Grasim Industries on Monday reported a 17 per cent year-on-year (YoY) drop in consolidated net profit at Rs 1,097 crore compared with Rs 1,327 crore in the corresponding quarter last year. The company received a dividend of Rs 628 crore from its subsidiary UltraTech Cement during the quarter, Grasim said in a filing to BSE.
Revenue for the quarter rose 22 per cent YoY to Rs 27,486 crore from Rs 22,567 crore in the same quarter last year.
Ebitda for the quarter fell 12 per cent YoY to Rs 3,783 crore from Rs 4,282 crore in the year-ago quarter.
In the case of viscose business, the India-centric demand for VSF remained largely intact, but value chain partners for global markets have started witnessing the impact of recessionary conditions, Grasim said.
“Nevertheless, VSF sales volume for the quarter at 170 kt was up 10 per cent on a YoY basis, though 14 per cent down on a QoQ basis due to demand conditions coupled with cheaper imports from Indonesia and China. In view of this, the company has rationalised the production of VSF in phases, leading to overall capacity utilisation at 70 per cent currently,” Grasim said.
In the case of chemical business, Caustic soda sales volume was up 17 epr cent YoY to 296 kt in the September quarter on the back of new capacities commissioned in H2 last year (Rehla and BB Puram). Chlorine VAPs sales volume was up 19 per cent YoY, the company said.
On paints business, the company said the first plant will be commissioned in the March quarter, and the remaining plants by FY25 in a phased manner. Grasim said the construction work is in progress across five locations and will commence at the remaining one location in Q4FY23.
“Parallelly, the plan for the commercial launch is under execution as per schedule,” it said.
The B2B E-commerce business plan is under execution for launch by Q2FY24 as schedule, Grasim added.
Overall, the company is budgeted total capex for FY23 stood at Rs 6,720 crore, including Rs 3,542 crore for the paints Business.
Against the budgeted amount, the actual spend till H1FY23 was Rs 1,524 crore, Grasim said adding that an additional capex of Rs 565 crore has been approved by the board for existing businesses, out of which Rs 382 crore is expected to be spent in FY23.
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