Cement : Summary Contd… Quarter -3 Nine Months Full Year % Chg. % Chg. 2010-11 2009-10 2010-11 2009-10 2009-10 Realisation Rs. /MT - Domestic Cement 3,279 3,330 (2) 3,249 3,561 (9) 3,503 - Clinker 1,765 1,512 17 1,631 1,897 (14) 1,785 - Star Cement 2,491 - - 2,491 - - - - White Cement 8,677 8,283 5
Slide 39: Viscose Staple Fibre : Summary
Viscose Staple Fibre : Summary Quarter -3 Nine Months Full Year % Chg. % Chg. 2010-11 2009-10 2010-11 2009-10 2009-10 Capacity TPA 333,975 333,975 - 333,975 333,975 - 333,975 Production MT 83,026 81,991 1 222,156 221,011 1 302,092 Sales Volumes MT 84,621 81,306 4 219,411 222,717 (1) 308,431 Net Reve
Slide 40: Chemical : Summary
Chemical : Summary Quarter -3 Nine Months Full Year % Chg. % Chg. 2010-11 2009-10 2010-11 2009-10 2009-10 Capacity TPA 258,000 258,000 -- 258,000 258,000 -- 258,000 Production MT 66,917 60,591 10 175,855 169,807 4 229,801 Sales Volumes MT 67,136 61,326 9 173,112 170,290 2 229,876 Net Revenue Rs. Crs
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