Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q4 FY2008 Earnings Presentation
47 slides from Grasim Industries's earnings presentation, Apr 29, 2008
Slide 1: Grasim Industries Limited Performance Review Q4FY08 & FY08
Grasim Industries Limited Performance Review Q4FY08 & FY08 29th April 2008
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 – Q4FY08
Consolidated Financial Performance – Q4FY08 % Consolidated revenue up by 15% Rs. Crs. Change PBIDT up by 6% Total Revenue 4,715 15 Cost pressure across all businesses on account of rising input and energy costs PBIDT 1,315 6 Cement business PBIDT up by 10% VSF business impacted by adverse
Slide 4: Consolidated Financial Performance – FY08
Consolidated Financial Performance – FY08 % Financial Year 2008 – year of new highs Rs. Crs. Change Consolidated revenue crosses $4bn. mark, Total Revenue 17,037 20 up by 20% Historically highest volumes in Cement, PBIDT 5,422 26 VSF and Chemical Business Interest 222 (3) PBIDT up by 26% wit
Slide 5: Consolidated Financial Performance
Consolidated Financial Performance (Rs. Crores) Q4 FY08 Q4 FY07 % Chg. FY08 FY07 % Chg. Net Turnover & Op. Income 4,714.7 4,089.6 15 17,037.0 14,141.6 20 Other Income 117.4 78.1 50 399.2 245.6 63 PBIDT 1,314.5 1,239.7 6 5,422.0 4,290.0 26 Interest 60.3 65.8 (8) 222.1 228.6 (3) Gross Profit 1,254.3 1
Slide 6: Standalone Financial Performance – Q4FY08
Standalone Financial Performance – Q4FY08 % Revenue up by 11% Rs. Crs. Change PBIDT at Rs.781 Crs. Total Revenue 2,742 11 Cost pressure across all businesses on account of rising input and energy costs PBIDT 781 1 Satisfactory performance from Cement and Sponge iron business Interest Charges
Slide 7: Standalone Financial Performance – FY08
Standalone Financial Performance – FY08 % Revenue up by 19% Rs. Crs. Change Historical high volumes in Cement, VSF and Total Revenue 10,278 19 Chemical business PBIDT up by 31% with improved performance PBIDT 3,424 31 from all business segments Higher profit for Cement, VSF and Chemical Inte
Slide 8: Standalone Financial Performance
Standalone Financial Performance (Rs. Crores) Q4 FY08 Q4 FY07 % Chg. FY08 FY07 % Chg. Net Turnover & Op. Income 2,742.4 2,474.6 11 10,278.1 8,643.8 19 Other Income 118.7 77.6 53 314.8 209.7 50 PBIDT 781.1 771.8 1 3,424.5 2,619.0 31 Interest 27.3 36.6 (26) 107.0 111.8 (4) Gross Profit 753.8 735.2 3 3
Slide 9: Segmental Performance – Q4FY08
Segmental Performance – Q4FY08 Revenue Mix Consolidated PBIDT Mix Sponge IronOthers VSF & 3% VSF & Others Chemical 6% 3% Chemical Sponge Iron 17% 20% 3% Textiles * 1% Cement Cement 77% 70% (Rs. 4,715 Crs.) (Rs.1,315 Crs.) (* Minority Share 18%) Revenue Mix Standalone PBIDT Mix Sponge Iron 10% VSF &
Slide 10: Financial Highlights
IGRASTM Financial Highlights 10
Slide 11: Grasim Consolidated Financials
Grasim Consolidated Financials (Rs. Crores) FY05 FY06 FY07 FY08 Strong Balance sheet Net Turnover 9,292 10,224 14,069 16,974 Net worth at $2.3 Bn., Capital Employed at $4.3 Bn. PBIDT 2,272 2,337 4,290 5,422 ROAvCE increased from 18% in FY05 to PAT#(After Minority share) 880 1,041 1,968 2,655 3
Slide 12: Grasim Standalone Financials
Grasim Standalone Financials (Rs. Crores) FY05 FY06 FY07 FY08 Strong Balance sheet Net Turnover 6,229 6,653 8,572 10,215 Low gearing at 0.39 Net gearing even lower at 0.21 PBIDT 1,785 1,597 2,619 3,424 Comfortable interest cover PAT * 886 863 1,536 2,048 ROAvCE in FY08 at 36.7% Net Worth 4
Slide 13: Business Review – Q4FY08
Business Review – Q4FY08 VSF Chemicals Cement Sponge Iron 13
Slide 14: Viscose Staple Fibre : Q4FY08 Highlights
Viscose Staple Fibre : Q4FY08 Highlights Macro economic factors impacted the volume and price realisation Q4FY08 Q4FY07 % Chg. Slowdown in demand Capacity (TPA) @ 333,975 270,100 24 Slowdown of textile demand in USA Production (MT) 70,828 67,772 5 Anti-dumping investigation by Turkey on impo
Slide 15: Viscose Staple Fibre : Outlook
Viscose Staple Fibre : Outlook Demand growth and prices to remain subdued in short term till liquidation of inventory in the pipeline Margins to remain under stress in short to medium term Impact of rising sulphur and pulp prices coupled with softening in VSF prices Long term volume outlook
Slide 16: Chemical : Q4FY08 Highlights & Outlook
Chemical : Q4FY08 Highlights & Outlook Sales volume lower by 6% due to Q4FY08 Q4FY07 % Chg. inventory buildup for planned partial Caustic Capacity (TPA) 258,000 258,000 -- Caustic Production (MT) 46,491 47,076 (1) shutdown Caustic Sales Volumes (MT) 44,872 47,709 (6) Operating margins lower due
Slide 17: Cement : Q4FY08 Highlights
Cement : Q4FY08 Highlights Q4FY08 Q4FY07 % Chg. Production up by 8% aided by higher Grey Cement capacity utilisation Capacity Mn. MT 16.75 13.12 28 Production Mn. MT 4.20 3.88 8 Sales volumes up by 9% Sales Volumes* $ Mn. MT 4.27 3.92 9 RMC volumes up by 62% helped by Realisation Rs./MT 3,267
Slide 18: Cement : Outlook
Cement : Outlook Demand expected to grow at about 9% Bunching of capacity expected in the next two years based on announced capacity Uncertain price environment Prices may come under pressure in calendar year 09 Operating margins under pressure due to increase in input costs New captive
Slide 19: Cement : Outlook (contd…)
Cement : Outlook (contd…) Project implementation progressing satisfactorily 3.3 Mn. Tons each, Shambhupura (Raj.) and Tadpatri (A.P.) clinkerisation unit commissioned, expansions will be operational in H1FY09 1.3 Mn. Tons grinding unit at Panipat (Har.) commissioned in Grasim Kotputli (Rajas
Slide 20: Sponge Iron : Q4FY08 Highlights and Outlook
Sponge Iron : Q4FY08 Highlights and Outlook Production lower by 20% due to lower capacity utilisation Q4FY08 Q4FY07 % Chg. Lower use of high cost alternate fuels Capacity (TPA) 900,000 900,000 -- Resultant decrease in sales volume Improved realisation helped by substantial Production (MT) 13
Slide 21: Capex
[GRA STM] ADITYA BIRTA GROUP! Capex 21
Slide 22: Capex plans
Capex plans Capex Summary Rs. Crores Total Net Cash Outflow Project Capex * Cost FY09 FY10 Cement 5,144 2,281 1,410 668 - Kotputli (4.5 Mn. TPA) & Shambhupura (4.4 Mn. 3,276 635 TPA) Projects, Rajasthan (incl. 96 MW TPP) - 2 Nos. Power Plants (48 MW) 279 58 - RMC Plants (24 Nos., Capacity 4.6 mn.
Slide 23: 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) 1,613 153 - 3 Nos. Power Plants (175 MW) 1,096 409 - Grinding and Jetty Capacity Expansion at Pipavav & 370 370 Bulk Terminal - RMC plants (
Slide 24: Subsidiary Company Performance
Subisidiary Company Performance UltraTech 24
Slide 25: UltraTech: Consolidated Financial Performance – Q4FY08
UltraTech: Consolidated Financial Performance – Q4FY08 (Rs. Crores) Revenue higher by 16% due to improved Q4 Q4 % FY08 FY07 Chg. realisation and higher RMC sales Net Turnover * 1,625.3 1,396.5 16 RMC now contributes 6% of total sales Other Income 28.2 20.2 39 Operating profit higher by 21% led
Slide 26: UltraTech Consolidated: Highlights
UltraTech Consolidated: Highlights Domestic sales volume up by 4% Q4 Q4 % Chg. Exports curtailed to meet domestic FY08 FY07 demand Capacity (Mn. TPA) 18.2 17.0 7 Overall volumes maintained Production (Mn. MT) Cement 4.22 4.17 1 Realisations improved across all Sales volumes (Mn. MT) segments
Slide 27: Summary
[IGRASIM Summary 27
Slide 28: Summary
Summary Grasim – A VSF and Cement major With strong competitive edge Global size operations Consolidating leadership position with strong organic growth pipeline Domestic leadership in Cement Capex of Rs.8,850 Crs. on capacity expansions, captive power plants, RMC and modernisation Foc
Slide 29: 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 30: Thank You
IG RAS TM! ADITYA BIRLA GROUP Thank You
Slide 31: Annexures
Grasim Industries Limited Annexures
Slide 32: Annexures
Annexures Consolidated and Standalone Financial Consolidated and Standalone Profitability Segmental Performance – Q4 & FY08 VSF Summary Chemical Summary Cement Summary Sponge Iron Summary UltraTech Performance Grasim Bhiwani Textile Performance 32
Slide 33: Financial Snapshot
Financial Snapshot Standalone Consolidated (Rs. Crores) FY04 FY05 FY06 FY07 FY08 FY05 FY06 FY07 FY08 Gross Block $ 5,802 6,052 6,417 7,959 10,611 11,312 11,927 14,467 19,254 Net Block $ 3,213 3,204 3,307 4,593 7,050 6,294 6,411 8,468 12,919 Goodwill - - - - - 1,958 1,773 1,844 1,991 Cement Subs. Inv
Slide 34: Profitability Snapshot
Profitability Snapshot Standalone Consolidated (Rs. Crores) FY04 FY05 FY06 FY07 FY08 FY05 FY06 FY07 FY08 Gross Turnover 6,130 7,201 7,638 9,573 11,552 10,776 11,746 15,674 19,113 Net Turnover 5,213 6,229 6,653 8,572 10,215 9,292 10,224 14,069 16,974 PBIDT 1,504 1,785 1,597 2,619 3,424 2,272 2,337 4,
Slide 35: Segmental Performance – Q4FY08
Segmental Performance – Q4FY08 Standalone Rs. Crores ROAvCE (%) Business Revenue PBIDT PBIDT Margin (%) PBIT Capital Employed (PBIT basis) Q4FY08 Q4FY07 Q4FY08 Q4FY07 Q4FY08 Q4FY07 Q4FY08 Q4FY07 Q4FY08 Q4FY07 Q4FY08 Q4FY07 VSF 715 652 191 200 26.7 30.7 169 179 1,682 1,211 46.6 64.8 Chemical 100 94 2
Slide 36: Segmental Performance – FY08
Segmental Performance –FY08 Standalone Rs. Crores ROAvCE (%) Business Revenue PBIDT PBIDT Margin (%) PBIT Capital Employed (PBIT basis) FY08 FY07 FY08 FY07 FY08 FY07 FY08 FY07 FY08 FY07 FY08 FY07 VSF 2,999 2,309 1,097 712 36.6 30.9 1,012 638 1,682 1,211 70.0 57.8 Chemical 415 319 138 81 33.3 25.3 11
Slide 37: Viscose Staple Fibre : Summary
Viscose Staple Fibre : Summary Q4 FY08 Q4 FY07 % Chg. FY08 FY07 % Chg. Capacity TPA 333,975 270,100 24 333,975 270,100 24 Production MT 70,828 67,772 5 279,901 246,833 13 Sales Volumes MT 61,650 68,588 (10) 269,781 250,725 8 Net Revenue Rs. Crs. 714.9 652.1 10 2,998.5 2,308.9 30 Avg. Realisation Rs.
Slide 38: Chemical : Summary
Chemical : Summary Q4 FY08 Q4 FY07 % Chg. FY08 FY07 % Chg. Capacity TPA 258,000 258,000 -- 258,000 258,000 -- Production MT 46,491 47,076 (1) 188,537 136,685 38 Sales Volumes MT 44,872 47,709 (6) 187,356 137,677 36 Net Revenue Rs. Crs. 100.4 93.6 7 414.7 319.0 30 Avg. Realisation Rs./MT 19,042 17,71
Slide 39: Cement : Summary
Cement : Summary Q4 FY08 Q4 FY07 % Chg. FY08 FY07 % Chg. Grey Cement Capacity Mn. TPA 16.75 13.12 28 16.75 13.12 28 Production Mn. MT 4.20 3.88 8 15.36 14.42 7 Sales Volumes * Mn. MT 4.27 3.92 9 15.54 14.52 7 Avg. Realisation Rs./MT 3,267 2,979 10 3,192 2,867 11 RMC Sales Volumes Lac Cu. Mtr. 5.9 3.
Slide 40: Sponge Iron : Summary
Sponge Iron : Summary Q4 FY08 Q4 FY07 % Chg. FY08 FY07 % Chg. Capacity TPA 900,000 900,000 -- 900,000 900,000 -- Production MT 134,490 167,680 (20) 562,000 525,183 7 Sales Volumes MT 140,317 171,942 (18) 557,187 571,127 (2) Net Revenue Rs. Crs. 275.2 241.1 14 950.1 755.8 26 Avg. Realisation Rs./MT 1
Slide 41: UltraTech: Consolidated Financial Performance
UltraTech: Consolidated Financial Performance (Rs. Crores) Q4 FY08 Q4 FY07 % Chg. FY08 FY07 % Chg. Cement Production (Mn. MT) 4.22 4.17 1 15.07 14.63 3 Sales Volume(Mn. MT): Cement-Domestic* 4.03 3.86 4 14.25 13.35 7 Cement-Exports 0.21 0.33 (37) 0.90 1.27 (30) Clinker 0.58 0.61 (6) 2.09 2.50 (16) T
Slide 42: Press Release Mumbai, April 29, 2008
Press Release Mumbai, April 29, 2008 GRASIM, THE ADITYA BIRLA GROUP’s FLAGSHIP COMPANY PERFORMANCE FOR Q4FY 2008 Consolidated Net Profit (before Extraordinary gain) Rs.644 Crs. Up 15% Consolidated Net Revenue Rs.4,715 Crs. Up 15% Consolidated Financial Performance: Rs. Crores Q4 Q4 % FY08 FY07 % FY0
Slide 43: Highlights of Grasim's operations
Highlights of Grasim’s operations: Q4FY08 Q4FY07 % Change FY 2008 FY 2007 % Change Production - Viscose Staple Fibre M.T. 70,828 67,772 5% 279,901 246,833 13% Cement Mn. M.T. 4.20 3.88 8% 15.36 14.42 7% White Cement M.T. 120,433 97,116 24% 407,882 364,649 12% Sponge Iron M.T. 134,490 167,680 -20% 56
Slide 44: Sponge Iron Business Outlook
Cement Subsidiaries UltraTech Cement Limited (UltraTech), a subsidiary of Grasim, performed well. Domestic Cement sales during the year were higher at 14.25 million tons, an increase of 7%. However, exports of Cement and Clinker were down by 25% from 3.48 million tons to 2.61 million tons. During th
Slide 45: Audited Financial Results for the Year Ended 31st March 2008
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31st MARCH 2008 I. CONSOLIDATED RESULTS : Rs in Crores Three Months Three Months Year Year Ended 31st Ended 31st Ended 31st Ended 31st March 2008 March 2007 March 2008 March 2007 ( Audited ) ( Audited ) Net Sales / Income from Operations 4,714.66 4,089.57
Slide 46: Segment Reporting - Consolidated
III. SEGMENT REPORTING - CONSOLIDATED Rs. in Crores Three Months Three Months Year Year Ended 31st Ended 31st Ended 31st Ended 31st March 2008 March 2007 March 2008 March 2007 ( Audited ) ( Audited ) 1. SEGMENT REVENUE a Fibre & Pulp 833.56 782.93 3,443.89 2,706.49 b Cement 3,358.31 2,851.18 11,712.
Slide 47: Notes
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) issued