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Informist, Friday, Aug. 8, 2025

 

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--Grasim: Birla Opus business grew in double digits QoQ
--Grasim Apr-Jun chemicals EBITDA INR 4.22 bln vs INR 3.10 bln year ago
--Grasim Apr-Jun chemicals revenue INR 23.91 bln vs INR 20.66 bln year ago
--Grasim Q1 caustic soda sales volume 303,000 tn vs 282,000 tn year ago
--Grasim caustic soda sales volume 303,000 tn vs 282,000 tn year ago
--Grasim Q1 cellulosic fibre EBITDA down YoY due to higher key input costs
--Grasim Q1 cellulosic fibre EBITDA INR 3.22 bln vs INR 4.05 bln year ago
--Grasim Q1 cellulosic staple fibre volume down YoY due to lower exports
--Grasim Q1 cellulosic fibre revenue INR 40.43 bln vs INR 37.87 bln year ago
--Grasim Q1 cellulosic staple fibre sales 209,000 tn vs 212,000 tn yr ago
--Grasim: Have planned capex of INR 22.63 bln in FY26
--Grasim spent INR 4.80 bln on capex Apr-Jun
--Grasim Apr-Jun EBITDA margin 6%, unchanged from year ago
--Grasim Apr-Jun EBITDA INR 5.28 bln vs INR 4.18 bln year ago
--Grasim Apr-Jun revenue INR 92.23 bln vs INR 68.94 bln year ago
--Grasim Apr-Jun net loss INR 1.18 bln vs INR 521.2 mln loss year ago
--Analysts saw Grasim Apr-Jun net loss at INR 2.48 bln
--Grasim Apr-Jun net loss INR 1.18 bln
 

 

By Sunil Raghu

 

AHMEDABAD – Aditya Birla group's flagship chemicals company Grasim Industries Ltd. reported a loss for the June quarter but the number was better than expected. The loss was primarily due to a sizeable rise in costs, including raw material costs, electricity and employee costs. However, the revenue from operations not just beat the Street's estimate, but its on-year growth was the highest in the last 11 quarters. The company's revenue saw growth across all segments – paints, cement, chemicals and cellulosic staple fibres – the company's earnings press release showed.

 

Grasim reported a net loss of INR 1.18 billion for the June quarter, lower than analysts' estimate of an INR 2.48-billion loss. In the year-ago quarter, the company had reported a net loss of INR 521.2 million. The revenue from operations jumped 33.8% on year to INR 92.23 billion, above the Street's view of INR 90.34 billion.

 

The bottom line performance of Grasim in the June quarter was aided by a 26.3% on-year rise in earnings before interest, tax, depreciation, and amortisation at INR 5.28 billion. The EBITDA margin for the June quarter remained unchanged on year at 6%. 

 

The EBITDA growth was mainly due to higher profitability in the cement and chemicals business, partially offset by investments in building a strong consumer-facing paints business, the company said in its investor presentation.

 

Grasim's cellulosic fibre segment revenue increased 7% on year to INR 40.4 billion in the June quarter from INR 37.9 billion in the year-ago quarter, with the cellulosic staple fibre sales volume seeing contraction of 1% on year to 209,000 tonnes, due to lower exports. The cellulosic staple fibre domestic sales volume was up 2% on year. The cellulosic fibre segment's EBITDA fell 20.5% on year to INR 3.22 billion in the June quarter from INR 4.05 billion. The company said cellulosic fibre EBITDA fell due to rise in key input costs that were passed on to consumers.

 

The chemicals segment EBITDA rose 36% on year to INR 4.22 billion, led by improved performance in caustic and chlorine derivatives. The chemicals segment of the company recorded growth in revenue to INR 23.91 billion from INR 20.66 billion. The caustic soda sales volume increased to 303,000 tonnes from 282,000 tonnes in the year-ago quarter. The company said its domestic caustic sales volumes were up 8% on year, led by stable domestic demand. While the sales of specialty chemicals were up 6% on year, its profitability was down due to higher input costs, the company said.

 

The paints segment revenue saw double digit revenue growth on a trailing quarter basis in the June quarter, the company said. This was due to increased category penetration and expansion of the distribution business. The company said according to its internal estimates, paints brand Birla Opus is now the third among domestic decorative paint brands.

 

In the paints segment, the sixth factory, at Kharagpur, saw trial run production commence in the June quarter and commercilisation is expected in the September quarter, the company said. Post this, the company's paints capacity of 1,332 million liters per annum would represent a 24% share of the domestic organised decorative paints industry. According to Grasim, Birla Opus dealers strength increased to around 8,000 towns in the June quarter from around 6,600 towns in the previous quarter. The capital expenditure in the paints segments till the end of the June quarter was INR 95.55 billion.

 

Grasim's overall standalone capital expenditure in the June quarter was INR 4.8 billion, even as the plan is to spend INR 22.63 billion in FY26.

 

The company's total expenses in the June quarter rose 34.9% on year to INR 95.23 billion. The cost of materials consumed rose 21.9% on year to INR 42.3 billion in the June quarter. Employee costs went up 18.8% on year to INR 7 billion, with power and fuel cost rising 1.4% on year to INR 10 billion.

 

In Grasim's consolidated numbers, which include the financials of UltraTech Cement Ltd., the building materials segment revenue rose 16% on year and fell 9.4% on quarter to INR 401.18 billion in the June quarter. Cement consolidated volumes rose 9.7% on year to 36.83 million tonnes.

 

On Friday, shares of Grasim ended 1.9% lower at INR 2,691.60 on the National Stock Exchange.  End

 

Edited by Avishek Dutta

 

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