Grasim Q1 results: Aditya Birla Group company posts standalone net loss of ₹52.12 crore, revenue rises 10.5% YoY

Grasim Industries on Friday reported a standalone net loss of ₹52.12 crore for the quarter ended June 2024 as compared with a net profit of ₹355.27 crore in the same quarter last year. The Aditya Birla Group company had posted a net loss of ₹440.93 crore in the March 2024 quarter.

Grasim Industries’ revenue from operations in Q1FY25 increased 10.5% to ₹6,893.87 crore from ₹6,237.55 crore, year-on-year (YoY).

At the operational level, standalone earnings before interest, tax, depreciation and amortization (EBITDA) declined 51.7% to ₹325.1 crore from ₹673.3 crore, while EBITDA margin compressed to 4.7% from 10.8%, YoY.

On a consolidated basis, revenue during the first quarter of FY25 stood at ₹33,860.7 crore, up by 9% YoY, driven by strong performance from its diversified businesses portfolio.

Consolidated net profit in Q1FY25 was at ₹1,207.93 crore as against ₹1,576.47 crore, YoY, and against ₹1,369.82 crore, QoQ.

Consolidated EBITDA was lower by 4% at ₹4,760 crore, driven by investments in the Paints business, higher depreciation and interest charges on account of new growth businesses, the company said.

Grasim Industries’ cement business added new capacity of 8.7 Mn TPA, taking total grey cement capacity (domestic + overseas) to 154.9 Mn TPA.

Its newly launched paints brand, Birla Opus’ market presence reached to over 3,300 cities and towns, getting good response from trade channels and consumers, it said.

Capital expenditure for Q1FY25 stood at ₹983 crore. The budgeted standalone capex for FY25 is ₹4,553 crore of which around ₹3,000 crore is towards new growth businesses, Grasim said,

Cellulosic Fibres

The Cellulosic Staple Fibre (CSF) business experienced its fourth consecutive quarter of YoY growth due to an improving domestic demand scenario and global price trends. CSF business achieved its highest ever quarterly sales volume at 212 KT, up 14% YoY.

The Cellulosic Fashion Yarn (CFY) business recorded marginal volume growth of 2% YoY, due to subdued demand conditions in the downstream value chain and lower priced export into India by Chinese producers, Grasim Industries said.

Revenue for the quarter was at ₹3,787 crore, up 6% YoY. Segment EBITDA grew by 4% YoY to ₹405 crore helped mainly by operating leverage and lower input costs.

Chemicals

The Chemicals business’ revenue fell 4% YoY and 1% QoQ to ₹2,066 crore. Speciality Chemicals (epoxy polymers and curing agents) revenue mix improved to 30% for the quarter from 25% in Q1FY24.

EBITDA for the Chemicals segment stood at ₹310 crore up by 59% QoQ but declined 13% YoY. Profitability improved sequentially on the back of higher caustic soda realisations and improved margins of chlorine derivatives, the company said.

Building Materials

Grasim Industries’ Building Materials business reported revenue of ₹18,701 crore, up 11% YoY, led by the growth in Cement and ramp-up in revenues from new growth businesses - Paints and B2B E-Commerce. EBITDA fell 7% YoY to ₹2,909 crore mainly due to initial funding of new growth businesses.

Grasim Industries said the total Capex for the Birla Opus business was ₹7,795 crore till June 2024, around 77% of the planned Capex outlay.

At 2:40 pm, Grasim Industries shares were trading 0.88% higher at ₹2,566.45 apiece on the BSE.