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All-round growth: Grasim profit rises 16% to Rs 1,933 cr

Grasim has budgeted a total capex spend of Rs 6,720 crore, including Rs 3,542 crore, for its paints business.

The company had posted a net profit of Rs 1,667 crore for the same quarter of the previous financial year.
The company had posted a net profit of Rs 1,667 crore for the same quarter of the previous financial year.

Grasim Industries, the flagship company of Aditya Birla Group, on Friday posted a 16% rise in consolidated net profit at Rs 1,933 crore for the quarter ended June, led by all-round growth in key businesses.

The company had posted a net profit of Rs 1,667 crore for the same quarter of the previous financial year.

The firm’s revenue on a consolidated basis rose 41% to Rs 28,042 crore from Rs 19,919 crore posted during the same period a year ago. Consolidated Ebitda rose 10% to Rs 5,233 crore from Rs 4,736 crore recorded in the first quarter of the previous fiscal, a company statement said.

On a standalone basis, the company’s net profit rose 68% to Rs 809 crore (from Rs 482 crore in the year-ago period), while revenue rose 93% to Rs 7,253 crore (Rs 3,763 crore) and Ebitda rose 69% to Rs 1,364 crore (Rs 805 crore). The standalone revenue and operating Ebitda have hit “all-time highs”, it said.

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Grasim’s sales volume of Viscose Staple Fibre (VSF) business rose 76% to 197 kilo tonne (KT), with its 600-tonne per day brownfield plant at Vilayat, Gujarat, contributing about 51 KT to the sales. The India-centric demand for textiles remained strong during the quarter, it said, adding that cotton prices – which peaked in June this year – have softened on fears of a global recession leading to demand slowdown.

Its advanced material sales volume, which comes under its chemicals business, rose 35% on a year-on-year basis, though the significant increase in input prices impacted margins.

“The domestic caustic soda prices continued trending upwards, driven by higher global caustic soda prices, weak rupee and a stable demand environment,” it said.

On its paints business, the firm said that it is “on track” to achieve timelines for commissioning of plants. The firm had taken possession of land at all its six sites, while civil construction commenced at four sites (Panipat, Ludhiana, Cheyyar and Chamarajanagar).

In May this year, the firm announced plans to invest Rs 10,000 crore for its paint foray by FY25, double of what was initially earmarked.

Grasim has budgeted a total capex spend of Rs 6,720 crore, including Rs 3,542 crore, for its paints business.

The company’s cement subsidiary, UltraTech Cement’s consolidated revenue rose 28% y-o-y to Rs 15,164 crore from the year-ago quarter.

UltraTech has also undertaken a capacity expansion programme, which on completion, would take its total grey cement capacity in India to 131.25 MTPA by FY23. Further, a subsequent phase expansion of capacity would increase it to 153.85 MTPA by FY25.

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