Grasim Industries Ltd — Investor Presentation 2021

Feb 12, 2021

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[th] February 2021

The National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai 400051 Symbol: GRASIM

BSE Limited Dalal Street, Phiroze Jeejeebhoy Towers, Fort, Mumbai - 400 001 Scrip Code: 500300

Dear Sirs,

Sub: Presentation on Unaudited Financial Results of the Company for the quarter ended 31[st] December 2020

This is further to our letter of date on the captioned subject.

We are attaching a copy of the Presentation on the Unaudited Financial Results of the Company for the quarter ended 31[st] December 2020, which will be presented to the investors and also posted on our websites , www.grasim.com and www.adityabirla.com .

Thank you.

Yours faithfully, For Grasim Industries Limited

HUTOKSHI Digitally signed by HUTOKSHI ROHINTON WADIA ROHINTON WADIA Date: 2021.02.12 14:14:33 +05'30'

Hutokshi Wadia President & Company Secretary

Encl. : as above

Cc: Luxembourg Stock Exchange

Market & Surveillance Dept.,

P.O. Box 165, L-2011 Luxembourg, Grand Duchy of Luxembourg, EUROPE

Citi Bank N.A. Citi Bank N.A. Depositary Receipt Services Custodial Services 388 Greenwich Street, 6[th] Floor FIFC, 11[th] Floor, C-54 & 55, G Block New York, NY 10013 Bandra Kurla Complex Bandra (East), Mumbai 400 098

Grasim Industries Limited

Aditya Birla Centre, ‘A’ wing, 2[nd ] Floor, S.K. Ahire Marg, Worli, Mumbai 400 030, India T: +91 22 6652 5000 / 2499 5000 | F: +91 22 6652 5114 / 2499 5114 E: grasim.secretarial@adityabirla.com | W: www.grasim.com | CIN: L17124MP1947PLC000410

Regd. Office : Birlagram, Nagda – 456 331 (M.P.)

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EARNINGS PRESENTATION Q3 FY21

BIG IN YOUR LIFE

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In Viscose [@] In Chlor - Alkali
#1 #1
57.28% 54.21%
Market Cap
(Feb 05, 2021):
INR 78,040 Crore
(USD 10.72 Billion)
Market Cap Market Cap
(Feb 05, 2021): (Feb 05, 2021):
INR 1.83 Lakh Crore INR 21,771 Crore
(USD 25.19 Billion) (USD 2.99 Billion)
Cement Producer Asset Management
#1 in India Top 5 Companies
Global Producer Private Diversified
#3 (Ex- China) Top 5 NBFC
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@ Presence In India in Viscose Staple Fiber, Modal, 3[rd] generation viscose and Viscose Filament Yarn

*India Leadership (Caustic soda and Epoxy Resins and Chlorine derivative namely Chloro Paraffin wax, Poly Aluminium Chloride and Phosphoric Acid); Global Leadership (Chlorine derivatives namely Stable Bleaching Powder and Aluminum Chloride)

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Table of Content

Key Quarterly Updates

Financial Overview

Business Performance ESG Appendix

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KEY QUARTERLY UPDATES

Grasim Industries Limited | Earnings Presentation | Q3 FY21

4

Business Performance

Financial Overview

Quarterly Updates

Appendix

ESG

QUARTERLY HIGHLIGHTS

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Operational and Financial Performance

Buoyant quarterly performance with 24% QoQ and 52% YoY growth in consolidated EBITDA

Capacity Utilisation for all key businesses touched Pre COVID-19 levels. Q3FY21- VSF: 100% , Caustic Soda: 89%

Solid operational performance (EBITDA growth of 115% Q-o-Q and 122% Y-o-Y) by VSF business driven by cost management and volume growth supported by bounce back in demand

Step Towards Strategic Transformation

Sale of Fertiliser Business on track:

• CCI approval on 28[th] Jan 2021 Stock Exchange Approval/NOC on 5[th] Feb 2021

Grasim forays into decorative paints business, with initial capex amount of Rs. 5,000 Cr. over 3 years

Sustainability Initiatives gather momentum

Grasim: - Released its first Integrated Report highlighting performance based on Six Capitals Grasim - Ranks 11th in the S&P DJSI sectoral indices in 2020 (Up 6 ranks) from previous year

• Won the “Golden Peacock Global Award for Sustainability” 2020

VSF

• Sustainability Case Study published by the world’s renowned Ivy Publisher and is now available

• Business on HBS website

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Business Performance

Financial Overview

Quarterly Updates

Appendix

ESG

FORAY INTO PAINTS BUSINESS

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• Rationale Strategy

• • • Entry into Consumer-Focused Strong Number Two Player in business adds scale, growth and decorative paints segment reduces portfolio volatility • Potentially leverage Birla White

• • High ROCE business distribution presence and significant brand equity

• • Strong Balance-sheet support •

• with current capex program Initial capex of ~Rs.5,000 Cr. nearing completion over next three year

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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FINANCIAL OVERVIEW

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Business Performance

Quarterly Updates

Financial Overview

Appendix

ESG

STRONG FINANCIAL PERFORMANCE DRIVEN BY MULTIPLE DRIVERS

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Standalone Revenue (Rs. Cr.) Standalone EBITDA (Rs. Cr.)
1,940 3,438 4,269 -46 680 766
25%
14%
3,672
709
621
2,949
1,335
72 59 57
(118)
605 489 597
Q1FY21 Q2FY21 Q3FY21 Q1FY21 Q2FY21 Q3FY21
Grasim Standalone excl. Fertiliser Grasim Standalone excl. Fertiliser
Fertiliser (Discontinued Operation) Fertiliser (Discontinued Operation)
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Reported revenue/EBITDA + Revenue/EBITDA from discontinued Fertiliser business (rounded off to nearest decimal).

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Business Performance

Quarterly Updates

Financial Overview

Appendix

ESG

FINANCIAL OVERVIEW: QUARTERLY

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Consolidated

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Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT(Rs. Cr.)
13% 17% 52% 24% 103% 43%
YoY QoQ YoY QoQ YoY QoQ
20,986 4,476
18,617 17,944 1,384
3,603
2,945 967
680
Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21
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Standalone

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Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT(Rs. Cr.)
25% 53% 79% 95% 166%
QoQ YoY QoQ YoY QoQ
709
3,858 3,672 621 360 359
2,949 465
135
396 185
225
225
Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21
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Represents dividend income *QoQ change calculated on PAT excl. Dividend income

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Business Performance

Quarterly Updates

Financial Overview

Appendix

ESG

STRONG BALANCE SHEET

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Standalone (Rs. Cr.) Consolidated (Rs. Cr.)
Net Debt/ EBITDA Net Debt/ EBITDA
1.25x 0.92x
(Last 12M EBITDA) (Last 12M EBITDA)
Mar-20 28,401 Mar-20
4,574
2,975 20,761
Reduction Reduction
Rs. 882 Cr. Rs. 7,994 Cr.
(30%) (39%)
15,634
2,481
12,767
2,093
Dec-20 Dec-20
Gross Debt Liquid investments Net Debt
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Significant reduction in net debt at Consolidated and Standalone level

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Business Performance

Quarterly Updates

Financial Overview

Appendix

ESG

CAPEX PLAN

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Particulars (Rs. Cr.)	Particulars (Rs. Cr.)	Capex spent 9MFY21 315 131 285 68 799	Balance Approved Capex for FY21
			559 135
			283
			48
			1,025
	During the Q3FY21, the company has spent ~Rs. 519 Cr. on Capex

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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BUSINESS PERFORMANCE

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Business Performance

Quarterly Updates

Financial Overview

Appendix

ESG

VSF DEMAND IMPROVING WITH RECOVERY IN TEXTILE SECTOR

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Strong consumer demand in Tier-2/3 towns and rural segment, coupled with festivals and wedding season created a positive impetus

Lower VSF & Yarn prices compared to cotton and better profitability for the value chain resulted in shift in looms from cotton to VSF in major textile hubs of India

In China, VSF inventory at plants declined significantly from 45 days (Apr-20) to 10 days (Jan-21). China Yarn inventory with spinners also declined from 39 days (Apr-20) to 11 days (Jan-21)

Impact of shifting sourcing away from China has started showing with more orders coming into Bangladesh, Turkey, Indonesia, Pakistan and India

Consumer demand in key consuming markets of EU, UK, USA re-emerged with receding COVID effect, resulting in destocking of pipeline and initiation of fresh orders

Strong consumer demand coupled with huge gap vis-à-vis cotton pricing in China resulted into higher VSF prices, China VSF prices rose from ~10,900 RMB in Dec-20 to ~13,800 RMB towards end Jan-21 (27% increase)

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Business Performance

Quarterly Updates

Financial Overview

Appendix

ESG

FINANCIAL PERFORMANCE - VISCOSE

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Price YoY QoQ Dec Exit Price
Global Prices Trend ($/Kg)
Movement (%) (%) ( D over Q3FY21)
2.40
1.90 Grey VSF - 1.41 $/Kg
7% 20%
CCF
1.40 ( 5% )
0.90 1.77 $/Kg
Cotton 4% 11%
0.40
( 4% )
0.78 $/Kg
PSF -13% 10%
Grey VSF - CCF Cotton (Cotlook) PSF ( 2% )
Source: CCF and other industry sources
Pulp Price ($/ton) China VSF Plant Inventory (in Days)
1000
23
900 57%
800 14 14
12
700 10
600
500
Sep-20 Oct-20 Nov-20 Dec-20 Jan-21
Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20
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Inventory has dropped to historic low levels despite improving operating rates reflecting significantly improved market sentiments for Viscose

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Business Performance

Quarterly Updates

Financial Overview

Appendix

ESG

FINANCIAL PERFORMANCE - VISCOSE

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Revenue [1] (Rs. Cr.) EBITDA [1] (Rs. Cr.)
28% 89% 150%
2,194 QoQ 2,145 YoY QoQ
482
1,679
256
193
Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21
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Sequential growth in Viscose revenues driven by improved realisations, better product mix and improvement in capacity utilisation of VFY

VSF plants operated at 100% utilisation level through the quarter

Substantial improvement in VFY capacity utilisation from 39% in Q2FY21 to 89% in Dec-20, with pickup in demand from India and overseas market, despite rising Chinese VFY imports

Rise in the EBITDA was supported by fixed cost control initiatives and input cost benefit. VSF business brought down the fixed cost by ~29% over corresponding quarter last year

1Including VFY

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Business Performance

Quarterly Updates

Financial Overview

Appendix

ESG

FINANCIAL PERFORMANCE - VISCOSE

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VSF Sales (KT)
3% 8%
YoY QoQ 142
138
131
Q3FY20 Q2FY21 Q3FY21
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VFY Sales (KT)
100%
10 10
QoQ
5
Q3FY20 Q2FY21 Q3FY21
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Sales Volume Mix
Export Sales Grey VSF
9% 78%
91% 22%
Domestic Sales VAP
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Sequential improvement in the share of VAP mix

The share of domestic sales improved significantly sequentially

VSF demand and prices are expected to remain firm in the near term, however pulp cost is also on increasing trend

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Business Performance

Quarterly Updates

Financial Overview

Appendix

ESG

FINANCIAL PERFORMANCE - CHEMICALS

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Revenue (Rs. Cr.) EBITDA (Rs. Cr.)
1,362 185 187
1,281
177
1,126
Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21
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Revenue and EBITDA of Chemicals business touched the pre COVID-19 level with pick up in the sales volume and lower input costs

Continued weakness in ECU realisation impacted the Chlor-alkali EBITDA

Input cost pressure in the caustic soda business eased sequentially led by lower power and salt rates

Advanced Material (Epoxy) witnessed a strong demand from Auto and Consumer durable on back of festive season demand leading to uptick in realisation and sales volume

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Business Performance

Quarterly Updates

Financial Overview

Appendix

ESG

FINANCIAL PERFORMANCE - CHEMICALS

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Caustic Realisation Grasim – ECU
45,000
40,000 37,036
37,856
35,000
40,453
38,342
30,000 37,216
30,348
25,000
26,637
20,000 24,171
27,805
25,649
15,000
22,760
Caustic Realisation - Grasim (Rs./MT)
Caustic Realisation - IHS SEA (Rs./MT) ECU Realisation (Rs./Ton)
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Chlorine demand remained steady during the quarter while the realisations weakened marginally in Q3 with excess domestic capacity and high operating rates

Caustic soda prices (CFR) in Asia, however, recovered from lows of $239/MT to $270/MT level towards the end of quarter on back of lower operating rates from unplanned outages

Chlorine value added products witnessed some pressure in the realisation and demand weakness in health and hygiene segment. The demand from other segments were stable

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Business Performance

Quarterly Updates

Financial Overview

Appendix

ESG

CAUSTIC – KEY OPERATIONAL METRICS

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Caustic Soda Sales (KT) Chlorine & HCl Consumption in VAP (Tons)
9% 3%
261
QoQ 258 73,420 QoQ
66,239
64,278
236
Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21
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Domestic demand from textile, alumina and paper segment resulted in an improvement in caustic soda sales sequentially. The demand in Northern India impacted by winter and agitation.

Chlorine consumption in VAPs stood at 27% in Q3FY21 marginally better than Q2FY21

EBITDA from Chlorine derivatives improved 45% YoY basis driven by better realisations

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Business Performance

Quarterly Updates

Financial Overview

Appendix

ESG

FINANCIAL PERFORMANCE – OTHER BUSINESSES

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Textile
Revenue (Rs. Cr.)
49%
400
QoQ
263
176
Q3FY20 Q2FY21 Q3FY21
EBITDA (Rs. Cr.)
(1)
(2)
(22)
Q3FY20 Q2FY21 Q3FY21
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Insulators
Revenue (Rs. Cr.)
15% 15%
YoY QoQ 103
90 90
Q3FY20 Q2FY21 Q3FY21
EBITDA (Rs. Cr.)
269% 39%
YoY QoQ 13
9
3
Q3FY20 Q2FY21 Q3FY21
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Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Business Performance

Quarterly Updates

Financial Overview

ESG

FINANCIAL PERFORMANCE – UltraTech

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Appendix
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Sales volume (Million Ton) Revenue (Rs. Cr.) EBITDA (Rs. Cr.)
14% 17% 57%
YoY YoY YoY
24 12,254 3,362
21
10,439
2,147
Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21
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Strong operational performance on back of robust sales volume, cost control and operational efficiencies. India Operations reported operating EBITDA/PMT of Rs. 1,330 in Q3FY21 up 30% YoY

Fixed Cost was down 4% YoY, Energy cost was down 3% YoY, Logistics cost was up 5% YoY; Raw Material cost largely remained unchanged on YoY basis

Reduction in Consolidated Net Debt by Rs. 2,696 Cr. in Q3FY21 to Rs. 9,436 Cr. with Net Debt/EBITDA at 0.84x (Dec-20)

Ultratech plans to spend ₹ 5,477 Cr. toward capacity expansion of 12.8 MTPA through a mix of greenfield and brownfield expansion, in addition to 6.7 MTPA capacity addition which is underway, upon completion of both round of expansion the capacity will expand to 136.25 MTPA

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Business Performance

Quarterly Updates

Financial Overview

Appendix

ESG

FINANCIAL PERFORMANCE – ABCL

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Lending Book (Rs. Cr.) Domestic AAUM (Rs. Cr.)
2%
60,123 YoY
57,522 255,458
249,926
Q3FY20 Q3FY21 Q3FY20 Q3FY21
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Revenue and net profit after minority interest for Q3FY21 are up 17.1% and 15.6% to Rs.5,026 Cr. and Rs.289 Cr. respectively

The Net Interest Margin (incl. fee income) for NBFC business is up 18 bps QoQ at 5.24% in Q3FY21; Gross disbursement grew 20% YoY to Rs. 4,282 Cr. in Q3 FY21

Overall Domestic AAUM increased to Rs. 2,55,458 Cr. (Q3FY21) from Rs. 2,49,926 Cr. (Q3FY20). The PBT/ AAUM increased from 27bps (Q2FY21) to 30 bps in Q3FY21

In Life Insurance, Individual First Year Premium (FYP) for 9MFY21 grew 6% YoY to ₹ 1,336 Cr.; reduction in opex to premium ratio to 14% in 9MFY21 from 17.6% in the same period last year

* Includes NBFC and Housing Finance

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Business Performance

Quarterly Updates

Financial Overview

Appendix

ESG

FINANCIAL PERFORMANCE – OTHER SUBSIDIARIES

Aditya Birla Renewables (Solar Power)

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Rs. Cr.
Particulars Q3FY21 Q2FY21 Q3FY20
Revenue 45 34 26
EBITDA 35 25 15
EBIT 24 15 9
Capital Employed
1,725 1,628 1,205
(Incl. CWIP)
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Grasim Premium Fabrics Private Limited

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Rs. Cr.
Particulars Q3FY21 Q2FY21 Q3FY20
Revenue 26 13 44
EBITDA (1) (5) 8
EBIT (6) (9) 5
Capital Employed
162 167 173
(Incl. CWIP)
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Parameters	Dec-20
Total Cumulative installed capacity (MW)	460
No. of Projects	25
- Capacity with Group Companies (MW)	139
- No. of Projects with Group Companies	14

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Business Performance

Quarterly Updates

Financial Overview

Appendix

ESG

FINANCIAL PERFORMANCE – PULP JV’s

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Revenue (Rs. Cr.) EBITDA (Rs. Cr.)
18% 19%
YoY QoQ 40
1,272
1,081 1,072
-3
-32
Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21
Production Volume (Tons) Sales Volume (Tons)
7% 1% 19% 15%
YoY QoQ YoY QoQ
224,985
200,611
197,834
195,187
189,791
186,980
Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21
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Note: The above data represents the financial performance of all Pulp JVs on total basis. The share in the PAT of these JVs (proportionate to its holding) is consolidated in the consolidated financials of Grasim.`

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Business Performance

Quarterly Updates

Financial Overview

Appendix

ESG

CONSOLIDATED INCOME STATEMENT

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	Quarterly	Quarterly	Year to Date	Year to Date
Particulars (Rs. Cr.)	Q3FY21	Q3FY20	9MFY21	9MFY20
Revenue from Operations	20,986	18,617	51,973	55,766
Other Income	330	243	907	695
EBITDA	4,476	2,945	10,624	10,435
EBITDA Margin (%)	21%	16%	20%	18%
Finance Cost	431	530	1,352	1,692
Depreciation	1,007	994	2,990	2,977
Share in Profit of JVs, Associates & Others	65	38	106	535
PBT	3,103	1,459	6,387	6,301
Tax Expense	977	406	1,962	1,885
Exceptional items	-	10	551	120
(Net Profit)/Loss from discontinued operations	(27)	4	(491)	(19)
PAT attributable to Minority Shareholders	768	360	1,781	1,429
PAT(After Exceptional Items)	1,384	680	2,585	2,887

Note: Grasim’s Fertiliser business has been classified as discontinued operation in the quarter ended 31 December, 2020 with the transaction likely to be completed within one year from then. Accordingly, financial results for the Q3FY20 and 9MFY20 have been restated.

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Business Performance

Quarterly Updates

Financial Overview

Appendix

ESG

STANDALONE INCOME STATEMENT

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	Quarterly	Quarterly	Year to Date	Year to Date
Particulars (Rs. Cr.)	Q3FY21	Q3FY20	9MFY21	9MFY20
Revenue from Operations	3,672	3,858	7,955	12,233
Other Income	64	81	444	452
EBITDA	709	465	1,212	2,238
EBITDA Margin (%)	19%	12%	14%	18%
Finance Cost	51	46	180	171
Depreciation	200	198	599	582
PBT	458	221	433	1,485
Tax Expense	126	22	2	290
Exceptional items	-	10	58	300
(Net Profit)/Loss from discontinued operations	(27)	4	(77)	(19)
PAT(After Exceptional Items)	359	185	451	913
PAT(Before Exceptional Items)	359	195	508	1,213

Note: Grasim’s Fertiliser business has been classified as discontinued operation in the quarter ended 31 December, 2020 with the transaction likely to be completed within one year from then. Accordingly, financial results for the Q3FY20 and 9MFY20 have been restated.

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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ESG

Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Quarterly Updates

Financial Overview

Appendix

ESG

GREATER PURPOSE - GREATER FUTURE

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VSF business has set a global benchmark in sustainability

• VSF business received the No.1 ranking in Canopy Hot Button Report 2020 and has been accorded with ‘Dark Green Shirt’

• VSF business won the “Golden Peacock Global Award for Sustainability” 2020

• Viscose business sustainability achievement has been showcased in a case study “Birla Cellulose Spearheading Sustainable Fashion”, published by the world’s renowned Ivy Publisher and is now available on HBS website

• VSF business achieved FEM 3.0 score of 92%, amongst the highest in MMCF industry globally, based on 3rd party verification of all plant sites in Nov-Dec

• Health & Safety: We have embraced world-class processes and practices, and right governance structure of DuPont Safety Management System and created a safety culture with an objective of “Zero Harm”

• VSF business is amongst the lowest water consumption per tonne of Viscose Staple Fibre (VSF) Globally

• VSF business has growing portfolio of Eco-friendly products

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Grasim Industries Limited | Earnings Presentation | Q3 FY21

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Appendix

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R&D: Investment In Future Products VSF

Key Strengths

World-class Infrastructure

1 Corporate R&D 5 for VSF 4 for CFI

Highly Experienced Researchers

Incurred R&D Expenditure ~Rs. 300 Cr.

(over the last three years)

Patent Applications

Filed 90 Patent Applications/ Patents in 16 countries belonging to 52 patent families

(*Includes ABSTC’s patents related to VSF business)

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Product Innovation (VSF)

Liva Reviva: Virgin raw material is replaced with pre-consumer industrial waste, thus upcycling waste that would otherwise be incinerated or sent to landfills

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EcoFlush: Short length fibres for biofriendly nonwovens and other applications. Provide excellent mechanical strength to wipes, as well as rapid and easy dispersal when the wipes are flushed after use.

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Purocel Eco-Dry: A biodegradable and compostable VSF for sustainable hygiene products

Product Innovation (VSF)

Purocel Colorguard are 'dyecatcher’ fibres used for reducing garment staining during laundry by preferentially scavenging the released dyes from other colour bleeding garments

Liva Antimicrobial: Launched this year, Liva Antimicrobial is an innovative fibre that gives the wearer longer lasting protection from microbes even after multiple washes. Not only is it skin friendly and odour free, but it also kills 99% bacteria and viruses

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KEY FOCUS AREA: R&D & SUSTAINABILITY

R&D: Investment In Future Products

Product Innovation (Chemicals)

• Launched Vytal, new products for water treatment providing commercial solutions

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Sustainability: Key Focus Areas

Energy

VSF & Chemicals : Focus is on reducing the energy consumption and increasing the share of renewable sources

Process Innovation

• Raw Material Preservation - continuously drive the reduction in the usage of raw materials in manufacturing process.

• Water and Energy Conservation - Driving various initiatives like equipment upgradation, water recycling, new-technology adoption etc.

• R&D efforts are focused on water treatment solutions, disinfectants as platform, improving saltwater beneficiation from sea water, and developing value-added chlorine offerings.

GHG Emissions

VSF : Focus on reducing carbon footprint

Chemicals : Implemented ZLD (Zero Liquid Discharge) at Rehla and Ganjam plants

Waste

VSF & Chemicals : Fly Ash, used as a raw material in cement plants; reduces the natural resources required and helps to attain resource efficiency

Other R&D Efforts

• Implementing digitalisation programmes

• Focus on quality improvement

• Water treatment solutions

• Improving the Product Properties

• Increasing Shelf-life of the Product

Water and Effluents

VSF : Chemical Oxygen Demand in wastewater has gone down by nearly 35%

Chemicals : Initiatives taken to reduce water consumption

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Financial Overview

Appendix

ESG

KEY FOCUS AREAS: CSR & HUMAN RESOURCES

Caring For Our Community

Education

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23,342 children supported through educational material

Health Care

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82,189 people examined in 1,276 rural medical and awareness camps

Sustainable Livelihood

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14,693 farmers reached knowledge sharing on farm related activities

Infrastructure Development

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48,430 villagers served through 25 Reverse Osmosis plants

Women Empowerment

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Key training provided by SHGs in goat farming, dairy, loom weaving etc

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Empowering Our Employees

Recruitment and Leadership Pipeline

Ratio of 1:1 identified successors for more than 300 leadership roles across the company

Learning and Development

Nurtured our people to realise their full potential by learning and development initiatives

Employee Health and Well-Being

OHSAS 18001 & ISO 45001 & SA 8000 Foundation of our occupational health & safety programmes at our sites

Diversity and Inclusion

Provide equal opportunities at the workplace for women and physically challenged

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APPENDIX

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BALANCE SHEET

Standalone (Rs. Cr.)	Standalone (Rs. Cr.)		Consolidated (Rs. Cr.)	Consolidated (Rs. Cr.)
31st Dec'20	31st Mar'20	EQUITY & LIABILITIES	31st Dec'20	31st Mar'20
41,762	37,674	Net Worth	63,047	56,611
-	-	Non ControllingInterest	36,152	34,305
-	-	Borrowings related to financial services	47,202	54,190
4,574	5,068	Other Borrowings	28,401	28,910
63	66	Lease Liability	1,552	1,562
1,606	1,403	Deferred Tax Liability (Net)	7,987	6,997
-	-	PolicyHolders Liabilities	50,779	41,265
5,003	5,284	Other Liabilities & Provisions	23,121	20,504
53,009	49,494	SOURCES OF FUNDS	258,242	244,344
31st Dec'20	31st Mar'20	ASSETS	31st Dec'20	31st Mar'20
10,586	11,634	Net Fixed Assets	63,193	65,458
3,573	2,966	Capital WIP & Advances	7,017	5,971
251	449	Right of Use - Lease(includingLeasehold Land)	1,866	2,063
-	-	Goodwill on Consolidation	20,014	20,047
-	-	Investments:	-	-
2,636	2,636	UltraTech Cement(Subsidiary)	-	-
17,847	17,847	AB Capital(Subsidiary)	-	-
-	-	AMC(JV)	5,472	5,293
756	747	Investment in other equity accounted investees	1,380	1,240
2,481	2,093	Liquid Investments	15,634	8,149
3,533	1,028	Vodafone Idea	3,533	1,028
4,936	3,324	Other Investments(Hindalco, ABFRL, AB Capital surplus in	6,134	7,538
-	-	Investment of Insurance Business	25,548	20,263
-	-	Assets held to cover linked liabilities	27,759	22,829
-	-	Loans and advances of financingactivities	57,015	58,477
6,408	6,769	Other Assets,Loans & Advances	23,677	25,988
53,009	49,494	APPLICATION OF FUNDS	258,242	244,344
2,093	2,975	Net Debt/ (Surplus)	12,767	20,761

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VISCOSE BUSINESS SUMMARY

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----- Start of picture text -----

Quarterly Year to Date
Particulars % Change % Change
Q3FY21 Q3FY20 9MFY21 9MFY20
Capacity
VSF KTPA 578 566 2 578 566 2
VFY KTPA 48 46 4 48 46 4
Production
VSF KT 144 148 (3) 309 436 (29)
VFY KT 9 10 (10) 15 32 (53)
Sales Volume
VSF KT 142 138 3 316 418 (24)
VFY KT 10 10 0 17 31 (45)
Revenue Rs. Cr. 2,145 2,194 (2) 4,381 7,133 (39)
EBITDA Rs. Cr. 482 256 89 562 1,079 (48)
EBITDA Margin % 22% 12% 13% 15%
EBIT Rs. Cr. 373 146 155 236 757 (69)
Capital Employed (Incl. CWIP) Rs. Cr. 7,980 8,425 (5) 7,980 8,425 (5)
ROAvCE (Excl. CWIP) % 26% 9% 5% 15%
----- End of picture text -----

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CHEMICAL BUSINESS SUMMARY

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----- Start of picture text -----

Quarterly Year to Date
Particulars % Change % Change
Q3FY21 Q3FY20 9MFY21 9MFY20
Capacity KTPA 1,147 1,147 0 1,147 1,147 0
Production KT 259 257 1 629 747 (16)
Sales Volume KT 258 261 (1) 633 740 (14)
Revenue Rs. Cr. 1,281 1,362 (6) 3,108 4,212 (26)
EBITDA Rs. Cr. 177 185 (4) 406 904 (55)
EBITDA Margin % 14% 14% 13% 21%
EBIT Rs. Cr. 107 118 (10) 195 708 (72)
Capital Employed (Incl. CWIP) Rs. Cr. 5,122 5,162 (1) 5,122 5,162 (1)
ROAvCE (Excl. CWIP) % 10% 11% 6% 22%
----- End of picture text -----*

* Volume data is for Caustic Soda only. Revenue and EBITDA are for all products in the chemical segment

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FINANCIAL OVERVIEW: YEAR TO DATE

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Consolidated

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----- Start of picture text -----

Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT(Rs. Cr.)
55,766 10,435 10,624
51,973
2,887
2,585
9MFY20 9MFY21 9MFY20 9MFY21 9MFY20 9MFY21
----- End of picture text -----

Standalone

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----- Start of picture text -----

Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT(Rs. Cr.)
2,238
913
12,233
7,955 1,212
451
9MFY20 9MFY21 9MFY20 9MFY21 9MFY20 9MFY21
----- End of picture text -----

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UNIT WISE CAPACITIES AND EXPANSION PLAN

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	VSF Capacity (KTPA)				Caustic Soda Capacity (KTPA)
	155 155 155 91 95 95 162 162 162 170 170 389 FY20 FY21 FY22+ Vilayat expansion (219 KTPA) 1st Line- Q2FY22 2nd Line- Q3FY22 BC Kharach VSF & Specialty Fibre (VAP) Harihar Nagda 582 801 578			270 270 270 129 129 129 91 91 91 91 91 91 91 91 91 110 110 201 365 365 438 146 FY20 FY21 FY22+ 1,147 1,457 BB’Puram (146 KTPA) Phase 1 - Q1FY22 (73KTPA) Vilayat expansion (73 KTPA) Q4FY21 Rehla expansion (91 KTPA) Q1FY22 Ganjam Karwar Veraval Renukoot Nagda 1,147

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GRASIM GROUP STRUCTURE

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Grasim Industries Limited

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VSF - 578K TPA VFY - 48K TPA Pulp - 74K TPA		Caustic Soda - 1147K TPA Epoxy – 123K TPA		Others		Overseas Pulp & VSF JVs		UTCL (57.28%) Subsidiary**		ABCL (54.21%) Subsidiary**	ABCL (54.21%) Subsidiary**	ABCL (54.21%) Subsidiary**
Nagda		Nagda		Fertilisers		AV Group NB		Grey Cement		NBFC		Broking
155K TPA Kharach 162K TPA Harihar 91K TPA Vilayat 170K TPA Veraval (VFY) 21K TPA Century (VFY) 27K TPA		270K TPA Vilayat 365K TPA Renukoot 129K TPA Rehla 110K TPA Ganjam 91K TPA Karwar 91K TPA Veraval		Aditya Birla Solar Ltd. (100%) Insulators Textiles Aditya Birla Renewables Ltd. (100%) Grasim Premium Fabric^ (100%)*		AV Terrace Bay (40.0%) Domsjo 255K TPA (33.3%) Inc. 320K TPA (45.0%) VSF JV Birla Jingwei 88K TPA (26.6%)		23 Integrated plants & 1 clinkerisation unit 26 Split Grinding Units >100 RMC Plants India Operations 111.4 Mn. TPA Overseas 5.4 Mn. TPA (UAE, Bahrain, Sri Lanka)		(100%) Housing Finance (100%) Life Insurance (51%) AMC (51%) Health Insurance (51%) Wellness (51%)		(75%) Insurance Advisory (50.01%) Private Equity (100%) ARC (100%)
Harihar (Pulp) 74K TPA		Epoxy 123K TPA 91K TPA						White Cement & Putty 1.5 Mn. TPA
		Balabhadh-
		rampuram#

# Under construction Chlor-Alkali plant with capacity of 146 KTPA ^ Soktas India has been renamed to Grasim Premium Fabric Private Limited post acquisition

** Subsidiary companies * Equity ownership

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FORWARD LOOKING AND CAUTIONARY STATEMENT

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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 company’s operations include global and Indian demand supply conditions, finished goods prices, feed stock 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 assume no responsibility to publicly amend, modify or revise any forward looking statement, on the basis of any subsequent development, information or events, or otherwise.

Country and Year of Incorporation: India, 1947

Listing: India (BSE/NSE) , GDR (Luxembourg)

Bloomberg Ticker: GRASIM IB EQUITY , GRASIM IS EQUITY, GRAS LX (GDR)

Business Description: Viscose, Chemicals, Cement and Financial Services

Market Cap (5[th] February 2021) : Rs. 78,040 Crore

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NOTES

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GLOSSARY

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Abbreviation Particulars

AAUM	Average Asset Under Management
ECU	Electro Chemical Unit
Epoxy	Name of Chemical
FY	Financial Year
KTPA	Thousand Tonper annum
MTPA	Million Tonper annum
NBFC	Non BankingFinancial Company
PMT	Per Metric Ton
ROAvCE	Return on Average Capital Employed
TPD	Tonper day
VAP	Value Added Product
VFY	Viscose Filament Yarn
VSF	Viscose Staple Fibre

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Thank you

Grasim Industries Ltd. Aditya Birla Centre 'A' Wing, 2nd Floor ,S.K. Ahire Marg ,Worli Mumbai 400 030 ,India

Investor Relations Team

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Email: pradeep.a@adityabirla.com saket.sah@adityabirla.com