Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Q3 FY2016 Earnings Presentation
33 slides from Grasim Industries's earnings presentation, Jan 30, 2016
Slide 1: Quarterly Performance Review Q3 2015-16
Quarterly Performance Review Quarter 3 : 2015-16 Mumbai, 30th January, 2016 Grasim Industries Limited A VSF and Cement Major
Slide 2: Contents
Contents Highlights 3-6 Financial Results 7-8 Business Performance 9 -15 Capex Plan 17 Business 0utlook 18 - 19 Glossary VSF : Viscose Staple Fiber, MT : Metric Ton, TPA : Tons Per Annum, YoY: Year on Year Comparison, CY : Current Year, LY : Last Year, YTD : Year to Date, EBITDA : Earnings
Slide 3: Indian Economy
Indian Economy Indian economy continues to be one of the best performers amongst large economies GDP grew by 7.4% in Q2FY16 Economy showing mixed signals Robust growth in Govt. tax revenue at 18% (April – Nov FY16 YoY) Retail inflation remains below 6% levels Government’s Capital expendi
Slide 4: Highlights – Quarter 3: VSF Business
Highlights – Quarter 3 VSF Business Leading Prices declined globally during the quarter Global Player - Lower demand due to end of season Sales Volume Revenue EBITDA 120,700 MT ` 1,602 Cr. ` 308 Cr. (Up by 24% YoY) (Up by 33% YoY) (Up by 126% YoY ) Achieved strong volume growth EBITDA margin con
Slide 5: Highlights – Quarter 3: Chemical Business
Highlights – Quarter 3 Chemical Business Leadership strengthened with completion of ABCIL merger with Grasim − Capacity increased from 452K TPA to 804K TPA − Merged from 1st April, 2015 (appointed date) − Q3 / 9M Results include results of ABCIL Caustic Sales Volume Revenue EBITDA (Chlor Alkali, Epo
Slide 6: Highlights – Quarter 3: Cement Business
Highlights – Quarter 3 Cement Business Market leader Demand growth at ~4.5% in Q3, picked up marginally in India Cement Sales Volume Revenue EBITDA 12.3 Mn. Tons ` 6,188 Cr. ` 1,245 Cr. (Up by 7% YoY) (Up by 4% YoY) (Up by 18%) UltraTech’s capacity utilisation at 70% vs. ~65% of the industry Low
Slide 7: Financial Performance
Financial Performance Standalone Amount in ` Cr. Revenue EBITDA Net Profit 40% 64% 49% 1,367 6,440 745 4,599 833 499 50% 128% 178% 2,343 484 260 1,560 212 94 Q3FY15 Q3FY16 9MFY15 9MFY16 Q3FY15 Q3FY16 9MFY15 9MFY16 Q3FY15 Q3FY16 9MFY15 9MFY16 LFL Growth 28% 19% 93% 36% 162% 35% Consolidated Revenue E
Slide 8: Robust Financial Ratios
Robust Financial Ratios Standalone Consolidated 9M 2015-16 FY 2014-15 Particulars 9M 2015-16 FY 2014-15 12,372 11,183 Net Worth 25,290 23,140 2,236 1,115 Debt 11,710 11,930 703 19 Net Debt 5,833 6,140 0.18 0.10 Debt:Equity (x) 0.35 0.39 0.06 - Net Debt: Equity (x) 0.17 0.20 0.39 - Net Debt / EBIDTA
Slide 9: Business Performance
Business Performance VSF Chemical Cement 9
Slide 10: International Fibres Price Trend
International Fibres Price Trend $/ Kg 2.3 2.1 1.9 1.78 1.7 1.5 1.55 1.3 1.1 0.9 0.86 0.7 Apr/13 Jun/13 Aug/13 Dec/13 Feb/14 Apr/14 Jun/14 Aug/14 Dec/14 Feb/15 Apr/15 Jun/15 Aug/15 Dec/15 Oct/13 Oct/14 Oct/15 VSF Cotton PSF VSF : Declined during the quarter after witnessing upward trend in first h
Slide 11: VSF : Performance
VSF : Performance EBITDA Margin Revenue up 33% driven by both volume and Revenue ( ` Cr.) realisation increase 33% EBITDA (` Cr.) Full ramp up of Vilayat plant and stabilisation of 126% 19% quality 1602 Both Domestic and Export segment record good 1203 11% 308 growth 136 Higher sale of speci
Slide 12: Pulp & Fibre JVs : Performance
Pulp & Fibre JVs : Performance Revenue * ( ` Cr.) EBITDA *( ` Cr.) Pulp & Fibre JVs EBITDA increased to ` 71 Cr. 10% compared to ` (27) Cr. last year 71 (27) Uninterrupted operations leading to higher volumes 462 508 Q3FY15 Q3FY16 Increase in DG pulp realisation in local currency led by deprec
Slide 13: Chemical : Performance
Chemical : Performance Industry Scenario Revenue ( ` Cr.) EBITDA (` Cr.) Caustic prices increased in domestic market EBITDA Margin Lower import vis-a-vis same period last year 97% 163% Uptick in international Caustic prices 345 20% 76 Business Performance 15% 525 Revenue doubled YoY (LFL up
Slide 14: Cement : Performance
Cement : Performance Qtr. Capacity Industry Scenario (Mn. Ton) Sign of improvement in demand; Growth estimated 7% at ~ 4.5% against subdued demand in first half 15.8 16.9 Weakness in cement prices Q3FY15 Q3FY16 Business Performance EBITDA (Rs Cr.) Revenue up by 4% Revenue (` Cr.) EBITDA Margin
Slide 15: Capex
a SN —P | GRASIM Capex 15
Slide 16: Capex plan
Capex plan (` Cr.) Capex Cash Outflow Capex (Net of spent FY16 FY17 CWIP onward during as on 01-04-15) 9MFY16 Standalone VSF Expansion : Vilayat (120K TPA) – Residual Capex 135 Normal Capex : VSF 310 : Chemical & Others 260 Standalone Capex (A) 705 450 255 310 Cement Subsidiary : UltraTech Capacity
Slide 17: Business Outlook
Business Outlook VSF VSF Business Business: Global VSF prices have softened Margins may come off in near term Going forward, prices are likely to be influenced by Development in China Competing fibre prices trend Development in downstream industry Textile consumption in India expected
Slide 18: Business Outlook: Cement Business
Business Outlook Cement Business Cement demand expected to pick-up in near-term Cement demand growth drivers : Improvement in GDP growth Government focus on infrastructure development Pre –election demand in several states Gradual revival in housing demand linked to stable housing prices
Slide 19: Thank You
a SN —P | GRASIM Thank You 19
Slide 20: Annexure - Financials
Grasim Industries Limited Annexure - Financials 20
Slide 21: Annexure
Annexure Consolidated Financial Performance Standalone Financial Performance Balance sheet Profitability Trend Revenue & EBITDA Chart VSF Summary Chemical Summary Cement Summary Organisational Structure Plant Locations 21
Slide 22: Consolidated Financial Performance
Consolidated Financial Performance (` Cr.) Quarter 3 % Nine Months % Full Year 2015-16 # 2014-15 Change 2015-16 # 2014-15 Change 2014-15 Net Sales & Op. Income 9,043.7 8,034.6 13 26,635.6 24,021.0 11 32,838.4 Other Income 77.4 57.0 36 279.6 428.7 (35) 539.0 EBITDA 1,795.2 1,259.6 43 4,966.5 4,024.9
Slide 23: Standalone Financial Performance
Standalone Financial Performance (` Cr.) Quarter 3 % Nine Months % Full Year 2015-16 # 2014-15 Change 2015-16 # 2014-15 Change 2014-15 Net Sales & Op. Income 2,343.4 1,560.1 50 6,440.0 4,599.4 40 6,332.6 Other Income 23.6 30.8 (23) 253.4 297.3 (15) 348.1 EBITDA 483.9 211.8 128 1,367.1 833.2 64 1,013
Slide 24: Balance Sheet
Balance Sheet (` Cr.) Standalone Consolidated 31st Dec'15 31stMar'15 EQUITY & LIABILITIES 31st Dec'15 31stMar'15 12,372 11,183 Net Worth 25,290 23,140 - - Minority Interest 8,215 7,682 2,236 1,115 Borrowings 11,710 11,930 918 615 Deferred Tax Liability (Net) 4,067 3,410 1,686 1,454 Liabilities & Pro
Slide 25: Profitability Trend
Profitability Trend Standalone Consolidated (` Cr.) FY FY FY Nine Months FY FY FY Nine Months 2012-13 2013-14 2014-15 2015-16 2012-13 2013-14 2014-15 2015-16 Net Turnover & Op. Income 5,255 5,604 6,333 6,440 27,909 29,324 32,838 26,636 EBITDA 1,523 1,246 1,013 1,367 6,543 5,491 5,683 4,967 EBITDA Ma
Slide 26: Revenue Chart
Revenue Chart (` Cr.) Nine Months % Quarter 3 % Full Year 2015-16 2014-15 Change 2015-16 2014-15 Change 2014-15 4,292 3,568 20 Viscose Staple Fibre 1,602 1,203 33 4,974 2,479 1,273 95 Chemical 870 442 97 1,701 76 67 Others 25 19 89 (408) (308) Eliminations (Inter Segment) (154) (105) (431) 6,440 4,5
Slide 27: EBITDA – Chart
EBITDA – Chart (` Cr.) Nine Months % EBIDTA Quarter 3 % Full Year 2015-16 2014-15 Change 2015-16 2014-15 Change 2014-15 657 368 79 Viscose Staple Fibre 308 136 126 465 518 237 118 Chemical 177 67 163 292 191 228 Others (1) 8 257 1,367 833 64 Standalone EBITDA 484 212 128 1,013 Subsidiaries 3,631 3,3
Slide 28: Viscose Staple Fibre : Summary
Viscose Staple Fibre : Summary Quarter 3 % Nine Months % Full Year 2015-16 2014-15 Change 2015-16 2014-15 Change 2014-15 Capacity* KTPA 125 115 9 374 317 18 434 Production (in '000s) MT 126 106 19 341 297 15 408 Sales Volumes (in '000s) MT 121 97 24 337 284 19 403 Net Revenue ` Cr. 1,602 1,203 33 4,
Slide 29: Chemical : Summary
Chemical : Summary Quarter 3 % Nine Months % Full Year 2015-16 2014-15 Change 2015-16 2014-15 Change 2014-15 Capacity KTPA 201 113 78 559 339 65 453 Production (in '000s) MT 195 106 83 547 308 78 412 Sales Volumes (in '000s)$ MT 202 108 87 558 304 84 409 Net Revenue ` Cr. 870 442 97 2,479 1,273 95 1
Slide 30: Cement : Summary
Cement : Summary Quarter 3 % Nine Months % Full Year 2015-16 2014-15 Change 2015-16 2014-15 Change 2014-15 Grey Cement Capacity Mn. TPA 16.91 15.79 7 48.50 46.67 4 63.15 Production Mn. MT 12.01 11.31 6 36.31 34.26 6 46.71 Cement Sales Volumes $ Mn. MT 12.25 11.48 7 36.56 34.57 6 47.09 Clinker Sales
Slide 31: Grasim Group Structure
Grasim Group Structure Pulp & Fibre Chemical UltraTech Cement (60.25%) Others VSF VSF JV Pulp Overseas Caustic Epoxy Domestic Overseas 498K TPA China 70K TPA Pulp JVs 804K TPA 51K TPA 3 Mn. TPA, (UAE, Bangladesh, Sri Lanka) Nagda Grey Cement Grasim Nagda Birla Jingwei Harihar AV Cell 270K TPA Bhiwan
Slide 32: Plant Locations – Grasim & its subsidiaries
Plant Locations– Grasim & its subsidiaries Bathinda(G) Jhajjar Bhiwani Panipat Dadri T Kotputli Aligarh Jodhpur P T Malanpur Renukoot Shambhupura C Jawad P Katni Sewagram Bharuch Durgapur(G) UltraTech Cement Plants Wanakbori F Jafrabad F C Vilayat C Rehla Dankuni`(G) UltraTech Grinding Units (G) F C
Slide 33: 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