homemarket NewsGrasim Q1 Results: Net profit falls 56% to Rs 355 crore, revenue dips 14%

Grasim Q1 Results: Net profit falls 56% to Rs 355 crore, revenue dips 14%

Grasim Q1 Results: EBITDA plunged 49 percent on-year to Rs 674 crore. Its operating margin shrunk to 10.8 percent in the quarter under review, from 18.2 percent in the year ago period.

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By Meghna Sen  Aug 10, 2023 5:17:59 PM IST (Published)

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Grasim Q1 Results: Net profit falls 56% to Rs 355 crore, revenue dips 14%
Aditya Birla Group's flagship company Grasim Industries on Thursday reported a 56 percent year-on-year (YoY) decline in standalone net profit at Rs 355 crore for the June quarter, compared with Rs 808.56 crore in the last year period. However, the profit figure was much higher than CNBC-TV18's poll of Rs 149 crore.

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Revenue from operations too dipped 14 percent YoY to Rs 6,237.55 crore in the quarter under review as against Rs 7,253 crore in the corresponding quarter of last year. The revenue was almost in-line with CNBC-TV18's estimate of Rs 6,292 crore.
EBITDA or earnings before interest, tax, depreciation and amortisation plunged 49 percent YoY to Rs 674 crore. Its operating margin shrunk to 10.8 percent in the quarter under review, from 18.2 percent in the year ago period.
Viscose business
The company's Viscose Staple Fibre (VSF) sales volume stood at 187KT for Q1FY24 (-3 percent QoQ). Viscose business revenue was at Rs 3,584 crore and EBITDA at Rs 390 crore for Q1FY24, up 2.7 times QoQ. EBITDA margins improved on the back of reduction in input prices and higher efficiencies.
Chemicals business
The revenue for the Chemicals Business was at Rs 2,146 crore, down by 10 percent QoQ and by 21 percent YoY due to the decline in caustic realisations. EBITDA stood at Rs 358 crore, down by 3 percent QoQ and 56 percent YoY.

Capex plan

The total capex spent for the first quarter of this fiscal stood at Rs 1,384 crore, of which Rs 1,046 crore was spent for the paints business. The budgeted capex for FY24 stands at Rs 5,791 crore with Rs 4,342 crore earmarked for paints and B2B e-commerce.
Shares of Grasim Industries Ltd settled 0.79 percent lower at Rs 1,831.05 apiece in trade today. The stock jumped 5.76 percent on a year-to-date basis, while it was up 14.44 percent in the last one year.

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