Grasim Q3 Outcomes: PAT falls 41% YoY to Rs 899 crore, income rises 9%
On a standalone foundation, the corporate reported a web lack of Rs 168 crore.
The revenue progress was dragged down by greater curiosity and depreciation fees on account of investments within the constructing supplies companies.
Consolidated EBITDA for the quarter wad down 9% YoY to Rs 4,668 crore, primarily as a result of decrease realisations within the cement enterprise and preliminary investments for constructing a powerful consumer-facing paints enterprise.
Section sensible, the Cellulosic Fibres reported income progress of 6% YoY to Rs 3,934 crore, whereas EBITDA declined by 18% YoY to Rs 331 crore, primarily as a result of greater key enter costs
Secure demand state of affairs in China has led to regular CSF costs of $1.65/kg in Q3FY24. CSF gross sales quantity in the course of the quarter stood flat at 205 KT as a result of manufacturing disruption at Excel Plant, Kharach and seasonally weak demand in direction of the quarter finish. The CFY enterprise recorded quantity progress of 10% YoY although on decrease base, nonetheless realisations remained below stress as a result of surge of cheaper imports from China. The chemical substances enterprise income was up by 12% YoY at Rs 2,226 crore, whereas EBITDA elevated 25% YoY to Rs 329 crore, pushed by improved realisation in Caustic Soda and higher profitability within the Chlorine Derivatives section.
Continued unfavourable Chlorine realisations as a result of oversupply resulted in decrease progress in ECU realisations of 8% YoY to Rs 34,041/ton. Caustic soda gross sales quantity progress at 1% YoY was muted as a result of decrease manufacturing at Vilayat plant restricted by decrease energy availability.
The constructing supplies section reported income progress of 10% YoY to Rs 18,784 crore, primarily coming from from new companies Birla Opus and Birla Pivot.
Decrease realisations in Cement enterprise (UltraTech) and preliminary bills for constructing a shopper going through model ‘Birla Opus’ within the Indian ornamental paints trade led to decrease EBITDA for the section at Rs 2,806 crore.
The Board has accepted organising of 110K TPA capability of Lyocell, the quickest rising Cellulosic Fibre, at Harihar, Karnataka. The primary section of 55K TPA will likely be executed by mid-2027 at an funding of Rs 1,350 crore.
It is going to additional strengthen the corporate’s Specialty product portfolio of eco-friendly fibres. With this funding, Grasim’s complete Lyocell capability marketed below the ‘Birla Excel’ model will enhance to 153K TPA, solidifying its place as a key participant.
On Monday, Grasim shares closed 1.39% decrease at Rs 2,453 on NSE.
