14 Nov 2017
India’s new growth story
Consolidated financial performance
Q2 FY18: Net revenue up 63 per cent; EBITDA up 34 per cent
Grasim has announced its results for the quarter ended 30 September 2017, post-merger of erstwhile Aditya Birla Nuvo Limited (ABNL) w.e.f. 1 July 2017. Consolidated revenue for Q2FY18 grew 63 per cent at Rs.13,646 crore and EBITDA was up by 34 per cent at Rs.2,805 crore compared to Rs.2,098 crore in Q2 last year. The previous year financial results, does not include the erstwhile ABNL numbers, hence not comparable.
During the quarter, VSF prices remained firm globally driven by tighter supply ex-China on account of output curtailment due to environmental factors.
The domestic VSF market saw restocking of the inventory leading to increase in sales volume by 5 per cent YoY. EBITDA for the quarter was at Rs.468 crore on the back of higher realisation and improved operational efficiencies. Results for the quarter also include revenue of Rs.200 crore and EBITDA of Rs.61 crore of VFY business, now part of Grasim post ABNL merger.
The domestic caustic soda prices witnessed an uptrend driven by healthy demand and supply constraints in the global market arising from environmental considerations in China and weather related disruption in US.
Production from Veraval plant (erstwhile ABNL) contributed to 7 per cent YoY growth in caustic soda sales volume during the quarter. The ECU realisation was up by 19 per cent on YoY basis in line with global price trend. However chlorine prices continued to stay weak. The management remains focussed on increasing the volume of chlorine based value added products. EBITDA for the quarter registered an increase of 34 per cent YoY to Rs.285 crore.
The brownfield expansion of 144K TPA at Vilayat, Gujarat is on schedule and expected to be commissioned by Q4FY18.
Cement subsidiary - UltraTech
UltraTech reported an increase in net sales (consolidated) by 20 per cent (YoY) to Rs.6,936 crore. EBITDA increased by 13 per cent to Rs.1,550 crore.
Post-acquisition of the 21.2 mtpa from Jaypee Cement, our cement capacity stands augmented to 93 mtpa. This acquisition will enhance the company’s footprint into high growth markets of India.
Financial Services subsidiary – Aditya Birla Capital Limited (ABCL)
ABCL (formerly known as Aditya Birla Financial Services Ltd) was listed on the stock exchanges on 1 September 2017 as the culmination of the composite scheme of arrangement under which Aditya Birla Nuvo Limited (ABNL) merged with Grasim Industries Limited (Grasim), and the financial services undertaking was subsequently demerged into ABCL.
ABCL has launched a single brand “Aditya Birla Capital” encompassing all the financial services entities of the Aditya Birla Group.
ABCL reported a robust financial performance for Q2FY18 with consolidated revenue of Rs.2,677 crore, EBT of Rs.373 crore and PAT of Rs.217 crore as per IND AS.
Long term issuer rating for Aditya Birla Finance Ltd and Aditya Birla Housing Finance Ltd has been upgraded to ‘IND AAA’ from ‘IND AA+’ reflecting, strength of the parent.
The NBFC lending book (Incl. housing) was at Rs.44,675 crore.
Total assets under management (AUM) at Rs.244,609 crore.
Asset Management business achieved highest ever domestic market share of 10.7 per cent and highest ever equity market share of 9.0 per cent.
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.
The demand for caustic soda in India is expected to grow with rising consumption from the alumina and textile sectors. However, the increase in supply on account of new capacities in the pipeline may create a temporary imbalance in the demand supply situation. Chlorine continues to remain in the oversupply mode.
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 this growth in demand.
In Financial Services, ABCL is well positioned to provide universal financial solutions to meet customer’s money need for life.
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,