Grasim posts Rs 1,369 crore consolidated net profit in March quarter

23 May 2024 , 11:58 AM

Grasim Industries, a company of the Aditya Birla Group, recorded a consolidated net profit (attributable to owners) of ₹1,369.8 Crore for the quarter ended March 8, which is almost the same as the ₹1,368.9 Crore reported during the same time last year.

Poor performance in its chemicals division and costs associated with the temporary shutdown of its joint venture company, AV Terrace Bay Inc., Canada, hurt the company’s profitability.

Grasim stated that a provision has been made for its projected exposure of ₹436 Crore and that it has recorded an impairment charge of ₹61.4 Crore for the advance against equity in AVTB.

Due to current market conditions, the joint venture company involved in the paper-grade pulp sector has temporarily halted operations at both its plant and its business, according to a regulatory filing made by Grasim on May 22.

According to the corporation, consolidated revenue was ₹37,727.1 Crore, up 12.7% over the prior year.  In the meantime, the board suggested a dividend for FY24 of ₹10 per equity share.

According to the business, the total outflow for the dividend, including the existing paid-up value of partially paid-up shares, would be ₹664 Crore.

The building materials division of the company recorded revenue of ₹20,919 Crore, up 11.25% year over year, with growth in B2B e-commerce and cement.  Despite the early losses from Paints and B2B E-commerce operations, EBITDA rose to ₹4,150 Crore, up 24% YoY, according to the company.

However, revenue fell by 13% YoY to ₹2,083 Crore, and profit for its chemicals division fell 47% YoY to ₹195 Crore. “Profitability has been impacted mainly due to the oversupply situation and weakness in demand of chlorine derivatives,” the business stated.

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