Grasim Q3 results: Profit drops 29% to ₹1,844.3 crore dragged by cement, investment in paints biz

The company had posted a net profit of ₹2,603.43 crore during the October-December quarter a year ago, according to a regulatory filing by Grasim Industries, which is the holding firm for group companies such as UltraTech, Aditya Birla Capital and Aditya Birla Renewables.

Its revenue from operations was up 8.84% to ₹34,792.85 crore during the quarter under review compared to ₹31,965.48 crore in the corresponding period of the previous fiscal.

The revenue growth was "up by 9% YoY, driven by all-round growth across key businesses," said an earning statement from Grasim Industries.

During the quarter Grasim's "consolidated EBITDA at ₹4,668 crore was down 9% YoY mainly due to lower realisations in the cement business and initial investments for building a strong consumer-facing paints business— Birla Opus," it added.

Further, higher interest and depreciation charges on account of investments in the Building Materials businesses have led to lower PAT.

Grasim's revenue from its Cellulosic Fibre business in the December quarter was up 5.9% to ₹3,934.09 crore.

Its revenue from the Chemicals business was up 11.52% to ₹2,226.27 crore in the December quarter, led by an improvement in Caustic Soda international average spot prices.

With this realisations in domestic markets also improved in line with global prices.

Its revenue from its Building Material business reported a growth of 10.42% to ₹18,784 crore. It was at ₹17,010.90 crore in the October-December quarter a year ago.

Grasim's 'Building Materials' comprises its Cement business UltraTech, its newly launched Paints business and its B2B e-commerce business Birla Pivot.

"The revenue growth has come mainly from new businesses Birla Opus and Birla Pivot. Lower realisations in cement business (UltraTech) and initial expenses for building a consumer-facing brand ‘Birla Opus’ in the Indian decorative paints industry led to lower EBITDA at Rs 2,806 crore, down 14 per cent YoY," it said.

Consolidated sales volumes of the cement business were up by 11% YoY to 30.37 MT and ready- mix concrete sales volumes grew by 14% YoY.

Revenue from the financial services segment -- Aditya Birla Capital Ltd (ABCL) -- was up 6.93% to ₹9,395.74 crore. It was at ₹8,786.26 crore a year ago.

"The overall lending portfolio (NBFC and HFC) increased by 27% YoY to ₹1,46,151 crore. The total AUM (AMC, life insurance and health insurance) grew by 23% YoY to ₹5,03,377 crore," it said.

Revenue from its other business, which includes - Textiles, Renewables and Insulators - was up 4.11% to ₹814.58 crore.

Over the capital expenditure, Grasim said for "9MFY25 stood at ₹2,785 crore of which 71% i.e. ₹1,966 crore is spent on new growth businesses, Paints and B2B E-commerce"

Over the outlook, the company said, "The Government’s vision for ‘Viksit Bharat’ with focus on infrastructure and housing, manufacturing, financialisation and thrust on increasing economic prosperity of the large section of people augurs well for the Company."

Share of Grasim Ltd on Monday settled at ₹2,470.75 on BSE, down 0.71% from the previous close.