Grasim Industries Q3 results: Net profit plunges 40% to Rs 899 crore

Aditya Birla Group’s flagship company Grasim Industries reported a 40 per cent decline in net profit (attributable to the owners of the company) in the October–December 2024 period, as weak performance in the cement business dragged down profits.

 

In the quarter under review, Grasim’s consolidated net profit stood at Rs 899 crore, against Rs 1,514.4 crore a year ago. Revenue, however, was up 8.8 per cent to Rs 34,792.9 crore, which the company said was driven by all-round growth across key businesses.

 

Consolidated Ebitda, the company said, stood at Rs 4,668 crore, down 9 per cent year-on-year (Y-o-Y), mainly due to lower realisations in the cement business and initial investments for building a strong consumer-facing paints business—Birla Opus.

 

 

Ebitda refers to earnings before interest, taxation, depreciation, and amortisation.

 

Grasim’s board on Monday also approved a capital expenditure of Rs 1,350 crore for setting up the first phase of a lyocell fibre plant at Harihar, Karnataka. The first phase of 55,000 tonnes per annum (TPA) will be executed by mid-2027. With this investment, Grasim's total lyocell capacity, marketed under the ‘Birla Excel’ brand, will increase to 1.53 lakh TPA, the company said.

 

In the first nine months of FY25, Grasim spent Rs 2,785 crore as capital expenditure, of which 71 per cent was allocated to new growth businesses—paints and B2B e-commerce, the company added.

 

Even as the cement business weighed on performance, Grasim’s chemical segment reported a 25 per cent higher Ebitda, led by improved realisation of caustic soda and better profitability in the chlorine derivatives segment, the company noted.

 

Sharing an update on its latest business—paints (Birla Opus)—Grasim said commercial production started at Chamarajanagar (in Karnataka) in November, while production at Mahad (Maharashtra) is expected to begin in the current quarter. “Kharagpur (in West Bengal) trial run production is expected to commence in Q1FY26,” the company noted.

 

Commenting on the B2B e-commerce business, Grasim stated that revenue continues to grow in line with the plan and remains on track to achieve revenue of $1 billion by FY27.