Grasim Industries Ltd. · NSE:GRASIM

Grasim Industries — Q1 FY2009 Earnings Presentation

37 slides from Grasim Industries's earnings presentation, Jul 25, 2008

  1. Slide 1: Grasim Industries Limited Performance Review Q1FY09

    Grasim Industries Limited Performance Review Q1FY09 25th July 2008

  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: Consolidated Financial Performance – Q1FY09

    Consolidated Financial Performance – Q1FY09 %  Consolidated revenue up by 9% Rs. Crs. Change  Net profit maintained at Rs.672 Crs. (YoY basis)  Sequentially much improved performance Revenue 4,430 9  Depreciation higher by 26% PBIDT 1,358 (1)  Increase in fixed assets  Reduction in estimated u

  4. Slide 4: Consolidated Financial Performance

    Consolidated Financial Performance (Rs. Crores) Q1 FY09 Q1 FY08 % Chg. FY08 Net Turnover & Op. Income 4,429.5 4,059.9 9 17,075.0 Other Income 94.9 87.6 8 361.7 PBIDT 1,358.3 1,371.2 (1) 5,428.7 Interest 68.5 58.0 18 228.8 Gross Profit 1,289.8 1,313.2 (2) 5,199.9 Depreciation 199.6 158.6 26 670.3 Non

  5. Slide 5: Standalone Financial Performance – Q1FY09

    Standalone Financial Performance – Q1FY09 %  Revenue up by 6% Rs. Crs. Change  Net profit maintained at Rs.514 Crs. (YoY basis) Revenue 2,592 6  Sequentially much improved performance  Depreciation higher by 24% PBIDT 834 (3)  Increase in fixed assets  Reduction in estimated useful life of som

  6. Slide 6: Standalone Financial Performance

    Standalone Financial Performance (Rs. Crores) Q1 FY09 Q1 FY08 % Chg. FY08 Net Turnover & Op. Income 2,592.3 2,435.5 6 10,278.1 Other Income 82.2 67.7 21 314.8 PBIDT 834.3 859.9 (3) 3,424.5 Interest 30.5 28.5 7 107.0 Gross Profit 803.8 831.4 (3) 3,317.5 Depreciation 105.0 85.0 24 353.3 Non Recurring

  7. Slide 7: Segmental Performance – Q1FY09

    Segmental Performance – Q1FY09 Revenue Mix Consolidated PBIDT Mix Sponge IronOthers VSF & 3% VSF & Others Chemical 18% 6% 6% Chemical Sponge Iron 20% 5% Textiles 2% * Cement Cement 71% 69% (Rs.4,430 Crs.) (Rs.1,358 Crs.) (* Minority Share 16%) Revenue Mix Standalone PBIDT Mix Sponge Iron 9% VSF & Ot

  8. Slide 8: Financial Highlights

    [GRA STM] Financial Highlights

  9. Slide 9: Grasim Consolidated Financials

    Grasim Consolidated Financials Q1  Strong Balance sheet (Rs. Crores) FY06 FY07 FY08 FY09  Net worth at $2.3 Bn. Net Turnover 10,224 14,069 16,974 4,403  Capital Employed at $4.3 Bn. PBIDT 2,337 4,290 5,429 1,358  Debt-equity at 0.52 PAT#(After Minority share) 1,041 1,967 2,655 672  Net leveragi

  10. Slide 10: Grasim Standalone Financials

    Grasim Standalone Financials Q1  Strong Balance sheet (Rs. Crores) FY06 FY07 FY08 FY09  Low gearing at 0.35 Net Turnover 6,653 8,572 10,215 2,578  Net gearing even lower at 0.21 PBIDT 1,597 2,619 3,424 834  Comfortable interest cover PAT * 863 1,536 2,048 514  ROAvCE in Q1FY09 at 30.3%, on Net

  11. Slide 11: Business Review – Q1FY09

    Business Review – Q1FY09  VSF  Chemicals  Cement  Sponge Iron 11

  12. Slide 12: Viscose Staple Fibre : Q1FY09 Highlights

    Viscose Staple Fibre : Q1FY09 Highlights  Sales Volume lower by 18% Q1FY09 Q1FY08 % Chg. Capacity (TPA) 333,975 270,100 24  Liquidation of accumulated stock in value chain Production (MT) 58,083 68,555 (15)  Substitution on account of high VSF prices Sales Volumes (MT) 56,760 69,396 (18)  Genera

  13. Slide 13: Viscose Staple Fibre : Outlook

    Viscose Staple Fibre : Outlook  Demand expected to remain subdued in short term till liquidation of inventory in pipeline and re-substitution setting in with increasing prices of cotton and PSF  Prices in domestic market may stabilise at current levels  Margins to remain under pressure in short t

  14. Slide 14: Chemical : Q1FY09 Highlights & Outlook

    Chemical : Q1FY09 Highlights & Outlook  Sales volume higher by 11% Q1FY09 Q1FY08 % Chg.  Despite lower captive power availability Caustic Capacity (TPA) 258,000 258,000 -- due to planned shutdown Caustic Production (MT) 47,084 42,843 10  ECU realisation up by 30% Caustic Sales Volumes (MT) 47,800

  15. Slide 15: Cement : Q1FY09 Highlights

    Cement : Q1FY09 Highlights Q1FY09 Q1FY08 % Chg.  Marginal volume growth in grey cement Grey Cement due to capacity constraint Capacity Mn. MT 16.75 13.12 28 Production Mn. MT 3.99 3.86 3  Strong growth in RMC volumes with Sales Volumes* $ Mn. MT 3.97 3.90 2 commissioning of new plants Realisation

  16. Slide 16: Cement : Outlook

    Cement : Outlook  Rising interest rate and sluggish economic growth may impact cement demand  Bunching of capacity expected in FY10 & FY11 based on announced capacity  Prices may come under pressure in calendar year 09  Operating margins may decline due to rising energy prices  Project commissi

  17. Slide 17: Sponge Iron : Q1FY09 Highlights

    Sponge Iron : Q1FY09 Highlights  Production lower by 27% due to maintenance shutdown during the quarter Q1FY09 Q1FY08 % Chg.  Resultant decrease in sales volume Capacity (TPA) 900,000 900,000 --  Substantial increase in realisation led by Production (MT) 100,532 138,136 (27) surge in global scrap

  18. Slide 18: Capex

    [GRA STM] ADITYA BIRTA GROUP Capex 18

  19. Slide 19: Capex plans

    Capex plans  Capex Summary Rs. Crores Total Net Cash Outflow Project Capex * Cost FY09 FY10 Cement Business 6,394 3,344 2,164 889 - Projects: Kotputli (4.5 Mn. TPA), Shambhupura (4.4 Mn. TPA), Dadri - GU (1.3 Mn. TPA) 4,319 1,496 (incl. 96 MW TPP) - 2 Nos. Power Plants (48 MW), Waste Heat Recovery

  20. Slide 20: Capex plans - UltraTech

    Capex plans - UltraTech  Capex Summary Rs. Crores Total Cash Outflow Project Net Cost Capex * FY09 FY10 - 4.9 Mn. TPA Tadpatri Project, A.P. (incl. 50 MW TPP) 1,967 508 - 3 Nos. Power Plants (175 MW), Waste Heat Recovery 1,346 659 System (25 MW) - Grinding and Jetty Capacity Expansion at Pipavav /

  21. Slide 21: UltraTech Performance

    IG RA STM] UltraTech Performance 21

  22. Slide 22: UltraTech: Consolidated Financial Performance – Q1FY09

    UltraTech: Consolidated Financial Performance – Q1FY09 (Rs. Crores)  Net Turnover up by 12% due to rising Q1 Q1 % FY09 FY08 Chg. share of RMC sales and improved realisation Net Turnover 1,531.4 * 1,362.4 12  Margins under pressure Other Income 22.5 25.4 (12)  Higher coal prices PBIDT 470.7 464.8

  23. Slide 23: UltraTech Consolidated : Highlights

    UltraTech Consolidated: Highlights  Domestic sales volume up by 4% despite Q1 Q1 FY09 FY08 % Chg. weak market sentiment in its western market Capacity (Mn. TPA) 18.2 17.0 7 Production (Mn. MT)  Cement and clinker exports lower due to Cement 3.95 3.91 1 restriction on exports during part of the Sal

  24. Slide 24: Summary

    [GRA STM] Summary 24

  25. Slide 25: Summary

    Summary  Grasim – A VSF and Cement major  With strong competitive edge  Global size operations  Consolidating leadership position with strong organic growth  Domestic leadership in Cement  Capex of Rs.11,300 Crs. on capacity expansions, captive power plants, RMC and modernisation over FY07-FY1

  26. Slide 26: Plant Locations– Grasim & its subsidiaries

    Plant Locations– Grasim & its subsidiaries Bathinda(G) Proposed Cement Projects Panipat Proposed Grinding Units Bhiwani Dadri T Grey Cement plants Kotputli Aligrah Grinding Units (G) Jodhpur T Gwalior Shambhupura B Bulk Cement Terminal Jawad Bharuch Durgapur(G) UltraTech Cement Plants F Jafrabad Mag

  27. Slide 27: Thank You

    GRASTM ADITYA BIRLA GROUP Thank You

  28. Slide 28: Annexures

    Grasim Industries Limited Annexures

  29. Slide 29: Annexures

    Annexures  Consolidated and Standalone Financial  Consolidated and Standalone Profitability  Segmental Performance – Q1 FY09  VSF Summary  Chemical Summary  Cement Summary  Sponge Iron Summary  UltraTech Performance 29

  30. Slide 30: Financial Snapshot

    Financial Snapshot Standalone Consolidated (Rs. Crores) FY05 FY06 FY07 FY08 Q1FY09 FY05 FY06 FY07 FY08 Q1FY09 Gross Block $ 6,052 6,416 7,974 10,615 11,115 11,312 11,927 14,481 19,258 20,367 Net Block $ 3,204 3,307 4,593 7,050 7,451 6,294 6,411 8,468 12,919 13,817 Goodwill 1,958 1,773 1,844 1,991 2,

  31. Slide 31: Profitability Snapshot

    Profitability Snapshot Standalone Consolidated (Rs. Crores) FY05 FY06 FY07 FY08 Q1FY09 FY05 FY06 FY07 FY08 Q1FY09 Gross Turnover 7,201 7,638 9,573 11,552 2,921 10,776 11,746 15,674 19,112 4,957 Net Turnover 6,229 6,653 8,572 10,215 2,578 9,292 10,224 14,069 16,973 4,403 PBIDT 1,785 1,597 2,619 3,424

  32. Slide 32: Segmental Performance – Q1FY09

    Segmental Performance – Q1FY09 Standalone Rs. Crores ROAvCE (%) Revenue PBIDT PBIDT Margin (%) PBIT Capital Employed (PBIT basis) Business Q1FY09 Q1FY08 Q1FY09 Q1FY08 Q1FY09 Q1FY08 Q1FY09 Q1FY08 Q1FY09 Q1FY08 Q1FY09 Q1FY08 VSF 629 707 195 256 31.0 36.3 170 236 1,892 1,226 38.2 77.5 Chemical 127 92 4

  33. Slide 33: Viscose Staple Fibre : Summary

    Viscose Staple Fibre : Summary Q1 FY09 Q1 FY08 % Chg. FY08 Capacity TPA 333,975 270,100 24 333,975 Production MT 58,083 68,555 (15) 279,901 Sales Volumes MT 56,760 69,396 (18) 269,781 Net Revenue Rs. Crs. 629.1 706.6 (11) 2,998.5 Avg. Realisation Rs./MT 101,927 94,455 8 103,316 PBIDT Rs. Crs. 195.3

  34. Slide 34: Chemical : Summary

    Chemical : Summary Q1 FY09 Q1 FY08 % Chg. FY08 Capacity TPA 258,000 258,000 -- 258,000 Production MT 47,084 42,843 10 188,537 Sales Volumes MT 47,800 42,872 11 187,356 Net Revenue Rs. Crs. 126.6 92.3 37 414.7 Avg. Realisation Rs./MT 22,352 17,252 30 18,963 PBIDT Rs. Crs. 42.2 28.1 50 138.1 PBIDT Mar

  35. Slide 35: Cement : Summary

    Cement : Summary Q1 FY09 Q1 FY08 % Chg. FY08 Grey Cement Capacity Mn. TPA 16.75 13.12 28 16.75 Production Mn. MT 3.99 3.86 3 15.36 Sales Volumes * Mn. MT 3.97 3.90 2 15.54 Avg. Realisation Rs./MT 3,366 3,083 9 3,192 RMC Sales Volumes Lac Cu. Mtr. 6.0 3.7 61 19.5 Avg. Realisation Rs./MT 2,788 2,576 8

  36. Slide 36: Sponge Iron : Summary

    Sponge Iron : Summary Q1 FY09 Q1 FY08 % Chg. FY08 Capacity TPA 900,000 900,000 -- 900,000 Production MT 100,532 138,136 (27) 562,000 Sales Volumes MT 91,206 139,706 (35) 557,187 Net Revenue Rs. Crs. 248.8 220.8 13 950.1 Avg. Realisation Rs./MT 24,027 14,796 62 15,759 PBIDT Rs. Crs. 73.8 35.3 109 159

  37. Slide 37: UltraTech: Consolidated Financial Performance

    UltraTech: Consolidated Financial Performance (Rs. Crores) Q1 FY09 Q1 FY08 % Chg. FY08 Cement Production (Mn. MT) 3.95 3.91 1 15.07 Sales Volume(Mn. MT): Cement-Domestic* 3.81 3.67 4 14.25 Cement-Exports 0.15 0.23 (35) 0.90 Clinker 0.38 0.53 (29) 2.09 Total Volumes 4.34 4.43 (2) 17.24 Realisation(Rs

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