Grasim Industries’ Q3 Cons PAT declines 40% y-o-y to ₹1,514 Crore

9 Feb 2024 , 10:20 AM

On Thursday, Grasim Industries Ltd reported a significant 40% year-on-year (YoY) drop in consolidated net profit for the quarter ended December 2023 to ₹1,514.44 Crore. The consolidated revenue rose by approximately 12% to ₹31,965.50 Crore.

The bottom line increased by more than 30%, while the top line increased by about 6%.

Consolidated EBITDA for the quarter climbed 41% year-on-year to ₹6,893 Crore, up from ₹4,884 Crore in the prior year quarter. Meanwhile, margins rose to 21.6%.

Despite a negative global outlook, the viscose market performed consistently throughout the quarter. The company recorded sales of ₹3,715 Crore and EBITDA of ₹402 Crore for the third quarter, growing 17% and 535% year-on-year, respectively, despite sequential declines of 4% and 14%.

The company’s VSF volumes stood at 205 KT, up 34% year-on-year and down 2% quarter-on-quarter. EBITDA margins rose year-on-year due to increased sales volume and lower input prices.

Viscose Filament Yarn (VFY) business margins fell due to decreasing sales volume and realisations as a result of increased imports from China. Continued decline in worldwide caustic soda prices, along with an oversupplied local market, hurt the Chemicals business.

Chemicals sales were reported at ₹1,996 Crore, unchanged on a sequential basis and down 23% year-on-year. EBITDA for the quarter increased 12% Q-o-Q but was down 46% y-o-y to ₹264 Crore.

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