Aditya Birla Group's flagship firm Grasim Industries on May 24 posted a consolidated net profit of Rs 2,777 crore for the March quarter (Q4FY22), up 62% from the year-ago period, helped by higher revenues and tax write back.
Revenue from operations surged 18% year-on-year (YoY) to Rs 28,811 crore against Rs 24,402 crore last year in the same quarter. Tax write back for the quarter stood at Rs 464 crore against Rs 1,064 crore tax paid in the corresponding quarter of the previous fiscal.
Standalone net profit for the quarter stood at Rs 1,068 crore, up 122% from the March 2012 quarter. Revenue advanced 45% to Rs 6,376 crore. Tax write back for the quarter stood at Rs 406 crore versus tax paid of Rs 126 crore last year.
A Bloomberg poll of two analysts expected standalone revenue at Rs 6,403 crore while net profit was pegged at Rs 469.20 crore.
The viscose staple fibre (VSF) business reported a sales volume of 179KT in the fourth quarter, up 22% from a year ago, with a strong mix of value-added products (VAP) at 25%. The recently commissioned 600 TPD brownfield plant at Vilayat contributed 32KT of sales volume during the quarter and operated at 83% capacity utilisation during the quarter, the firm said. The viscose filament yarn (VFY) business recorded a volume growth of 9% YoY. Higher input and fixed costs in Q4FY22 impacted financial performance.
The firm said it has launched a new saree brand Navyasa Created by Liva, a significant opportunity to increase VSF share in a 10 lakh ton saree fibre market.
Grasim said its chemical operations reported a stellar performance despite mounting cost pressure (Power and other costs), driven by sequential improvement in the electrochemical unit (ECU).
The firm also said its Panipat and Ludhiana paint operations capacity expansion is expected to start shortly and the remaining three plants are in the process of getting government approval. "We have accelerated the execution of our paint’s capacity of 1,332 MLPA with commissioning of plants to start by Q4FY24. The project cost is likely to be Rs 10,000 crore by FY25", the firm said.
Total capital expenditure during FY22 stood at Rs 2,537 crore which includes Rs 579 crore spent on the paint business. Grasim said it has zero net debt with net cash of Rs 553 crore as of March 2022.
Grasim's cement arm Ultratech Cement revenue was at Rs 52,599 crore, up 18% YoY in FY22. The company reported an EBITDA of 12,022 crore while sales volume stood at 94 MTPA. Its net debt reduced from Rs 76,717 crore in FY21 to Rs 3,901 crore in FY22, with a consolidated net debt/EBITDA of 0.32x.
The NBFC and housing finance lending book grew 13 percent to Rs 55,180 crore in FY22. While revenue from other segments and net profit increased 18 percent and 20 percent to Rs 6,617 crore and Rs 450 crore, respectively.
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