Grasim Industries Q2 profit triples to 2,306 cr, revenue up 33%

Mumbai: Grasim Industries' profit for the September quarter nearly tripled year-on-year to ₹2,306 crore, aided by revenues rising 33% year-on-year to an all-time high of ₹12,747 crore.

The revenue growth was led by continued growth momentum across the company's core and growth businesses, the company said, as key businesses such as cellulosic fibres, chemicals and textiles remained resilient despite global volatility, while the paints and B2B e-commerce businesses saw strong consumer and brand traction.

Earnings before interest, tax, depreciation and amortization (EBITDA) rose 158% year-on-year to ₹4,615 crore, supported by a dividend income of ₹3,968 crore from UltraTech Cement and a favourable product mix, partially offset by higher input prices.


"We believe that for this quarter, Standalone results reflect actual underlying performance of the Company, as compared to Consolidated results," the company said in a statement. "The dividend from UltraTech of ₹3,968 crore is cash received by the company, which is accounted for in standalone results, however, gets eliminated in consolidated results," it said.

In its cellulosic fibres business, the company's revenue grew 29% year-on- year to ₹5,344 crore aided by volume growth, a favourable product mix and stable domestic realisations. This helped offset the impact of geo-political issues and higher input and logistics costs, the company said. EBITDA from the business rose 49% year-on-year to ₹522 crore.

In its chemicals business, the company's revenue rose 15% year-on-year to ₹2,759 crore, while EBITDA fell 11% to ₹326 crore, due to higher power costs in the caustic soda business and lower profitability in the specialty chemicals business.

Its decorative paints business 'Birla Opus' saw a 35% year-on-year growth in revenue to ₹1,337 crore while volume growth stood at 20%. The business aims to cross a double-digit revenue market share in the second half of this fiscal, the company said in its statement.

At the consolidated level, the company reported a loss of ₹234.08 crore, compared with a profit of ₹594.52 crore a year ago.