Grasim Industries Ltd

About

Grasim Industries Limited is the flagship company of the Aditya Birla group, it ranks amongst India's largest private sector companies. On standalone basis, GIL’s core businesses comprise of viscose Staple fibre (VSF), caustic soda, speciality chemicals, rayon-grade wood pulp (RGWP) with plants at multiple locations. It also has certain other businesses such as fertiliser, textile, etc. [1]

Key Points

Cement Vertical (Ultratech) (54% of revenues) [1]
It is the holding company of Ultratech Cement Ltd [2] which is the flagship company of A.B. Group. It is the largest manufacturer of grey cement, Ready Mix Concrete (RMC) and white cement in India. The company has a consolidated capacity of 116.75 Million Tonnes Per Annum (MTPA) of grey cement. It has 23 integrated plants, 1 clinkerisation plant, 26 grinding units and 7 bulk terminals. Its operations span across India, UAE, Bahrain and Sri Lanka. [3]

See full details
  • Market Cap 107,264 Cr.
  • Current Price 1,630
  • High / Low 1,658 / 714
  • Stock P/E 18.2
  • Book Value 995
  • Dividend Yield 0.31 %
  • ROCE 11.2 %
  • ROE 7.14 %
  • Face Value 2.00

Pros

  • Debtor days have improved from 28.42 to 22.65 days.

Cons

  • Company has a low return on equity of 6.78% for last 3 years.

Peer comparison

Sector: Textiles Industry: Textiles - Manmade

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
16,882 19,471 22,431 20,103 18,400 18,617 19,350 13,044 17,944 21,000 24,399 19,919
13,548 15,500 17,515 14,709 14,283 14,780 15,315 9,811 13,528 15,925 18,501 14,596
Operating Profit 3,334 3,971 4,916 5,394 4,117 3,837 4,035 3,232 4,416 5,075 5,898 5,323
OPM % 20% 20% 22% 27% 22% 21% 21% 25% 25% 24% 24% 27%
Other Income -2,060 284 98 173 665 272 -942 213 318 433 169 442
Interest 1,391 1,610 1,671 1,760 1,764 1,670 1,711 1,543 1,455 1,371 1,343 1,266
Depreciation 806 916 953 1,009 993 994 1,027 976 1,007 1,007 1,043 991
Profit before tax -922 1,729 2,391 2,798 2,025 1,446 354 926 2,272 3,130 3,681 3,508
Tax % -41% 35% 34% 34% 27% 28% -552% 33% 30% 31% 29% 30%
Net Profit -1,446 937 1,144 1,237 1,002 680 1,511 234 967 1,389 1,715 1,667
EPS in Rs -21.99 14.25 17.39 18.82 15.23 10.34 22.97 3.56 14.69 21.11 26.07 25.34

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
19,768 21,550 25,245 27,909 28,331 31,734 34,487 36,068 55,894 77,200 68,252 69,963 83,262
14,316 16,555 19,666 21,986 23,416 26,590 28,576 28,682 44,281 60,719 57,880 57,769 62,550
Operating Profit 5,452 4,995 5,579 5,924 4,915 5,144 5,911 7,387 11,612 16,481 10,373 12,194 20,712
OPM % 28% 23% 22% 21% 17% 16% 17% 20% 21% 21% 15% 17% 25%
Other Income 1,207 399 742 824 576 530 1,320 1,076 410 -1,686 7,076 7,571 1,362
Interest 335 407 314 324 447 667 718 702 3,663 6,060 6,890 5,723 5,435
Depreciation 995 1,138 1,154 1,252 1,457 1,563 1,834 1,808 2,724 3,571 4,004 4,033 4,048
Profit before tax 5,329 3,849 4,852 5,171 3,586 3,443 4,679 5,952 5,635 5,163 6,554 10,009 12,591
Tax % 29% 25% 27% 28% 20% 30% 26% 29% 35% 47% -1% 30%
Net Profit 3,096 2,279 2,647 2,704 2,072 1,744 2,468 3,167 2,679 1,693 4,412 4,305 5,738
EPS in Rs 67.51 49.71 57.74 58.92 45.13 37.95 52.91 67.85 40.75 25.75 67.07 65.42 87.21
Dividend Payout % 9% 8% 8% 8% 9% 9% 9% 8% 15% 27% 6% 14%
Compounded Sales Growth
10 Years:13%
5 Years:15%
3 Years:8%
TTM:20%
Compounded Profit Growth
10 Years:7%
5 Years:14%
3 Years:16%
TTM:71%
Stock Price CAGR
10 Years:16%
5 Years:16%
3 Years:17%
1 Year:130%
Return on Equity
10 Years:8%
5 Years:7%
3 Years:7%
Last Year:7%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
128 129 134 92 92 92 93 93 188 201 143 143
Reserves 12,383 14,444 16,935 19,522 21,478 22,989 27,336 31,291 57,227 57,885 56,498 65,359
Borrowings 5,599 6,783 7,038 9,550 9,681 11,930 12,505 9,213 67,014 84,418 84,766 77,703
9,700 10,703 12,466 14,959 16,485 19,022 19,642 22,150 83,526 98,692 102,786 123,657
Total Liabilities 27,774 32,021 36,531 44,123 47,736 54,033 59,576 62,747 207,899 241,127 244,181 266,851
15,786 16,851 17,549 20,561 25,209 31,828 34,271 34,786 69,257 87,129 87,736 85,023
CWIP 773 866 2,461 6,084 4,045 2,755 1,788 1,297 2,290 2,766 3,904 5,769
Investments 6,676 7,933 7,876 8,011 7,611 7,255 10,601 14,200 65,995 62,747 66,337 88,017
4,538 6,372 8,645 9,467 10,872 12,194 12,916 12,464 70,356 88,484 86,204 88,043
Total Assets 27,774 32,021 36,531 44,123 47,736 54,033 59,576 62,747 207,899 241,127 244,181 266,851

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
4,829 3,546 4,350 4,242 3,549 4,594 5,868 7,288 -4,140 -1,659 16,620 14,701
-3,615 -3,204 -3,629 -5,687 -2,336 -2,359 -4,515 -3,509 1,546 -2,212 -11,364 -7,134
-1,204 -295 -679 1,348 -1,046 -2,278 -1,365 -3,799 3,449 4,158 -3,418 -8,014
Net Cash Flow 10 48 42 -97 168 -42 -11 -20 856 287 1,838 -446

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 16 24 25 28 32 30 32 30 34 32 31 23
Inventory Days 213 222 205 221 209 207 168 163 170 154 179 179
Days Payable 174 178 176 169 160 102 97 117 146 129 159 220
Cash Conversion Cycle 55 68 54 80 82 136 103 76 58 57 51 -19
Working Capital Days 8 20 17 19 28 20 18 6 75 72 48 10
ROCE % 30% 21% 21% 18% 12% 11% 13% 16% 12% 10% 10% 11%

Shareholding Pattern

Numbers in percentages

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
40.09 40.16 40.15 40.15 40.15 40.11 40.26 40.26 40.92 41.42 41.83 42.09
23.51 21.16 20.00 18.26 16.97 15.98 13.52 12.66 12.55 12.96 14.44 15.10
16.69 17.78 18.67 21.08 22.13 22.64 22.86 21.37 20.26 18.42 16.81 15.99
19.71 20.70 20.97 20.30 20.54 21.06 23.15 25.50 26.07 26.99 26.72 26.62
0.00 0.20 0.20 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.20 0.20

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