Grasim Inds gains as Q3 PAT soars 131% QoQ to Rs 899 crore

Grasim Industries rallied 2.44% to Rs 2,531 after the company's consolidated net profit zoomed 130.56% to Rs 898.96 crore on 3.66% rise in revenue from operations to Rs 34,792.85 in Q3 FY25 over Q2 FY25.

On a YoY basis, the companys consolidated net profit tumbled 40.64% to Rs 898.96 crore on an 8.84% rise in revenue from operations to Rs 34,792.85 in Q3 FY25 over Q3 FY24. The revenue growth was driven by strong performance across all key business segments.

Profit before tax stood at Rs 2,448.44 crore in the December 2024 quarter, down 29.47% YoY.

Consolidated EBITDA was lower by 9% YoY at Rs 4,668 crore in the quarter ended 31 December 2024; this decline was primarily due to lower realizations in the Cement business and initial investments in developing a strong consumer-facing Paints business, 'Birla Opus.'

Additionally, higher interest and depreciation charges, resulting from investments in the building materials businesses, contributed to a lower PAT.

Revenue from Cellulosic Staple Fiber (CSF) business for the quarter was at Rs 3,934.09 crore, up 5.90% YoY. Sales volume stood at 205 KT and remains constant. Cellulosic Fashion Yarn (CFY) volume improved and jumped by 9.70% YoY to 11.3 KT, however realizations remained under pressure due to the surge of cheaper imports from China.

Revenue from the chemicals business added 11.52% YoY to Rs 2,226.27 crore in Q3 FY25. Caustic sales volume growth constrained to 1% YoY due to lower production at Vilayat by lower power availability.

The building materials business reported revenue of Rs 18,784 crore, up 10.42% YoY; the revenue growth has come mainly from new businesses Birla Opus and Birla Pivot. EBITDA stood at Rs 2,806 crore, mainly due to lower realizations in the cement business (UltraTech) and initial expenses for building a consumer-facing brand Birla Opus in the Indian decorative paints industry.

Consolidated sales volumes of the cement business (UltraTech) grew by 11% YoY to 30.37 MT, and ready-mix concrete sales volumes grew by 14% YoY to 3.17 million. The total Capex for the business stood at Rs 9,015 crore till December 2024, 90% of the planned capex outlay.

The financial services business (Aditya Birla Capital), revenue, and EBITDA, as consolidated in accordance with Ind AS, stood at Rs 9,396 crore and Rs 1,053 crore, respectively. The overall lending portfolio (NBFC and HFC) increased by 27% YoY to Rs 1,46,151 crore. The total AUM (AMC, life insurance, and health insurance) grew by 23% YoY to Rs 5,03,377 crore.

Revenue from other businesses stood at Rs 815 crore, and EBITDA stood at Rs 125 crore. In the renewable business, cumulative installed capacity stood at 1.2 GWp, up 37% from 894 MW in Mar'24, and another 0.8 GW is under advanced stage of commissioning.

On the outlook front, the firm stated, Grasim Industries is well positioned to capitalize on the opportunities in diverse sectors of the fast-growing Indian economy with its significant presence and investments in building up the size and scale of its businesses. The governments vision for Viksit Bharat with a focus on infrastructure & housing, manufacturing, financialization, and thrust on increasing economic prosperity of the large section of people augurs well for the company.

Meanwhile, the board has approved setting up a 110K TPA capacity of Lyocell, the fastest-growing cellular fiber, in Harihar, Karnataka. The first phase of 55K TPA will be executed by mid-2027 at an investment of Rs 1,350 crore. It will further strengthen the companys specialty product portfolio of eco-friendly fibers.

With this investment, Grasim's total Lyocell capacity marketed under the Birla Excel brand will increase to 153K TPA, solidifying its position as a key player in the global sustainable fiber industry. This investment is a testament to the commitment of the companys support for the growth of Indias textile industry.

Further, the board of directors has accepted the request of Harikrishna Agarwal for an early retirement. Accordingly, Agarwal will cease to be Managing Director and Key Managerial Personnel as well as Member of the Board of Directors of the Company with effect from the close of business hours on 31 March 2025.

Grasim Industries, a flagship company of the Aditya Birla Group, is a leading diversified player with a leadership presence across many sectors. It is a leading global producer of viscose staple fiber and viscose filament yarn, the largest chlor-alkali, advanced material, linen yarn, and fabric producer in India. The company recently entered the paints business and set up six plants across pan-India locations.

Powered by Capital Market - Live News