Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q1 FY2012-13 Earnings Presentation
44 slides from Grasim Industries's earnings presentation, Jul 27, 2012
Slide 1: Performance Review Quarter 1: 2012-13
Performance Review Quarter 1 : 2012-13 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 3
Slide 4: Highlights – Quarter 1
Highlights – Quarter 1 Operational Consolidated Revenue improved 16% Y-o-Y despite present market condition Revenue increased from ` 5,907 Cr to ` 6,832 Cr supported by higher volumes in both businesses PBIDT and PBT marginally up o 5% increase in Cement volumes led to improved profitability o
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 4 Quarter 1 % Change Difficult economic environment continues 2011-12 2012-13 2011-12 (YoY) to impact textile industry 333,975 Capacity (TPA) 333,975 333,975 -- Further decline in global prices of VSF and other competing fibres 8
Slide 7: Viscose Staple Fibre: Highlights (Contd.)
Viscose Staple Fibre : Highlights (Contd….) Quarter 4 Quarter 1 % Besides lower realisation, higher variable Change 2011-12 2012-13 2011-12 (YoY) cost impacted PBIDT by 21% 232.0 PBIDT (` Cr.) 276.0 349.8 (21) Increase in caustic cost by 33% 18.9% PBIDT Margin (%) 25.7% 39.0% -- o Chemical busin
Slide 8: Viscose Staple Fibre: Outlook
Viscose Staple Fibre : Outlook Environment continues to be challenging and volatile Stability in Euro zone and Macro economic policies to influence demand New capacities in China may create pressure on markets Profitability will also be influenced by competing fiber dynamics as well as input
Slide 9: Viscose Staple Fibre: Outlook
Viscose Staple Fibre : Outlook Expansions are progressing as per schedule Present capacity Expanded Commissioning (KTPA) capacity (KTPA) Target Vilayat, Gujarat - 120 Q4 2012-13 Harihar, Karnataka 51 87 In phases :Q2 & Q4 2012-13 Domsjo, Sweden 210 255 Q2 2012-13 Additional capacity (including s
Slide 10: Chemical: Highlights
Chemical : Highlights Quarter 1 % Industry Scenario Quarter 4 Change Industry utilisation remained impacted 2011-12 2012-13 2011-12 (YoY) due to low chlorine offtake 258,000 Caustic Capacity (TPA) 258,000 258,000 -- ECU realisation improved 68,298 Production (MT) 69,166 57,381 21 Higher intern
Slide 11: Cement: Highlights
Cement : Highlights Quarter 4 Quarter 1 % Industry Scenario Change 2011-12 2012-13 2011-12 (YoY) Demand continues to grow at healthy Grey Cement 51.75 Capacity (Mn. TPA) 51.75 51.75 -- pace 11.84 Production (Mn. MT) 10.76 10.31 4 Sector capacity at 324 Mn. TPA Sales Volumes (Mn. MT) 5 Mn. Ton
Slide 12: Cement: Financials
Cement : Financials Quarter 1 Net Revenue up by 17% Quarter 4 % Change 2011-12 Volumes up by 5% 2012-13 2011-12 (YoY) Cost pushed realisations 5,659.1 Net Revenue (` Cr.) 5,363.0 4,589.1 17 Increase in variable cost by 10% 1,490.1 PBIDT (` Cr.) 1,390.3 1,258.7 10 Energy cost up by 7% 25.7%
Slide 13: Cement: Outlook
Cement : Outlook Likely demand growth at 8% + per annum linked to GDP growth Infrastructure, housing development and rural development to be major growth drivers Demand growth should lead to higher volumes and better utilisation of capacity for us Surplus supply scenario likely to continue o
Slide 14: Financial Performance
ADITYA BIRLA n\ Financial Performance 14
Slide 15: Consolidated Revenue
Consolidated Revenue 16% 774 (57) 127 81 6,832 ` Crore 5,907 Quarter 1 VSF & Pulp JVs Chemical Cement Inter Co. Quarter 1 2011-12 Eliminations 2012-13 5,907 127 81 774 (57) 6,832 15
Slide 16: Revenue Chart
Revenue Chart ` Crore Quarter 1 % Change Quarter 4 Net Revenue 2012-13 2011-12 YoY 2011-12 Viscose Staple Fibre 1,062 902 18 1,228 Chemical 234 153 53 220 Others 25 25 - 25 Inter Segment Eliminations (Intra Company) (63) (36) - (60) Standalone Net Revenue 1,258 1,044 21 1,412 Subsidiaries UltraTech
Slide 17: Financial Performance – Consolidated
Financial Performance – Consolidated ` Crore Quarter 1 % Change Quarter 4 2012-13 2011-12 YoY 2011-12 Revenue 6,832 5,907 16 7,289 Operating Cost 5,200 4,284 21 5,680 PBIDT 1,767 1,748 1 1,883 Finance Cost 74 94 (21) 80 Depreciation 298 281 6 300 PBT 1,396 1,373 2 1,503 Total Tax Expenses 386 373 3
Slide 18: Financial Performance – Standalone
Financial Performance – Standalone ` Crore Quarter 1 % Change Quarter 4 2012-13 2011-12 YoY 2011-12 Revenue 1,258 1,044 21 1,412 Operating Cost 944 671 41 1,172 PBIDT 380 454 (16) 367 Finance Cost 6 11 (42) 7 Depreciation 36 35 - 37 PBT 338 408 (17) 323 Total Tax Expenses 65 94 (31) 79 PAT 273 314 (
Slide 19: Consolidated PBIDT
Consolidated PBIDT (118) 132 (27) 32 1,748 1,767 ` Crore Quarter-1 VSF & Pulp JVs Chemical Cement Treasury Quarter-1 2011-12 2012-13 1,748 (118) 32 132 (27) 1,767 Improved performance from Cement & Chemical business 19
Slide 20: PBIDT – Chart
PBIDT – Chart ` Crore PBIDT Quarter -1 % Change Quarter 4 2012-13 2011-12 YoY 2011-12 Viscose Staple Fibre 276 350 (21) 232 Chemical 66 35 92 32 Others 37 69 (46) 103 Standalone PBIDT 380 454 (16) 367 Subsidiaries UltraTech Cement Ltd. 1,390 1,259 10 1,490 Grasim Bhiwani Textiles Ltd. 3 5 (36) 5 Oth
Slide 21: Net Profit
Net Profit ` Crore Quarter 1 % 2012-13 2011-12 Change Total Grasim's Total Grasim's YoY Co. share Co. share Grasim Standalone PAT 273 314 (13) UltraTech Cement (60.33%) 764 461 669 404 14 Grasim Bhiwani Textiles (100%) 0.01 0.01 1 1 - Pulp (45%) and Fibre (31%) JVs / (57) (30) 57 28 - Associate (33%
Slide 22: Balance Sheet: Grasim
Balance Sheet : Grasim Standalone Consolidated ` Crore As on As on As on As on EQUITY & LIABILITIES 30.06.12 31.03.12 30.06.12 31.03.12 SHAREHOLDERS' FUNDS 91.7 91.7 Share Capital 91.7 91.7 - - Other Share Capital 44.8 41.9 9,285.0 9,007.7 Reserves & Surplus 17,717.1 16,935.0 Minority Interest 5,546
Slide 23: Balance Sheet: Grasim
Balance Sheet : Grasim Standalone Consolidated ` Crore As on As on As on As on ASSETS 30.06.12 31.03.12 30.06.12 31.03.12 NON-CURRENT ASSETS 1,522.4 1,548.5 Net Fixed Assets 15,098.8 15,052.7 1,565.8 965.1 Capital WIP & Advances 5,618.9 4,258.9 3,088.2 2,513.6 20,717.7 19,311.6 Goodwill on Consolida
Slide 24: Grasim Financials
Grasim Financials Standalone Consolidated Q1 Full Year Q1 Full Year (` Crore) 2012-13 2011-12 2012-13 2011-12 Net Worth 9,377 9,099 17,854 17,069 Debt 877 720 7,457 7,036 Net Debt (Net of liquidity) (1,828) (2,089) 730 674 Capital Employed 10,549 10,058 32,932 31,317 Debt:Equity (x) 0.09 0.08 0.32 0
Slide 25: Capex
ADITYA BIRLA n\ Capex 25
Slide 26: Capex plan
Capex plan ` Crore Capex Cash Outflow Capex spent Opening under during Work in FY13 FY14 Implemen- Progress Q1 2012-13 tation VSF Business - Expansion Projects: Vilayat (120K TPA), Harihar (36K TPA) 2,257 - Other Capex 489 Chemical Business – Vilayat (182K TPA) 807 Balance Capex (Including normal ca
Slide 27: Summary
ADITYA BIRLA n\ Summary 27
Slide 28: Summary
Summary Cement business performed well helped by improved demand VSF business achieved satisfactory performance despite difficult global conditions Leadership position and cost competitiveness in both the businesses will be further strengthened on ongoing basis Capacity expansions under impl
Slide 29: 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 F Vilayat UltraTech Grinding Units (G) F C Pipavav Nagda Hirmi Raipur Magdalla (G) Awarpur B UltraTech Bulk Ceme
Slide 30: Thank You
ADITYA BIRLA Thank You
Slide 31: Annexure
Grasim Industries Limited Annexure
Slide 32: Annexure
Annexure Consolidated Financial Performance Standalone Financial Performance Consolidated and Standalone Profitability Businesswise Performance VSF Summary Chemical Summary Cement Summary 32
Slide 33: Consolidated Financial Performance
Consolidated Financial Performance (` Crore) Quarter - 1 % Full Year 2012-13 2011-12 Change 2012-13 Total Income from Operations 6,832.0 5,906.9 16 25,244.3 Other Income 135.7 125.1 8 745.4 PBIDT 1,767.4 1,748.4 1 6,320.3 Finance Cost 74.0 94.2 (21) 313.6 Gross Profit 1,693.4 1,654.2 2 6,006.6 Depre
Slide 34: Standalone Financial Performance
Standalone Financial Performance (` Crore) Quarter - 1 % Full Year 2012-13 2011-12 Change 2011-12 Total Income from Operations 1,258.3 1,044.2 21 4,969.7 Other Income 65.2 80.4 (19) 463.5 PBIDT 379.7 453.9 (16) 1,721.8 Finance Cost 6.1 10.6 (42) 35.8 Gross Profit 373.6 443.3 (16) 1,686.0 Depreciatio
Slide 35: Profitability Snapshot
Profitability Snapshot Standalone Consolidated ( ` Crore) FY FY FY Q1FY FY FY FY Q1FY 2009-10 * 2010-11 2011-12 2012-13 2009-10 2010-11 2011-12 2012-13 Net Turnover & Op. Income 8,313 4,640 4,970 1,258 20,195 21,550 25,244 6,832 PBIDT 2,972 1,817 1,722 380 6,322 5,395 6,320 1,767 PBIDT Margin (%) 34
Slide 36: Consolidated Businesswise Performance – Quarter 1
Consolidated Businesswise Performance – Quarter 1 (` Crore) PBIDT Margin Capital ROAvCE (%) Business Revenue PBIDT PBIT (%) Employed (PBIT basis) 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 Cement * 5,363 4,589 1,390 1,259 25.6 27.2 1,143 1,023 23,
Slide 37: Viscose Staple Fibre: Summary
Viscose Staple Fibre : Summary Quarter -1 Full Year % Change 2011-12 2010-11 2011-12 Capacity TPA 3,33,975 3,33,975 - 3,33,975 Production MT 83,404 69,898 19 3,21,085 Sales Volumes MT 77,013 54,839 40 3,06,917 Net Revenue ` Cr. 1,061.9 901.6 18 4,294.4 PBIDT ` Cr. 276.0 349.8 (21) 1,167.5 PBIDT Marg
Slide 38: Chemical: Summary
Chemical : Summary Quarter -1 % Full Year 2012-13 2011-12 Change 2011-12 Capacity TPA 2,58,000 2,58,000 - 2,58,000 Production MT 69,166 57,381 21 2,60,326 Sales Volumes MT 69,466 54,424 28 2,65,816 Net Revenue ` Cr. 234.4 153.4 53 776.8 PBIDT ` Cr. 66.4 34.6 92 160.8 PBIDT Margin % 28.2% 23.0% -- 20
Slide 39: Cement: Summary
Cement : Summary Quarter -1 % Full Year 2012-13 2011-12 Change 2011-12 Grey Cement Capacity Mn. TPA 51.75 51.75 - 51.75 Production Mn. MT 10.76 10.31 4 42.11 Cement Sales Volumes $ Mn. MT 10.83 10.34 5 42.60 Clinker Sales Volumes Mn. MT 0.19 0.38 (49) 1.36 White Cement Production Lac MT 1.33 1.19 12
Slide 40: Press Release: Grasim Reports Financial Results for Q1 FY12-13
Press Release Mumbai, 27th July, 2012 GRASIM REPORTS FINANCIAL RESULTS FOR Q1 FY12-13 Consolidated Net Revenue : ` 6,832 Cr. up 16% Consolidated PBIDT : ` 1,767 Cr. up 1% Capacity addition under implementation - VSF : 156K TPA (Up 50%) - Cement : 10.2 Mn. TPA (Up 20%) Consolidated Financial Performa
Slide 41: Chemical Business
Chemical Business The Chemical business also reported good performance. The plant operated at full capacity on the strength of captive consumption of Chlorine in value added products, though the industry capacity utilization was impacted due to lower Chlorine off take in markets. Caustic sales volum
Slide 42: Unaudited Consolidated Financial Results for the Quarter Ended 30-06-2012
UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED 30-06-2012 PART I: STATEMENT OF CONSOLIDATED UNAUDITED RESULTS FOR THE QUARTER ENDED 30-06-2012 ` Crore Three Months Ended Year Ended Particulars 30-06-2012 31-03-2012 30-06-2011 31-03-2012 (Unaudited) (Unaudited) (Unaudited) (Audited) 1
Slide 43: Unaudited Consolidated Segment Wise Revenue, Results and Capital Employed
UNAUDITED CONSOLIDATED SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED 30-06-2012 ` Crore Particulars Three Months Ended Year Ended 30-06-2012 31-03-2012 30-06-2011 31-03-2012 (Unaudited) (Unaudited) (Unaudited) (Audited) 1. SEGMENT REVENUE a Viscose Staple Fibre and Wood Pu
Slide 44: Notes to Financial Results
GRASIM INDUSTRIES LIMITED NOTES: 1. The Company has opted to publish Consolidated Financial Results. Key numbers of Standalone Financial Results of the Company for the quarter ended 30th June, 2012 are as under: ` Crore Particulars Three Months ended Year ended 30-06-2012 31-03-2012 30-06-2011 31-03
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