Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q4 FY07 Earnings Presentation
48 slides from Grasim Industries's earnings presentation, Apr 25, 2007
Slide 1: Grasim Industries Limited Performance Review Q4FY07 & FY07
Grasim Industries Limited Performance Review Q4FY07 & FY07 25th April 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 – Q4FY07
Consolidated Financial Performance – Q4FY07 % z Consolidated revenue up by 40% Rs. Crs. Change z PBIDT higher by 71% TOTAL REVENUE 4,107 40 ¾ Impressive performance by Grasim’s Cement Business and UltraTech continued PBIDT 1,240 71 (including minority share) ¾ Excellent performance from VSF business
Slide 4: Consolidated Financial Performance – FY07
Consolidated Financial Performance – FY07 % z Consolidated revenue up by 38% Rs. Crs. Change z PBIDT at Rs.4,290 Crs., higher by 84% TOTAL REVENUE 14,167 38 ¾ Excellent performance from Grasim’s 4,290 84 Cement Business and UltraTech PBIDT (including minority share) ¾ Excellent performance from VSF
Slide 5: Consolidated Financial Performance
Consolidated Financial Performance (Rs. Crores) Q4FY07 Q4FY06 % Chg. FY07 FY06 % Chg. Net Turnover & Op. Income 4,107.1 2,926.2 40 14,167.3 10,274.9 38 Other Income 78.2 67.3 16 245.6 217.1 13 PBIDT 1,239.7 725.7 71 4,290.1 2,336.6 84 Interest 65.8 49.8 32 228.6 218.3 5 Gross Profit 1,173.9 675.9 74
Slide 6: Standalone Financial Performance – Q4FY07
Standalone Financial Performance – Q4FY07 % z Strong growth in revenue, up by 36% Rs. Crs. Change z PBIDT up by 66% TOTAL REVENUE 2,494 36 ¾ Impressive performance by Cement and VSF businesses continued PBIDT 772 66 ¾ Improved performance from Sponge Iron business Interest Charges 37 48 ¾ Chemical b
Slide 7: Standalone Financial Performance – FY07
Standalone Financial Performance – FY07 % z Revenue up by 29% Rs. Crs. Change z PBIDT up by 64% ¾ Excellent performance by Cement and VSF TOTAL REVENUE 8,676 29 businesses ¾ Subdued performance from Sponge Iron PBIDT 2,619 64 ¾ Chemical business affected by Captive Power Plant shutdown in 2nd and 3r
Slide 8: Standalone Financial Performance
Standalone Financial Performance (Rs. Crores) Q4FY07 Q4FY06 % Chg. FY07 FY06 % Chg. Net Turnover & Op. Income 2,493.8 1,829.8 36 8,675.7 6,703.5 29 Other Income 77.6 57.5 35 209.7 169.1 24 PBIDT 771.8 465.2 66 2,619.0 1,596.9 64 Interest 36.6 24.7 48 111.8 103.4 8 Gross Profit 735.2 440.5 67 2,507.2
Slide 9: Segmental Performance – FY07
Segmental Performance – FY07 Revenue Mix Consolidated PBIDT Mix Sponge Iron Others VSF VSF Others Chemical 5% 2% 18% 19% 5% 2% Sponge Iron Chemical 2% 2% Textiles * 2% Cement 70% Cement (Rs.4,290 Crs.) 73% (* Minority Share 16%) (Rs.14,167 Crs.) Revenue Mix Standalone PBIDT Mix Sponge Others Sponge
Slide 10: Business Review – Q4FY07
Business Review – Q4FY07 VSF Chemicals Cement Sponge Iron Textiles 10
Slide 11: Viscose Staple Fibre: Q4FY07 Highlights
Viscose Staple Fibre : Q4FY07 Highlights % z Plants working at full capacity Q4FY07 Q4FY06 Chg. Capacity (TPA) 270,100 257,325 5 z Production up by 5% Production (MT) 67,772 64,606 5 z Robust growth in sales volumes Sales Volumes (MT) 68,588 60,636 13 ¾ Highest ever volumes achieved Net Turnover (Rs
Slide 12: Viscose Staple Fibre: Outlook
Viscose Staple Fibre : Outlook z Volume outlook remains positive ¾ Cellulosic yarns have registered strong growth in recent years ¾ Global warming leading to increased requirement for comfort fabrics z Margins to sustain at current levels ¾ Increase in pulp cost likely to be passed on z Aggressive c
Slide 13: Chemical: Q4FY07 Highlights
Chemical : Q4FY07 Highlights z Operations normalised with completion % Q4FY07 Q4FY06 Chg. of captive power plant maintenance Caustic Capacity (TPA) 258,000 190,800 35 z Production up by 10% Caustic Production (MT) 47,076 42,687 10 z ECU realisation flat Caustic Sales Volumes (MT) 47,709 44,136 8 ¾ H
Slide 14: Cement: Q4FY07 Highlights
Cement : Q4FY07 Highlights % z Capacity utilisation at 118% Q4 Q4 Chg. FY07 FY06 z Sales volume marginally higher, due to Grey Cement capacity constraint Capacity (Mn. TPA) 13.12 13.12 -- z Realisation stable sequentially Production (Mn. MT) 3.88 3.78 3 z Turnover higher by 8% sequentially with Sale
Slide 15: Cement: Outlook
Cement : Outlook z Robust demand growth of 9.4% in FY07 ¾ Cement dispatches grew from 142 Mn. Tons to 155 Mn.Tons ¾ Brisk growth in economy augurs well for industry z Industry witnessing tight supply scenario ¾ Capacity additions lower than consumption growth in the last two years z Demand growth to
Slide 16: Sponge Iron: Q4FY07 Highlights and Outlook
Sponge Iron : Q4FY07 Highlights and Outlook z Marked improvement in performance z Production higher by 54% % ¾ Use of alternate fuels with improvement in Q4FY07 Q4FY06 Chg. realisation Capacity (TPA) 900,000 900,000 -- z Substantial growth in volumes z Realisation up by 24% Production (MT) 167,680 1
Slide 17: Textiles: Q4FY07 Highlights and Outlook
Textiles : Q4FY07 Highlights and Outlook % z Focus on supply to global and Q4 Q4 Chg. FY07 FY06 domestic brands Sales Volumes z Exit from un-remunerative export - Fabrics (lac Mtrs.) 44 35 26 OTC market - Synthetic Yarn (MT) 1,139 1,666 (32) (excluding captive consumption) z Yarn volumes lower on hi
Slide 18: Capex
Capex 18
Slide 19: Capex plans
Capex plans z Capex Summary Rs. Crores Total Cash Outflow Project Capex Cost FY08 FY09 Cement 2,345 2,053 292 - 4 Mn. TPA Kotputli Project, Rajasthan 1,275 905 - 4 Mn. TPA Shambhupura Project, Rajasthan 1,220 756 - Thermal Power plants (2 Nos, 75 MW ) 372 181 - Grinding unit - North (1.3 Mn. MT) 137
Slide 20: UltraTech Cement Limited (Consolidated) Performance Review
UltraTech Cement Limited (Consolidated) Performance Review 20
Slide 21: UltraTech: Consolidated Financial Performance – Q4FY07
UltraTech: Consolidated Financial Performance – Q4FY07 (Rs. Crores) z Revenue up 40% due to improved volumes Q4 Q4 % FY07 FY06 Chg. and realisation Net Turnover* 1,396.7 999.5 40 z Highest ever operating profit so far Other Income 20.2 8.2 148 z Operating margins increased significantly PBIDT 431.1
Slide 22: UltraTech Consolidated: Highlights
UltraTech Consolidated: Highlights Q4 Q4 % z Capacity utilisation at 113% (102%) FY07 FY06 Chg. ¾ Improved utilisation across all plants Production (Mn. MT) z Aggregate sales volume up by 10% Clinker 0.61 0.34 10 z Domestic volumes higher by 7% Cement 4.17 4.01 Sales volumes (Mn. MT) z Higher realis
Slide 23: Shree Digvijay Cement Company Limited (SDCC) Performance Review
Shree Digvijay Cement Company Limited (SDCC) Performance Review 23
Slide 24: SDCC Financial Performance - Q4FY07
SDCC Financial Performance - Q4FY07 (Rs. Crores) z Sales volume lower by 15% Q4 Q4 % ¾ Maintenance shutdown during the quarter FY07 FY06 Chg. Cement Production 2.49 2.53 (2) z PBIDT up by 24% on higher realisation Sales Volumes z Sharp rise in fuel and freight cost - Cement 2.45 2.53 (15) - Clinker
Slide 25: 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 26: Thank You
GRAS TM, ADITYA BIRLA GROUP Thank You
Slide 27: Annexure
Grasim Industries Limited Annexure
Slide 28: Index of Annexure
Index of Annexure Page Nos. Consolidated and Standalone Profitability snapshot 29 Consolidated and Standalone Financial snapshot 30 Segmental Performance – Q4 & FY07 31-32 VSF Summary 33 Chemical Summary 34 Cement Summary 35 Sponge Iron Summary 36 Textiles Summary 37 Production, Tu
Slide 29: Profitability Snapshot
Profitability Snapshot Standalone Consolidated (Rs. Crores) FY03 FY04 FY05 FY06 FY07 FY04 FY05 FY06 FY07 Gross Turnover 5,412 6,130 7,201 7,638 9,608 9,189 10,776 11,746 15,703 Net Turnover 4,606 5,213 6,229 6,653 8,604 7,782 9,292 10,224 14,095 PBIDT 1,136 1,504 1,785 1,597 2,619 1,909 2,272 2,337
Slide 30: Financial Snapshot
Financial Snapshot Standalone Consolidated (Rs. Crores) FY03 FY04 FY05 FY06 FY07 FY04 FY05 FY06 FY07 Gross Block 5,594 5,802 6,052 6,417 7,974 10,702 11,317 11,932 14,485 Net Block 3,264 3,213 3,204 3,307 4,593 6,394 6,299 6,416 8,472 Goodwill - - - - - 2,037 1,958 1,773 1,922 Cement Subs. Investmen
Slide 31: Segmental Performance-Q4FY07
Segmental Performance-Q4FY07 Standalone Rs. Crores ROAvCE (%) Business Revenue PBIDT PBIDT Margin (%) PBIT Capital Employed (PBIT basis) Q4FY07 Q4FY06 Q4FY07 Q4FY06 Q4FY07 Q4FY06 Q4FY07 Q4FY06 Q4FY07 Q4FY06 Q4FY07 Q4FY06 VSF 662 501 200 156 30.8 31.2 179 138 1,211 999 68.9 58.4 Chemical 94 89 34 27
Slide 32: Segmental Performance-FY07
Segmental Performance-FY07 Standalone Rs. Crores ROAvCE (%) Business Revenue PBIDT PBIDT Margin (%) PBIT Capital Employed (PBIT basis) FY07 FY06 FY07 FY06 FY07 FY06 FY07 FY06 FY07 FY06 FY07 FY06 VSF 2,328 1,935 712 495 31.0 25.9 638 430 1,211 999 61.4 45.4 Chemical 319 386 81 125 25.7 32.6 60 108 30
Slide 33: Viscose Staple Fibre: Summary
Viscose Staple Fibre : Summary Q4 Q4 % Chg. FY07 FY06 % Chg. FY07 FY06 Capacity TPA 270,100 257,325 5 270,100 257,325 5 Production MT 67,772 64,606 5 246,833 228,981 8 Sales Volumes MT 68,588 60,636 13 250,725 242,399 3 Net Turnover Rs. Crs. 651.6 498.7 31 2,294.6 1,913.0 20 Avg. Realisation Rs./MT
Slide 34: Chemical: Summary
Chemical : Summary Q4 Q4 % Chg. FY07 FY06 % Chg. FY07 FY06 Capacity TPA 258,000 190,800 35 258,000 190,800 35 Production MT 47,076 42,687 10 136,685 165,509 (17) Sales Volumes MT 47,709 44,136 8 137,830 165,853 (17) Net Turnover Rs. Crs. 92.7 87.9 5 313.0 383.2 (18) Avg. Realisation Rs./MT 17,718 17
Slide 35: Cement: Summary
Cement : Summary Q4 FY07 Q4 FY06 % Chg. FY07 FY06 % Chg. Grey Cement Capacity Mn. MT 13.12 13.12 -- 13.12 13.12 -- Production Mn. MT 3.88 3.78 3 14.42 13.83 4 Sales Volumes * Mn. MT 3.92 3.87 1 14.52 13.99 4 Net Turnover * Rs. Crs. 1,258.5 931.1 35 4,513.0 3,134.3 44 Avg. Realisation Rs./MT 2,979 2,
Slide 36: Sponge Iron: Summary
Sponge Iron : Summary Q4 Q4 % Chg. FY07 FY06 % Chg. FY07 FY06 Capacity TPA 900,000 900,000 -- 900,000 900,000 -- Production MT 167,680 109,093 54 525,183 505,825 4 Sales Volumes MT 171,942 95,949 79 571,127 478,291 19 Net Turnover Rs. Crs. 238.8 109.4 118 749.6 632.5 19 Avg. Realisation Rs./MT 13,51
Slide 37: Textiles: Summary
Textiles : Summary Q4 Q4 % Chg. FY07 FY06 % Chg. FY07 FY06 Net Turnover Rs. Crs. 67.5 64.7 4 254.8 236.7 8 PBIDT Rs. Crs. 2.3 (1.1) -- 4.6 3.4 34 PBIDT Margin % 3.4% (1.7)% -- 1.8% 1.4% -- PBIT Rs. Crs. (1.5) (3.1) -- (4.6) (3.0) -- Capital Employed Rs. Crs. 126 93 36 126 93 36 ROAvCE (PBIT Basis) %
Slide 38: Production Data (MT)
Production Data (MT) Q4 FY07 Q4 FY06 FY07 FY06 Product Capacity Capacity Capacity Capacity Production % Production % Production % Production % TPA TPA TPA TPA VSF 270,100 67,772 100 257,325 64,606 100 270,100 246,833 93 257,325 228,981 90 Caustic Soda 258,000 47,076 73 190,800 42,687 89 258,000 136,
Slide 39: Divisional Turnover (Qty.) & Realisation
Divisional Turnover (Qty.) & Realisation Quantity (MT) Realisation (Rs./MT) Product Q4 FY07 Q4 FY06 FY07 FY06 Q4 FY07 Q4 FY06 FY07 FY06 VSF 68,588 60,636 250,725 242,399 88,687 77,133 85,729 73,786 Caustic Soda * 47,709 44,136 137,830 165,853 17,718 17,698 19,444 20,594 Grey Cement # 3.92 3.87 14.52
Slide 40: UltraTech: Consolidated Financial Performance
UltraTech: Consolidated Financial Performance (Rs. Crores) Q4 FY07 Q4 FY06 % Chg. FY07 FY06 % Chg. Cement Production (Mn. MT) 4.17 4.01 4 14.63 13.71 7 Sales Volume(Mn. MT): Cement-Domestic* 3.86 3.61 7 13.35 12.20 9 Cement-Exports 0.34 0.41 (19) 1.27 1.51 (16) Clinker 0.61 0.34 78 2.50 1.32 89 Tota
Slide 41: SDCC: Financial Performance
SDCC : Financial Performance (Rs. Crores) Q4 Q4 % Chg. FY07 FY06 % Chg. FY07 FY06 Net Turnover 70.0 64.8 8 255.3 214.4 19 Other Income 1.1 1.4 (17) 4.7 4.6 3 PBIDT 17.6 14.2 24 61.1 44.4 38 PBIDT Margin % 25.2% 22.0% -- 23.9% 20.7% -- Interest 0.1 0.4 (78) 1.2 3.2 (63) Depreciation 1.5 1.5 -- 6.3 7.
Slide 42: Press Release: Outstanding Performance for Q4FY2007
Press Release Mumbai, April 25, 2007 GRASIM, THE ADITYA BIRLA GROUP’s FLAGSHIP COMPANY REPORTS OUTSTANDING PERFORMANCE FOR Q4FY 2007 Consolidated Net Profit Rs.559 Crs. Up 60% Consolidated Net Revenue Rs.4,107 Crs. Up 40% Consolidated Financial Performance: Rs. Crores Q4 Q4 % FY07 FY06 % FY07 FY06 C
Slide 43: Press Release: Standalone Performance and Dividend
Stand-alone Financial Performance Rs. Crores Q4 Q4 % FY07 FY06 % FY07 FY06 Change Change Net Revenue 2,494 1,830 36 8,676 6,703 29 Operating Profit (EBITDA) 772 465 66 2,619 1,597 64 Net Profit 474 263 81 1,536 863 78 EPS (Rs.) 52 29 81 168 94 78 Grasim’s results, both for the quarter and the full y
Slide 44: Press Release: Business Commentary
The business’ performance during the quarter too was good. Higher production, sales volumes and improved realisations led to a 29% jump in operating profits. To meet the growing demand for the product, the Company will be augmenting its capacity. A 63,875 tons per annum brownfield expansion at Khara
Slide 45: Press Release: Cement, Sponge Iron, Chemical and Outlook
The capex plan of UltraTech, which includes setting up of a 4 Mn. TPA project at Tadpatri (Andhra Pradesh) and captive power plants at different locations, is on track. UltraTech plans to invest over Rs.1,900 crores in the next 2 years on capacity expansion, thermal power plants, modernization, RMCs
Slide 46: Audited Financial Results for the Year Ended 31st March 2007
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31 st MARCH 2007 I. CONSOLIDATED RESULTS : Rs in Crores Nine Months Three Months Three Months Year Year Ended 31st Ended 31st Ended 31st Ended 31st Ended 31st December 2006 March 2007 March 2006 March 2007 March 2006 ( Audited ) ( Audited ) Net Sales / In
Slide 47: Segment Reporting - Consolidated
-2- III. SEGMENT REPORTING - CONSOLIDATED Rs. in Crores Nine Months Three Months Three Months Year Year Ended 31st Ended 31st Ended 31st Ended 31st Ended 31st December 2006 March 2007 March 2006 March 2007 March 2006 ( Audited ) ( Audited ) 1. SEGMENT REVENUE a Fibre & Pulp 1,932.64 792.61 513.16 2,
Slide 48: Notes to Results
-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