DCM Shriram Ltd. Q2 & H1 FY15 - Results Presentation 1 Safe - PowerPoint PPT Presentation

DCM Shriram Ltd. Q2 & H1 FY15 - Results Presentation 1

Safe Harbour Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. DCM Shriram Ltd. will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances. All figures are consolidated unless otherwise mentioned DCM Shriram Ltd. – Q2 & H1 FY15 Results Presentation 2

Table of Content Title Slide No. Q2 FY15 Key Highlights 4 Q2 FY15 Financial Snapshot 5 Q2 FY15 Segment Performance 6 H1 FY15 Financial Snapshot 7 H1 FY15 Segment Performance 8 Q2 FY15 - Performance Overview & Outlook 9-11 Balance Sheet Abstract 12 Management’s Message 13 Agri Input Businesses 15-18 Sugar 19 Hariyali Kisaan Bazaar 20 Chloro-Vinyl Businesses 21-23 Cement 24 Others 25 Fenesta Building Systems 26 About Us & Investor Contacts 27 DCM Shriram Ltd. – Q2 & H1 FY15 Results Presentation 3

Q2 FY15 – Key Highlights 1. Net Revenues at Rs. 1,428.5 crore vis-à-vis Rs. 1,689.9 crore in Q2 FY14 primarily due to lower volumes of Bulk Fertilisers and Sugar 2. PBDIT stood at Rs. 93.2 crore vs. Rs. 80.5 crore, an increase of 15.7% over same period last year, all segments except Sugar witnessing stable performance: a. Sugar continues to be in losses at net level. During the quarter, there is a one time positive impact of Rs. 19.2 crore on account of cane price rebate of Rs. 6/Qtl declared by the State Government for sugar year 2013-14 b. Farm Solutions earnings improved on account of better margins in Bulk Fertilizers c. Better earnings in Fertilizer (Urea), is a result of increased reimbursement of conversion cost d. Chloro-Vinyl business’ earnings affected by lower volumes (due to maintenance shutdown) and lower margins (due to cost push) e. Bioseed India was impacted by lower volumes in Field Crops i.e. Corn & Bajra. International operations stabilizing 2. Finance charges at Rs. 29.8 crore, lower by Rs. 12.5 crore y-o-y 3. PAT increased to Rs. 46.3 crore vs. Rs. 1.4 crore. There is one-time positive impact of Rs. 15.85 crore relating to write back of tax provisions of earlier years 4. Net Debt as on Sept. 30, 2014 declined to Rs. 496 crore from Rs. 683 crore on March 31, 2014 5. Capital Expenditure - The Board of Directors in Oct ‘ 14 approved the expansion of the Chlor Alkali Capacity at Bharuch to 915 TPD from 450 TPD along with a captive power plant of 55 MW at an estimated cost of Rs. 534 crore DCM Shriram Ltd. – Q2 & H1 FY15 Results Presentation 4

Q2 FY15 – Financial Snapshot Revenues EBITDA Depreciation 1,690 1,428 93 81 35 28 Q2 FY14 Q2 FY15 Q2 FY14 Q2 FY15 Q2 FY14 Q2 FY15 Finance Costs PAT PBIT 66 46 46 42 30 1 Q2 FY14 Q2 FY15 Q2 FY14 Q2 FY15 Q2 FY14 Q2 FY15 All figures in Rs. Crore DCM Shriram Ltd. – Q2 & H1 FY15 Results Presentation 5

Q2 FY15 - Segment Performance Rs. crore PBIT Revenues PBIT Margins % Segments Q2 FY14 Q2 FY15 Q2 FY14 Q2 FY15 Q2 FY14 Q2 FY15 % % Agri Input 836.2 682.1 (18.4) 5.4 14.9 177.2 0.6 2.2 - Fertilisers 145.2 175.0 20.5 3.0 5.5 84.2 2.1 3.1 - Shriram Farm Soln. 659.8 438.9 (33.5) 24.4 27.3 11.9 3.7 6.2 - Bioseed 31.2 68.3 118.9 (22.0) (17.8) -- (70.4) (26.1) Sugar 378.4 260.0 (24.7) (31.3) 0.5 -- (6.5) 0.2 Chloro Vinyl incl. Power 286.2 281.7 84.7 (1.6) 71.9 (15.2) 29.6 25.5 Cement 29.4 35.0 18.8 (1.3) (2.0) -- (4.5) (5.6) Hariyali Kisaan Bazaar 93.7 111.1 18.5 1.2 (0.4) -- 1.3 (0.4) Others 75.3 66.0 (12.4) (0.4) (2.8) -- (0.6) (4.2) Total 1,699.1 1,435.8 (15.5) 64.9 82.2 26.5 3.8 5.7 Less: Intersegment 9.3 7.4 (20.6) Revenue Less: Unallocable 19.0 16.7 (12.4) expenditure Total 1,689.9 1,428.5 (15.5) 45.9 65.5 42.7 2.7 4.6 DCM Shriram Ltd. – Q2 & H1 FY15 Results Presentation 6

H1 FY15 – Financial Snapshot Revenues EBITDA Depreciation 3,251 3,133 363 284 69 57 H1 FY14 H1 FY15 H1 FY14 H1 FY15 H1 FY14 H1 FY15 Finance Costs PBIT PAT 306 224 88 215 58 115 H1 FY14 H1 FY15 H1 FY14 H1 FY15 H1 FY14 H1 FY15 All figures in Rs. Crore DCM Shriram Ltd. – Q2 & H1 FY15 Results Presentation 7

H1 FY15 - Segment Performance Rs. crore PBIT Revenues PBIT Margins % Segments H1 FY14 H1 FY15 H1 FY14 H1 FY15 H1 FY14 H1 FY15 % % Agri Input 1,732.5 1,695.2 (2.2) 101.8 142.7 40.2 5.9 8.4 - Fertilisers 288.9 344.6 19.3 9.8 17.0 73.2 3.4 4.9 - Shriram Farm Soln. 1,123.4 887.5 (21.0) 47.9 48.1 0.5 4.3 5.4 - Bioseed 320.2 463.0 44.6 44.1 77.6 76.0 13.8 16.8 Sugar 716.7 540.8 (25.7) (24.5) 8.5 -- (3.6) 1.6 Chloro Vinyl incl. Power 571.1 640.3 166.0 12.1 184.9 11.4 29.1 28.9 Cement 59.1 71.7 21.4 1.2 2.9 132.5 2.1 4.0 Hariyali Kisaan Bazaar 215.5 248.4 15.2 0.9 0.7 (26.6) 0.4 0.3 Others 151.7 130.8 (13.8) (0.8) (4.6) -- (0.5) (3.5) Total 3,446.6 3,327.0 (3.5) 243.5 335.1 37.6 7.1 10.1 Less: Intersegment 195.7 194.1 (0.8) Revenue Less: Unallocable 28.2 29.1 3.1 expenditure Total 3,250.9 3,132.9 (3.6) 215.3 306.0 42.1 6.6 9.8 DCM Shriram Ltd. – Q2 & H1 FY15 Results Presentation 8

Q2 FY15 - Performance Overview & Outlook  Operating performance stable  Better profitability on account of increase in reimbursement towards conversion costs under NPS III w.e.f. April 1 2014. However, the increase does not fully compensate the cost increases since FY03 Fertilisers Outlook  Earnings in H2 will get impacted by: o Planned maintenance shutdown in Q4 FY15 o Subsidy outstanding expected to rise in second half of the year. Increase in domestic gas prices will add to the higher subsidy outstanding  Revenues down primarily due to lower sales of DAP / MOP, in line with the plan to optimise Bulk fertilisers, as required to support sales of ‘Value -added inputs’  Growth in Value-added inputs’ slowed due to weak monsoons  Overall profitability improved on account of better margins in Bulk fertilisers Shriram Farm Outlook Solutions  Focus on expanding the higher margin ‘Value Added inputs’ portfolio and reach, while optimizing the bulk offerings  High subsidy outstanding in Bulk is an area of concern DCM Shriram Ltd. – Q2 & H1 FY15 Results Presentation 9

Q2 FY15 - Performance Overview & Outlook  Higher revenue is because last year in Q2 FY14 there were one time sales returns in Vietnam. This year there have been no abnormal sales returns  Monsoon delays in India led to lower offtake of field crops i.e. Corn and Bajra during H1 FY15  Overall volumes of BT cotton for Kharif 2014 season up 63% Bioseed Outlook  The performance of the business has seasonality, with Kharif being the major season in India  Medium to long term outlook buoyant given continuing focus on research (conventional and biotech) leading to product innovation along with geographical expansion and strong market development efforts  Topline down due to decline in sugar sales volumes  Margins slightly positive compared to negative margins last year - but business making losses at the net level. Sugar prices have softened since September 2014 onwards  Earnings affected by the increase in sales quota for molasses from 20% to 34% for country liquor  There is a one time positive impact of Rs. 19.2 crore in Q2, on account of incentives declared by State Government for the last season Sugar Outlook  Cane availability expected to be lower in the ensuing season  Sugar prices have gone down since September 2014 onwards. Prices have been below the cost of production for the last two years  Uncertainty on timing of start of mills for the season due to delay in finalisation of rational cane policy by the government DCM Shriram Ltd. – Q2 & H1 FY15 Results Presentation 10