Grasim Inds reports 32% rise in Q4 PAT at Rs 1506 cr

Grasim Industries reported a 32% surge in net profit to Rs 1506 crore on a 11.3% decline in net sales to Rs 19,902 crore in Q4 March 2020 over Q4 March 2019.

Net profit was aided by write back of deferred tax liabilities and lower exceptional charge in the current year. The company wrote back deferred tax liabilities of Rs 2,267.45 crore in Q4 March 2020 as against Rs 52.76 crore deferred tax in Q4 March 2019. Profit before tax (PBT) stood at Rs 379.65 crore in Q4 March 2020, tumbling 84% from Rs 2390.60 crore in Q4 March 2019.

Consolidated EBITDA tumbled 19% to Rs 3243 crore in Q4 March 2020 from Rs 3999 crore in Q4 March 2019. EBITDA margin fell to 16% in Q4 March 2020 from 18% in Q4 March 2019.

Revenue of Grasim Industries from viscose pulp, viscose staple fibre (VSF) and filament yarn segment declined 19.90% to Rs 2,102.28 crore as against Rs 2,624.81 crore a year ago.

The VSF sales were impacted during the last 10 days of the Q4FY20 due to lockdown. The domestic grey VSF prices softened sequentially in Q4FY20 in line with global prices but the overall performance improved QoQ on the back of better cost management, higher speciality sales and lower input cost, the company said.

Revenue from cement business UltraTech was down 13.13% to Rs 10,745.62 crore from Rs 12,370.61 crore in the same quarter previous fiscal.

Revenue from chemicals segment fell 23.55% to Rs 1,290.37 crore compared to Rs 1,687.93 crore in the fourth quarter of 2018-19.

Revenue from financial services segment - Aditya Birla Capital - was up 2.29% to Rs 4,810.34 crore from Rs 4,702.50 crore a year ago.

"The NBFC and HFC businesses continue to have diversified portfolios with a focus on growing select segments. Our strong focus is on quality of the book with reduced ticket sizes across the board," it said.

In its outlook, Grasim said its products will be impacted by the COVID-19 led general economic slowdown. The company has initiated various measures to reduce its fixed costs and conserve cash as part of its comprehensive Business Continuity Plan. The Company with its strong financial, operational excellence and diverse product portfolio (Cement, Financial Services, Viscose and Chemicals) is well poised to withstand temporary disruptions and sustain leadership across its businesses."

Consolidated net profit jumped 161.37% to Rs 4,425 crore on 0.55% increase in revenue to Rs 77,625 crore in the year ended March 2020 (FY20) over the year ended March 2019 (FY19).

Meanwhile, the company has recommended a dividend of Rs 4 per share. The result was announced on Saturday, 13 June 2020.

Shares of Grasim Industries were down 2.02% at Rs 589.90 on BSE.

Grasim Industries is a leading manufacturer in cement, viscose staple fibre and chemicals.

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