Grasim Industries Ltd Share Price – NSE  /  BSE

Textiles, Mid Cap

Grasim Industries announced that the 77th Annual General Meeting (AGM) of the company will be held on 20 August 2024.

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Grasim Industries has redeemed commercial paper of Rs 650 crore on maturity date of 06 June 2024.

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Revenue from operations increased 12.75% year on year (YoY) to Rs 37,727.13 crore in the quarter ended 31 March 2024.

Profit before exceptional items and tax was at Rs 4,497.83 crore in the March 2024 quarter, registering a growth of 31.71% on YoY basis. The exceptional loss during the quarter stood at Rs 569.36 crore.

During Q4 FY24, EBITDA grew 27% to Rs 6,196 crore as against Rs 4,873 crore posted in same period last fiscal. EBITDA margin improved to 16% in March 2024 quarter as compared to 14% recorded in Q4 FY23.

The cement maker stated that the consolidated performance was driven by cement and financial services business.

On the segmental front, building material business stood at Rs 20,918.55 crore (up 11.25% YoY), financial services business stood at Rs 10,483.77 crore (up 29.52% YoY), revenue from the cellulose fibre business stood at Rs 3,761.75 crore (down 0.06% YoY), chemicals business revenue stood at Rs 2,082.98 crore (down 13.12% YoY).

Grasim Industries said that its cellulosic staple fibre (CSF) volumes grew by 8% YoY to reach 208 KT. However, revenue for the quarter was flat at Rs 3,762 crore, due to subdued realisations. Segment EBITDA sequentially grew by 15% to Rs 462 crore largely led by lower input costs. Demand in India during the quarter was impacted by the amendment in the MSME policy, which resulted in low inventory build-up in the textile value chain.

The company’s revenue from the chemicals business was at Rs 2,083 crore, up 13% YoY, due to a sharp decline of 28% YoY in ECU realisation. EBITDA for the chemicals business stood at Rs 195 crore. Profitability has been impacted mainly due to the oversupply situation and weakness in demand of chlorine derivatives.

Caustic soda sales volume increased 7.69% YoY to 308 KT in fourth quarter of FY24. ECU for the quarter stood at Rs 30,427/MT, 27.79 % YoY. Speciality chemicals (epoxy polymers and curing agents) performance was driven by better contribution margins and higher sales volume.

International caustic soda (CFR-SEA) average spot prices sequentially improved for the third consecutive quarter from the lows of $415/ton to $451/ton in March 2024 quarter, higher by 9%.

The building materials business reported revenue of Rs 20,919 crore, up 11% YoY, led by the growth in cement and B2B e-commerce business. EBITDA increased to Rs 4,150 crore, up 24% YoY despite the initial losses from paints and B2B e-commerce businesses.

The growth in cement business (UltraTech) was driven by higher sales volumes, up 11% YoY to 33.91 MT. Cement business’s expansion program is progressing as per schedule, with India grey cement capacity increasing from 140.8 MTPA at year end and expected to reach 183.5 MTPA by FY27 (excluding Kesoram capacity of 10.75 MTPA, under acquisition by UltraTech, which is awaiting regulatory approvals), stated the cement major.

In paints business Birla Opus, commercial production commenced at three plants in April 2024. The construction of the other three plants is progressing as per schedule. Branding and advertising as well as outreach to influencers (contractors and painters) is on track. The total expenditure on the project is Rs 7,063 crore till March 24, around 70% of the planned capex outlay.

The financial services business (Aditya Birla Capital), revenue and EBITDA, as consolidated in accordance with Ind AS, stood at Rs 10,484 crore and Rs 1,111 crore, respectively. A D2C platform, Aditya Birla Capital Digital (ABCD), has been launched in Apr’24, offering comprehensive portfolio of 22 products and services such as payments, loans, insurance, and investments to its customers.

Textiles business revenue grew by 3% YoY to Rs 534 crore. Revenue of the Renewables business (Aditya Birla Renewables) stood at Rs 112 crore, up by 18% YoY. The cumulative installed capacity increased to 894 MW, of which 44% is with group companies. Revenue of the Insulators business grew by 6% YoY to Rs 137 crore and EBITDA declined by 19% YoY to Rs 11 crore.

On a full year basis, the consolidated net profit declined 17.62% to Rs 5,624.49 crore despite of a 11.35% increase in revenue from operations to Rs 1,30,978.48 crore in FY24 over FY23.

The consolidated capex for the year stood at Rs 20,199 crore of which growth capex stood at Rs 16,817 crore, 83% of the total capex. The growth capex was largely focused on capacity expansion in the building materials businesses.

Meanwhile, the company’s board recommended a dividend of Rs 10 per share for financial year 2023-2024, subject to approval of shareholders.

Grasim Industries, a flagship company of the Aditya Birla Group, is a leading diversified player with leadership presence across many sectors. It is a leading global producer of viscose staple fibre and viscose filament yarn, the largest chlor-alkali, advanced material, linen yarn and fabrics producer in India. The company recently has entered paints business and setting up six plants across pan India locations.

The scrip fell 0.01% to currently trade at Rs 2,435.95 on the BSE.

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Grasim Industries announced that the Board of Directors of the Company at its meeting held on 22 May 2024, inter alia, have recommended the final dividend of Rs 10 per equity Share (i.e. 500%) , subject to the approval of the shareholders.

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