Grasim Industries, the flagship company of the Aditya Birla Group, has reported a 15.3% increase in its net profit for the second quarter of FY24. The company’s net profit, attributable to the owners, stood at Rs 1,164 crore, compared to Rs 1,009 crore in the same period last year. The rise in profit was primarily due to improved operational performance.
Revenue for the company during this period witnessed a 10% growth, reaching Rs 30,221 crore. The strong performance of the cement and financial services businesses contributed to this growth. However, sequentially, the net profit dipped by 26.2%. Grasim Industries also highlighted that consolidated EBITDA (earnings before interest, taxation, depreciation, and amortization) stood at Rs 4,509 crore, marking a 19% increase.
The company’s cement subsidiary, UltraTech, played a significant role in boosting Grasim’s financial performance in the quarter. Additionally, Grasim reported positive numbers for its viscose business, with volumes growing by 24% YoY and revenue reaching Rs 3,889 crore. The chemicals business also showed promise with an EBITDA of Rs 236 crore, despite a sequential decline of 34%.
Grasim also provided an update on its new business venture in paints. The company shared that sub-branding and marketing strategies were progressing as planned, and plants at three locations had received consent to operate.
Furthermore, the company announced the appointment of K Suresh as the new Chief Operations Officer (COO) – Manufacturing (Fibre), effective from January. The current COO, Kalyan Ram Madabhushi, will retire early and step down from his position on 31 December.
In terms of plans, Grasim revised its capex budget for FY24, with an additional spend of Rs 138 crore. The total budgeted spend for the financial year now stands at Rs 5,929 crore.
