MIRA
INFORM REPORT
|
Report Date : |
04.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
GRASIM INDUSTRIES LIMITED (w.e.f. 22.07.1986) |
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Formerly Known
As : |
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Registered
Office : |
Birlagram, Nagda, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
25.08.1947 |
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Com. Reg. No.: |
10-000410 |
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Capital
Investment / Paid-up Capital : |
Rs.917.900 Millions |
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CIN No.: [Company Identification
No.] |
L17124MP1947PLC000410 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BPLG00117F/
BPLG00021A/ BPLG01651G |
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PAN No.: [Permanent Account No.] |
AAACG4464B |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
The subject is continuously engaged in the process of energy conservation through improved operational and maintenance practices. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (74) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 433000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a flagship
company of the Aditya Birla Group. It is a well-established company having
excellent track and ranks among India’s largest private sector companies. The company possesses a strong financial profile marked by
comfortable capital structure and debt coverage indicators along with robust
liquidity position with healthy cash accruals and high financial flexibility. Trade relations are trustworthy. Business is active.
Payment terms are reported as regular and as per commitments. In view of prominent parentage, the subject can be
considered for business dealings at usual trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes tat many things such as apartment sales,
luxury products, etc. were largely bought with dirty money. And it is now
beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period
with an annualized return of 20 % ! Equities came in second with annualized
return of 15.5 % ! However, while these returns may seem mouthwatering, the
fact is that the return from equities adjusted for inflation came down to just
7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities = AAA |
|
Rating Explanation |
Highest degree of safety and carry lowest
credit risk. |
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Date |
14.10.2013 |
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Rating Agency Name |
CARE |
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Rating |
Short Term Bank Facilities = A1+ |
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Rating Explanation |
Strong degree of safety and low credit risk.
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Date |
14.10.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED
Management Non Co-operative (91-22-24210182)
LOCATIONS
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Registered Office : |
Birlagram, Nagda, ujjain – 456331, Madhya Pradesh, India |
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Tel. No.: |
91-7366-246760/ 62/ 64/ 66 / 256556 |
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Fax No.: |
91-7366-244114/ 246024 |
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E-Mail : |
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Website : |
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Corporate Office : |
91, Sakhar Bhavan, 230, Nariman Point, Mumbai – 400021, Maharashtra,
India |
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Tel. No.: |
91-22-22819520 |
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Fax No.: |
91-22-22284629 |
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Administrative Office: |
Staple Fiber Division, Century Bhawan, 3rd Floor, |
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Tel. No.: |
91-22-24210182-86/ 22025012/ 24210182/ 24303169/ 22043451/ 65991600 |
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Fax No.: |
91-22-24220892 |
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Plants : |
FIBRE, PULP
CHEMICAL AND TEXTILES PLANTS Staple Fibre
Division Birlagram, Nagda – 456 331, Madhya Pradesh, India Tel. No. 91-7366-246760-246766 Fax No. 91-7366-244114/246024 Harihar
Polyfibres and Grasilene Division Harihar, District Haveri, Kumarapatnam – 581 123, Karnataka, India Tel. No. 91-8373-232637-39 Fax No. 91-8373-232465/ 232875 91-8192-247555 Birla Cellulosic Birladham, Kharach, Kosamba 394 120, District Bharuch, Gujarat, India Tel. No. 91-2629-270001/5 Fax No. 91-2629-270010/270310 Grasim Cellulsic
Division Plot no.1, GIDC, Vilayat Industrial Estate P. O. Vilayat, Taluka
Vagra, District Bharuch – 392012, Chemical Plants Chemical
Division Birlagram 456 331, Nagda, Madhya Pradesh, India Tel No. : 91-7366 245501 – 03 Fax No. : 91-7366 246767 / 245845 Grasim Chemical
Division Plot No.1, GIDC, Vilayat Industrial Estate P. O. Vilayat, Taluka
Vagra, District Bharuch – 392012, Textile Plant Vikram Woollens GH I to IV, Ghironghi Malanpur–477 117, District Bhind, Madhya
Pradesh, India Tel.: 91-7539-283602 / 283603 Fax: 91-7539-283339 |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Kumar Mangalam Birla |
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Designation : |
Chairman |
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Name : |
Mrs. Rajashree
Birla |
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Designation : |
Director |
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Qualification : |
BA |
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Name : |
Mr. Madhav L.
Apte |
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Designation : |
Director |
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Qualification : |
BA |
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Name : |
Mr. B. V.
Bhargava |
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Designation : |
Director |
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Qualification : |
Commerce Law |
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Name : |
Mr. R. C.
Bhargava |
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Designation : |
Director |
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Qualification : |
Mathematics |
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Name : |
Mr. Cyril Shroff |
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Designation : |
Director |
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Name : |
Dr. Thomas M.
Connelly |
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Designation : |
Director |
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Qualification : |
PHD Chemical
Engineering |
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Name : |
Mr. Shailendra K. Jain |
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Designation : |
Whole Time Director |
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Name : |
Mr. N. Mohan Raj (w.e.f. 21st June, 2012) |
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Designation : |
Director |
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Name : |
Mr. D. D. Rathi |
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Designation : |
Director |
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Name : |
Mr. Mr. Adesh
Gupta |
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Designation : |
Whole Time
Director |
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Name : |
Mr. K K
Maheshwari |
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Designation : |
Managing Director
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KEY EXECUTIVES
|
Name : |
Mr. Ashok Malu |
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Designation : |
Company Secretary |
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Name : |
Mr. Adesh Gupta |
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Designation : |
Manager and Chief Financial Officer |
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Fibre and Pulp
Business |
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Name : |
Mr. K.K. Maheshwari |
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Designation : |
Business Director |
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Name : |
Mr. S.K. Saboo |
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Designation : |
Group Advisor, Chairman’s Office |
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Name : |
Dr. Prakash Maheshwari |
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Designation : |
Chief Operating Officer (India) and Head (Projects) |
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Name : |
Mr. Vijay Kaul |
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Designation : |
Group Executive President (Marketing) and Head-Pulp Operations |
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Name : |
Mr. Vinod Tiwari |
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Designation : |
Chief Operating Officer (Pulp Operations) |
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Name : |
Dr. Aspi Patel |
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Designation : |
Chief Technology Officer |
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Name : |
Mr. Rajeev Gopal |
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Designation : |
Chief Marketing Officer |
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Name : |
Dr. Raju Mistry |
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Designation : |
Chief People Officer |
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Cement Business |
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Name : |
Mr. O.P. Puranmalka |
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Designation : |
Business Head |
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Name : |
Mr. R.K. Shah |
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Designation : |
Group Executive President and CMO (Mfg. and Projects) |
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Name : |
Mr. S.N. Jajoo |
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Designation : |
Chief Marketing Officer |
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Name : |
Mr. K.C. Birla |
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Designation : |
Sr. Executive President (Finance) |
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Chemical Business |
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Name : |
Mr. Lalit Naik |
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Designation : |
Business Head |
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Name : |
Mr. K.C. Jhanwar |
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Designation : |
Group Executive President |
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Name : |
Mr. G.K. Tulsian |
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Designation : |
Executive President |
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Textile Business |
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Name : |
Mr. Thomas Varghese |
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Designation : |
Chief Executive Officer |
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Name : |
Mr. S. Krishnamoorthy |
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Designation : |
President |
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Name : |
Mr. Man Mohan Singh |
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Designation : |
Unit Head (Grasim Bhiwani Textiles Limited) |
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Corporate Finance
Division |
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Name : |
Mr. Pavan K. Jain |
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Designation : |
Executive President |
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Name : |
Mr. Hemant K. Kadel |
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Designation : |
Executive President |
SHAREHOLDING PATTERN
As on: 30.06.2014
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
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|
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|
Individuals / Hindu Undivided Family |
133372 |
0.17 |
|
|
23296096 |
29.66 |
|
|
23429468 |
29.83 |
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|
|
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Total shareholding of Promoter and Promoter Group (A) |
23429468 |
29.83 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
5512260 |
7.02 |
|
|
90689 |
0.12 |
|
|
9104293 |
11.59 |
|
|
20904169 |
26.62 |
|
|
35611411 |
45.34 |
|
|
|
|
|
|
7034004 |
8.96 |
|
|
|
|
|
|
8465800 |
10.78 |
|
|
777004 |
0.99 |
|
|
3217881 |
4.10 |
|
|
2622613 |
3.34 |
|
|
595268 |
0.76 |
|
|
19494689 |
24.82 |
|
Total Public shareholding (B) |
55106100 |
70.17 |
|
Total (A)+(B) |
78535568 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
4802304 |
0.00 |
|
|
8496466 |
0.00 |
|
|
13298770 |
0.00 |
|
Total (A)+(B)+(C) |
91834338 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The subject is continuously engaged in the process of energy conservation through improved operational and maintenance practices. |
PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
1. Viscose Staple Fibre/ Polynosic HWM/Hi Performance/ Speciality Fibre |
Tonnes |
333975 |
305087 |
|
2. Sulphuric Acid (Captive and Intermediate Product) |
Tonnes |
297850 |
253622 |
|
3. Carbon-di-Sulphide (Captive and Intermediate Products) |
Tonnes |
61800 |
54221 |
|
4. Rayon Grade Pulp (At Mavoor and Harihar) |
Tonnes |
70000 |
73360 |
|
5. Rayon Grade Caustic Soda |
Tonnes |
258000 |
242037 |
|
6. Stable Beaching Powder |
Tonnes |
29436 |
25672 |
|
7. Man-Made Fibre Fabrics |
Mtr. (in 000’s) |
8832 Spindles |
2284 |
|
8. Industrial Machinery |
Tonnes |
15950 |
## |
|
9. Poly Aluminium Chloride |
Tonnes |
36000 |
37661 |
|
10. Chloro Sulphonic Acid |
Tonnes |
23400 |
14723 |
Notes:
a) Licensed capacity not indicated due to abolition of industrial licenses under The Industries (Development and Regulation) Act, 1951
b) The Installed Capacities are certified by the Management and accepted by the Auditors as correct, being a technical matter.
c) # Includes third party processing.
d) ## Quantitative data can not be given as production represents fabrication, machining, etc. against individual orders for made to order machines/equipment.
e) @ Pursuant to scheme of demerger of Cement business of the Company, the related installed capacity is transferred to Samruddhi Cement Limited but has been disclosed above.
f) *Related installed capacity is transferred pursuant to scheme of sale of Sponge Iron unit but has been disclosed above.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
·
State Bank of ·
EXIM ·
Hongkong Bank, · IDBI Bank · ICICI Bank Limited ·
Mashreq Bank, ·
Standard Chartered Grindlays Bank, ·
British Bank of Middle East, Dubai |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Statutory Auditors 1 : |
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|
Name : |
G P Kapadia and Company Chartered Accountants |
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Address : |
Mumbai, Maharashtra, India |
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Statutory Auditors 2 : |
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|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
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Branch
Auditors : |
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|
Name: |
Vidyarthi and Sons Chartered Accountants |
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Address: |
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Solicitors: |
· Amarchan and Mangaldas and Suresh A Shroff and Company |
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Subsidiaries : |
·
Sun God Trading and Investments Limited ·
Samruddhi Swastik Trading and Investments Limited
·
Grasim Bhiwani Textiles Limited ·
Aditya Birla Power Ventures Limited (w.e.f. 29th
July, 2011) ·
UltraTech Cement Limited |
|
|
|
|
Sub-Subsidiaries : |
·
UltraTech Cement Lanka Private Limited, Sri Lanka
·
Dakshin Cement Limited ·
Harish Cement Limited ·
UltraTech Cement Middle East Investment Limited,
Dubai, UAE ·
Star Cement Co. LLC, Dubai, UAE ·
Star Cement Co. LLC, RAK, UAE ·
Al Nakhla Crusher LLC, Fujairah, UAE ·
Arabian Cement Industry LLC, Abu Dhabi, UAE ·
Arabian Gulf Cement Co. WLL, Bahrain ·
Emirates Power Company Limited, Bangladesh ·
Emirates Cement Bangladesh Limited, Bangladesh ·
PT UltraTech Mining Indonesia, Indonesia (w.e.f.
12th April, 2011) ·
UltraTech Cement SA (PTY), South Africa (w.e.f.
9th April, 2011) ·
UltraTech Cement Mozambique Limitada, Mozambique
(w.e.f. 22nd February, 2012) ·
PT UltraTech Investments Indonesia, Indonesia
(w.e.f. 26th March, 2012) · PT UltraTech Cement, Indonesia (w.e.f. 16th July, 2012) ·
Gotan Lime Stone Khanij Udyog Private Limited
(w.e.f. 23rd July, 2012) |
|
|
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|
Joint Ventures : |
·
A.V. Cell Inc., Canada ·
A.V. Nackawic Inc., Canada ·
Birla Jingwei Fibres Company Limited, China ·
Birla Lao Pulp and Plantations Company Limited,
Laos ·
Aditya Birla Elyaf Sanayi Ve Ticaret Anonim
Sirketi,Turkey (w.e.f. 30th December, 2011) ·
Bhubaneswari Coal Mining Limited (w.e.f. 21st
September, 2010) · A.V. Terrace Bay Inc., Canada (w.e.f. 12th July, 2012) ·
Aditya Group AB, Sweden (w.e.f. 1st October,
2012) (Note 2.12.5) |
|
|
|
|
Associates : |
·
Aditya Birla Science and Technology Company
Limited ·
Idea Cellular Limited ·
Aditya Group AB, Sweden (w.e.f. 30th
September, 2012) |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital : Not Available
Issued, Subscribed & Paid-up Capital : Rs.918.400
Millions
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
95000000 |
Equity Shares |
Rs.10/- each |
Rs.950.000 Millions |
|
150000 |
15% “A” Series - Redeemable Cumulative
Preference Shares |
Rs.100/- each |
Rs.15.000 Millions |
|
100000 |
8.57% “B” Series
- Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.10.000 Millions |
|
300000 |
9.30% “C” Series
- Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.30.000 Millions |
|
|
TOTAL |
|
Rs.1005.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
91776533 |
Equity Shares |
Rs.10/- each |
Rs.917.800 Millions |
|
|
Share Capital
Suspense 14,879 (14,906) Equity Shares of Rs.10 each to be issued
as fully paid-up pursuant to acquiring of Cement Business of Aditya Birla
Nuvo Limited under the Scheme of Arrangement without payment being received
in cash |
|
Rs.0.100 Millions |
|
|
Total |
|
Rs.917.900 Millions
|
Reconciliation of the
Number of Equity Shares Outstanding (including Share Capital Suspense)
|
Particular |
Number of Shares |
|
Outstanding as at the beginning of the year |
91724648 |
|
Issued during the year under Employee Stock Option Scheme |
66764 |
|
Outstanding as at
the end of the year |
91791412 |
|
Aggregate number of Equity Shares allotted as fully paid-up out of
Share Capital Suspense Account as aforesaid during the period of five years
immediately preceding the reporting date (without payment being received in cash) |
378 |
List of Shareholders
holding more than 5% shares in the Equity Share Capital of the Company:
|
Particular |
Number of Shares |
|
Turquoise Investment and Finance Private Limited |
5908341 |
|
Trapti Trading and Investments Private Limited |
5477863 |
|
Life Insurance Corporation of India |
5375364 |
|
Equity Shares of Rs.10 each represented by Global Depository Receipts (No voting rights) |
12997155 |
Rights, Preferences
and Restrictions attached to Equity Shares:
The Company has only one class of Equity Shares having a par value of Rs.10 per share. Each holder of Equity Shares is entitled to one vote per share. The Company declares dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.
219,170 (219170)
Equity Shares of Face Value of Rs. 10 each are reserved for issue under
Employee Stock Option Scheme, 2006 (ESOS-2006)
Under the ESOS-2006,
the Company has granted 295,474 Options to its eligible employees in four
tranches, the details of which are given hereunder:
|
|
I |
II |
III |
IV |
|
No. of Options Granted |
201,530 |
16,610 |
71,297 |
6,037 |
|
Grant Date |
23rd Aug, |
25th Jan |
30th Aug, |
2nd June |
|
Grant Price (Rs. Per Share) |
1,928 |
2,885 |
1,440 |
1,594 |
|
Revised Grant Price* |
1,523 |
2,279 |
N.A. |
N.A. |
|
Market Price on the Date of Grant (Rs.) |
2,728 |
2,885 |
2,018 |
2,330 |
|
Method of Accounting |
Intrinsic Value |
|||
|
Graded Vesting Plan |
25% every year, commencing one year from the date of grant |
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|
Normal Exercise Period |
5 years from the date of vesting |
|||
* The Grant Price in respect of Tranche I and II was revised in the Financial Year 2010-11 as per the Scheme of Demerger of Cement Business.
Movement of Options
Granted
|
Particular |
Number of Options |
|
Outstanding at the beginning of the year |
219170 |
|
Granted during the year |
-- |
|
Exercised during the year |
66764 |
|
Lapsed during the year |
-- |
|
Outstanding at the end of the year |
152406 |
|
Options: Unvested at the end of the year |
40176 |
|
Exercisable at the end of the year |
112230 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND
LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
918.400 |
917.900 |
917.200 |
|
(b) Reserves & Surplus |
107357.400 |
100300.700 |
90076.700 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
108275.800 |
101218.600 |
90993.900 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
10043.800 |
9809.200 |
5673.400 |
|
(b) Deferred tax liabilities (Net) |
4620.000 |
3439.100 |
2392.400 |
|
(c) Other long term liabilities |
146.600 |
129.100 |
121.200 |
|
(d) long-term provisions |
423.100 |
434.400 |
390.400 |
|
Total Non-current Liabilities (3) |
15233.500 |
13811.800 |
8577.400 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1271.600 |
1908.200 |
630.000 |
|
(b) Trade payables |
4513.900 |
3456.900 |
2950.500 |
|
(c) Other current liabilities |
4819.800 |
5396.500 |
2900.600 |
|
(d) Short-term provisions |
4661.900 |
4725.700 |
4308.300 |
|
Total Current Liabilities (4) |
15267.200 |
15487.300 |
10789.400 |
|
|
|
|
|
|
TOTAL |
138776.500 |
130517.700 |
110360.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
53551.900 |
20702.500 |
15471.100 |
|
(ii) Intangible Assets |
0.000 |
17.100 |
14.200 |
|
(iii) Capital work-in-progress |
0.000 |
24250.900 |
4769.400 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
44201.000 |
45188.100 |
44744.500 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
4786.000 |
4394.500 |
6142.700 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
102538.900 |
94553.100 |
71141.900 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
11835.400 |
17056.200 |
23552.900 |
|
(b) Inventories |
12122.700 |
7893.400 |
6309.100 |
|
(c) Trade receivables |
6137.900 |
5166.300 |
5092.300 |
|
(d) Cash and cash equivalents |
263.000 |
162.700 |
110.200 |
|
(e) Short-term loans and advances |
5514.900 |
5420.100 |
3918.700 |
|
(f) Other current assets |
363.700 |
265.900 |
235.600 |
|
Total Current Assets |
36237.600 |
35964.600 |
39218.800 |
|
|
|
|
|
|
TOTAL |
138776.500 |
130517.700 |
110360.700 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
||
|
|
SALES |
|
|
|
||
|
|
|
Revenue from operations |
56035.000 |
52550.100 |
49735.600 |
|
|
|
|
Other Income |
3847.900 |
4345.700 |
4634.600 |
|
|
|
|
TOTAL (A) |
59882.900 |
56895.800 |
54370.200 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Cost of Materials Consumed |
29826.100 |
26094.100 |
24053.300 |
|
|
|
|
Purchases of Stock-in-Trade |
68.000 |
48.700 |
157.000 |
|
|
|
|
Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade |
40.500 |
(265.600) |
(1321.000) |
|
|
|
|
Employee Benefits Expense |
3788.000 |
3736.700 |
3317.600 |
|
|
|
|
Power and Fuel |
8145.800 |
7143.300 |
6756.800 |
|
|
|
|
Freight and Handling Expenses |
943.200 |
829.900 |
679.900 |
|
|
|
|
Other Expenses |
4610.100 |
4379.900 |
3734.100 |
|
|
|
|
Captive Consumption |
0.000 |
(298.700) |
(225.600) |
|
|
|
|
Exceptional Item |
0.000 |
(2044.300) |
0.000 |
|
|
|
|
TOTAL (B) |
47421.700 |
39624.000 |
37152.100 |
|
|
|
|
|
|
|
||
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
12461.200 |
17271.800 |
17218.100 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES (D) |
415.200 |
390.900 |
358.200 |
||
|
|
|
|
|
|
||
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
12046.000 |
16880.900 |
16859.900 |
||
|
|
|
|
|
|
||
|
Less |
DEPRECIATION/
AMORTISATION (F) |
2196.100 |
1592.100 |
1442.000 |
||
|
|
|
|
|
|
||
|
|
PROFIT BEFORE
TAX (E-F) (G) |
9849.900 |
15288.800 |
15417.900 |
||
|
|
|
|
|
|
||
|
Less |
TAX (H) |
890.000 |
3028.900 |
3647.900 |
||
|
|
|
|
|
|
||
|
|
PROFIT AFTER TAX
(G-H) (I) |
8959.900 |
12259.900 |
11770.000 |
||
|
|
|
|
|
|
||
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
6623.400 |
7037.200 |
||
|
|
|
|
|
|
||
|
Less |
APPROPRIATIONS |
|
|
|
||
|
|
|
Transfer to General Reserve |
|
|
10000.000 |
|
|
|
|
Corporate Dividend Tax |
|
|
120.200 |
|
|
|
|
Proposed Dividend |
|
|
2063.600 |
|
|
|
|
Transfer to Debenture Redemption Reserve |
|
|
0.000 |
|
|
|
BALANCE CARRIED
TO THE B/S |
NA |
NA |
6623.400 |
||
|
|
|
|
|
|
||
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
||
|
|
|
Export Of Goods On FBO Basis |
|
12631.400 |
11187.800 |
|
|
|
|
Technical Know-how and Service Charges |
|
2.400 |
2.100 |
|
|
|
|
Interest and Dividend |
|
146.600 |
195.100 |
|
|
|
|
Sale of Fixed Asset |
|
52.700 |
0.000 |
|
|
|
|
Others |
|
11.700 |
19.300 |
|
|
|
TOTAL EARNINGS |
NA |
12844.800 |
11404.300 |
||
|
|
|
|
|
|
||
|
|
IMPORTS |
|
|
|
||
|
|
|
Raw Materials |
|
11508.300 |
8364.200 |
|
|
|
|
Stores & Spares |
|
180.100 |
162.700 |
|
|
|
|
Capital Goods |
|
6374.900 |
1668.400 |
|
|
|
TOTAL IMPORTS |
NA |
18063.300 |
10195.300 |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
97.58 |
133.62 |
128.33 |
||
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
14.96 |
21.55 |
21.65 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
17.58 |
29.09 |
31.00 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.41 |
25.03 |
25.34 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09 |
0.15 |
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.10 |
0.12 |
0.07 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.37 |
2.32 |
3.63 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Share Capital |
917.200 |
917.900 |
918.400 |
|
Reserves & Surplus |
90076.700 |
100300.700 |
107357.400 |
|
Net
worth |
90993.900 |
101218.600 |
108275.800 |
|
|
|
|
|
|
long-term borrowings |
5673.400 |
9809.200 |
10043.800 |
|
Short term borrowings |
630.000 |
1908.200 |
1271.600 |
|
Total
borrowings |
6303.400 |
11717.400 |
11315.400 |
|
Debt/Equity
ratio |
0.069 |
0.116 |
0.105 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Total Income |
49,735.600 |
52,550.100 |
56,035.000 |
|
|
|
5.659 |
6.632 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Total Income |
49,735.600 |
52,550.100 |
56,035.000 |
|
Profit |
11,770.000 |
12,259.900 |
8,959.900 |
|
|
23.67% |
23.33% |
15.99% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
LITIGATION DETAILS:
|
IN THE HIGH COURT OF DELHI AT
NEW DELHI |
UNSECURED LOAN
(Rs. In Millions)
|
Particulars |
As
on 31.03.2013 |
||||||||||
|
Long-Term
Borrowings |
|
||||||||||
|
Deferred Sales Tax Loans |
583.300 |
||||||||||
|
|
|
||||||||||
|
Short-Term
Borrowings |
|
||||||||||
|
Working Capital Borrowings |
543.900 |
||||||||||
|
Foreign Currency Loans |
250.000 |
||||||||||
|
Documentary Demand Bills/Usance Bills under Letter of Credit Discounted |
112.400 |
||||||||||
|
Total |
1489.600 |
||||||||||
|
Nature of Security
and Repayment Terms
|
|||||||||||
PRESS RELEASE
GRASIM INDUSTRIES
ALLOTS EQUITY SHARES
Grasim Industries announced that the Stakeholders'
Relationship Committee of the Board of Directors of the Company has approved allotment
of 5,844 Equity Shares of Rs 10 each of the Company upon exercise of stock
options under the Company's Employee Stock Option Scheme, 2006.
These shares shall rank pari passu with the
existing equity shares of Company in all respects and shall be subject to the
provisions of Memorandum and Articles of Association of the Company.
Consequent to the above allotment, the equity
share capital of the Company stands increased to 9,18,34,338 equity shares of
Rs 10 each aggregating to Rs 91.83 crore.
GRASIM NET PROFIT
DOWN 20% ON LOWER REALISATION
MUMBAI, AUG 2:
Grasim Industries, part of the Aditya
Birla Group, reported a 20 per cent fall in net profit at Rs 487 crore in the
first quarter of this fiscal against Rs 610 crore registered in the same period
last year
Net sales were up 16 per cent at Rs
7,976 crore (Rs 6,893 crore).
Consolidated profit margins were hit
due to pricing pressure in both the viscose staple fibre and cement business
given the current over-capacity in these sectors, said the company.
Finance cost has gone up 33 per cent to
Rs 126 crore, while depreciation increased four per cent to Rs 358 crore. The
interest and depreciation cost went up with the commissioning of the various
projects, said the company. Tax charges were also higher due to lower exempt
income and recent changes in tax laws.
On a standalone basis the company’s net
profit was down 53 per cent at Rs 106 crore, while net sales were up 24 per
cent at Rs 1,424 crore.
VSF sales were up 11 per cent at 86,389
tonnes, while production grew two per cent to 89,827 tonnes. Revenue from the
VSF business was up 12 per cent at Rs 1,094 crore as realisations globally
remained subdued owing to overcapacity in China. Profit before interest and tax
was down 64 per cent at Rs 54 crore as margins dipped to seven per cent from 19
per cent in the same period last year.
The company has commissioned 77,000
tonnes of capacity at the greenfield VSF project at Vilayat in Gujarat. Work on
the remaining two lines of 44,000 tonnes per annum to manufacture specialty
fibre is in full swing. The remaining lines may go on trial in two months. Post
this expansion, Grasim's total VSF capacity will be 498,000 tonnes per annum.
The chemical business volume grew 33
per cent, led by the production ramp-up at the Vilayat plant. The epoxy plant
commissioned last year achieved break-even during this quarter. It will be
fully ramped up in the next two quarters, it said.
The contribution of UltraTech Cement to
the consolidated profit was down six per cent at Rs 378 crore (Rs 402 crore),
while that of Idea Cellular increased 55 per cent to Rs 37 crore.
The company’s consolidated debt was at
Rs 12,093 crore and net debt stood at Rs 6,167 crore.
GRASIM REPORTS
FINANCIAL RESULTS FOR Q4 FY 2013-14
02 May 2014
|
Rs. in crore |
|
|
Consolidated net revenue |
8,419 (up by 10 per cent) |
|
PAT |
679 (up by 11 per cent) |
Projects commissioned during the year:
·
Caustic soda (183K TPA) and Epoxy - a
chlorine derivative (52K TPA) at Vilayat
·
Clinker (3.3 Mn. TPA) at Malkhed
·
Cement (3.1 Mn. TPA) at Malkhed and
Jharsuguda
Project under commissioning:
·
Viscose staple fibre (120K TPA) at
Vilayat - Trial runs commenced
Consolidated financial performance
Grasim Industries Limited, an Aditya Birla Group
company, announced its results for the quarter and year ended 31 March 2014.
During the 4th quarter, revenue grew by 10 per cent at Rs.8,419
crore (Rs.7,674 crore). Net profit after minority interest (before exceptional
item) is up by 11 per cent to Rs.679 crore (Rs.613 crore) and sequentially up
by 105 per cent from Rs.332 crore. There was an exceptional gain of Rs.204
crore on the sale of Grasim's stake in Alexandria Carbon Black and Thai Carbon
Black in quarter 4 last year.
Despite the prevailing economic slowdown during the year, volumes
have been augmented in all the businesses viz. VSF, Chemical and Cement, driven
by the commissioning of new capacities. While revenue increased by 5 per cent
at Rs.29,324 crore (Rs.27,909 crore), net profit for the year was Rs.2,072
crore as against Rs.2,500 crore (before exceptional item) in the last year. An
overcapacity in the VSF business globally and Cement Business in India has
impacted the realisations and profitability.
Dividend
The Board of Directors of Grasim has recommended the dividend of Rs.21 per
share. The total outflow on account of the dividend would be Rs.200 crore
(including corporate tax on dividend).
Viscose Staple Fibre
VSF volume continued its upward trend. For the
quarter, volumes crossed 99k tonnes, recording a growth of 4 per cent Y-o-Y.
Market development activities in the domestic markets led to an improvement in
the demand, supported by higher production at Harihar.
Demand supply imbalance and liquidity crunch in China impacted VSF
prices in global markets. The company was able to maintain its realisations,
supported by the rupee depreciation. However, the rupee depreciation has led to
pulp costs moving up. This has created pressure on margins.
Chemical Business
The Chemical Business reported a growth of 30 per cent in sales
volumes during the quarter led by an additional volume from the Vilayat plant.
PBIDT was up by 9 per cent at Rs.55 crore as against Rs.51 crore during the
corresponding quarter led by higher volumes and ECU realisation. The full
benefit of the Caustic and Epoxy plants at Chlor-Alkali complex, Vilayat
commissioned earlier will accrue in FY2014-15.
Greenfield project at Vilayat, Gujarat
Trial runs for the greenfield VSF project at
Vilayat commenced for line I in April 2014 and will be followed by line 2 very
shortly. These two lines have a capacity of 77K TPA out of total capacity of
120K TPA to be commissioned. Remaining 2 lines focusing on specialty fibre are
expected to be commissioned in the 2nd quarter of current year.
Cement subsidiary (UltraTech Cement)
The cement and clinker sales for the quarter at
13 mn. tonnes increased by 9 per cent, outperforming the sector. The quarter
witnessed pressure on input and logistic costs, given the hike in railway
freight and diesel prices. Net revenue for the quarter stood at Rs.6,316 crore
(Rs.5,821 crore). Net profit was up by 15 per cent at Rs.865 crore compared to
Rs.753 crore last year. On sequential basis, net profit has increased by 119
per cent from Rs.395 crore in previous quarter.
Cement capex
With the commissioning of the grinding capacity
(1.45 Mn. TPA) at Malkhed, Karnataka during the quarter, cement capacity rose
to 57 Mn. TPA.
Requisite approvals including sanction of respective High Courts and
Competition Commission of India have been obtained for the acquisition of the
Gujarat Cement unit of Jaypee Cement Corp. (4.8 Mn. MT). The scheme is now
subject to the approval of SEBI. The transaction is expected to be completed by
1st quarter of FY2014-15.
On commissioning of the brownfield projects currently under
implementation and the acquisition, total cement capacity of the company will
increase from 57 Mn. TPA to 70 Mn. TPA and clinker from 46.1 Mn. TPA to 51.8
Mn. TPA
Outlook
In the VSF sector, margins are likely to remain under pressure in the near term
due to overcapacity in China. The slowdown of new capacity additions in China
should lead to improvement in industry utilisation. With additional capacity
coming on stream, the company is well equipped to further consolidate its
leadership position in the industry.
In cement, the demand growth for the industry should gradually
recover to 8 per cent on improvement in the economic environment.
Grasim reports financial results for Q1 FY 2013-14
|
|
Rs. In Millions |
|
Consolidated net revenue |
69400.000 |
|
PBIDT |
15490.000 |
|
PAT |
6100.000 |
|
Projects commissioned recently |
|
|
Caustic Soda – Vilayat |
18K TPA (May) |
|
Cement Business – Clinker Plant Rawan |
3.3 Mn. TPA (March) |
|
Cement Business – Clinker Plant Malkhed |
3.3 Mn. TPA (July) |
VISCOSE STAPLE FIBRE
The production of VSF improved by 2% over the preceding quarter with
completion of the expansion at Harihar plant. The Kharach unit operated at
lower capacity for 45 days as Govt. canal supplying water was under repair.
However, the new reservoir at Nagda, and better planning at Harihar, ensured
that there is no production loss.
Sales volume was 77,518 MT and Net Revenue stood at Rs.980 crore.
The VSF prices remained under pressure due to overcapacity in China. The
impact of the decline in prices was partly neutralized by depreciation of the
Indian rupee. On the cost front, the price of caustic and sulphur has
eased. However, lower realisations resulted in a decline in profits.
The pulp JVs have reported higher sales volumes. Pulp prices have
improved sequentially.
CEMENT SUBSIDIARY
(ULTRA TECH CEMENT)
The combined cement and clinker sales volume was 10.88 Mn. Tons. Net
Revenue stood at Rs.5,294 crore. The quarter witnessed an increasing trend in
logisitics and raw material cost, linked to increase in railway freight and
diesel prices. The benefit of softening in prices of imported coal was partly
offset by the depreciation of the rupee.
CHEMICAL BUSINESS
The Chemical business put in a satisfactory performance. With the
commissioning of the Caustic Soda plant at Vilayat (Gujarat) in May 2013, sales
volume increased by 9% to 72,028 MT. Volumes will further improve with the
gradual ramp up of capacity. ECU realizations saw a correction from the peak
level witnessed during FY 2013.
VSF AND CHEMICAL
CAPEX
The green field projects of VSF (120,000 TPA) and Epoxy (51,000 TPA) at
Vilayat are expected to go on stream in the 3rd quarter in a phased manner.
CEMENT CAPEX
The clinkerisation plant at Malkhed (Karnataka) of 3.30 Mn. TPA was
commissioned during July 2013 in addition to that of Rawan (Chattisgarh) of
3.30 Mn. TPA in March 2013. With this, the total clinker capacity stands
increased to 45.10 Mn. TPA. This will contribute to the volumes in a phased
manner.
Work on the 2.90 Mn. TPA brown field expansion at Shambhupura
(Rajasthan), has commenced.
After the commissioning of all the projects (including cement grinding units) currently
under implementation, Ultra Tech’s cement capacity will stand augmented to
64.45 Mn. TPA.
OUTLOOK
Given the prevailing global economic conditions, coupled with the surplus
capacity in China, the VSF industry continues to face a challenging environment
in the immediate term. In Cement, the demand is expected to grow by 6% in FY
2014 due to the slowdown in GDP growth rate. It has the potential to recover to
over 8% with the improvement in the economic environment.
Capacity expansions in VSF and Cement will provide additional volumes,
driving growth and further consolidate the Company’s leadership. This will
enable the Company to move forward rapidly, with the recovery in the market.
The Company will continue to focus on cost reduction measures, improving
asset productivity to maintain its position as the lowest cost producer and
expanding specialty products portfolio for sustained shareholder value
creation.
Grasim reports better
performance for financial year 2012-13
(Rs. In Millions)
|
Consolidated net revenue |
279040.000 |
|
PBIDT |
65430.000 |
|
PAT |
27040.000 |
|
Projects
commissioned |
|
|
VSF – Harihar Phase II |
18K TPA |
|
Caustic – Vilayat |
182K TPA |
|
Cement – Rawan Clinkerisation |
3.3 Mn. TPA |
|
Hotgi Grinding Unit |
1.55 Mn. TPA |
VISCOSE STAPLE FIBRE
(VSF)
Sluggishness in the global economy continued to impact the textile industry.
Fibre prices remained volatile due to the surplus VSF capacity in China and
high cotton inventory. Despite the difficult market conditions, sales volumes
for the quarter at 95,161 tonens were maintained. Volumes during the year,
however, grew by 9 per cent. Global VSF prices declined by 10 per cent on YoY
basis. Though pulp cost eased with decline in imported pulp prices, higher caustic
prices led to pressure on margins. The Chemical business, however, benefited
from the increase in caustic prices.
The performance of the company’s pulp JVs was adversely affected due to fall in realizations.
CEMENT SUBSIDIARY
(ULTRATECH CEMENT)
The combined cement and clinker sales for the quarter was 12.05 Mn. tonnes. Net
revenue stood at Rs. 58190.000 millions (Rs.56500.000 millions), up by 3 per
cent. Profit after Tax was Rs. 7530.000 millions (after providing for the
additional deferred tax liability of Rs.870.000 millions) as compared to Rs.
8720.000 millions in Q4 FY 2011-12.
The quarter witnessed continuing pressure on input and logistics costs, given the increase in railway freight and hike in diesel prices though there was some relief on account of the softening in prices of imported coal.
CHEMICAL BUSINESS
The Chemical business continued to perform well. ECU realizations remained
firm. Some improvement in chlorine prices was visible during the quarter. Both operating
profit and margins, improved.
VSF AND CHEMICAL
CAPEX
The brown field VSF expansion at Harihar (Karnataka), has been completed with
the commissioning of Phase II (18,250 TPA) in May 2013.
The green field project of VSF (120,000 TPA) at Vilayat (Gujarat) is nearing completion and is expected to go on stream in the 2nd quarter. Chemical plant (182,500 TPA) started commercial production in May 2013. There will be a gradual ramp up in capacity in the first half of FY 2013-14.
Work on epoxy project (Vilayat) is progressing, and is likely to be commissioned in September 2013.
A major revamp of the VSF plant at Nagda has started. This will be undertaken in phases, spread over the next two years.
CEMENT CAPEX
UltraTech is implementing projects across many of its locations. Of these, the
following projects have been commissioned during the quarter:
|
Clinkerisation plant at Rawan, Chhattisgarh |
3.30 Mn. TPA |
|
Grinding unit at Hotgi, Maharashtra |
1.55 Mn. TPA |
|
Increase in cement grinding capacity at Gujarat plant |
0.60 Mn. TPA |
|
Bulk terminal at Cochin, Kerala |
|
|
Wall care putty plant at Katni, Madhya Pradesh |
|
With the commissioning of these projects, the clinker capacity has increased to 41.80 Mn. TPA and that of cement to 53.90 Mn. TPA. The clinkerisation plant of 3.30 Mn. TPA in Karnataka is expected to go on stream in Q1 FY 2013-14.
UltraTech plans to expand its capacity at Aditya Cement Works in Rajasthan by 2.90 Mn. TPA including the setting up of two grinding units. The expansion envisages a capital outlay of Rs.20000.000 millions. The additional capacity is expected to be commissioned by March 2015.
With the commissioning of the existing projects under implementation and Aditya
expansion, UltraTech’s cement capacity will stand augmented to 64.45 Mn. TPA.
OUTLOOK
Given the prevailing global economic conditions, coupled with the surplus capacity
in China, the VSF industry is expected to remain under pressure in the short
term. In Cement, the demand is expected to grow by an average 8 per cent in the
long term with housing, infrastructure and allied spending being the key value
drivers. Industry capacity utilisation is likely to improve to 80 per cent in
FY 2016 as the pace of capacity addition will slow down. Cost pressures are
easing off with the decline in global commodity prices, particularly
energy.
Capacity expansions in VSF and capacities under implementation / unutilised in cement will provide additional volumes, driving growth and further consolidation of the company’s leadership. The company will utilise these capacities at the earliest in the present difficult situation. The company will continue to focus on cost reduction measures, improving asset productivity to maintain its position as the lowest costs producer and expanding specialty products portfolio for sustained shareholder value creation.
Cement stocks rally on price hike, Citi prefers Grasim
Jun 05, 2014,
Moneycontrol Bureau Shares of cement stocks
are rallying on price hikes ranging from 3-30 percent across most regions.
According to Citi, monsoon, loss burden in South-based companies and production
discipline may have been the reasons for the price hike. Stocks like Andhra
Cement , India Cements , Heidelberg Cements and
Dalmia Bharat are gaining most in the sector. Here is how pricing looks
like in different regions. After a correction in May, there was a price hike of
Rs10/bag to Rs 300 in north India while Andhra Pradesh and Chennai saw an
increase of Rs60/bag (to Rs 265) and around 14 percent (to Rs 330/bag)
respectively. In the eastern part of India, prices are stable at Rs 340-350/bag
over the last few months. Prices in Mumbai are largely unchanged (Rs 300/bag)
since February but fall is expected during the monsoon. However, Citi adds that
at the moment these are announcements and dealers are adopting a wait and watch
stance to see if the hikes go through while discounts continue to prevail.
“General indications point to a likely correction during the monsoon,” it said.
According to the brokerage, cement stocks have rallied on hope but the market
is now pricing in a very optimistic scenario even if demand recovers in line
with the average. Citi maintains sell rating on UltraTech Cement but
prefers Grasim on relative valuations.
|
Company Name |
Last |
% Chg |
|
Price |
||
|
ACC |
1431.05 |
0.57 |
|
Ambuja
Cements |
229.45 |
-0.07 |
|
Andhra Cement |
10.87 |
4.82 |
|
Dalmia Bharat |
406 |
2.36 |
|
Heidelberg
Cem |
66.65 |
4.3 |
|
India Cements |
115.35 |
5.2 |
|
J. K. Cement |
365.05 |
2.44 |
|
UltraTechCement |
2570 |
-0.12 |
GRASIM INDUSTRIES RESTARTS OPERATIONS AT CHEMICAL PLANT AT VILAYAT,
GUJARAT
Dec 26, 2013
With reference to the earlier announcement
dated October 07, 2013 regarding operations of the Company's Chemical Plant
were suspended due to unexpected floods affecting the plant/ power supply,
Grasim Industries Ltd has now informed BSE that the operations of the Chemical
Plant at Vilayat in Gujarat have resumed now. The Company have also commenced
operations of the downstream Epoxy Plant at Vilayat.The full capacity at both
the Plants will be achieved in a phased manner
GRASIM INDUSTRIES
ALLOTS EQUITY SHARES
Capital Market April 30, 2014
Under ESOS
Grasim Industries announced that the
Stakeholders' Relationship Committee of the Board of Directors of the Company
has approved allotment of 623 equity shares of Rs 10/- each of the Company upon
exercise of stock options under the Company's Employee Stock Option Scheme,
2006.
GRASIM INDUSTRIES
SOARS 10% AMID RALLY IN CEMENT STOCKS
Cement
stocks rallied on Monday on hopes that the new government's focus on
infrastructure will translate into higher demand and lead to an absorption of
the current overcapacity in the industry.
Four
of top five Nifty gainers were cement stocks on Monday. As of 10.50 a.m. Grasim
Industries led the index with 9.1 per cent gains followed by Ambuja Cements,
ACC and Ultra Tech Cement, all of which traded over 5 per cent higher.
Neeraj
Dewan, director at Quantum Securities told NDTV that cement is a play on
economic and infrastructure recovery. Companies with capacity will gain
advantage and there might be some more price hike going ahead. "There
might be short term corrections, but investors should get decent gains over
next 2-3 years," he added.
South
India-based cement companies hiked cement prices by 3-30 per cent last week.
Cement
demand, which grew at a compounded annual growth rate (CAGR) of 6 per cent over
the last four years until fiscal 2014, has likely bottomed out, analysts say.
Asia
Pacific focused brokerage CLSA maintained a buy on Grasim Industries with
target price at Rs. 4,900 per share. The
brokerage expects pick-up in cement business and says the stock is trading at excessive
discount despite an improvement in outlook. Grasim is a conviction buy for
CLSA.
Meanwhile,
the Sensex and Nifty hit another record high today. The Sensex scaled the
25,600 mark, while the Nifty traded near the 7,650 levels.
GRASIM'S VALUATION GAP
WITH ULTRATECH GIVES IT ROOM FOR APPRECIATION
The attractive gap in
valuations of holding company Grasim Industries and its subsidiary,
Ultra-Tech Cement, has caught the eye of investors. This resulted in a gain of
more than 11 per cent in Grasim's share price on Monday, the highest single-day
percentage gain over the past five years.
While UltraTech is valued at $195 per
tonne, the implied valuation of Grasim stands at $110 per
tonne, a discount of about 43 per cent for the value it has derived from
UltraTech's cement assets.
Analysts believe that
the expectation of improvement in cement utilisation from the current 70 per
cent in the next 2-3 years will trigger another leg of rerating of cement stocks. This could
possibly narrow down the valuation gap between Grasim and its 60 per cent-owned
subsidiary UltraTech.
Goldman Sachs,
in a report on cement industry on May 25, said, "We believe the current structure
of Grasimwas created in June 2010 and was not there in the previous upcycle
(FY04-08). Hence, the holding co history of the last four years is not
reflective of the holding company discount that would prevail in an
upcycle."
BE SELECTIVE IN CEMENT
SPACE
CLSA UPGRADES GRASIM
INDUSTRIES' TARGET PRICE TO RS 4,900; HOPES OF RISE IN SECTOR DEMAND, PRICES
Cement Stocks gained up to 12 per cent on
Monday, led by hopes of a revival in demand amid firm prices. Aiding sentiment
was a report by international brokerage CLSA that had raised the target of Grasim Industries to Rs 4,900 and termed it a conviction buy.
“Grasim’s cement (69 per cent of FY14
earnings before interest, tax, depreciation and amortisation, or Ebitda) should
benefit from a pick–up in the sector utilisation rates driven by receding
capacity surpluses, with an expected demand pick-up. This should drive strong
earnings growth for its subsidiary UltraTech Cement,”
CLSA’s Vivek Maheshwari and Bhavesh Pravin Shah said.
“Margin pressure, with higher capex across
key businesses pulled down Grasim’s return on equity to 10 per cent in FY14.
The improvement in margins, with higher asset turns, should expand return
ratios to 14 per cent over three years. With peak capex behind, we expect
Grasim to generate rising free cash flow over FY16-17.” The upmove in cement
stocks has been triggered by a price rise reported from south-based companies,
which analysts say, can be sustained in case demand improves. Sunil Jain,
vice-president – equity research at Nirmal Bang,
says: “Capacity addition in the south will be lower compared to the others in
two to three years. So if the demand picks up, excess capacity in the south
will get absorbed, which will give some pricing power to players. Prices can
sustain at these levels and move up.”
Demand dynamics
Analysts expect the weakness in sector growth
to continue for six months. Kamlesh Bagmar at Prabhudas Lilladher says the
growth bottomed out in FY14, with the demand growth being the lowest since
FY02, below the gross domestic product growth.
“In demand, the worst is behind us, with
the easing of the sand-mining ban, clarity over the political uncertainty in
Andhra Pradesh, the second-largest consumer state, and pent-up demand likely to
drive growth. We expect gradual recovery in demand in FY15, with 7.2 per cent
compound annual growth over FY15E-17E,” says Ritesh Shah at Espirito Santo
Secutities.
Investing strategy
Analysts say one needs to be selective
while making a fresh commitment since most stocks have seen a healthy upside. A
look at Bloomberg data show many stocks are near or above their one-year target
prices. Shah of Espirito Santo Securities retains ‘buy’ on UltraTech and
‘neutral’ on Ambuja Cements.
“We have downgraded ACC to ‘neutral’ and Shree Cement to ‘sell’ on expensive
valuations. We revise downward our fair value (FV) for ACC due to continued
weakness in south. We expect UltraTech to grow on a par with the sector and it
remains our preferred pick in the large-cap space.” For Ambuja Cements, Piyush
Jain at Morningstar India pegs its FV at
Rs 262 a share. Sunil Jain prefers UltraTech, India Cements and Dalmia Bharat
in this space.
GRASIM INDUSTRIES: CEMENT SECTOR
Grasim ventured into cement production in the mid-1980s, setting
up its first cement plant at Jawad in Madhya Pradesh and since then has grown to
become a leading cement company in India. In July 2004, Grasim acquired a
majority stake and management control in UltraTech. One of the largest of its
kind in the cement sector, this acquisition catapulted the Aditya Birla Group
as one of the top cement manufacturers in India.
As a part of the restructuring process, the cement business has
been consolidated with its subsidiary UltraTech Cement Limited. In the first
phase, Grasim's cement business was demerged into Samruddhi Cement Limited, a
subsidiary of Grasim. In the second phase, Samruddhi Cement Limited has been
amalgamated with UltraTech Cement Limited w.e.f. 1 July 2010. The merger has
created the largest cement company in India and has provided a platform for
pursuing aggressive growth going forward. With a total capacity of 52 million
tpa, UltraTech Cement is a leading player in the cement industry in India.
Grasim's subsidiary UltraTech Cement has 11 integrated plants, 15
grinding units, five bulk terminals and 101 ready mix concrete (RMC) plants –
spanning India, UAE, Bahrain, Bangladesh and Sri Lanka. All the plants are
located close to sizeable limestone mines and are fully automated to ensure
consistent quality. All units use state-of-the-art equipment and technology and
are certified with ISO 9001 for quality systems and ISO 14001 for environment
management systems.
UltraTech is a leading RMC manufacturer in India. UltraTech is
also the largest producer of white cement in India, with a capacity of 560,000
tpa. Branded as Birla White, the white cement division manufactures world-class
white cement in a variety of textures and finishes.
UltraTech is a voluntary member of the Cement Sustainability
Initiative (CSI), which is the apex for the cement industry globally to
establish common measures, share best practices and exchange data relating to
environmental impact.
CONTINGENT
LIABILITIES NOT PROVIDED FOR IN RESPECT OF:
(Rs. In Millions)
|
Particular |
31.03.2013 |
|
Claims/Disputed
Liabilities not acknowledged as debt: |
|
|
Custom Duty |
20.700 |
|
Sales Tax/Purchase Tax/VAT |
0.100 |
|
Excise Duty/Cenvat Credit/Service Tax |
19.800 |
|
Water Cess |
239.600 |
|
Various claims in respect of disputed liabilities of discontinued business in earlier year |
700.000 |
|
Others |
253.700 |
|
Out of the above
matter disputes pending with Revenue and other Government authorities
challenged/appealed by the Company are: |
|
|
(a) Water charges for water not made available as per agreement |
239.600 |
|
(b) Penalty for not utilising the land within the time limit prescribed as per the sanction document, utilisation of which is delayed due to non-fulfilment of condition by Gujarat Industrial Development Corporation |
62.100 |
|
(c) Claims arising from disputes of vendors/contractors |
72.500 |
|
(d) Service Tax on Goods Transport Agency on full amount of service instead on 25% of value of services Cash outflows for the above are determinable only on receipt of judgements pending at various forums/authorities |
-- |
|
|
|
|
Custom Duty (Net of Cenvat Credit) which may arise if obligation for exports is not fulfilled against import of raw materials and machinery |
458.400 |
|
|
|
|
Letter of Undertaking-cum-Indemnity, Corporate Guarantees given to Bank/ Financial Institutions for finance provided to subsidiary and joint venture |
-- |
|
- Amount Outstanding against above |
-- |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10326687 |
07/01/2012 |
9,000,000,000.00 |
STATE BANK OF INDIA |
Corporate Account Group Branch, Neville House, JN Heredia Marg, Mumbai, Maharashtra - 400001, INDIA |
B29015542 |
|
2 |
10108132 |
18/05/2010 * |
3,000,000,000.00 |
IDBI Bank Limited |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA |
A86805397 |
|
3 |
80024425 |
15/12/2005 |
1,386,000,000.00 |
Industrial Development Bank of India Ltd. |
IDBI Tower, WTC Complex, Cuffe Parade, Mumbai, Maharashtra - 400005, INDIA |
- |
|
4 |
80024325 |
18/05/2010 * |
8,300,000,000.00 |
State Bank of India |
Corporate Accounts Group, Voltas House, 23, JN Heredia Marg, Mumbai, Maharashtra - 400001, INDIA |
A87144812 |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 60.85 |
|
|
1 |
Rs. 102.69 |
|
Euro |
1 |
Rs. 81.46 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
74 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.