Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — FY2005 Earnings Presentation
49 slides from Grasim Industries's earnings presentation, Apr 29, 2005
Slide 1: Grasim Industries Limited Performance Review – FY05
Grasim Industries Limited Performance Review – FY05 29th April, 2005
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: Financial Performance – FY05
Financial Performance – FY05 (Rs. Crores) z Excellent overall performance – Net profit before diminution at record high FY05 % Rs.978 Crs. (FY04 - Rs.779 Crs.) Total Revenue 6,247 19 z Revenue up by 19% z PBIDT up by 19% PBIDT 1,785 19 ¾ Satisfactory performance from VSF Interest Charges 139 (10) ¾
Slide 4: Financial Performance Q4FY05
Financial Performance Q4FY05 (Rs. Crores) z Revenue up by 6% Q4FY05 % z Net profit (before diminution) up by 14% ¾ Diminution not a charge for Q4 alone Total Revenue 1,642 6 ¾ Comparison with a strong base of Q4FY04 PBIDT 478 (7) z PBIDT lower by 7% ¾ Lower profit from Cement business due to Interes
Slide 5: Financial Performance Summary
Financial Performance Summary (Rs. Crores) Q4FY05 Q4FY04 % Chg. FY05 FY04 % Chg. Net Turnover & Op. Income 1,642.2 1,553.2 6 6,247.1 5,233.3 19 Other Income 82.5 72.1 14 169.4 209.2 (19) PBIDT 478.1 513.3 (7) 1,784.7 1,504.2 19 Interest 33.9 35.1 (3) 138.8 153.9 (10) Gross Profit 444.2 478.3 (7) 1,6
Slide 6: Financial Performance – contd…
Financial Performance – contd… z Exceptional Items (EI) ¾ Diminution in value of Long Term Investment and advances to Subsidiary – Rs.92 Crs. provided ¾ Gain on Sales tax loan prepayment - Rs.34.4 Crs. z Earning Per Share (Rs.) Basic and Diluted Q4 Q4 % % Chg. FY05 FY04 FY05 FY04 Chg. After Taxes bu
Slide 7: Segmental Performance Summary – FY05
Segmental Performance Summary – FY05 Revenue Mix PBIDT Mix Sponge Iron VSF Others VSF 16% 31% 6% 34% Sponge Iron 22% Chemical Chemical 6% Cement 5% Textile 44% Textiles Cement 1% 4% 31% (Rs.6,247 Crs.) (Rs.1,785 Crs.) z VSF (incl. Chemical) contributed 36% (39%) to Revenue and 40% (43%) in PBIDT mix
Slide 8: Grasim - Consolidated Financial Results – FY05
Grasim - Consolidated Financial Results – FY05 Rs. Crores Grasim Grasim Grasim FY05 Consolidated Stand- Consoli- Consoli- Change alone dated : dated : % z Consolidated revenue up FY05 FY05 FY04 ** by 20% Total Revenues 6247.1 9,410.0 7,845.4 20 PBIDT 1,784.7 2,272.3 1,880.1 21 z Consolidated PAT (be
Slide 9: Business Review – FY05
Business Review – FY05 VSF Chemicals Cement Sponge Iron Textiles 9
Slide 10: Viscose Staple Fibre : Highlights
Viscose Staple Fibre : Highlights % z Highest ever production, sales & FY05 FY04 Chg. Capacity (TPA) @ 253,675 251,850 1 profitability Production (MT) 247,952 221,005 12 z Capacity utilisation at 98% of enhanced Sales Volumes (MT) 231,533 229,110 1 capacity Net Turnover (Rs Crs.) 1956.4 1,764.8 11 z
Slide 11: Viscose Staple Fibre : Outlook
Viscose Staple Fibre : Outlook z Sales volume likely to be maintained z Margins to remain under pressure in the near future ¾ Lower cotton prices exerting pressure ¾ Input costs rising globally z Long term outlook remains positive ¾ Improving prospects for textiles, post WTO ¾ Thrust on specialty fi
Slide 12: Strategic Investment in Pulp
Strategic Investment in Pulp z Aditya Birla Group alongwith Tembec Inc. plans to acquire St. Anne Nackawic Pulp Mill, Canada z Grasim to hold 45% equity in JV (Rs.32 Crs) z Existing capacity of 750 TPD paper grade Montreal New pulp Brunswick z After immediate conversions, mill will be Toronto Maine
Slide 13: Chemical : Highlights and Outlook
Chemical : Highlights and Outlook % z Capacity utilisation at 85% (83%) FY05 FY04 Chg z Sales volume higher on improved captive Caustic Capacity (TPA) 190,800 190,800 -- Caustic Production (MT) 161,966 157,541 3 demand Caustic Sales Volumes (MT) 163,111 156,967 4 z ECU realisation up 15% Net Turnove
Slide 14: Cement : Highlights
Cement : Highlights % z Capacity utilisation improved to 95% FY05 FY04 Chg. z Sales volumes up 6% YoY Grey Cement ¾ Strong growth in East (12%), West (7%) Capacity (Mn. TPA) 13.12 13.12 -- and North (6%) Production (Mn. MT) 12.44 11.85 5 ¾ South grew by 3% YoY, outperforming Sales Volumes (Mn. MT) 1
Slide 15: Cement : Highlights (Contd..)
Cement : Highlights zCement : Highlights (Contd..)contd.. FY05 – Growth & Market Share 20% z Business margins improved from 18.5% to 19.7% despite steep rise in fuel and 12.4% 12% 10.4% 10.0% packing costs 8.5% 8.8% 10% 7% 6% 6% 3% 0% North East West South All India Growth Market share Grey Cement S
Slide 16: Cement : Outlook
Cement : Outlook z Positive demand outlook; Growth to average 7-8% ¾ Buoyant demand from housing segment ¾ Continued thrust on infrastructure ¾ Rapid industrial growth to add further impetus z Price outlook encouraging ¾ Industry operating at high utilisation levels ¾ Growth in supply to be lower th
Slide 17: Cement Consolidated : Highlights
Cement Consolidated : Highlights Q4FY05 FY05 FY04 Grey Cement Grasim 42% SDCC 3% Capacity (Mn. TPA) 31.2 31.2 31.2 Production (Mn. MT) UltraTech 55% Clinker 0.5 3.1 3.2 Cement 7.2 26.1 24.8 Cement Capacity - 31.2 Mn. Ton Sales Volumes (Mn. MT) Clinker 0.5 3.1 3.2 Grasim Cement 7.3 26.3 24.9 49% SDCC
Slide 18: Sponge Iron : Highlights
Sponge Iron : Highlights % z Stellar performance FY05 FY04 Chg. Capacity (TPA) 900,000 900,000 -- z Plant utilisation moved up to 87% Production (MT) 780,341 687,272 14 ¾ Notwithstanding natural gas shortage Sales Volumes (MT) 772,799 676,921 14 ¾ Higher use of Naptha & Propane Net Turnover (Rs. Crs
Slide 19: Sponge Iron : Outlook
Sponge Iron : Outlook % z Business outlook remains positive FY05 FY04 Chg. Capacity (TPA) 900,000 900,000 -- ¾ Domestic steel prices forecast to remain Production (MT) 780,341 687,272 14 firm Sales Volumes (MT) 772,799 676,921 14 ¾ Global scrap prices expected to stabilise Net Turnover (Rs. Crs.) 10
Slide 20: Textiles : Highlights and Outlook
Textiles : Highlights and Outlook FY05 FY04 % z Fabric volumes up 3% Chg. ¾ Increased demand from RMG segment Sales Volumes - Fabrics (lac Mtrs.) 154 149 3 z Yarn volumes down by 12% - Synthetic Yarn (MT) 6,265 7,147 (12) ¾ Higher captive consumption Net Turnover (Rs. Crs.) 249.9 228.0 10 z Fabric r
Slide 21: Segmental Performance Summary – FY05
Segmental Performance Summary – FY05 Rs. Crores PBIDT Margin Capital ROAvCE (%) Revenue PBIDT PBIT Business (%) Employed# (PBIT basis) FY05 FY04 FY05 FY04 FY05 FY04 FY05 FY04 FY05 FY04 FY05 FY04 VSF 1,957.4 1,765.5 610.8 572.7 31.2 32.5 553.6 520.4 1,027 825 63.3 64.3 Chemical 351.8 295.4 104.0 74.4
Slide 22: Financial Highlights
Financial Highlights 22
Slide 23: Profitability Snapshot
Profitability Snapshot PBIDT & PBIDT Margin (Figures in Rs. Crores) FY99 FY03 FY04 FY05 1850 PBIDT PBIDT Margin (%) 28.9 28.7 30 1600 Gross Turnover 4,325 5,412 6,130 7,201 1350 24.7 PBIDT (Rs. Crs.). 25 PBIDT Margin (%) 1100 Net Turnover 3,757 4,606 5,213 6,229 20.8 1785 850 1504 PBIDT 674 1,136 1,
Slide 24: Financial Snapshot
Financial Snapshot Networth Cap.Employed Debt Equity Ratio (Figures in Rs. Crores) FY99 FY03 FY04 FY05 Cap.Employed/Net Worth (Rs. Crs.) 8000 1.20 Gross Block 4,937 5,594 5,802 6,052 7000 1.13 6952 6304 Net Block 3,354 3,264 3,213 3,204 6000 5412 5673 0.80 Debt Equity Ratio 5037 5000 0.76 0.57 Cemen
Slide 25: Capex under implementation
Capex under implementation Rs. Crores Capex Cash Outflow plan FY06 FY07 Cement (Grasim) 920 504 384 - Power plants (3 Nos, 77MW) 332 166 134 - Grinding unit in North (1 Mn. MT) 112 65 47 - De-bottlenecking/Blending 151 51 100 - Modernization 325 222 103 VSF 602 290 305 - Capacity expansion (58,775 T
Slide 26: UltraTech Cement Limited (Consolidated) Performance Review – FY05
UltraTech Cement Limited (Consolidated) Performance Review – FY05 26
Slide 27: UltraTech (Consolidated) Financial Performance - FY05
UltraTech (Consolidated) Financial Performance - FY05 (Rs. Crores) Q4 z Revenues up by 20% on higher volumes FY05 FY04 FY05 and superior realisation Net Turnover & Other 767.8 2,797.0 2,335.9 z Lower operating margins in FY05 vis-a- Income PBIDT 132.3 379.0 367.4 vis FY04 PBIDT Margin (%) 17.2% 13.7
Slide 28: UltraTech (Consolidated): FY05 Highlights
UltraTech (Consolidated ): FY05 Highlights Q4FY05 FY05 FY04 z Capacity utilisation at 91% Capacity (Mn TPA) 17.0 17.0 17.0 Production (Mn. MT) z Cement Volumes up 5% Clinker 0.4 2.7 2.9 ¾ Domestic volumes higher by 4% Cement 3.7 12.9 12.2 Sales volumes (Mn. MT) ¾ Exports grew by 21% Clinker 0.4 2.7
Slide 29: UltraTech Outlook
UltraTech Outlook z Capex plan of Rs.966 Crs. including Rs.620 Crs. for 92 MW thermal power plant at Gujarat Cement plant z Cost and efficiency improvement ¾ Power cost reduction ¾ Fuel cost reduction ÖUse of petcoke ¾ Logistics Cost reduction z Reduce leveraging and interest costs z Improve perform
Slide 30: Shree Digvijay Cement Company Limited (SDCC) Results
Shree Digvijay Cement Company Limited (SDCC) Results for Year ended 31st March 2005 30
Slide 31: SDCC – Results
SDCC – Results (Rs. Crores) z Capacity utilisation at 95% (83%) Year Year % z Volumes up 14% (Lac MT) ended ended 31.03.05 31.03.04 Chg. ¾ Clinker exports up 75% on back of Cement Production 7.66 7.48 demand from middle east Clinker Production 2.61 1.49 14 Sales Volumes z Revenue growth at 19% on be
Slide 32: Plant Locations – Grasim & its subsidiaries
Plant Locations– Grasim & its subsidiaries Bhatinda(G) Noida Grey cement plants Gurgaon T Bhiwani Jodhpur Grinding Units (G) Shambhupura UltraTech Cement Plants Jawad Bharuch Durgapur(G) UltraTech Grinding Units (G) F Jafrabad Magdalla (G) B UltraTech Bulk Cement Terminals Sikka F C Pipavav Nagda Hi
Slide 33: Annexures: Segmental & Business Performance Summary
Annexures Segmental & Business Performance Summary FY05 Segmental performance Q4FY05 Segmental performance FY05 Consolidated Segmental performance VSF Summary Chemical Summary Cement Summary Sponge Iron Summary Textiles Summary Production Data Segmental Turnover & Realisations 33
Slide 34: Segmental Performance Summary – FY05
Segmental Performance Summary – FY05 Rs. Crores PBIDT Margin Capital ROAvCE (%) Revenue PBIDT PBIT Business (%) Employed# (PBIT basis) FY05 FY04 FY05 FY04 FY05 FY04 FY05 FY04 FY05 FY04 FY05 FY04 VSF 1,957.4 1,765.5 610.8 572.7 31.2 32.5 553.6 520.4 1,027 825 63.3 64.3 Chemical 351.8 295.4 104.0 74.4
Slide 35: Segmental Performance – Q4FY05
Segmental Performance – Q4FY05 Rs. Crores PBIDT Margin Capital ROAvCE (%) Revenue PBIDT PBIT Business (%) Employed# (PBIT basis) Q4FY05 Q4FY04 Q4FY05 Q4FY04 Q4FY05 Q4FY04 Q4FY05 Q4FY04 Q4FY05 Q4FY04 Q4FY05 Q4FY04 VSF 462.0 497.8 124.0 166.1 26.9 33.4 109.1 152.3 1,027 825 49.9 75.3 Chemical 103.0 79
Slide 36: Viscose Staple Fibre : Summary
Viscose Staple Fibre : Summary % % Q4 FY05 Q4 FY04 FY05 FY04 Chg. Chg. Capacity TPA @ 253,675 251,850 1 @ 253,675 251,850 1 Production MT 63,304 61,164 3 247,952 221,005 12 Sales Volumes MT 54,182 62,597 (13) 231,533 229,110 1 Net Turnover Rs. Crs. 461.7 497.8 (7) 1,956.4 1,764.8 11 Avg. Realisation
Slide 37: Chemical : Summary
Chemical : Summary Q4FY05 Q4FY04 % FY05 FY04 Chg. Capacity (Caustic) MT 190,800 190,800 -- 190,800 190,800 -- Production (Caustic) MT 42,165 43,135 (2) 161,966 157,541 3 Sales Volume(Caustic) MT 42,793 42,625 -- 163,111 156,967 4 Net Turnover Rs. Crs. 102.6 80.1 28 350.9 294.6 19 Avg. ECU Realisatio
Slide 38: Cement : Summary
Cement : Summary Q4FY05 Q4FY04 % Chg. FY05 FY04 % Chg. Grey Cement Capacity Mn. MT 13.12 13.12 -- 13.12 13.12 -- Production Mn. MT 3.30 3.20 3 12.44 11.85 5 Sales Volumes Mn. MT 3.36 3.24 4 12.63 11.96 6 Net Turnover Rs. Crs. 699.4 660.5 6 2,577.8 2,226.0 16 Avg. Realisation Rs./MT 1,923 1,873 3 1,8
Slide 39: Sponge Iron : Summary
Sponge Iron : Summary Q4FY05 Q4FY04 % FY05 FY04 % Chg. Chg. Capacity TPA 900,000 900,000 -- 900,000 900,000 -- Production MT 219,746 219,685 -- 780,341 687,272 14 Sales Volumes MT 202,646 205,891 (2) 772,799 676,921 14 Net Turnover Rs. Crs. 281.3 232.8 21 1,021.4 638.9 60 Avg. Realisation Rs./MT 13,
Slide 40: Textiles : Summary
Textiles : Summary Q4FY05 Q4FY04 % FY05 FY04 % Chg. Chg. Net Turnover Rs. Crs. 65.9 60.7 9 249.9 228.0 10 PBIDT Rs. Crs. 3.1 5.2 (40) 11.9 13.4 (12) PBIDT Margin % 4.7% 8.5% -- 4.8% 5.9% -- PBIT Rs. Crs. 0.5 2.3 -- (0.5) (0.2) -- Capital Employed Rs. Crs. 101 109 (7) 101 109 (7) ROAvCE (PBIT basis)
Slide 41: Production Data (MT)
Production Data (MT) Q4FY05 Q4FY04 FY05 FY04 Capacity Capacity Capacity Capacity Production % Production % Production % Production % TPA TPA TPA TPA VSF @ 253,675 63,304 100 # 251,850 61,164 111 @ 253,675 247,952 98 # 251,850 221,005 100 Caustic Soda 190,800 42,165 88 190,800 43,135 83 190,800 161,9
Slide 42: Divisional Turnover (Qty.) & Realisation
Divisional Turnover (Qty.) & Realisation Quantity (MT) Realisation (Rs. /MT) Product Q4 Q4 Q4 Q4 FY05 FY04 FY05 FY04 FY05 FY04 FY05 FY04 VSF 54,182 62,597 231,533 229,110 78,178 74,491 79,008 72,269 Caustic Soda * 42,793 42,625 163,111 156,967 21,364 16,571 18,836 16,338 Grey Cement * * 3.36 3.24 12
Slide 43: Thank You
GRAS ITM ADITYA BIRLA GROUP Thank You
Slide 44: Press Release: Grasim Reports Excellent Performance for FY 2005
Press Release Mumbai, April 29, 2005 GRASIM, THE ADITYA BIRLA GROUP’s FLAGSHIP COMPANY REPORTS EXCELLENT PERFORMANCE FOR FY 2005 Net Profit after Tax (before diminution) at Rs. 978 Crs., up by 26% Proposes 160% Dividend (Rs. Crores) FY05 FY04 % (Audited) (Audited) Change Net Turnover 6,247.1 5,233.3
Slide 45: Quarterly Performance Q4FY05 (Un-audited)
Quarterly Performance (Rs. Crores) Q4FY05 Q4FY04 % (Un-audited) (Un-audited) Change Net Turnover 1,642.2 1,553.2 5.7% Net Profit after taxes but before diminution 321.5 282.1 14.0% While Turnover at Rs.1,642 crores was higher by 6%, Net Profit for the Q4 after total tax expenses (excluding exception
Slide 46: Viscose Staple Fibre (VSF) Business
Viscose Staple Fibre (VSF) Business The VSF business’ performance has been noteworthy. Production at 247,952 tons was a significant 12% higher over that of the previous year. Sales volumes were only marginally higher due to the increased availability of cotton during the year. Realisations grew by 9
Slide 47: Cement and Sponge Iron Business
while realisation grew by 9%. Operating profits were higher despite steep increase in energy costs. The Company’s capex will be Rs.920 crores in the next 2–3 years towards modernization, de-bottlenecking, setting up of power plants and capacity expansion. The Company has spent Rs.115 crores during t
Slide 48: Audited Financial Results for the Year Ended 31st March 2005
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31st MARCH 2005 Rs in Crores Nine Months Three Months Three Months Full Year Full Year Consolidated Consolidated Ended 31st Ended 31st Ended 31st Ended 31st Ended 31st Financial Results Financial Results December 2004 March 2005 March 2004 March 2005 Marc
Slide 49: Segment Reporting
Cont. from Page 1 Segments Reporting: Rs. in Crores Nine Months Three Months Three Months Full Year Full Year Consolidated Consolidated Ended 31st Ended 31st Ended 31st ended 31st Ended 31st Financial Results Financial Results December 2004 March 2005 March 2004 March 2005 March 2004 for the year en