Grasim Inds gains after Q1 PAT rises 16% YoY

12 Aug 2022 , 03:01 PM

On a consolidated basis, profit before tax (PBT) rose 11.40% year-on-year to Rs 3,869 crore in Q1 June 2022. EBITDA rose 10% YoY to Rs 5,233 crore in Q1 June 2022. EBITDA margin stood at 19% in Q1 June 2022, lower than 23% in Q1 June 2021. Total expense climbed 44.74% YoY to Rs 24393.95 crore in Q1 FY23. Cost of raw material consumed stood at Rs 5,340.20 crore (up 58.17% YoY), power and fuel expense was at Rs 5,224.41 crore (up 71.27% YoY) and employee expenses stood at Rs 1,669.78 crore (up 15.35% YoY). The company reported its best-ever standalone financial performance, with revenue and operating EBITDA at an all-time high. Record standalone quarterly revenue Rs 7,253 crore and operating EBITDA Rs 1,364 crore, up 93% and 69% respectively (YoY). PAT at Rs 809 crore, up 68% (YoY). The company said its Viscose Staple Fibre (VSF) business reported a sales volume of 197KT in Q1FY23, up 10% QoQ and 76% YoY, with domestic sales accounting for 94% of the total sales volume. The 600 TPD brownfield plant at Vilayat contributed ~51KT of sales volume during the quarter. The advanced material business reported impressive sales volume growth of 35% YoY, though the significant increase in input prices impacted margins on a YoY basis. The business recorded sequential uptick in financial performance with an improvement in realisation and easing of some input costs. Grasim said that its paints business is focused on project execution and is on track to achieving the plant commissioning timelines. The business has obtained land possession at all its six sites. The civil construction has commenced at four of its sites - Panipat, Ludhiana, Cheyyar and Chamarajanagar. The project work at other sites will start soon after all the statutory approvals are received. Meanwhile, the company has announced its foray into B2B e-commerce platform for the Building Materials segment with an investment of ~Rs 2,000 crore over the next 5 years. The platform will primarily focus on MSMEs in the Building Materials segment with the potential to further extend to other relevant categories. The key value proposition would be an integrated procurement solution, including on-time delivery and a superior product range at competitive pricing. The total Capex budgeted to be spent during FY23 stood at Rs 6,720 crore, including Rs 3,542 crore for the paints business, Grasim said. 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 has made an entry into the paints business and setting up six plants across pan India locations. Powered by Capital Market - Live News