Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q1 FY2013-14 Earnings Presentation
36 slides from Grasim Industries's earnings presentation, 2013
Slide 1: Performance Review Quarter 1: 2013-14
Performance Review Quarter 1 : 2013-14 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 Indian Economy continue to remain sluggish in line with global business environment Declining trend in GDP growth o FY13 – Q1: 5.5%, Q2 : 5.3%, Q3 : 4.7%, Q4: 4.8% IIP numbers growth on YoY basis at 1.9% in April’ 13 and negative 1.6% in May ’13 VSF : Challenging bus
Slide 5: Business Review
Business Review VSF Chemical Cement Subsidiary 5
Slide 6: Viscose Staple Fibre: Highlights
Viscose Staple Fibre : Highlights Quarter 1 % Global Industry Scenario Quarter 4 Change Demand supply imbalance in China and high 2012-13 2013-14 2012-13 (YoY) cotton inventory continued to impact VSF 352,225 Capacity - Annual (MT) 377,775 333,975 13 realisation with sharp decline in May’13 88,050
Slide 7: Viscose Staple Fibre: Highlights (Contd.)
Viscose Staple Fibre : Highlights (Contd….) Quarter 1 % Cost of production maintained Quarter 4 Change Decline in caustic and sulphur prices offset by 2012-13 2013-14 2012-13 (YoY) increase in domestic coal and other chemicals prices Standalone Business: Decline in realisation leads to lower P
Slide 8: Viscose Staple Fibre: Outlook
Viscose Staple Fibre : Outlook Rupee depreciation should improve competitiveness of Indian Textile industry In long term, VSF continues to hold favorable position in comparison to other fibres Preference for comfort fabric leading to increase in demand for high quality cellulosic fibre Risin
Slide 9: Chemical: Highlights
Chemical : Highlights Quarter Quarter 1 Industry Scenario % 4 Change ECU realisation declined from the high levels 2012-13 2013-14 2012-13 (YoY) seen during FY13 258,000 Capacity - Annual (MT) 440,500 258,000 71 Business Performance 64,500 Capacity - Quarter (MT) 71,750* 64,500 11 Production and
Slide 10: Cement: Highlights
Cement : Highlights Quarter Quarter 1 % Industry Scenario 4 Change Demand remained subdued during the quarter with 2013-14 2012-13 (YoY) 2012-13 industry growth estimated at ~4% Grey Cement (Mn. MT) Slow growth in Infrastructure and Real estate sector 41.80 Clinker capacity - Annual 41.80 38.50
Slide 11: Cement: Financials
Cement : Financials Quarter Quarter 1 Prices softened in Apr-May’13; though recovered % 4 Change in Jun’13 2012-13 2013-14 2012-13 (YoY) Overall prices declined on YoY basis except in East 5,819 Net Revenue (` Cr.) 5,294 5,362 (1) India 1,451 PBIDT (` Cr.) 1,268 1,390 (9) Net Revenue declined
Slide 12: Cement: Outlook
Cement : Outlook Demand growth in FY14 likely to be 6% linked with expected GDP growth rate at 5%-5.5% Demand growth has potential to recover to + 8% on improvement in economic environment Surplus supply scenario likely to continue over the next 3 years with capacity addition of 60 Mn. Tons by
Slide 13: Financial Performance
ri —_ we i Financial Performance 13
Slide 14: Consolidated Revenue
Consolidated Revenue 41 124 (15) (68) 22 ` Crore 6836 6940 Qtr. 1 VSF & JVs* AV Chemical Cement Inter Co. Qtr. 1 2012-13 Terrace Bay # Eliminations & 2013-14 Others 6,836 41 124 (15) (68) 22 6,940 * Includes revenue of Domsjo (` 128 cr) consolidated as JV as against ‘Associate’ earlier # Acquired in
Slide 15: Financial Performance – Consolidated
Financial Performance – Consolidated (` Crore) Quarter 1 Change Quarter 4 2013-14 2012-13 YoY 2012-13 Revenue 6,940 6,836 2 7,672 Operating Costs 5,625 5,204 8 6,094 PBIDT 1,549 1,767 (12) 1,786 Interest 95 74 28 81 Depreciation 344 298 15 329 PBT 1,110 1,396 (20) 1,376 Exceptional item* - - 204 PBT
Slide 16: Consolidated PBIDT
Consolidated PBIDT (98) (13) (16) (122) 31 1767 1549 ` Crore Qtr. 1 VSF & JVs AV Chemical Cement Others incl. Qtr. 1 2012-13 Terrace Inter Co. 2013-14 Bay# Eliminations 1,767 (98) (13) (16) (122) 31 1,549 # Acquired in July’ 12 16
Slide 17: Net Profit
Net Profit (` Crore) Quarter 1 2013-14 2012-13 % Change Grasim's Grasim's Total Co. Total Co. share share Standalone PAT 226 273 (17) UltraTech Cement 666 402 764 461 (13) Grasim Bhiwani Textiles 2 2 - - Fibre and DG Pulp JVs (78) (29) (67) (27) AV Terrace Bay (39) (15) - - Idea Cellular 463 24 234
Slide 18: Balance Sheet: Grasim
Balance Sheet : Grasim (` Crore) Standalone Consolidated As on 30th As on 31st As on 30th As on 31st EQUITY & LIABILITIES Jun'13 Mar'13 Jun'13 Mar'13 Shareholders' Funds 10,353 10,122 Net Worth 20,384 19,657 - - Minority Interest 6,467 6,221 Non Current Liabilities 1,101 981 Long Term Borrowings 6,9
Slide 19: Strong Financials
Strong Financials Standalone Consolidated Q1 FY Full Year Q1 FY Full Year (` Crore) 2013-14 2012-13 2013-14 2012-13 Net Worth 10,353 10,122 20,384 19,657 Debt 1,311 1,295 9,314 9,561 Net Debt (Net of liquid funds) (732) (739) 2,774 2,826 Capital Employed 12,025 11,761 38,585 37,740 Debt:Equity (x) 0
Slide 20: Capex
ri —_ we i Capex 20
Slide 21: Capex plan
Capex plan (` Crore) Capex Cash Outflow Capex Work in spent under FY14 FY15 Progress as Net Capex during Implemen- onward on 01-04-13 tation $ Q1 Standalone VSF Expansion : Vilayat (120K TPA), Harihar (36K TPA) 2,178 Chemical Expansion : Vilayat (182K TPA) 947 Epoxy Project : Vilayat (51,500 TPA) 23
Slide 22: Summary
ri —_ we i Summary 22
Slide 23: Summary
Summary Businesses impacted by slowdown in economy Surplus capacities will continue to exert pressure till environment improves Continuous cost optimisation measures and R&D to help meet these challenges Both businesses to consolidate leadership position On-going Capacity Expansions nearin
Slide 24: Organizational Structure
Organizational Structure Pulp, Fibre & Allied Chemical UltraTech Cement * Others (60.32%) VSF Overseas VSF Pulp Overseas Chemicals Domestic Overseas 377K TPA Units 70 K TPA Pulp Units 3 Mn. TPA, (UAE, 440K TPA 51 Mn. TPA Bangladesh, Sri Lanka) Nagda Birla Jingwei $ AV Cell $ Nagda 11 Composite Grasi
Slide 25: Plant Locations – Grasim & its subsidiaries
Plant Locations– Grasim & its subsidiaries Bathinda(G) Panipat Bhiwani Dadri T Kotputli Aligarh Jodhpur T Malanpur Shambhupura Jawad P Katni Bharuch Durgapur(G) UltraTech Cement Plants F Jafrabad FVilayat UltraTech Grinding Units (G) F C Pipavav Nagda Hirmi Raipur Magdalla (G) Awarpur UltraTech Whit
Slide 26: Thank You
ADITYA BIRLA GRASIM Thank You
Slide 27: Annexure
Grasim Industries Limited Annexure
Slide 28: Annexure
Annexure Consolidated Financial Performance Standalone Financial Performance Consolidated and Standalone Profitability Revenue & PBIDT Chart VSF Summary Chemical Summary Cement Summary 28
Slide 29: Consolidated Financial Performance
Consolidated Financial Performance (` Crore) Quarter - 1 % Full Year 2013-14 2012-13 Change 2012-13 Net Sales & Op. Income 6,940.4 6,836.1 2 27,904.3 Other Income 233.5 135.7 72 619.5 PBIDT 1,549.3 1,767.4 (12) 6,543.1 PBIDT Margin (%) 21.6% 25.4% 22.9% Finance Cost 95.0 74.0 28 324.1 Depreciation 3
Slide 30: Standalone Financial Performance
Standalone Financial Performance (` Crore) Quarter 1 Full Year % Change 2013-14 2012-13 2012-13 Net Sales & Op. Income 1,163.1 1,263.2 (8) 5,255.0 Other Income 81.7 65.1 25 434.6 PBIDT 298.3 379.7 (21) 1,522.7 PBIDT Margin (%) 24.0% 28.6% 26.8% Finance Cost 7.8 6.1 28 39.1 Depreciation 48.4 36.0 35
Slide 31: Profitability Snapshot
Profitability Snapshot Standalone Consolidated ( ` Crore) FY FY FY Q1 FY FY FY FY Q1 FY 2010-11 2011-12 2012-13 2013-14 2010-11 2011-12 2012-13 2013-14 Net Turnover & Op. Income 4,640 4,974 5,255 1,163 21,550 25,244 27,904 6,940 PBIDT 1,817 1,722 1,523 298 5,395 6,321 6,543 1,549 PBIDT Margin (%) 36
Slide 32: Revenue Chart
Revenue Chart (` Crore) Quarter 1 % Quarter 4 Net Revenue Change 2013-14 2012-13 2012-13 YoY Viscose Staple Fibre 980 1,062 (8) 1,216 Chemical 224 239 (6) 229 Others 23 25 18 Eliminations (Inter Segment) (64) (63) (67) Standalone Net Revenue 1,163 1,263 (8) 1,396 Subsidiaries Cement 5,294 5,362 (1)
Slide 33: PBIDT – Chart
PBIDT – Chart (` Crore) PBIDT Quarter 1 % Change Quarter 4 2013-14 2012-13 YoY 2012-13 Viscose Staple Fibre 187 276 (32) 216 Chemical 50 66 (24) 51 Others 61 37 65 65 Standalone PBIDT 298 380 (21) 332 Subsidiaries Cement 1,268 1,390 (9) 1,451 Textiles 6 3 10 Pulp JVs and Fibre JVs (Pro Rata) (23) (9
Slide 34: Viscose Staple Fibre: Summary
Viscose Staple Fibre : Summary Quarter 1 Full Year % Change 2013-14 2012-13 2012-13 Capacity (Quarter/Annual) TPA 91,700 83,490 10 3,52,225 Production MT 87,692 83,404 5 3,37,492 Sales Volumes MT 77,518 77,013 1 3,36,065 Net Revenue ` Cr. 980 1,062 (8) 4,472 PBIDT ` Cr. 187 276 (32) 931 PBIDT Margin
Slide 35: Chemical: Summary
Chemical : Summary Quarter 1 Full Year % Change 2013-14 2012-13 2012-13 Capacity (Quarter/Annual) TPA 71,750 64,500 11 2,58,000 Production MT 71,035 69,166 3 2,70,191 Sales Volumes MT 72,028 69,466 4 2,69,438 Net Revenue ` Cr. 224 239 (6) 951.2 PBIDT ` Cr. 50 66 (24) 244.7 PBIDT Margin % 22.4% 27.6%
Slide 36: Cement: Summary
Cement : Summary Quarter 1 Full Year % Change 2013-14 2012-13 2012-13 Grey Cement Capacity (Quarter/Annual) Mn. TPA 13.48 12.94 4 53.90 Production Mn. MT 10.67 10.76 (1) 42.59 $ Cement Sales Volumes Mn. MT 10.79 10.83 -- 42.75 Clinker Sales Volumes Mn. MT 0.09 0.19 (53) 0.89 White Cement ` Cr. Produ
Grasim Industries — Q1 FY2013-14 Earnings Presentation on 6ix