Grasim Inds PAT slumps 67% YoY to Rs 390 crore in Q2

Grasim Industries reported 66.5% drop in consolidated net profit to Rs 389.90 crore in Q2 FY25 as compared with Rs 1,163.75 crore posted in Q2 FY24.

Revenue from operations increased 11.06% YoY to Rs 33,562.85 crore in second quarter of FY25, driven by the superior performance of financial services, cellulosic staple fibre and specialty chemicals businesses.

Profit before exceptional items and tax stood at Rs 2,051.08 crore in September 2024 quarter, up 28.33% YoY. Exceptional loss stood at Rs 83.45 crore during the quarter.

Consolidated EBITDA was lower by 10% YoY at Rs 4,042 crore in the quarter ended 30 September 2024, as a result of lower profitability in the cement business and initial investments in the paints business under brand Birla Opus.

 

Revenue from Cellulosic Staple Fibre (CSF) business for the quarter was at Rs 4,125 crore, up 6.07% YoY. Sales volume stood at 219 KT, up 4.29% YoY. Cellulosic Fashion Yarn (CFY) volume improved marginally by 1% YoY to 11.1 KT, however realisation remained impacted due to low priced imports from China.

Revenue from Chemicals business rose 3.32% YoY to Rs 2,054 crore in Q2 FY25. Caustic soda sales volume was down by 4% YoY, due to lower production on account of maintenance shutdown of the captive power plant at Vilayat.

The building materials business reported revenue of Rs 16,683 crore, up 3% YoY, driven by paints and B2B E-Commerce businesses. EBITDA stood at Rs 1,886 crore, mainly due to lower realisations in cement business and initial investments in building a consumer facing brand Birla Opus in the Indian decorative paints market.

Consolidated sales volumes of cement business (UltraTech) grew by 4% YoY to 27.84 MT and ready-mix concrete sales volumes grew by 19% YoY to 3.01 million. The total capex for the business was at 8,470 crore till September 2024, around 85% of the planned capex outlay.

The financial services business (Aditya Birla Capital), revenue and EBITDA, as consolidated in accordance with Ind AS, stood at Rs 10,252 crore and Rs 1,280 crore, registering growth of 33% and 25%, respectively. The overall lending portfolio (NBFC and HFC) increased by 27% YoY to Rs 1,37,946 crore.

On the outlook front, the firm stated, Grasim Industries with its significant presence across businesses is well positioned to capitalise on the opportunities in diverse sectors of the fast-growing Indian economy. The Governments continued focus on infrastructure & housing, manufacturing, financialisation and thrust on increasing economic prosperity of the large section of people augurs well for the company.

Grasim Industries, a flagship company of the Aditya Birla Group, is a leading diversified player with leadership presence across many sectors. It is a leading global producer of viscose staple fibre and viscose filament yarn, the largest chlor-alkali, advanced material, linen yarn and fabrics producer in India. The company recently has entered paints business and setting up six plants across pan India locations.

The counter rose 0.79% to Rs 2,528.55 on Thursday, 14 November 2024. The stock market is closed today on account of Guru Nanak Jayanti.

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