Grasim Industries Ltd's Q1FY19 consolidated net profit rises 12.1% yoy to Rs1,399.5cr

The company’s consolidated revenue in the period stood at Rs16,856.70cr, up 71.2% yoy but down 3.3% qoq.

Aug 14, 2018 11:08 IST India Infoline Research Team

Grasim Industries Ltd Q1FY19

Consolidated Results Q1FY19: (in Rs cr)

Q1FY19 YoY (%)
Revenue 16,856.7 71.2
EBITDA 3,868.7 77.2
EBITDA Margin (%) 23 78
Net Profit (adjusted) 1,399.5 12.1
***EBITDA margin change is bps
Grasim reported a strong set of numbers for the quarter on both standalone and consolidated fronts. Consolidated revenue was up 71.2% yoy to Rs16,856.7cr. EBITDA grew 77.2% yoy to Rs3,868.7cr, with a 78bps expansion in EBITDA margin, which stood at 23%. Higher depreciation and interest cost restricted the PAT growth to 12.1% yoy at Rs1,399.5cr.

The results of the current period are not comparable with that of the previous year as the previous year’s results do not include the results of the erstwhile Aditya Birla Nuvo Limited (ABNL), which was merged with the company w.e.f. July 01, 2017. 
  • Standalone revenue and EBITDA were up 74.8% and 89.8% on yoy basis.
  • The VSF business reported net revenue of Rs2,480.4cr, up 35% yoy with EBITDA at Rs586cr, up 68% yoy. The VSF business reported sales volume of 132KT in Q1FY19, led by a growth in the domestic market. The share of domestic sales volume in the overall sales volume improved to 82% in Q1FY19 from 69% in Q1FY18.
  • Chemical segment’s net revenue for the quarter grew 46% yoy to Rs1,579cr with a 103% yoy jump in EBITDA to Rs495cr. The strong growth was driven by better realization and higher sales volume. Caustic prices softened during the quarter on account of availability of distress consignments and delayed ramp-up of alumina plants in China (post-winter).
  • Pulp segment’s revenue and EBITDA was up 7% and 8% yoy, respectively.
  • UltraTech had reported an increase of 28% yoy in consolidated sales to Rs9,021cr with 3.6% yoy growth in EBITDA.
  • ABCL reported a robust financial performance in Q1FY19 with a consolidated revenue of Rs3,024cr and EBIT of Rs216cr (as per IGAAP). The lending book (including housing) grew 30% yoy to Rs53,584cr in Q1FY19 and AUM grew 17% yoy to Rs3,05,684cr.
  • The asset management business, ranked No. 3 Mutual Fund in India, reported a 27% yoy increase in average assets under management to Rs2,67,176cr.
  • Life Insurance business saw a 40% yoy growth in the Individual FYP (First Year Premium) to Rs227cr.
  • The company has approved a capital expenditure plan of Rs1,112cr for caustic soda and specialty chemicals expansion.   

Technical View:

Grasim Industries Ltd ended the day at Rs988.10, up 0.35 points, or 0.04%, from its previous close of Rs987.75 on the BSE. The scrip opened at Rs992.90 and touched a high and low of Rs1,004.10 and Rs973.25, respectively. A total of 34,76,270 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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