Grasim Industries Ltd. · NSE:GRASIM

Grasim Industries — Q2 FY2016 Earnings Presentation

32 slides from Grasim Industries's earnings presentation, Oct 29, 2015

  1. Slide 1: Quarterly Performance Review Quarter 2: 2015-16

    Quarterly Performance Review Quarter 2 : 2015-16 Mumbai, 29th October, 2015 Grasim Industries Limited A VSF and Cement Major

  2. Slide 2: Contents

    Contents  Highlights 1-4  Financial Performance 5-7  Business Performance 8 -11  Capex Plan 12  Outlook 13 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 before In

  3. Slide 3: Indian Economy

    Indian Economy  Indian economy continues to grow at higher rate relative to other large economies  GDP growth of 7% in Q1FY16  Key macro indicators showing improvement  Industrial Production (IIP) grew at 6.4% YoY in August 2015 and 4.1% YoY in July 2015, highest growth rate in last three years

  4. Slide 4: Highlights – Quarter 2: VSF Business

    Highlights – Quarter 2 VSF Business Increase in global prices during the quarter led by Leading Global Player - Rise in raw material prices Capacity 498K TPA - Stoppage of few plants in China for environmental issues and maintenance Sales Volume Revenue EBITDA 113,756 MT ` 1,437 Cr. ` 211 Cr. (Up by

  5. Slide 5: Highlights – Quarter 2: Chemical Business

    Highlights – Quarter 2 Chemical Business Largest Chlor-Alkali Stable Caustic Soda prices Manufacturer in India Caustic Sales Volume Revenue EBIDTA (Chlor Alkali, Epoxy , Chlorine Derivatives) 118,163 MT ` 523 Cr. ` 93 Cr. (Up by 20%) (Up by 26% YoY) (Up by 18% YoY) Update on merger of ABCIL with Gra

  6. Slide 6: Highlights – Quarter 2: Cement Business

    Highlights – Quarter 2 Cement Business Market leader Demand growth continued to remain muted in India - Industry growth estimate at ~1% in Q2 Cement Sales Volume Revenue EBIDTA 11.4 Mn. Tons ` 6,013 Cr. ` 1,103 Cr. (Up by 5% YoY) (Up by 4% YoY) (Up by 12%) UltraTech’s capacity utilisation at 72% vs.

  7. Slide 7: Financial Performance

    Financial Performance Standalone Amount in ` Cr. Revenue EBITDA Net Profit 15% 3,495 17% 728 10% 3,039 444 15% 621 13% 405 15% 490 338 425 299 1,838 1,600 Q2FY15 Q2FY16 H1FY15 H1FY16 Q2FY15 Q2FY16 H1FY15 H1FY16 Q2FY15 Q2FY16 H1FY15 H1FY16 Consolidated Revenue EBITDA Net Profit 6% 9% 8% 15,986 16,991

  8. Slide 8: Investment in Growth…..Balance Sheet Continues to be Strong

    Investment in Growth….. Substantial Investment made across Businesses – US$ 4 Bn. over last 5 years..... VSF * Caustic * Cement * Gross Fixed Asset KTPA KTPA 55% Rs. Cr Mn. TPA 50% 310% 74.8 # 110% 30% 75% 45577 498 804 69.3 63.2 334 452 48.8 21717 258 FY 10 FY 15 FY 10 FY 15 FY 16 FY 10 FY 15 FY 16

  9. Slide 9: ……Yielding Results

    ……Yielding Results Driving Robust Volume Growth VSF ('000) Caustic ('000) Cement (Mn. Tons) 409 48.2 403 44.0 43.6 44.7 367 314 41.6 336 39.6 266 269 308 305 307 241 230 FY10 FY11 FY12 FY13 FY14 FY15 FY10 FY11 FY12 FY13 FY14 FY15 FY10 FY11 FY12 FY13 FY14 FY15 .....and Revenue Growth ` Bn. VSF Causti

  10. Slide 10: Business Performance

    Business Performance  VSF  Chemical  Cement

  11. Slide 11: Textile Fibres Price Trend

    Textile Fibres Price Trend 140 Rs./ Kg 130 Domestic Fibre Prices 2.3 $/ Kg International Fibre Prices 2.1 120 117 1.9 1.90 110 1.7 100 98 1.5 1.52 90 1.3 80 78 1.1 0.94 70 0.9 60 0.7 Feb-14 Feb-15 Jun-13 Jun-14 Jun-15 Apr-13 Apr-14 Apr-15 Aug-13 Dec-13 Aug-14 Dec-14 Aug-15 Oct-13 Oct-14 Jun-13 Feb-1

  12. Slide 12: VSF : Performance

    VSF : Performance  Sales volume up by 13% with 100% capacity Revenue ( ` Cr.) EBITDA (Rs Cr.) utilisation at Vilayat plant 13% EBITDA Margin  Both Domestic and Export segment record 40% 12% 15% higher volume 1437 211  Business development activities aided by Liva 1271 151 brand leading to volume

  13. Slide 13: Chemical : Performance

    Chemical : Performance Industry Scenario Revenue ( ` Cr.) EBITDA (Rs Cr.)  Caustic prices remained stable in line with 26% international prices EBITDA Margin 17%  Renewal of anti dumping duty 19% 18% 523 Business Performance 416 93  Revenue increased by 26% 79  Caustic volume up by 20% with ramp

  14. Slide 14: Cement : Performance

    Cement : Performance Qtr. Capacity Industry Scenario (Mn. Ton)  Marginal growth in industry off take at ~1% 10%  Cement prices improved QoQ, stagnant on YoY 15.5 16.9 basis Q2FY15 Q2FY16 Business Performance EBITDA (Rs Cr.)  Revenue up by 4% Revenue (` Cr.) EBITDA Margin  Cement volume growth of

  15. Slide 15: Capex

    ri —_ we i Capex

  16. Slide 16: Capex plan

    Capex plan (` Cr.) Capex Cash Outflow Capex (Net of spent FY16 FY17 CWIP onward during as on 01-04-15) H1FY16 Standalone VSF Expansion : Vilayat (120K TPA) – Residual Capex 157 Nagda Revamp 149 Normal Capex : VSF 261 : Chemical & Others 158 Standalone Capex (A) 725 425 300 179 Cement Subsidiary : Ul

  17. Slide 17: Outlook

    Outlook VSF VSF Business Business:  Prices likely to be influenced by  Development in China - Resumption of operations of shut capacities  Competing fibre prices trend  Development in downstream industry  Continued focus on expanding domestic market through product development activities by the

  18. Slide 18: Thank You

    ri —_ we i Thank You

  19. Slide 19: Annexure - Financials

    Grasim Industries Limited Annexure - Financials

  20. Slide 20: 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 21: Consolidated Financial Performance

    Consolidated Financial Performance (` Cr.) Quarter 2 % Half Year % Full Year 2015-16 2014-15 Change 2015-16 2014-15 Change 2014-15 Net Sales & Op. Income 8,392.9 7,943.0 6 16,990.7 15,986.4 6 32,838.4 Other Income 87.0 102.1 (15) 201.0 371.7 (46) 539.0 EBITDA 1,485.1 1,277.5 16 3,016.1 2,765.3 9 5,6

  22. Slide 22: Standalone Financial Performance

    Standalone Financial Performance (` Cr.) Quarter 2 Half Year Full Year % Change % Change 2015-16 2014-15 2015-16 2014-15 2014-15 Net Sales & Op. Income 1,838.1 1,599.8 15 3,495.4 3,039.3 15 6,332.6 Other Income 206.7 211.4 (2) 228.6 266.6 (14) 348.1 EBITDA 490.5 425.4 15 728.0 621.3 17 1,013.0 EBITD

  23. Slide 23: Balance Sheet

    Balance Sheet Standalone Consolidated (` Cr.) 30th Sep'15 31stMar'15 EQUITY & LIABILITIES 30th Sep'15 31stMar'15 11,631 11,183 Net Worth 24,160 23,140 - - Minority Interest 7,990 7,682 1,005 1,115 Borrowings 11,256 11,930 708 615 Deferred Tax Liability (Net) 3,695 3,410 1,375 1,454 Liabilities & Pro

  24. Slide 24: Profitability Trend

    Profitability Trend Standalone Consolidated (` Cr.) FY FY FY Half year FY FY FY Half year 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 3,495 27,909 29,324 32,838 16,991 EBITDA 1,523 1,246 1,013 728 6,543 5,491 5,683 3,016 EBITDA Margin (

  25. Slide 25: Revenue Chart

    Revenue Chart (` Cr.) Half Year % Quarter 2 % Full Year 2015-16 2014-15 Change 2015-16 2014-15 Change 2014-15 2,691 2,365 14 Viscose Staple Fibre 1,437 1,271 13 4,974 1,008 830 21 Chemical 523 416 26 1,701 50 48 Others 25 22 89 (253) (204) Eliminations (Inter Segment) (147) (109) (431) 3,495 3,039 1

  26. Slide 26: EBITDA – Chart

    EBITDA – Chart (` Cr.) Half Year % EBIDTA Quarter 2 % Full Year 2015-16 2014-15 Change 2015-16 2014-15 Change 2014-15 350 232 51 Viscose Staple Fibre 211 151 40 465 186 170 10 Chemical 93 79 17 292 192 220 (13) Others 187 196 (4) 257 728 621 17 Standalone EBITDA 490 425 15 1,013 Subsidiaries 2,386 2

  27. Slide 27: Viscose Staple Fibre : Summary

    Viscose Staple Fibre : Summary Quarter 2 % Half Year % Full Year 2015-16 2014-15 Change 2015-16 2014-15 Change 2014-15 Capacity* TPA 1,24,555 1,08,030 15 2,49,110 2,02,215 23 4,34,205 Production MT 1,21,336 1,00,950 20 2,14,877 1,90,777 13 4,08,332 Sales Volumes MT 1,13,756 1,00,927 13 2,16,493 1,87

  28. Slide 28: Chemical : Summary

    Chemical : Summary Quarter 2 % Half Year % Full Year 2015-16 2014-15 Change 2015-16 2014-15 Change 2014-15 Capacity TPA 1,13,125 1,13,125 - 2,26,250 2,26,250 - 4,52,500 Production MT 1,13,462 1,01,639 12 2,12,925 2,01,802 6 4,11,738 Sales Volumes MT 1,18,163 98,467 20 2,19,637 1,96,145 12 4,09,220 N

  29. Slide 29: Cement : Summary

    Cement : Summary Quarter 2 % Half Year % Full Year 2015-16 2014-15 Change 2015-16 2014-15 Change 2014-15 Grey Cement Capacity Mn. TPA 16.90 15.45 9 33.80 30.85 10 63.15 Production Mn. MT 11.45 10.91 5 24.30 22.95 6 46.71 Cement Sales Volumes $ Mn. MT 11.44 10.92 5 24.31 23.09 5 47.09 Clinker Sales V

  30. Slide 30: 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 452K TPA 51K TPA 3 Mn. TPA, (UAE, Bangladesh, Sri Lanka) Grey Cement Grasim Nagda Birla Jingwei Harihar AV Cell Nagda Bhiwani 162K TP

  31. Slide 31: Plant Locations– Grasim & its subsidiaries

    Plant Locations– Grasim & its subsidiaries Bathinda(G) Jhajjar Bhiwani Panipat Dadri T Kotputli Aligarh Jodhpur P T Malanpur Shambhupura Jawad P Katni Dankuni(G) Sewagram Bharuch Durgapur(G) UltraTech Cement Plants Wanakbori F Jafrabad F C Vilayat UltraTech Grinding Units (G) F C Pipavav Nagda Hirmi

  32. Slide 32: 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

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