Grasim Industries LimitedCLSA India Forum 2004, Gurgaon - New Delhi

4 - 6 February 2004

2

Statements in this “Presentation” describing the Company’s objectives, estimates, expectations or predictions 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.

Cautionary Statement

3

! The Aditya Birla Group! Business profile: An overview! Restructuring ! Business overview, strategy and outlook

" Viscose Staple Fibre (VSF)" Chemicals" Cement " Sponge Iron " Textiles

! Financial performance – FY99 todate

Grasim: Presentation structure

4

The Aditya Birla Group

! Amongst largest industrial houses in India

! Operations spanning 40 companies across 17 countries

! Revenues in excess of $4.5 bn and earnings of $400 mn

! Group flagships:

Grasim Industries - Cement, Viscose Staple Fibre and Sponge Iron

Hindalco - Aluminum and Copper

Indian Rayon - Apparel, VFY, Carbon black, IT/ITeS, Insurance

Indo Gulf - Fertilisers

Group Vision : To be a premium conglomerate with a clear focus at each business level

5

! Viscose Staple Fibre" Largest producer in the World, with 14% market share" 3 Fibre plants (220,775 MT), 1 pulp plant (72,000 MT)" JV for Pulp with Tembec Inc., Canada

! Chemicals" Second largest producer of Caustic Soda in India (190,800 MT)

! Cement " 14 Mn TPA existing capacity across 8 locations " 1.14 Mn M3 RMC capacities across 6 plants; 0.65 Mn Ton Bulk Terminal" Growing to 31 Mn. MT with CemCo acquisition

# Largest in India, 7th largest in the World" White Cement (400,000 MT)

# India’s largest and World’s 6th largest! Sponge Iron (900,000 MT)

" 3rd largest and only gas based merchant supplier in India

Grasim: Business profile

6

Essentially a VSF and Cement play

VSF34%

Textiles4%

Cement45%

Sponge Iron11%

Chemical6%

Others7%

Chemical6%

Cement29%

Sponge Iron15%

VSF 42%

Textiles1%

PBDIT Mix (9MFY04) -Rs9.6bnRevenue Mix (9MFY04) - Rs36.9bn Cap. Empl. (9MFY04) -Rs63.2bn

Others43%

Textile2%

Cement32%

Chemical3%

VSF 13%

Sponge Iron7%

Cement business to grow exponentiallyAcquisition of controlling stake in L&T cement business

7

Business and Debt restructuring

! Major business restructuring done in last 4 years" Closure of non-viable Fibre and Pulp plants at Mavoor

" Fabric unit at Gwalior sold

" Software subsidiary hived off

" Trading operations phased out

" Capital unlocked from sale of investments in MRPL & Indo Gulf

" Large scale rightsizing of work force # reduction of 8,000 persons (1/3rd of the workforce)

! Significant Debt restructuring" Bringing down interest cost progressively

# 13.2% in FY99 to 7.6% by 9MFY04

" Consequent reduction in overall CoC

8

16.5%15.0%6.6%ROE

9,2003,0301,450Market Capitalization(end of period)

17.1%16.2%10.1%ROCE

4,1023,6032,616Net Worth

5,8955,4464,572Capital Employed

109

18.1%

678

3,354

FY99

468

26.2%

962

3,671

9MFY04

536

24.6%

1,136

4,609

FY03(Figures in Rs. Crores)

PAT (before EI)

PBIDT Margin

PBIDT

Net Turnover

Grasim : Key financial numbers

49% growth (CAGR) in

PAT in 5 years

ROCE up from 10.1% to 17.1%

ROE up from 6.6% to 16.5%

9

Business Overview

10

Viscose Staple Fibre

VSF : Key business for Grasim

11

VSF : Global industry profile

! VSF – a Cellulosic fibre" 8% of man-made fibre market" 4% of global fibre market

! Global players

! Domestic market growth averaged at 4% in last 2 decades

30575,000China

470,000Acordis

19359,000Lenzing

21390,775AVB Group

CapacityShare (%)

Capacity(Mtpa)

Grasim is World’s largest producer with 14% global market share

12

VSF : Significant competitive advantages

! Amongst lowest cost producers in the World" Integrated operations

# 50% of Pulp and total Caustic Soda requirement met from captive sources

# JV for Pulp manufacturing in Canada

# Captive power and steam

" In-house R&D facilities

! Global brand positioning - “Birla Viscose”

13

368540PBIT

1,2751,643Net Turnover

61.2%64.5%ROCE

812851Capital Employed

32%

407

220,775

9MFY04

36%

588

220,775

FY03(Figures in Rs. Crores)

PBIDT Margin

PBIDT

Capacity (mtpa)

VSF : Strong cash flow

3901

1

4273

0

4712

2

5265

7

5777

6

5886

7

5679

8

5445

9

4927

8

5329

7 6393

8

Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/040

10000

20000

30000

40000

50000

60000

70000 Export Vol. Total Vol.

MT VSF Total Sales volume and Export %

! Stable mix of domestic and deemed export

! Strong operating margins 32% and ROCE at 61%

32%35%

14

VSF : To remain a stable performer Outlook! Improving domestic demand and deemed export volumes

" Lower global cotton crop" Demand from non-woven segment and fashion fabric likely to increase

! Margins expected to be at current levels! Grasim continues to focus on enlarging markets for long term growth

" Enhancement of capacity thru de-bottlenecking " Positioning VSF at the high end of the market" Product and Application developments to remain at the fore

# New product development # Tie-up with end use manufacturers

15

Chemicals : Backward integration for VSF

! 2nd largest producer of Caustic Soda in India" Installed capacity of 190,800 TPA" 100% Captive power" 50% of the Caustic Soda capacity for captive use

! Strong performance" Stable caustic demand from VSF and others " Impressive operating margin " Healthy ROCE

! Outlook" Caustic Soda demand likely to remain at current level" Realisation and margins expected to be stable" Grasim to focus on

# Optimum utilisation of capacities

4237PBIT

215256Net Turnover

28.0%17.3%ROCE 197211Cap. Employed

26%55

9MFY04

21%53

FY03

PBIDT Margin PBIDT

(Rs. Crs.)

16

Cement : Growth business for Grasim

17

Cement : Industry profile

! Top 4 producers own 54% capacity

" Aggregate capacity of 145 Mn. TPA

" 42 producers with 125 plants

" 81% of plants have capacity of 1 Mn. TPA and above

! Sector profile changed in last 5 years

" Entry of multinationals

" Exit of non serious players

" Rising share of blended cement# 29% in FY99 rising to 49% by FY03

145

108111

121

135140

48%

54%

65%

73% 72% 72%74%

48%

36%

45%48%

70%

50

70

90

110

130

150

FY99 FY00 FY01 FY02 FY03 Current30%

40%

50%

60%

70%

80%

90%

100%

Capacity Top 4 Share Top 10 Share

Cement Capacity in IndiaCement Capacity in IndiaMn. MT

18

0

20

40

60

80

100

120

140

160

180

200

1970 1980 1990 2000 Current 2010e

Production Per Capita

Cement : Industry outlook positive

! Demand to nearly double by 2010" GDP forecast to grow 6% annually" Continuing growth in housing

sector " Renewed focus on infrastructure

sector by the Government# Emphasis on Roads, Ports and

urban infrastructure# Private sector participation in

infrastructure projects

! Capacity additions to slow down" Additional 10 Mn Ton supply likely

in next 2 years (de-bottlenecking, blending and brownfield)

" Sales Tax incentives phased out" Stringent financing environment

Source : NCAER Study

Rising Per Capita ConsumptionRising Per Capita Consumption

Per Capita Consumption

India – 102 Kg vs. World Average - 260 Kg

USA 383 - Brazil 250 - China 539

19

Cement : Pricing outlook improving

! Recent price recovery likely to sustain till next monsoon

! Encouraging long term outlook " Demand supply equilibrium likely by CY 2006

# Capacity growth slower despite revival of dormant capacities, de-bottlenecking and higher blended cement production

# North & East could see equilibrium by March 05

# Balance in South and West likely by end of CY 2006

" Industry consolidation process to add strength

20

Revenue Mix

Cement : A growth area for Grasim

46

23

12

109

42

29

89

12

39

37

1077

39

38

868

34

46

766

40

46

95

40

45

114

0%

20%

40%

60%

80%

100%

FY1998 FY1999 FY2000 FY2001 FY2002 FY2003 9MFY2004

VSF Cement Sponge Textiles Others

21

Cement : Significant strategic strengths

! Emerging as the largest producer in India and 7th largest in the World" Growing to 31 Mn. TPA with CemCo acquisition

# 11 composite plants, 7 grinding units, 4 bulk terminals, 6 RMC plants

" Captive power plant at all locations

! Strong national brands" Birla Plus, Birla Super, Birla Ready Mix and Birla White

! Excellent market position" Leading player in key consuming states of Maharashtra, Karnataka, Rajasthan,

Punjab, Western U.P., Tamilnadu and Western M.P." Domestic market share exceeds 10%

# North (12.7%), East(9.2%),West(9.2%) and South(9.6%)

! Largest producer of White Cement in India with capacity of 400,000 TPA (57% market share), 6th largest in the World

22

163221PBIT

1,7002,183Net Turnover

11.0%11.0%ROCE

1,9872,088Capital Employed

16.2%

275

12.92

9MFY04

16.5%

360

12.92

FY03(Figures in Rs. Crores)

PBIDT Margin

PBIDT

Capacity (mtpa)

Cement : Current performance

! Market realignment efforts improved performance in North, East and South

! Increased proportion of Blended cement from 33% to 46% and Increasing share of Captive Thermal Power

! Focus emphasized on RMC

8%

12%

-4%

11%

5%

2%

6%

4%

7%

1%

-5%

0%

5%

10%

15%

North East West South All India

Grasim Industry

9MFY04 - Zone wise growth – Grasim and Industry

23

Cement : Growth strategy going forward

! Cost control" Lowering energy costs - use of alternate fuel, higher share of TPP" Reduction in distribution cost " Enhance capital and manpower productivity

! Improve realization" Regularly realign product / market mix " Focus on value added products (RMCs)

! Retain market position! Leverage CemCo investments

" Integration of operations" Brand transition " Realise synergy gains

24

Sponge Iron

! Largest merchant producer in India" Gas based capacity of 900,000TPA" Over 12% share in domestic market

! Strong competitive advantage" Only plant in the World to have flexibility

for# Producing HBI and DRI from the

same reactor# Use of dual feedstock

" Captive Port for import of raw material! Demand outlook positive

" Global scarp prices likely to stabilize at current levels

" Encouraging trends in the Steel sector! Natural Gas availability likely to improve

from December 2004" Capacity utilisation to improve

significantly! Natural Gas price remains a concern

145

5686

51

104

0

30

60

90

120

150

FY00 FY01 FY02 FY03 9M FY04

PBIDT (Rs. Crs.)

11967PBIT

406406Net Turnover

32.8%12.5%ROCE 468498Capital Employed

36%145

9MFY04

26%104

FY03

PBIDT MarginPBIDT

(Rs. Crs.)

Contributed Rs 442 Cr PBDIT in last 5 yrs

25

Textiles

! 126 looms and 34,500 spindles! Focusing on premium synthetic segment! Two strong brands : Grasim and Graviera ! Key financial numbers

! Textile business going forward" Fabric business consolidated at one location" Improved economies of scale to bring down production costs and enable

business turnaround

(3)(23)PBIT

167220Net Turnover

5%8

9MFY04

(4%)(9)

FY03

PBIDT MarginPBIDT

(Rs. Crs.)

26

Acquisition of controlling interest in L&T Cement Business (CemCo)

Progress Update

27

CemCo transaction structure

! Step 1 : Cement Business of L&T to be de merged into CemCo" L&T (EngCo) to have 20% holding in CemCo balance 80% to existing

shareholders proportionately" Grasim gets 12.6% holding in CemCo; retains 15.7% holding in L&T (EngCo)" Appointed date of de-merger - 1st April 2003

! Step 2 : Escrow Arrangement for 30% Open Offer consideration" Grasim to deposit 10% money in Escrow on filing of the Scheme of

Arrangement " Balance 90% money to be deposited within 90 days of filing of the report of

Chairman of L&T’s shareholders / creditors meeting" Interest earned will be distributed to successful offerees

! Step 3A : Grasim to make an Open Offer for 30% of CemCo

28

CemCo transaction structure (contd.)

! Step 3B : On Grasim crossing 41.5% of CemCo" Grasim buys 8.5% holding in CemCo from L&T – (Outflow Rs. 362 crores)" Grasim sells its 14.95% stake to Employee Welfare Trusts and exits L&T

(EngCo) – (Inflow Rs. 446 crores)

! FIs in-principle approval to the Scheme and participation in the Open Offer! Grasim to get management control of CemCo, on its acquiring over 50% of

CemCo shares

29

Progress on the CemCo transaction

! Signed Restructuring Agreement

! L&T filed the Scheme of Arrangement with Bombay High Court

! Grasim deposited Rs.128 Crs. in Escrow in December 2003

! Court convened meeting of Shareholders and Creditors of L&T on 3rd Feb 2004

! Scheme awaits High Court approval

30

Summary of Investment and Valuation

2,222Net Investment for 51.1% stake (446)Inflow on sale of L&T (Engco) shares to L&T Foundation/Trust1,640Total outflow for 38.5% (8.5% + 30%)

362Grasim to acquire 8.5% of CemCo from L&T1,278Grasim to make open offer for 30% of CemCo1,028Existing investment in L&T

! Summary of Investments in CemCo Rs. Crs.

6,259Enterprise Value$ 79.90USD/Ton

1,911Debts4,348Equity Value

! L&T Cement Business Valuation

31

Potential Upsides for Grasim

! Leading force in key growth sector ! Grasim to have transitory rights for “L&T Cement” brand for six month

after Effective Date of De-merger! Significant value enhancing potential, both strategic and operational ! Complementary capacities from regional point of view

" Synergies likely to result into gain of – Rs.50 Crs to each company# Production from plants with lowest “delivered cost” # Sale to markets nearer to the plants (logistics), reduced lead distance# Economies of scale on procurement

! CemCo has considerable scope for upsides in operating margins" Unrealized sales tax exemptions and deferrals" Benefits of economies of scale" Benefit from utilisation of currently underutilised capacity

Potential upside for Grasim

32

Grasim + Cemco Combined

! 31 Mn. MT Capacity ! 11 Composite Plants! 7 Split Grinding Units! 4 Bulk Terminals ! 6 RMC Plants! Strong National Presence

Grey cement plants

Grinding Units (G)

White cement plant

Ready-mix Concrete plants

Bulk Cement Terminal

Cemco Cement Plants

Cemco Grinding Units (G)

Cemco Bulk Cement Terminals

B

B

Sikka

Shambhupura

Jawad

Raipur

Malkhed

Jodhpur

Reddipalayam

Hyderabad

Gurgaon

Bangalore

Bhatinda(G)

Hotgi(G)

B

Noida

Chennai

Pipavav

JafrabadMagdalla (G)

Awarpur HirmiJharsuguda (G)

Durgapur(G)

Tadipatri

Arakonam(G)

Ratnagiri(G)

BNavi Mumbai

BMangalore

Grasim + CemCo : Emerging largest Cement combine

Grasim + CemCo : All India Capacity Ranked No.1

33

No 1 Position

No 2 Position

No 3 Position

Below No 3

Grasim + Cemco Combined

! Strong National Presence! Leadership in several key states

" No 1 in 8 states with 42% of industry volume

" No 2 in 4 states with 14% of volume

" No 3 in 6 states with 22% of industry volume

Grasim + CemCo combined market share

4th

1st

1st

2nd

2nd

Rank

ALL INDIACentralWestSouthEastNorthZone

Zonal Market Share

221338192016%

Source : CMA FY03

34

20.5UKRMC1025.7GermanyDyckerhoff928.0BrazilVotorantim831.0IndiaGrasim + CemCo737.7JapanTaheiyo656.9ItalyItalcementi579.5MexicoCemex481.8GermanyHeidelberg3

121.2SwitzerlandHolcim2135.5FranceLafarge1

Capacity Mn. MT

Base CountryProducerSr. No

Grasim + CemCo in Global LeagueGrasim + CemCo in Global League

Source : Morgan Stanley

With CemCo capacity, Grasim will be the 7th largest Cement Producer in the World

35

Financial performance

36

Segmental Performance – 9MFY04Rs. Crores

16.117.15,6226,316647.9757.13,415.03,687.3Company as a whole

111

468

1,987

197

8129MFY04

Capital Employed #

112

457

2,043

207

803

9MFY03

(2.5)

118.7

162.5

42.4

368.09MFY04

PBIT *

(15.9)

36.7

163.1

32.0

416.7

9MFY03 9MFY039MFY04

(17.4)

9.5

11.2

20.0

68.3

9MFY039MFY04

166.8

288.2

1,599.9

186.8

1,246.4

(3.1)176.4Textile

32.8406.3Sponge Iron

11.01,704.3Cement

28.0215.6Chemical

61.2

ROCE (%)(PBIT basis)Revenue

Business

1,275.7VSF

* After employee separation cost # Deferred Tax treated as part of Capital Employed

! Capital Employed in Manufacturing Operations - Rs. 3,575 Crs (84% in VSF/Chemical and Cement)

! Increased ROCE of Sponge Iron - 33% and Chemical - 28%! Cement ROCE maintained! ROE 16.5%

37

Profitability Snapshot

2.3*13.1

109

6.845.220.13.3168

38629218.1678

3,3543,897

FY99

6.7@ 51.1

468

-74.3

@ 51.913.0476

843119

26.2962

3,6714,330

9MFY04

168190Int. & Fin. Charges

(Before Deferred Tax)

5.658.5

536

10.084.656.811.3521

967

24.61,1364,6095,412

FY03

4.6Interest Cover (x)

FY02(Figures in Rs. Crores)

47.8EPS (Rs.)

75.3CEPS (Rs.)

9.0DPS (Rs.)

387(After Total Tax) PAT

42.2

10.0438

747

21.4937

4,3725,070

EPS (Rs.)

PAT Margin (%)PAT

PBDT

PBIDT Margin (%)PBIDT

Net Turnover

Gross Turnover

All Profitability numbers and EPS are before Exceptional Items@ EPS for the period *EPS adjusted for deferred tax

962

678756 912 937

113618.1

18.9

24.6

26.2

17.7

21.4

100

300

500

700

900

1100

FY99 FY00 FY01 FY02 FY03 9MFY0415

19

23

27

PBIDT PBIDT Margin (%)

PBIDT & PBIDT Margin

PBID

T M

argi

n (%

)

PBID

T (R

s. C

rs.).

! Excellent performance from all the businesses! Benefit of Business and financial restructuring

over last 4 years" PBIDT soared from Rs.678 Crs in FY99 (full

year) to Rs. 962 Crs in 9MFY04" PBIDT margin improved from 18.1% in FY99 to

26.2% in 9MFY04

! EPS improved significantly from Rs.13.1 in FY99 (full year)* to Rs.51.1 per share in 9MFY04

38

Profitability Snapshot (contd..)

256

119

190

239

292

168 6.7

8.57.6

5.64.63.6

2.92.3

9.811.2

12.313.2

0

50

100

150

200

250

300

350

FY99 FY00 FY01 FY02 FY03 9MFY042

4

6

8

10

12

14

Interest Charges Interest Cover Interest Rate

Interest charges - Interest Cover - Interest RateRs. Crs.

%

! Interest and Finance charges reduced from Rs.292 Crs in FY99 to Rs.168 Crs in FY03; Rs.119 Crs for 9MFY04

" Restructuring of high cost debts, bringing down the interest cost progressively

" Interest Cover improved from 2.3 x in FY99 to 5.6 x in FY03, 6.7 x in 9MFY04

" Av. Interest rate down from 13.2% in FY99 to 8.5% in FY03; 7.6 % in 9MFY04

39

Financial Snapshot

! Strong Balance Sheet – Investment in L&T thru internal generations

! Book Value – from Rs.285 in FY99 to Rs.447 per share in 9MFY04

! Debt/Equity ratio improved from 0.93 x in FY99 to 0.54 x in 9MFY04

6.6

10.1

285

0.93

4,572

2,616

2,142

92

1,002

3,354

4,937

FY99

613733991Net Current Assets

FY03FY02FY01(Figures in Rs. Crores)

393365335Book Value (Rs.)

# 16.2# 12.9# 13.5ROCE (PBIT Basis)(%)

# 15.0# 12.8# 12.3ROE (%)

0.62

5,106

3,347

2,707

92

3,263

5,371

0.58

5,446

3,603

2,977

92

3,270

5,600

0.62Debt: Equity ** (x)

4,815Capital Employed

3,075Net Worth + Def. Tax

3,075Net Worth

92Equity

3,303Net Block

5,311Gross Block

** Ratios worked out considering deferred tax as part of Net Worth# Eexceptional items eliminated in calculation of ROAvCE/RONW

2616 27773075

3347

41023603

58955446

45724759 4815

5106

0.93

0.62 0.620.540.58

0.82

1000

2000

3000

4000

5000

6000

7000

FY99 FY00 FY01 FY02 FY03 9MFY04

0.00

0.50

1.00

Networth Avg.Cap.Employed Debt Equity Ratio

Av.Capital Employed - Net Worth - D/E ratio

Deb

t Equ

ity R

atio

Avg.

Cap

.Em

ploy

ed/N

et W

orth

(R

s. C

rs.)

40

Financial Snapshot (contd..)

! Balance Sheet reflects the focused capital allocation strategy – major investment in Cement ! Net Current Assets reduced from Rs.1,002 Crs in FY99 to Rs.613 Crs in FY03! ROCE improved from 10.1% in FY99 to 17.1% in 9MFY04 despite lower return on increased

strategic investment! ROE more than doubled from 6.6% in FY99 to 16.5% in 9MFY04! Market capitalisation increased from Rs.14.5 Bn in FY99 to Rs.92 Bn on 31.12.2003

10.1 10.5

13.5 12.9

16.217.1

6.68.6

12.3 12.8

15.016.5

0.02.04.06.08.0

10.012.014.016.018.0

FY99 FY00 FY01 FY02 FY03 9MFY040

20

40

60

80

100

ROCE (PBIT basis) ROE Market Cap

ROCE - ROE (%) - Market CapitalisationRs. Bn.(%)

41

Fibre plants

Pulp plant

Chemical plant

Textiles units

Grey cement plants / Grinding Units (G)

White cement plant

Ready-mix Concrete plants

Bulk Cement Terminal

Sponge Iron plant

Not to scale

Plant Locations

T

F

P

S

B

C

Bhiwani

Bharuch

Nagda

Harihar

Shambhupura

Jawad

Raipur

$

Malkhed

Jodhpur

Raigarh

Reddipalayam

Hyderabad

Gurgaon

Bangalore

Bhatinda(G)

Hotgi(G)

T

FF

F P

S

B

C

Noida

Chennai

Thank YouThank You

Annexure

Performance Review – Q3/9MFY04

44

367.635367.1497.223133.0163.7PAT (after Exceptional Items)

367.1

17.0

136.0

520.1

188.4

708.5

127.8

836.3

60.1

3,415.0

9MFY03

468.3

8.0

162.0

638.3

204.9

843.2

118.8

962.0

108.3

3,687.3

9MFY04

28

(53)

19

23

9

19

(7)

15

80

8

%Chg.

536.2

(15.0)

192.0

713.2

254.1

967.3

168.4

1,135.8

115.8

4,626.3FY03

(Rs. Crores)

(11)4.54.0Deferred Tax

23133.0163.7Profit after Total Taxes but before Exceptional Items

1157.063.0Current Tax

230.7

69.5

300.2

39.4

339.6

20.7

1,335.4

Q3FY04

19194.5PBT (before Exceptional Items)

1063.2Depreciation

17257.7Gross Profit

(3)40.5Interest and Finance Charges

14298.1PBIDT

4514.2Other Income

141,166.6Net Turnover & Operating Income

% Chg.

Q3FY03

Financial Performance

45

497.2

28.9

9MFY04

40.0Excess provision for taxes for earlier years written back

Exceptional Items(208.6)(Loss)/ Profit on sale of shares (MRPL)/IGFL

163.7

Q3FY04

367.6367.1133.0Net Profit after Exceptional Items and Taxes

FY039MFY03Q3FY03Rs. Crores

Financial Performance (contd..)

35

28

% Chg.

40.0

40.0

9MFY03

54.2

51.1

9MFY04

40.12314.517.9After Total Taxes and Exceptional Items

58.52314.517.9After Total Taxes but before Exceptional Items

Q3FY04

Earning Per Share (Rs.) Basic and Diluted

FY03% Chg.

Q3FY03

46

Segmental Performance Summary - Q3FY04

! VSF (incl. Chemical) and Cement contributed 85% to Revenue (87%)

! Sponge Iron share in revenue increased to 11% (9%)

! VSF (incl. Chemical) and Cement contribute 80% to PBIDT (96%)

! Sponge Iron contribution to PBIDT improved to 16% (7%)

Cement43%

Q3FY04 (Rs. 1,335 Crs.)

VSF36%

Textiles4%

Sponge Iron11%

Chemical6%

Revenue Mix

Q3FY04 (Rs. 340 Crs.)

Chemical7%

Sponge Iron16%

VSF 44%

Others4%

PBIDT Mix

Cement29%

47

Segmental Performance – Q3FY04Rs. Crores

17.518.35,6226,316234.9270.2@ 1,166.6@ 1,335.4Company as a whole

111

468

1,987

197

812Q3FY04

Capital Employed #

112

457

2,043

207

803

Q3FY03

(1.9)

47.1

59.0

19.5

135.1Q3FY04

PBIT *

(1.6)

12.3

76.1

10.6

148.3Q3FY03 Q3FY03Q3FY04

(5.2)

9.5

15.7

19.8

72.9

Q3FY03Q3FY04

55.2

109.8

545.5

68.0

413.1

(6.8)57.1Textile

39.0157.6Sponge Iron

11.9586.2Cement

38.683.8Chemical

67.4

ROCE (%)(PBIT basis)Revenue

Business

486.4VSF

* After employee separation cost # Deferred Tax treated as part of Capital Employed @ Net of Inter and Intra segment sales

! Capital Employed in Manufacturing Operations - Rs. 3,575 Crs" 84% is in VSF/Chemical and Cement " Other CE of Rs.2,741 Crs includes investment in L&T and short term investments

! Increased ROCE of Sponge Iron - 39% and Chemical - 39%! Lower ROCE in case of Cement

48

Viscose Staple Fibre : Summary

--1

(12)--

(10)62

(4)(4)

--

%Chg.

64.5851

540.236

588.067,921

1,642.8227,900224,610220,775

FY03

68.3803

416.736

452.467,7061,245.8173,441166,225220,775

9MFY03

61.2812

368.032

406.671,4331,275.1166,513159,841220,775

9M FY04

(8)160.3148.2Rs. Crs.PBIDT *

1803812Rs. Crs.Capital Employed(9)148.3135.1Rs. Crs.PBIT *

--72.967.4%ROCE(PBIT basis)

31

70,306486.2

63,93861,447

220,775

Q3 FY04

39

69,137412.9

56,79860,323

220,775

Q3FY03

--

218132--

%Chg.

%PBIDT Margin *

Rs./MTAvg. RealisationRs. Crs.Net TurnoverMTSales VolumesMTProductionTPACapacity

* After Employees Separation Cost

49

Cement : Summary

--(3)

----4

(4)11

(2)--

(2)777

14

% Chg.

11.02,088221.3

17359.55,534180.3

305,223310,163400,000

1,6902,00211.1611.0912.92

FY03

11.22,043163.1

17264.55,643133.1

219,587222,851400,000

1,6911,462.0

8.158.12

11.37

9MFY03

11.01,987162.5

16274.95,425134.7

221,785218,678400,000

1,6521,565.1

8.738.65

12.92

9MFY04

(12)109.997.2Rs. Crs.PBIDT *

(3)2,0431,987Rs. Crs.Capital Employed(23)76.159.0Rs. Crs.PBIT *

--15.711.9%ROCE (PBIT basis)

20

5,81351.7

83,74186,098

400,000

1,710492.02.702.72

11.37

Q3FY03

17

5,34248.2

80,15882,155

400,000

1,665536.52.952.92

12.92

Q3FY04

--

(8)(7)(4)(5)

--

(3)997

14

% Chg.

%PBIDT Margin *

TPACapacity

Rs./MTAvg RealisationRs. Crs.Net TurnoverMTSales VolumesMTProduction

White Cement

Grey Cement

Rs./MTAvg RealisationRs. Crs.Net TurnoverMn. MTSales VolumesMn. MTProductionMn. MTCapacity

* After Employees Separation Cost

50

--(5)32--

25161632

19

% Chg.

255.9185.5214.62367.683.2Rs. Crs.Net Turnover

28.0197

42.426

55.016,275

114,342114,406190,800

9MFY04

20.0207

32.024

44.114,062

111,262111,792160,600

9MFY03

* After Employee Separation Cost@ Capacity expanded in Q4FY03

53.16314.623.7Rs. Crs.PBIDT *

211(5)207197Rs. Crs.Capital Employed17.3--19.838.6%ROCE (PBIT basis)

14,4021813,97516,528Rs./MTAvg. ECU Realisation

37.28510.619.5Rs. Crs.PBIT *22

41,63741,522

160,600

Q3FY03

29

44,426

44,741190,800

Q3FY04

--

7

819

% Chg.

21%PBIDT Margin *

150,825MTSales Volume(Caustic)151,445MTProduction (Caustic)190,800MTCapacity (Caustic)

FY03

Chemical : Summary

@ @ @

51

--2

223--

123364144-

% Chg.

9.5457

36.723

65.06,114288.2

453,437448,608900,000

9MFY03

32.8468

118.736

145.08,328406.3

471,031467,587900,000

9MFY04

12.5498

66.626

103.66,379405.9

612,425612,879900,000

FY03

15821.655.9Rs. Crs.PBIDT *

2457468Rs. Crs.Capital Employed--9.539.0%ROCE (PBIT basis)

28412.347.1Rs. Crs.PBIT *20

6,320109.8

165,707148,337900,000

Q3FY03

36

8,831157.6

170,823164,700900,000

Q3FY04

--

40443

11-

% Chg.

%PBIDT Margin *

Rs./MTAvg RealisationRs. Crs.Net TurnoverMTSales VolumesMTProductionTPACapacity

Sponge Iron : Summary

* After Employees Separation Cost

52

--(1)84--

2424

% Chg.

(17.4)112

(15.9)(4)

(5.8)159.5

9MFY03

(3.1)111

(2.5)5

8.3166.5

9MFY04

(18.7)109

(22.6)(4)

(8.8)220.4FY03

(13)2.11.9Rs. Crs.PBIDT *

(1)112111Rs. Crs.Capital Employed--(5.2)(6.8)%ROCE (PBIT basis)

(18)(1.6)(1.9)Rs. Crs.PBIT * 4

52.8

Q3FY03

4

53.9

Q3FY04

--

2

% Chg.

%

Rs. Crs.

PBIDT Margin *

Net Turnover

* After Employees Separation Cost

Textiles : Summary

53

Production Data (MT)

68

78

98

90

101

102

%

612,879

310,163

11.09

151,445

70,495

224,610

Production

900,000

400,000

12.92

190,800

70,000

220,775

CapacityTPA

FY03

66

86

96

103

108

109

%

148,337

86,098

2.72

41,522

18,871

60,323

Production

900,000

400,000

11.37

160,600

70,000

220,775

CapacityTPA

Q3FY03

73

82

90

94

105

111

%

164,700

82,155

2.92

44,741

18,405

61,447

Production

900,000

400,000

12.92

190,800

70,000

220,775

CapacityTPA

Q3FY04

Sponge Iron

White Cement

Grey Cement *

Caustic Soda

Pulp

VSF

* Grey Cement numbers are in Mn. MT@ Capacity expanded in last financial year end by 1.55 Mn. MT# Capacity expanded in Q4FY03

@ @

#

54

Divisional Turnover - Qty & Realisation

165,707

83,741

2.70

41,637

18,804

56,798

Q3FY03

170,823

80,158

2.95

44,426

18,739

63,938

Q3FY04

6,3796,3208,831612,425Sponge Iron

5,5345,8135,342305,223White Cement

1,6901,7101,66511.16Grey Cement * *

14,4021397516,528150,825Caustic Soda *

20,19120,96622,33570,126Pulp

67,92169,13770,306227,900VSF

FY03Q3FY03Q3FY04FY03Realisation (Rs. /MT)Quantity (MT)

Product

* ECU Realisation * * Numbers are in Mn. MT.

55

Capex PlanRs. Crores

7294179Total VSF

123182305Total Cement

252954- Dev. Centre & Capacity expansion

152944- Power Plants/ RMCs422264- De-bottlenecking/Blending

200342555TOTAL25052Others31619Chemical

4765125- Modernization

VSF

66131197- Modernization

CementFY05FY04

Cash OutflowCapex planned

! 9MFY04 Capex Rs.168 Crores" Cement Rs.90 Crores, VSF Rs.52 Crores, Others Rs. 26 Crores