Mumbai: Grasim Industries Ltd, on Friday, reported a robust 16% year-on-year growth in its consolidated revenues for the March quarter at ₹33,462 crore — an all-time high — helped by a strong performance in its key subsidiaries.
The Aditya Birla group company‘s consolidated earnings before interest, tax, depreciation and amortization, though, grew only 5% on year at ₹4,873 crore, impacted by weaker realisations in some of its standalone businesses. Consolidated operating margins fell 200 basis points on year to 14%.
The adjusted net profit, on a consolidated basis, fell 4% on year to ₹1,369 crore. The adjusted profit is net of exceptional items, discontinuing operations, and tax writebacks for a like-to-like comparison.
Grasim Industries has viscose staple fibre and viscose filament yarn, chlor-alkali, epoxy polymers, and niche textiles among its standalone businesses. It also has a 57.27% in UltraTech Cement, 54.15% stake in Aditya Birla Capital and 100% stake in Aditya Birla Renewables.
In 2022-23 (Apr-Mar), the standalone business contributed to 23% of the consolidated sales, while operating profit from the standalone business was 24% of the consolidated operating profit.
Revenues from the standalone business grew 4% on year in the March quarter to ₹6,646 crore, but operating profit slumped 35% on year to ₹542 crore. Operating margins in the standalone business fell 500 basis points on year to 8%.
The adjusted profit from the standalone business slumped 74% on year to ₹94 crore.
Net profit in the standalone business was impacted by weaker realisations in the chemicals business and continued global weakness in the viscose staple fibre business.
The company spent a total of ₹4,307 crore on capital expenditure in 2022-23 (Apr-Mar), of which ₹1,734 crore was spend in the March quarter.
For its paints business, the company has spent a total of ₹2,592 crore, which is about a fourth of its planned capital expenditure for the business. The construction of six plants is progressing as planned, and the company plans to commercially launch its paints business in phases from the March quarter in 2023-24 (Apr-Mar).
Grasim Industries announced a dividend of 10 rupees per share.
Its shares closed at ₹1,685.10 on the National Stock Exchange, down 1% from the previous close. The company announced its earnings during market hours.