Grasim revenue up 9% at Rs 33,861 cr; net profit falls 23.4% to Rs 1,208 cr

Grasim Industries to invest Rs 4,553 crore in FY25

Grasim Industries, the BSE-listed holding company of the Aditya Birla Group, on Friday announced its standalone capital expenditure of Rs 4,553 crore for the ongoing financial year (FY25). The company said of the budgeted capex for FY25, Rs 3,000 crore is towards new growth businesses.

The company reported consolidated revenue of Rs 33,861 crore in the June quarter, up 9 per cent year-on-year (Y-o-Y), driven mainly by a strong performance in its diversified business portfolio. The net profit, however, was down 23.4 per cent to Rs 1,208 crore Y-o-Y, the company said in a filing to the stock exchanges.

The consolidated Ebitda was lower by 4 per cent at Rs 4,760 crore in the same period. This was driven by investments in the paints business - a reflection of Grasim’s commitment to building strong consumer-facing businesses from scratch, the results of which are in line with expectations, the company said in a statement.  The company has invested Rs 7,795 crore in the paints business so far.

 

On a standalone basis, the company’s revenues stood at Rs 6,894 crore, up 11 per cent when compared to the June quarter of FY24. It posted a net loss of Rs 52 crore in the June quarter compared to Rs 355 crore profit reported in the same period of the previous financial year.

In the cement business, Grasim’s subsidiary Ultratech added a new capacity of 8.7 million tonnes per annum, taking the total grey cement capacity to 154.9 million tonnes per annum. The company’s paints firm Birla Opus increased its market presence to over 3,300 cities and towns, getting good responses from trade channels and consumers. The total lending portfolio of BSE-listed Aditya Birla Capital crossed Rs 1.2 trillion, up 27 per cent on a Y-o-Y basis.

During the quarter ended March 2024, the company recognised a charge of Rs 715.60 crore as an exceptional item representing impairment against the carrying value of its investment in AV Terrace Bay Inc, Canada, a joint venture of the company and a provision towards its estimated exposure and advance against the equity in the Canadian company.