Grasim Industries Q3 results: Net profit plunges 41% to ₹899 crore, revenue up 9% to ₹34,793 crore | Stock Market News

Grasim Industries, on Monday, reported a 41 per cent year-on-year (YoY) decline in its consolidated net profit, which stood at ₹899 crore for the third quarter. Meanwhile, its revenue from operations increased by 9 per cent YoY to ₹34,793 crore during the same period.

Profit growth was impacted by increased interest and depreciation expenses, driven by investments in the building materials sector.

The consolidated EBITDA for the quarter declined by 9% year-on-year to ₹4,668 crore, primarily due to lower realizations in the cement business and initial investments aimed at establishing a strong consumer-focused paints business.

Segment-wise growth

Cellulosic Fibres reported a 6 per cent year-on-year revenue growth to ₹3,934 crore, while EBITDA fell 18 per cent to ₹331 crore, mainly due to higher key input costs.

A stable demand environment in China kept CSF prices steady at $1.65/kg in Q3FY24. However, CSF sales volume remained unchanged at 205 KT due to production disruptions at the Excel Plant in Kharach and seasonally weaker demand towards the quarter’s end.

The CFY business saw a 10% YoY volume growth on a lower base, but realisations faced pressure due to an influx of cheaper imports from China.

Revenue from the chemicals business rose 12% YoY to ₹2,226 crore, while EBITDA grew 25% YoY to ₹329 crore, driven by improved Caustic Soda realisations and higher profitability in the Chlorine Derivatives segment.

An oversupply of Chlorine led to continued negative realisations, resulting in a modest 8% YoY growth in ECU realisations to ₹34,041/ton. Caustic Soda sales volume increased by just 1% YoY, as lower power availability constrained production at the Vilayat plant.

The building materials segment reported a 10% YoY revenue growth to ₹18,784 crore, primarily driven by new businesses, Birla Opus and Birla Pivot.

Lower realisations in UltraTech Cement and initial investments in establishing ‘Birla Opus’ as a consumer-facing brand in India’s decorative paints market led to a lower segment EBITDA of ₹2,806 crore.

The Board has approved a 110K TPA Lyocell capacity expansion at Harihar, Karnataka, with the first phase of 55K TPA set for completion by mid-2027 at an investment of ₹1,350 crore.

This expansion will enhance the company’s portfolio of eco-friendly specialty fibres. With this investment, Grasim’s total Lyocell capacity, marketed under the ‘Birla Excel’ brand, will reach 153K TPA, further strengthening its market position.