Grasim Industries Ltd. · NSE:GRASIM

Grasim Industries — Q3 FY2011-12 Earnings Presentation

39 slides from Grasim Industries's earnings presentation, February 2012

  1. Slide 1: Performance Review Quarter 3: 2011-12

    Performance Review Quarter 3 : 2011-12 Grasim Industries Limited A Cement and VSF Major

  2. 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

  3. Slide 3: Contents

    Contents  Highlights  Business Review  Financial Performance  Capex Plan  Summary 3

  4. Slide 4: Highlights – Quarter 3

    Highlights – Quarter 3 OPERATIONAL  Overall, Q3 records improved performance driven by Cement business  Cement demand growth improves to 10.5% on a lower base of 2.6% growth last year  Mainly improved demand from North and West India  Rise in Input and Energy Costs coupled with impact of rupee d

  5. Slide 5: Business Review

    Business Review  VSF  Chemical  Cement Subsidiary 5

  6. Slide 6: Viscose Staple Fibre : Highlights

    Viscose Staple Fibre : Highlights Quarter 3 % Global Industry Scenario Quarter 2 Chg  After witnessing upturn in 2011-12 2011-12 2010-11 (YoY) 333,975 Capacity (TPA) 333,975 333,975 --- September, Textile Value Chain adopted cautious approach amidst Euro zone and 83,516 Production (MT) 84,233 83,02

  7. Slide 7: Viscose Staple Fibre : Highlights (Contd….)

    Viscose Staple Fibre : Highlights (Contd….) Quarter 3  Input costs continue to rise Quarter 2 % Chg. 2011-12 (YoY) coupled with rupee depreciation 2011-12 2010-11  Operating margins were impacted 307.9 PBIDT (` Crs.) 277.7 388.6 (29)  Standalone PBIDT lower by 29% 28.2% PBIDT Margin (%) 25.3% 34.

  8. Slide 8: Viscose Staple Fibre : Outlook

    Viscose Staple Fibre : Outlook  In the present macro economic conditions, demand may remain volatile  Profitability in such scenario will be governed by the prices of competing fibres, input and energy costs  The challenge is to safeguard operating margins from rising input costs  New coal prici

  9. Slide 9: Chemical : Highlights

    Chemical : Highlights Quarter 2 Quarter 3 % Industry Scenario Chg. 2011-12 2011-12 2010-11 (YoY)  Caustic production curtailed globally 258,000 Caustic Capacity (TPA) 258,000 258,000 - due to lower chlorine demand 65,907 Production (MT) 68,741 66,917 3  Resulting in firm caustic prices 67,321 Sale

  10. Slide 10: Cement : Industry Scenario

    Cement : Industry Scenario 350 Mn. Tons Industry Capacity 315  In Quarter 3, demand growth returns to 304 300 276 10.5% after six quarters of single digit growth 250  Strong growth in North and West India 216 200 198  Oversupply continues 168  45% of capacity added in last 3 years 150  New capa

  11. Slide 11: Cement : Highlights

    Cement : Highlights Quarter 2 Quarter -3 % Chg.  Overall volume growth of 5% 2011-12 2011-12 2010-11  Domestic volumes increase by 5% Grey Cement  Low Growth zones (East and South) 51.75 Capacity Mn. TPA 51.75 51.75 - 9.51 Production Mn. MT 10.44 9.90 5 contributed 36% of our volumes 9.76 Cement

  12. Slide 12: Cement : Financials

    Cement : Financials Quarter 2 Quarter -3  Net Revenue increased by 23% % Chg. 2011-12 2011-12 2010-11  Improved Volumes of all products viz. Cement, Realisation ` /MT RMC, White Cement 3,638 - Domestic Cement 3,944 3,342 18  Realisation improved to pass on increased cost 2,255 - Clinker 2,176 1,6

  13. Slide 13: Cement : Outlook

    Cement : Outlook  Demand to grow over 8% in line with GDP growth  Surplus scenario should subside gradually over next 2-3 years with expected growth in demand  Realisations should follow the trend  Rising energy cost continues to be cause of concern  If the trend continues, margins may be under

  14. Slide 14: Financial Performance

    ri —_ we i Financial Performance 14

  15. Slide 15: Consolidated Revenue

    Consolidated Revenue (44) 14 17 17% 916 6364 5461 ` Crore Quarter 3 Cement VSF Pulp JVs Chemical,Textile Quarter 3 2010-11 & Inter Co. 2011-12 Eliminations 5,461 916 (44) 14 17 6,364 15

  16. Slide 16: Revenue Chart

    Revenue Chart ` Crore Nine Months Quarter -3 Net Revenue 2011-12 2010-11 2011-12 2010-11 8% 3,069 2,841 Viscose Staple Fibre 1,085 1,129 43% 554 386 Chemical 209 148 42% 81 56 Others 28 19 (145) (99) Inter Segment Eliminations (Intra Company) (56) (39) 12% 3,559 3,184 Standalone Net Revenue 1,266 1,

  17. Slide 17: Financial Performance – Quarter 3

    Financial Performance – Quarter 3 STAND ALONE CONSOLIDATED ( ` Crores) 2011-12 2010-11 % Change 2011-12 2010-11 % Change Quarter 3 Quarter 2 Quarter 3 YoY Quarter 3 Quarter 2 Quarter 3 YoY Revenue 1,266 1,249 1,257 6,364 5,773 5,461 17 Operating Costs 957 913 850 13 4,951 4,745 4,264 16 PBIDT 395 50

  18. Slide 18: Financial Performance – Nine Months

    Financial Performance – Nine Months Nine Months : Standalone Nine Months : Consolidated ( ` Crores) 2011-12 2010-11 % Change 2011-12 2010-11 % Change Revenue 3,559 3,184 12 18,071 15,083 20 Operating Costs 2,541 2,163 17 13,991 11,733 19 PBIDT 1,355 1,234 10 4,437 3,615 23 Interest 28 32 (12) 233 29

  19. Slide 19: Consolidated PBIDT

    Consolidated PBIDT 67 (111) (19) 23% 350 1554 ` Crore 1267 Quarter-3 Cement Chemical & VSF Pulp JVs Quarter -3 2010-11 Others 2011-12 1,267 350 67 (111) (19) 1,554 Improved performance from Cement & Chemical business 19

  20. Slide 20: PBIDT – Chart

    PBIDT – Chart ` Crore Nine Months PBIDT Quarter -3 2011-12 2010-11 2011-12 2010-11 935 966 Viscose Staple Fibre 278 389 29% 35% 128 95 Chemical 47 31 50% 291 174 Others 70 28 1,355 1,234 Standalone PBIDT 395 448 12% 10% Subsidiaries 31% 3,074 2,342 UltraTech Cement Ltd. 1,124 774 45% 21 15 Grasim Bh

  21. Slide 21: Net Profit

    Net Profit ` Crore Nine Months Quarter -3 2011-12 2010-11 2011-12 2010-11 Total Total Total Total Grasim's Grasim's Grasim's Grasim's Net Net Net Net share share share share Profit Profit Profit Profit 19% 933 786 Standalone Reported PAT 274 283 58% 1,532 924 966 584 UltraTech Cement (60.34%) 598 36

  22. Slide 22: Grasim Financials

    Grasim Financials Standalone Consolidated Nine Nine Full Year Full Year ( ` Crore) Months Months 2010-11 2010-11 2011-12 2011-12 Net Worth 8,134 9,070 14,573 16,516 Debt 814 628 6,783 7,290 Net Debt (Net of liquidity) (2,428) (2,083) 24 1,101 Capital Employed 9,177 9,941 27,669 30,706 Debt:Equity (x

  23. Slide 23: Capex

    ri —_ we i Capex

  24. Slide 24: Capex plan

    Capex plan ` Crore Net Capex Cash Outflow Capex to be spent spent as on FY12 FY13 during 01.04.11 Onwards 9MFY12 VSF Business - Expansion Projects: Vilayat (120K TPA), Harihar (36K TPA) 2,110 - Other Capex 341 Chemical Business – Vilayat (182K TPA) 756 Balance Capex (Including normal capex for chemi

  25. Slide 25: Summary

    ri —_ we i Summary 25

  26. Slide 26: Summary

    Summary  Consolidated performance showed improvement led by better performance of Cement business  VSF business, however, was impacted due to difficult global conditions  Leadership position and cost competitiveness in both the businesses will be further strengthened on ongoing basis  Capacity e

  27. 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

  28. Slide 28: Thank You

    ADITYA BIRLA GRASIM Thank You

  29. Slide 29: Annexure

    Grasim Industries Limited Annexure

  30. Slide 30: Annexure

    Annexure  Consolidated Financial Performance  Standalone Financial Performance  Consolidated and Standalone Financial  Consolidated and Standalone Profitability  Businesswise Performance  VSF Summary  Chemical Summary  Cement Summary 30

  31. Slide 31: Consolidated Financial Performance

    Consolidated Financial Performance (` Crore) Quarter - 3 Nine Months Full Year % Chg. % Chg. 2011-12 2010-11 2011-12 2010-11 2010-11 Net Turnover & Op. Income 6,364.1 5,461.2 17 18,071.4 15,083.1 20 21,585.2 Other Income 140.9 70.5 100 356.3 264.9 35 397.4 PBIDT 1,553.9 1,267.4 23 4,436.8 3,614.6 23

  32. Slide 32: Standalone Financial Performance

    Standalone Financial Performance (` Crore) Quarter - 3 % Nine Months % Full Year 2011-12 2010-11 Chg. 2011-12 2010-11 Chg. 2010-11 Net Turnover & Op. Income 1,266.3 1,257.3 1 3,558.7 3,184.3 12 4,645.9 Other Income 85.9 40.5 112 337.0 212.7 58 297.8 PBIDT 394.7 447.6 (12) 1,354.7 1,234.2 10 1,817.1

  33. Slide 33: Financial Snapshot

    Financial Snapshot Standalone Consolidated March March March December March March March December (` Crore) 2009 2010 * 2011 * 2011 * 2009 2010 2011 2011 Gross Block (Incl. CWIP) 12,280 3,145 3,085 3,692 21,044 21,717 24,166 27,430 Net Block (Incl. CWIP) 8,308 1,829 1,643 2,158 14,219 14,553 15,791 1

  34. Slide 34: Profitability Snapshot

    Profitability Snapshot Standalone Consolidated Nine Nine (` Crore) 2008-09 2009-10 * 2010-11* 2008-09 2009-10 2010-11 Months Months Gross Turnover 12,097 8,842 4,891 3,743 20,325 21,711 23,596 19,671 Net Turnover & Op. Income 10,965 8,313 4,646 3,559 18,496 20,195 21,585 18,071 PBIDT 2,844 2,972 1,8

  35. Slide 35: Consolidated Businesswise Performance – Quarter 3

    Consolidated Businesswise Performance – Quarter 3 (` Crore) PBIDT Margin ROAvCE (%) Business Revenue PBIDT PBIT Capital Employed (%) (PBIT basis) 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 Cement * 4,865 3,949 1,124 774 22.9 19.4 884 529 22,180 19

  36. Slide 36: Consolidated Businesswise Performance – Nine Months

    Consolidated Businesswise Performance – Nine Month (` Crore) PBIDT Margin ROAvCE (%) Business Revenue PBIDT PBIT Capital Employed (%) (PBIT basis) 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 Cement * 13,691 11,207 3,074 2,359 22.3 20.8 2,360 1,680

  37. Slide 37: Viscose Staple Fibre : Summary

    Viscose Staple Fibre : Summary Quarter -3 Nine Months Full Year % Chg. % Chg. 2011-12 2010-11 2011-12 2010-11 2010-11 Capacity TPA 3,33,975 3,33,975 - 3,33,975 3,33,975 - 3,33,975 Production MT 84,233 83,026 1 2,37,647 2,22,156 7 3,05,087 Sales Volumes MT 78,215 84,621 (8) 2,12,013 2,19,411 (3) 3,05

  38. Slide 38: Chemical : Summary

    Chemical : Summary Quarter -3 Nine Months Full Year % Chg. % Chg. 2011-12 2010-11 2011-12 2010-11 2010-11 Capacity TPA 2,58,000 2,58,000 - 2,58,000 2,58,000 - 2,58,000 Production MT 68,741 66,917 3 1,92,028 1,75,855 9 2,42,037 Sales Volumes MT 71,232 67,136 6 1,92,977 1,73,112 11 2,41,365 Net Revenu

  39. Slide 39: Cement : Summary

    Cement : Summary Quarter 2 Quarter -3 Nine Months Full Year % Chg. % Chg. 2011-12 2011-12 2010-11 2011-12 2010-11 2010-11 Grey Cement 51.75 Capacity Mn. TPA 51.75 51.75 - 51.75 51.75 - 51.75 9.51 Production Mn. MT 10.44 9.90 5 30.27 28.43 6 39.67 9.76 Cement Sales Volumes $ Mn. MT 10.44 9.93 5 30.54

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