Grasim Inds Q4 PAT jumps 62% YoY to Rs 2,777 cr

The company's consolidated net profit rose 61.89% to Rs 2,777.15 crore on 18.07% rise in net sales to Rs 28,811.39 crore in Q4 March 2022 over Q4 March 2021.

On a consolidated basis, Grasim Industries' profit before exceptional items and tax from continuing operations fell 12.47% to Rs 3,261.03 crore in Q4 March 2022. EBITDA fell 10% YoY to Rs 4647 crore in Q4 FY22.

Total expenses rose 23.46% to Rs 25,786.54 crore. Cost of material consumed climbed 36.35% to Rs 5,093.38 crore and employee benefits expenses rose 8.05% to Rs 1,664.71 crore.

The company's revenue from viscose (pulp, viscose staple fibre and filament yarn) segment stood at Rs 3,766.49 crore (up 45.80%); revenue from cement segment stood at Rs 15,767.28 crore (up 9.45%); revenue from chemicals segment was reported at Rs 2,486.52 crore (up 68.89%); and revenue from financial services segment stood at Rs 6,622.35 crore (up 19.01%) in Q4 FY22.

The textile value chain in India operated at optimum capacity utilization. The VSF business reported sales volume of 179KT in Q4FY22, up 22% YoY, with strong mix of VAP at 25% (Q4FY22), Grasim said in a statement.

The company launched a new saree brand 'Navyasa created by LIVA', which promises a significant opportunity to increase VSF share in a 10-lakh ton saree fibre market.

The paints business is focused on the timely execution of its capacities. The civil construction has already commenced at two of its plant sites (Panipat and Ludhiana) and is expected to start shortly at Chamarajanagar. The remaining three plants are at different stages of Government approval processes. Market dynamics of the decorative paints sector has changed with new capacities being announced backed by strong growth and outlook. The company said it has accelerated the execution of its paints capacity of 1,332 MLPA with commissioning of plants to start by Q4FY24. The project cost is likely to be Rs 10,000 crore by FY25, the company said.

The total capex spent during FY22 stood at Rs 2,537 crore, which includes Rs 579 crore spent for the paints business.

For the year, net profit rose 75.38% to Rs 7,549.78 crore on 25.26% rise in net sales to Rs 95,701.13 crore in the year ended March 2022 over the year ended March 2021.

The board recommended a dividend of Rs 5 per equity share for the year ended 31 March 2022 and a special dividend of Rs 5 per equity share, taking the total dividend to Rs 10 per equity share.

Net cash from operating activities stood at Rs 7,037.65 crore in the year ended 31 March 2022, lower than Rs 15,075.08 crore in the year ended March 2021.

The company stood at zero net debt with net cash of Rs 553 crore as on 31 March 2022.

Grasim Industries is a leading diversified player with leadership presence across many sectors. It is a leading global producer of viscose staple fibre, the largest chlor-alkali, linen and insulators player in India. Through its subsidiaries, UltraTech Cement and Aditya Birla Capital, it is also India's largest cement producer and a leading diversified financial services player. Grasim has also announced foray in decorative paints business.

Shares of Grasim Industries fell 3.72% to settle at Rs 1402.65 on the BSE.

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