Aditya Birla Group flagship Grasim Industries on Thursday posted its fiscal first quarter consolidated profit at Rs 2,576.35 crore, down 6.6 per cent as against Rs 2,758.75 crore during the corresponding quarter of FY23. It posted revenue from operations at Rs 31,065.19 crore, up 10.8 per cent in comparison to Rs 28,041.54 crore during the first quarter of financial year 2022-23. The revenue increase was driven by strong performance of key subsidiaries – UltraTech Cement, Aditya Birla Capital, and Aditya Birla Renewables. “However, softening of realisations in standalone businesses and UltraTech Cement impacted profitability,” the company said in a regulatory filing.
The company EBITDA stood at Rs 4,981 crore, up 5 per cent on-year. While the total income recorded by Grasim Industries was at Rs 31,360.98 crore, total expenses during the quarter ended June 2023 stood at Rs 27,923.38 crore. The company, during the period, showcased good performance in cement and financial services businesses, it said.
The total capex spent for Q1FY24 stood at Rs 1,384 crore, of which Rs 1,046 crore was spent for the paints business. The budgeted capex for FY24 stands at Rs 5,791 crore with Rs 4,342 crore earmarked for paints and B2B e-commerce.
Grasim Industries’ Q1 performance across businesses
Viscose business: The Company’s VSF sales volume stood at 187KT for Q1FY24 (-3% QoQ). Viscose business revenue was at Rs 3,584 crore and EBITDA at Rs 390 crore for Q1FY24, up 2.7 times QoQ. EBITDA margins improved on the back of reduction in input prices and higher efficiencies.
Chemicals business: The revenue for the chemicals business was at Rs 2,146 crore, down by 21 per cent YoY due to the decline in caustic realisations. EBITDA stood at Rs 358 crore, down by 56 per cent YoY.
Paints business: The total outlay for the Paints business up to 30th June 2023 stands at Rs 3,640 crore.
B2B e-commerce business: Birla Pivot has been launched to serve the markets in Maharashtra, Madhya Pradesh, and Delhi. The platform will ensure on-time delivery and superior quality products encompassing a broad spectrum of building materials such as cement, steel, tiles, plywood & doors, paints & ply, sanitary & plumbing, among others.
Performance by key subsidiaries
UltraTech Cement Limited: Cement sales volume stood at ~29.96 MTPA, up 20 per cent YoY in Q1FY24. Capacity utilisation for the quarter stood at 89 per cent compared to 83 per cent in Q1FY23. Consolidated revenue was at Rs 17,737 crore, up 17 per cent YoY and EBITDA stood at Rs 3,223 crore for Q1FY24.
Aditya Birla Capital Limited (ABCL): Consolidated revenue for Q1FY24 was up 26 per cent YoY to Rs 7,045 crore. ABCL reported PAT growth of 51 per cent YoY to Rs 649 crore. Gross premium across life and health insurance grew 19 per cent on-year to Rs 3,877 crore. The total AUM (AMC, life insurance and health insurance) grew by 9 per cent YoY to ~Rs 3.9 lakh crore.
Aditya Birla Renewables Limited (ABReL): Aditya Birla Renewables Limited reported revenue of Rs 87 crore for Q1FY24, up 27 per cent YoY. ABReL reported EBIT growth of 20 per cent on-year to Rs 45 crore. The cumulative installed capacity stood at 854 MWp. The capacity expected by the end of the current financial year is approximately 2 GW.