Aditya Birla Group firm Grasim Industries on Friday reported 42.1% decline in consolidated net profit at ₹2,355.67 crore for March quarter 2022-23 on account of tax write-backs and other one-off items.
In last financial year, Grasim crossed the ₹1 lakh crore revenue mark, joining a select club of companies in India. Its revenue from operation was at ₹1.17 lakh crore.
The company had posted a net profit of ₹4,070.46 crore during January-March 2021-22, Grasim Industries said in a regulatory filing.
Revenue from operations was up at ₹33,462.14 crore during the quarter under review from ₹28,811.39 crore in the corresponding period of the previous fiscal.
“Grasim’s consolidated revenue for Q4FY23 stood at its highest levels of ₹33,462 crore, reflecting a growth of 16% YoY mainly contributed by the strong performance of key subsidiaries,” said an earning statement from Grasim Industries.
Total expenses were at ₹30,354.70 crore as against ₹25,786.54 crore a year ago.
Total income in the March quarter was at ₹33,682.49 crore, up 16.1%.
During January-March, revenue from viscose-pulp, viscose staple fibre (VSF) and filament yarn segment was marginally down to ₹3,764.06 crore from ₹3,766.49 crore a year ago.
“The company’s sales volume of VSF increased by 25% on a QoQ basis to 192KT for Q4FY23. The VSF EBITDA turned positive in Q4FY23 and VFY margins have improved on the back of better realisations and lower raw materials prices,” it said. Revenue from its subsidiary and leading cement maker UltraTech Cement was up 18.3% to ₹18,662.38 crore as against ₹15,767.28 crore of Q4/FY22.
In the March quarter, UltraTech’s “cement sales volume (in FY23) stood at 105.7 MTPA (million tonnes per annum), up 12% YoY achieving a historical milestone of 100 MTPA, the first for any cement company in India”.
Its capacity utilisation for the quarter stood at 95%, compared to 90% in Q4FY22.
However, its revenue from the chemicals segment was down 3.58% at ₹2,397.47 crore in comparison with ₹2,486.52 crore in the fourth quarter of FY22.
According to the company, though sales volumes of caustic soda was up 5% YoY, the global caustic soda market remained oversupplied with flat demand.
Demand for the speciality chemicals business saw normalisation of realisations.
Revenue from the financial services segment — Aditya Birla Capital Ltd (ABCL) — was up 22.2% to ₹8,094.51 crore as against ₹6,622.35 crore a year ago.
“The company had a strong customer base of 38 million as of March 31, 2023. The company opened 247 branches during the year taking the total branch count to 1,295 as of March 31, 2023,” it said.
Revenue from other segments was up 25.65% to ₹886.08 crore in January-March FY23 as against ₹705.17 crore.
For the fiscal ended March 2023, Grasim’s net profit was down 1.14% to ₹11,078.20 crore. It reported a net profit of ₹11,206.29 crore in FY22.
However, its consolidated revenue from operations was up 23% to ₹1,17,627.08 crore in FY23, crossing the ₹1 lakh crore mark. It was at ₹95,701.13 crore in FY22.
The new milestone was led by “the robust performance of its key subsidiaries: UltraTech Cement, Aditya Birla Capital and Aditya Birla Renewables.” Updating about the paints business, in which the Aditya Birla group firm is making a foray, Grasim said construction activity on all six plants is on track and the R&D facility is fully operational.
All the business plan activities are progressing in line with the plans, leading to the commercial launch as scheduled, beginning Q4FY24 in phases, it said adding go-to-market strategy and outreach plan have been finalised.
On total capex for FY23, Grasim said it stood at ₹4,307 crore including ₹1,979 crore towards the paints business.
The board of Grasim Industries has recommended a dividend of ₹10 per equity share for 2022-23.
Shares of Grasim Industries on Friday settled at ₹16,87.25 apiece on BSE, down 0.93% from the previous close.
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