Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q3 FY18 Earnings Presentation
33 slides from Grasim Industries's earnings presentation, Feb 14, 2018
Slide 1: India's New Growth Story
Grasim Industries Limited India’s New Growth Story Quarterly Performance Review Q3 FY18, 14th February 2018 1
Slide 2: Our Leadership Businesses
Our Leadership Businesses Viscose Chemicals No. 1 No. 1 VSF producer in India Caustic Soda producer in India Ultratech Cement Aditya Birla Capital Idea Cellular No. 1 amongst Top 5 Cement producer in India Private Diversified NBFCs amongst Top 3 wireless operators in India by No. 4 amongst Top 4 Rev
Slide 3: Contents
CONTENTS Content Financial Business Highlights Performance Performance Glossary VSF: Viscose Staple Fiber, VFY: Viscose Filament Yarn, MT : Metric Ton, K: One Thousand, TPA : Tons Per Annum, YoY: Year on Year Comparison, CY : Current Year, LY : Last Year, YTD : Year to Date, EBITDA : Earnings Before
Slide 4: Key Highlights
Key Highlights Stellar performance at standalone level, Revenues up 75% and EBITDA up 54% ₋ Record VSF sales volume, up 9% yoy ₋ Liva brand tagged garments doubled yoy to 17.6 Mn in AW’17 ₋ Chemical Business reports highest ever quarterly Revenue and EBITDA ₋ Focus on Chlorine Value Added Products
Slide 5: Consolidated Revenue up by 78% YoY
Consolidated Revenue up by 78% YoY Others 6% Viscose 14% Viscose Financial 20% Services 19% Chemicals 9% Q3 FY17 Q3 FY18 Chemicals Rs. 8,602 Cr 11% Rs. 15,291 Cr Cement 69% Cement 52% Note: Idea Cellular is Consolidated at PAT level 5
Slide 6: Consolidated EBITDA up by 44% YoY
Consolidated EBITDA up by 44% YoY Others Financial 4% Viscose Services 17% 10% Viscose 22% Q3 FY17 Q3 FY18 Chemicals 13% Rs. 1,878 Cr Chemicals Rs. 2,696 Cr 10% Cement 68% Cement 56% Note: Idea Cellular is Consolidated at PAT level 6
Slide 7: Financial Performance
Content Financial Business Highlights Performance Performance 7
Slide 8: Results Snapshot Q3 FY18
Results Snapshot Q3 FY18 Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT (Rs. Cr.) Standalone Financial Performance 54% 43% 75% 920 474 4,428 598 331 2,526 Q3 FY17 Q3 FY18 Q3 FY17 Q3 FY18 Q3 FY17 Q3 FY18 Consolidated Financial Performance 78% 44% 22% 15,291 2,696 1,125 1,878 925 8,602 Q3 FY17 Q3 FY18 Q3
Slide 9: Consolidated Results Q3 FY18
Consolidated Results Q3 FY18 Particulars (Rs.Cr.) Q3 FY18 Q3 FY17 YOY(%) Net Revenue 15,291 8,602 78 Other Income 232 166 40 EBITDA 2,696 1,878 44 Interest 388 156 149 Depreciation / Amortisation 716 450 59 PBT 1,593 1,273 25 Tax 468 347 35 PAT (Before Minority Share, Share in profit/loss of JVs and
Slide 10: Strong Balance Sheet and Financial Ratios
Strong Balance Sheet and Financial Ratios Consolidated Financial Ratios Consolidated Debt / Surplus ( Rs. Cr.) 11236 22273 31st Mar 17 31st Dec 17 9213 14464 Net Worth (Rs. Cr.) 31,387 57,157 7809 2023 Debt:Equity 0.22 0.27 Mar-17 Dec-17 Standalone Debt / Surplus ( Rs. Cr.) Net Debt: Equity - 0.18 2
Slide 11: Capex Plan
Capex Plan Cash Outflow Capex spent Capex Particulars (Rs. Cr.) FY19 (Net of CWIP) FY18 YTD Dec’17 Onwards VSF: Brownfield Expansion (including debottlenecking) 4,325 Normal Capex (Water supply augmentation & usage 881 reduction, R&D, Environment and Others) Chemical: Brownfield Expansion (including
Slide 12: Our Top Priorities
Our Top Priorities Maintain Growing Consumer Facing Leadership position High Growth Businesses Cost focus and Robust Risk and Asset Sweating Governance Framework 12
Slide 13: Business Performance
Content Financial Business Highlights Performance Performance 13
Slide 14: Viscose Industry
Viscose Industry Global Prices Trend ($/Kg) Industry Data India demand growth ~8% (+) higher than the global demand by 200 bps (+) The onset of winter and the environment related capacity shutdowns in China led to lower operating rate of ~80% Buoyant demand for cotton led to lower stock-to-use
Slide 15: Business Performance: Viscose
Business Performance: Viscose Sales Volume (KT) Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 9% 24% 15% 133 2,186 462 122 402 1,762 Q3FY17 Q3FY18* Q3FY17 Q3FY18 Q3FY17 Q3FY18 VSF sales volumes up by 9% yoy led by strong domestic demand (Share of Speciality Sales Volume (KT) Domestic Sales in the total sales
Slide 16: LIVA driving domestic volumes
LIVA driving domestic volumes Continued focus on expanding usage and application of VSF in domestic textile market to bolster the VSF demand in the textile value chain: LIVA LIVATagging Tagging(Mn.) (Mn.) 17.62 Domestic Sales Domestic Sales Volume Volume (MT) (MT) 12.63 8.56 277,110 251,118 223,526
Slide 17: Chemicals Industry
Chemicals Industry Caustic Soda Prices ($)/Ton 681 540 488 500 Apr-17 Jun-17 Sep-17 Dec-17 Industry Data; India landed Prices Firmness in caustic prices driven by supply related issues in China and Europe Demand from major consuming segment like alumina expected to remain robust Chlorine price
Slide 18: Business Performance: Chemicals
Business Performance: Chemicals Sales Volume (KT)* Revenue (Rs. Cr.)# EBITDA (Rs. Cr.)# 17% 42% 93% 1,311 359 226 193 921 186 Q3FY17* Q3FY18 Q3FY17 Q3FY18 Q3FY17 Q3FY18 Caustic Soda sales volume up 6% yoy on like to like basis Chlorine used for VAPs (KT) Capacity utilization @ 94% is ahead of in
Slide 19: Business Performance: Cement
Business Performance: Cement Sales Volume (Mn.MT) Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 33% 34% 17% 17 8,019 1,494 13 1,280 5,998 Q3FY17 Q3FY18 Q3FY17 Q3FY18 Q3FY17 Q3FY18 Volume up 33% YoY, EBITDA up 17% YoY to Rs.1,494 Cr. Logistics cost per ton up by 6% led by higher FOR sales, increase in diese
Slide 20: Business Performance: Financial Services
Business Performance: Financial Services Lending Book (Rs. Cr.)* AUM (Rs. Cr.)** 41% 31% 299,893 46,522 229,007 33,047 Q3FY17 Q3FY18 Q3FY17 Q3FY18 Revenue Rs. 3,325 Cr. and EBT Rs. 409 Cr. as per IGAAP (Revenue Rs.2,850 Cr. and EBT Rs.267 Cr. as per IndAS included in Consolidated Results) Highes
Slide 21: Business Performance - Other Businesses
Business Performance- Other Businesses Revenue (Rs. Cr.) EBITDA (Rs. Cr.) Improvement in urea sales volume led by Fertilizers 643 72 better demand conditions Visible improvement in the sales volume Textile 344 12 of Linen yarn and fabric sequentially Insulator Industry witnessed a de-growth led by 1
Slide 22: Thank You
THANK YOU 22
Slide 23: Annexures
Content ANNEXURES 23
Slide 24: Consolidated Financial Performance
Consolidated Financial Performance Quarter 3 YTD Dec'17 Particulars % Change % Change 2017-18 2016-17 2017-18 2016-17 Net Sales & Op. Income 15,291 8,602 78 38,783 26,073 49 Other Income 232 166 40 758 678 12 Finance Cost Relating to NBFC/NHFC 746 0 - 1,487 0 - EBITDA 2,696 1,878 44 7,920 6,190 28 E
Slide 25: Standalone Financial Performance
Standalone Financial Performance Quarter 3 % YTD Dec'17 % Particulars 2017-18 2016-17 Change 2017-18 2016-17 Change Net Sales & Op. Income 4,428 2,526 75 11,206 7,470 50 Other Income 46 55 (16) 381 443 (14) EBITDA 920 598 54 2,595 2,073 25 EBITDA Margin (%) 20.6% 23.2% - 22.4% 26.2% - Finance Cost 3
Slide 26: Balance Sheet
Balance Sheet Standalone Consolidated 31st Dec'17 31st Mar'17 EQUITY & LIABILITIES 31st Dec'17 31st Mar'17 45,033 16,231 Net Worth 57,157 31,387 - - Non Controlling Interest 26,156 9,702 - - Borrowings related to financial services 40,004 - 2,323 701 Other Borrowings * 22,273 9,213 1,725 663 Deferre
Slide 27: Viscose Business Summary
Viscose Business Summary Quarter 3 % YTD Dec'17 % Particulars 2017-18 2016-17 Change 2017-18 2016-17 Change Capacity VSF KTPA 498 498 - 498 498 - VFY KTPA 21 - 21 - Production VSF KT 127 131 (3) 387 373 4 VFY KT 5 - 10 0 Sales Volumes VSF KT 133 122 9 384 367 5 VFY KT 5 - 10 0 Net Revenue Rs. Cr. 2,
Slide 28: Chemical Business Summary
Chemical Business Summary Quarter 3 % YTD Dec'17 % Particulars 2017-18 2016-17 Change 2017-18 2016-17 Change Capacity* KTPA 938 840 12 938 840 12 Production* KT 228 191 20 666 583 14 Sales Volumes* KT 226 193 17 664 590 12 Net Revenue Rs. Cr. 1,311 921 42 3,562 2,745 30 EBITDA Rs. Cr. 359 186 93 889
Slide 29: Cement Business Summary
Cement Business Summary Quarter 3 % YTD Dec'17 % Particulars 2017-18 2016-17 Change 2017-18 2016-17 Change Capacity* Mn. TPA 89 69 28 89 69 28 Production Mn. MT 16 12 31 43 37 17 Sales Volumes Mn. MT 17 13 33 45 39 17 Net Revenue Rs. Cr. 8,019 5,998 34 21,990 18,355 20 EBITDA Rs. Cr. 1,494 1,280 17
Slide 30: Business and Financial Performance - Telecom
Business and Financial Performance- Telecom VLR Subscribers (Mn) Data Volume (Mn MB) Revenue (Rs. Cr) 6% 203.00 425% 8,663 571,301 6,510 192.10 108,843 Q3FY17 Q3FY18 Q3FY17 Q3FY18 Q3FY17 Q3FY18 In Q3FY18, company witnessed net customer add of 7.5mn qoq on VLR driven by success in MNP from existing
Slide 31: Grasim: Group Structure
Grasim: Group Structure Chemical UTCL (60.22%)* VSF - 498K TPA Overseas ABCL (56.0)* Others Caustic VFY - 21K TPA Pulp & VSF JVs Subsidiary Subsidiary 938K TPA Pulp - 70K TPA Nagda AV Group NB Inc. Nagda Domestic Fertilizers NBFC Broking 162K TPA 320K TPA (45.0%)* 270K TPA (100%)* (75%)* Kharach Dom
Slide 32: Forward Looking & Cautionary Statement
Forward Looking & Cautionary Statement Certain statements in this report may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the
Slide 33: Grasim Industries Limited
Grasim Industries Limited Quarterly Performance Review Q3 FY 18, 14th February 2018 33