Grasim’s Consolidated Revenue Grows 9% In Q1FY25

Grasim Industries Ltd reported its financial results for the quarter ended 30th June 2024. The company’s consolidated revenue reached Rs 33,861 cr., marking a 9% increase YoY, driven by strong performance across its diversified business portfolio, including cellulosic staple fibre, building materials and financial services.

Key Financial Metrics:

• Consolidated Revenue: Rs 33,861 cr. (up 9% YoY)
• Consolidated EBITDA: Rs 4,760 cr. (down 4% YoY)
• PAT: Rs 1,189 cr. (down 18% YoY)

Segment Performance:

Cellulosic Fibres

• Revenue: Rs 3,787 cr. (up 6% YoY)
• Segment EBITDA: Rs 405 cr. (up 4% YoY)
• Cellulosic Staple Fibre (CSF) achieved record sales of 212 KT, a 14% YoY increase. CFY business saw a 2% YoY volume growth despite subdued downstream demand and lower-priced imports.

Chemicals

• Revenue: Rs 2,066 cr. (down 4% YoY)
• Segment EBITDA: Rs 310 cr. (up 59% QoQ, down 13% YoY)
• Improved global caustic soda prices led to higher domestic prices and better margins for chlorine derivatives. Speciality chemicals revenue contribution increased to 30%.

Building Materials

• Revenue: Rs 18,701 cr. (up 11% YoY)
• EBITDA: Rs 2,909 cr. (down 7% YoY)
• Cement sales volumes grew by 7% YoY, with a 22% increase in ready-mix concrete sales. The company expanded grey cement capacity by 8.7 Mn TPA, reaching a total capacity of 154.9 mn TPA. UltraTech is set to acquire a 32.72% stake in India Cements Ltd, with a mandatory open offer to follow regulatory approvals.
• The paints business, under the ‘Birla Opus’ brand, is expanding production and launched its first flagship store in Mumbai. The total capex for the paints business stands at Rs 7,795 cr., covering 77% of the planned outlay.
• Birla Pivot, the B2B e-commerce arm, has achieved a quarterly run-rate revenue exceeding Rs 550 cr., with expanding reach across 200+ cities.

Financial Services

• Revenue: Rs 8,807 cr. (up 25% YoY)
• EBITDA: Rs 1,058 cr. (up 17% YoY)
• Lending portfolio grew by 27% YoY to Rs 1,27,705 cr. AUM increased by 20% YoY to Rs 4,62,891 cr. The Aditya Birla Capital Digital platform saw about 8 lakh registrations, and Udyog Plus scaled to over 10 lakh registrations.

Other Businesses (Textiles, Renewables and Insulators)

• Revenue: Rs 798 cr. (up 6% YoY)
• EBITDA: Rs 109 cr. (down 16% YoY)
• Renewable energy capacity increased to 946 MW.

Capital Expenditure

• Q1FY25 Capex: Rs 983 cr.
• Budgeted FY25 Capex: Rs 4,553 cr., with ~Rs 3,000 cr. allocated to new growth businesses.

Sustainability Initiatives

• Recycled water consumption improved to 54%.
• Renewable power consumption in standalone businesses stood at 11%.
• Recognized for sustainability efforts at the Times Now Sustainable Organization 2024.

Outlook
Grasim is strategically positioned to capitalize on growth opportunities in India’s expanding economy. The government’s focus on infrastructure, housing and financial inclusion supports a positive outlook for the company.