Aditya Birla Group’s flagship company Grasim Industries reported a 15.3 per cent rise in its net profit attributable to the owners of the company for the quarter ended September 2023 (Q2FY24) on the back of improved operational performance.
In Q2FY24, the company reported a net profit of Rs 1,164 crore, up from Rs 1,009 crore a year ago. Revenue for the company in the same period rose 10 per cent to Rs 30,221 crore on the back of the performance of cement and financial services businesses, the company said.
Sequentially, the company’s net profit dipped 26.2 per cent.
Consolidated Ebitda, the company said, was at Rs 4,509 crore, up 19 per cent. Profits from the cement subsidiary UltraTech also helped boost Grasim’s financial performance in the quarter gone by. Ebitda is earnings before interest, taxation, depreciation, and amortisation.
For its viscose business, the company said volumes grew by 24 per cent year-on-year (Y-o-Y) to reach 210KT. The Viscose business, the company said, reported revenue of Rs 3,889 crore and Ebitda of Rs 468 crore for Q2FY24, making sequential increases of 9 per cent and 20 per cent respectively.
Ebitda for the chemicals business, the company said, stood at Rs 236 crore, down 34 per cent sequentially and up 61 per cent Y-o-Y. “Speciality Chemicals (epoxy polymers and curing agents) business margins were impacted by lower realisations as compared to Q1FY24,” the company said in its statement.
On its latest business of paints, Grasim said the sub-branding and marketing strategies are progressing according to the estimated timelines. “We have received consent to operate plants at three locations: Panipat, Ludhiana, and Cheyyar.”
On planned capex, the company said the amount is now revised, with the Board approving a rephasing of spending of earlier approved capex entailing additional spend of Rs 138 crore in FY24. The company said, the budgeted spend for FY24 stands revised at Rs 5,929 crore.
In a separate statement, the company also announced the appointment of K Suresh as the new Chief Operations Officer (COO) – Manufacturing (Fibre), Senior Management Personnel with effect from January. The statement said the current COO, Kalyan Ram Madabhushi, will relinquish his position with effect from 31 December on account of early retirement.