Grasim Industries Limited Q4 FY18 Financial Performance

MUMBAI, May 23, 2018 /PRNewswire/ --

Grasim results for the quarter and year ended 31st March, 2018 have been impressive, with all-round growth both at the Standalone and Consolidated level.

For the full year FY17-18, Standalone revenue at `15,788 Cr. was up by 53% compared to last year. Standalone EBITDA grew by 35% at `3,542 Cr.

At consolidated level, the revenue for FY17-18 rose by 56% to `56,162 Cr. and EBITDA at `10,879 Cr. was up by 31%

The results of the current period are not comparable with that of the previous year, as the previous year's results do not include the results of the erstwhile Aditya Birla Nuvo Limited (ABNL), which was merged with the Company with effect from 1st July, 2017. However, on like to like basis, the performance for the quarter and year ended 31st March, 2018 was impressive. Standalone revenue for the quarter was up by 26% (full year up by 30%) and EBITDA grew by 35% (full year up by 14%).

Dividend 

The Board of Directors of Grasim has recommended a higher dividend of `6.20 per share as against `5.50 per share (adjusted for sub-division of share) in the previous year. The total outflow on account of the dividend would be `455 crore (inclusive of the corporate tax on dividend).

Viscose Business 

The Net Revenue for Q4FY18 at `2,232 Cr. is up by 15% and EBITDA at `401 Cr. by 16%. 

For FY18, the Net Revenue at `8,376 Cr. is higher by 18% and EBITDA by 17% at `1,680 Cr. driven by higher sales volume and improved average realisations with higher domestic sales.

The VSF business reported its highest ever sales volume of 508KT in FY18, led by growth in the domestic market with intense market development efforts. The share of the domestic sales, the overall sales rose to 75% in FY18 from 69% in FY17. The number of LIVA tagged garments has witnessed a 10x increase in the last 3 years to 30.25 million in FY18. More than 3000 stores across the country are making LIVA tagged garments available to the customers.

The capacity debottlenecking at multiple plant locations is progressing well, with 44KTPA of capacity coming on-stream in May-2018. The recently announced brownfield capacity expansion plan at Vilayat is under implementation. Project related work has commenced from April-2018.

Chemical Business 

The caustic soda prices stabilised during the quarter led by capacity restarts in China. The underlying demand from the user industry (Alumina and Textile) continues to remain buoyant.

Net Revenue for the quarter rose by 35% YoY to `1,439 Cr. and EBITDA by 95% YoY to `412 Cr. driven by better realization and higher sales volume.

For FY18 the Net Revenue is extended by 31% to `5,004 Cr. and EBITDA by 31% to `1,300 Cr. The management focus on increasing the volume of chlorine based value added products continues.

The Caustic Soda brownfield expansion of 144 KTPA at Vilayat, Gujarat was commissioned in May-18.

The Board has evaluated plans for brownfield capacity expansion of Caustic Soda along with new Chlorine VAPs at multiple plant locations and has approved in principle an investment of around `1,000 Cr.

Cement Subsidiary - UltraTech

UltraTech reported an increase in Consolidated Sales, higher by 34% (YoY) to `9,298 Cr. and EBITDA augmented by 20% to `1,887 Cr. in Q4FY18.

During Q4FY18 and FY18 the consolidated sales volume registered an increase of 15% and 20% on YoY basis. The input costs continued to rise in Q4FY18, due to higher pet coke and coal prices and the ban on pet coke usage in TPP. 

The consolidated sales and EBITDA for FY18 stood at `30,973 Cr. and `6,729 Cr. vis-a-vis to `25,092 Cr. and `5,861 Cr. in FY17.

Financial Services Subsidiary - Aditya Birla Capital Limited (ABCL) 

ABCL was listed on the stock exchanges on 1st September, 2017 as the culmination of the composite scheme of arrangement. Aditya Birla Nuvo Ltd. merged with the Company and the financial services undertaking was subsequently demerged into ABCL.

ABCL reported a robust financial performance in Q4FY18 with a Consolidated Revenue of `4,203 Cr. and EBT of `398 Cr. as per IGAAP.

The lending book (Incl. housing) grew 32% YoY to `51,378 Cr. in Q4FY18.

The Asset Management business (Ranked No.3 Mutual Fund in India) reported a 27% YoY increase in Average Assets under management to `2,67,739 Cr. The business reported an overall domestic market share of 10.75% and equity market share of 9.2% in Q4FY18.

Life Insurance business saw a 12.4% growth in the Indian Embedded Value to `4,281 Cr. as (31-Mar-2018) from `3,810 Cr. (31-Mar-2017). The Net value of new business (VNB) margin turned positive at 4.3% in FY18 vis-à-vis negative 5.5% in FY17. 

ABCL is touching the lives of 10 million active customers. 

Outlook 

The VSF business will continue to focus on expanding the market in India by partnering with the textile value chain, achieving better customer connect through brand Liva and enriching the product mix through a larger share of specialty fibre. However, the new capacities likely to come on stream in China may impact the global VSF prices in the near term.

The demand for Caustic Soda in India is expected to grow with rising consumption from the Alumina and Textile sectors.

In Cement, Government spending on infrastructure, rural and affordable housing will be the key demand drivers. The Company is well positioned across the country to cater to this growth in demand.

In Financial Services, ABCL is geared to provide Universal Financial Solutions to meet the customers' money needs for life. ABCL's focused customer-centric approach under a single brand "Aditya Birla Capital" will enable it to chart a differentiated, accelerated and disciplined path to growth.

GRASIM INDUSTRIES LIMITED 

Aditya Birla Centre
'A' Wing, 2nd Floor
S. K. Ahire Marg, Worli
Mumbai - 400 030

Registered Office: Birlagram, Nagda - 456 331 (M.P.)

Tel: (+91-7366)-246760-66
Fax : (+91-7366)-244114/246024
CIN: L17124MP1947PLC000410

www.grasim.com & www.adityabirla.com

Twitter: www.twitter.com/adityabirlagrp 
Twitter handle: @AdityaBirlaGrp

Cautionary Statement 

Statements in this "Press Release" describing the Company's objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable securities law and regulations. Actual results could differ materially from those express or implied. Important factors that could make a difference to the Company's operations include global and Indian demand supply conditions, finished goods prices, feedstock availability and prices, cyclical demand and pricing in the Company's principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the Company conducts business and other factors such as litigation and labour negotiations. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statement, on the basis of any subsequent development, information or events, or otherwise.