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Informist, Thursday, May 22, 2025

 

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--Grasim Jan-Mar net loss INR 2.88 bln
--Analysts saw Grasim Jan-Mar net loss INR 1.32 bln
--Grasim Jan-Mar net loss INR 2.88 bln vs INR 4.41 bln loss year ago
--Grasim Jan-Mar revenue INR 89.26 bln vs INR 67.68 bln year ago
--Grasim to pay INR 10 per share dividend for FY25
--Grasim appoints Hemant Kumar Kadel as CFO from Aug 16
--Grasim FY25 net profit INR 2.12 bln vs INR 9.45 bln year ago
--Grasim FY25 revenue INR 315.63 bln vs INR 258.47 bln year ago
--Grasim: One-time cost of INR 1.14 bln in Jan-Mar
--Grasim Jan-Mar EBITDA INR 4.47 bln vs INR 7.87 bln year ago
--Grasim Jan-Mar EBITDA falls 43% on year
--Grasim Jan-Mar EBITDA margin 5% vs 11% year ago
--Grasim FY25 EBITDA INR 28.57 bln vs INR 35.73 bln year ago
--Grasim: Jan-Mar sales mkt shr of Birla Opus, Birla White Putty crossed 10%
--Grasim: Current capacity 21% of Indian organised decorative paints mkt
--Grasim net debt INR 68.92 bln as on Mar 31 vs INR 59.81 bln year ago
--Grasim cellulosic staple fibre sales volume 207,000 tn vs 208,000 tn yr ago
--Grasim Jan-Mar cellulosic staple fibre sales volume 207,000 tn vs 208,000 tn
--Grasim Jan-Mar India cellulosic staple fibre sales volume up 4% on year
--Grasim Jan-Mar cellulosic fibre revenue INR 40.51 bln vs INR 37.62 bln
--Grasim Jan-Mar cellulosic fibre EBITDA INR 2.93 bln vs INR 4.62 bln yr ago
--Grasim Jan-Mar cellulosic fibre EBITDA down on rise in key input costs
--Grasim:Didn't raise prices in cellulosic fibre ops despite higher input cost
--Grasim Jan-Mar building materials revenue INR 252.32 bln vs INR 209.19 bln
--Grasim Jan-Mar building materials revenue up 21% on year, 30% on quarter
--Grasim Jan-Mar building materials EBITDA INR 44.06 bln vs INR 41.50 bln
--Grasim: Jan-Mar cement revenue INR 230.63 bln, up 13% on quarter
--Grasim: EBITDA figure includes operating losses of paints, B2B e-comm ops
--Grasim: Birla Opus saw QoQ revenue growth in Jan-Mar

--Grasim: Birla Opus now 3rd in India's decorative paints brand

--Grasim: Birla Opus capex at INR 93.52 bln as of Mar 31

--Grasim: Trial output run of Birla Opus Khargpur 6th unit to begin Apr-Jun

--Grasim Birla Opus dealers present in 6,600 towns vs 5,500 towns qtr ago

--Grasim: Exclusive Birla Opus company, franchisee stores in over 300 towns

--Grasim Jan-Mar caustic soda sales volume 290,000 tn vs 308,000 tn year ago

--Grasim Jan-Mar chemicals revenue INR 23.02 bln vs INR 20.83 bln year ago

--Grasim Jan-Mar chemicals EBITDA INR 2.96 bln vs INR 1.95 bln year ago

--Grasim FY25 capex spent INR 35.13 bln vs planned INR 46.93 bln

 

By Rajesh Gajra

 

NEW DELHI – Aditya Birla group's flagship chemicals company Grasim Industries Ltd. reported a weaker-than-expected bottom line number for the March quarter due to a sharp fall in operating profit and one-time cost. The revenue from operations, however, beat the Street view and the on-year growth was the highest in 10 quarters. The revenue in the company's paints business crossed the 10% market share in decorative paints market based on internal estimates after combining sales of paints and white putty, the company said in a earnings press release.

 

Grasim reported a net loss of INR 2.88 billion for the March quarter, which was below analysts' estimate of 1.32 billion loss. In the year ago quarter, the company's reported net loss was 4.41 billion, but adjusted for tax-writebacks and exceptional items, the company recorded a net profit of INR 2.75 billion. The revenue from operations jumped up 32% on year to INR 89.26 billion, which was above the Street view of INR 86.47 billion.

 

The bottom line performance of Grasim in the March quarter was hit hard by a 43% on-year fall in earnings before interest, tax, depreciation, and amortisation to INR 4.47 billion. The EBITDA margin contracted sharply to 5% in the March quarter from 11% a year ago.

 

The EBITA was affected adversely due to operating losses in its paints and business-to-business e-commerce operations. The cellulosic fibre segment's EBITDA fell sharply to INR 2.93 billion in the March quarter from INR 4.62 billion in the year-ago quarter. The company said cellulosic fibre EBITDA fell due to jump up in key input costs and its decision to not raise selling prices in the segment. The chemicals segment EBITDA, however, rose to INR 2.96 billion against INR 1.95 billion in the year ago quarter.

 

The net profit performance also bore the brunt of exceptional expenses of INR 1.14 billion which were on account of impairment costs in two joint venture companies and a write-off of one of its capital work-in-progress, according to a footnote in the company's financial statement. 

 

Grasim's cellulosic fibre segment revenue increased to INR 40.51 billion in the March quarter from INR 37.62 billion in the year ago quarter, although the cellulosic stable fibre sales volume declined to 207,000 tonnes from 208,000 tonnes. The cellulosic staple fibre domestic sales volume was up 4% on year and contributed 95% to overall sales volume mix in the segment. The exports made up for 5% of the segment sales volume.

 

The chemicals segment of the company recorded growth in revenue to INR 23.02 billion from INR 20.83 billion. But the caustic soda sales volume declined to 290,000 tonnes from 308,000 tonnes in the year ago quarter.

 

The paints segment revenue saw a sequential revenue growth in the March quarter, according to the company. The company said according to its internal estimates, paints brand Birla Opus is now the third in domestic decorative paints brand. The company also said the current paints capacity represents a 21% share of the domestic organised decorative paints industry.

 

According to Grasim, Birla Opus dealers strength increased to around 6,600 towns in the March quarter from around 5,500 towns in the previous quarter. The Birla Opus franchisee and company stores expanded to around 300 towns in the March quarter, the company said.

 

In the paints segment, the sixth factory, at Kharagpur, will see trial run production commence in the June quarter and commercilisation will take place by September, the company said. The capital expenditure in the paints segments till the end of March quarter was INR 93.52 billion.

 

Grasim's overall standalone capital expenditure in FY25 was INR 35.13 billion, although the plan was to spend INR 46.93 billion. The standalone net debt of the company rose to INR 68.92 billion as on Mar 31 from INR 59.81 billion a year ago. In FY25, Grasim's net profit fell 78% to INR 2.12 billion while its EBITDA declined to INR 28.57 billion from INR 35.73 billion in the previous year. The revenue from operations increased 22% to INR 315.63 billion in FY25.

 

Grasim will pay a dividend of INR 10 per share for FY25. The company said Thursday Hemant Kumar Kadel will take over as chief financial officer from Aug 16.

 

In Grasim's consolidated numbers, which include the financials of UltraTech Cement Ltd., the building materials segment revenue rose 21% on year and 30% sequentially to INR 252.32 billion in the March quarter. The cement revenue rose 13% sequentially to INR 230.63 billion in the March quarter. The building materials segment EBITDA increased to INR 44.06 billion from INR 41.50 billion.

 

On Thursday, shares of Grasim ended 1.2% down at INR 2,674.60 on the National Stock Exchange.  End

 

Edited by Akul Nishant Akhoury

 

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