Aditya Birla Group-owned Grasim Industries reported a consolidated net profit (attributable to owners) of Rs 1,369.8 crore for the March quarter, flat from Rs 1,368.9 crore reported in the year-ago period. The margins were dragged down by bleak results in its chemicals business and charges related to temporary closure of its joint venture company AV Terrace Bay Inc, Canada.
Grasim said it recognised an impairment charge of Rs 61.4 crore for the advance against equity in AVTB and a provision has been created towards its estimated exposure of Rs 436 crore.
The JV firm operating in paper-grade pulp business has temporarily suspended its plant and business operations due to prevailing market conditions, Grasim said in a regulatory filing on May 22.
On a standalone basis, Grasim reported a loss of Rs 440.9 crore against profit of Rs 93.5 crore in the same quarter last year.
Consolidated revenue came in at Rs 37,727.1 crore, up 12.7 percent from the previous year, the company said. Meanwhile, the board recommended dividend of Rs 10 per equity share for FY24.
The total outflow on account of the dividend would be Rs 664 crore including the current paid up value of partly paid-up shares, the company said.
Building materials and chemicals business
The company's building materials business reported revenue of Rs 20,919 crore, up 11.25 per cent YoY, citing growth in Cement and B2B E-commerce business. Meanwhile EBITDA increased to Rs 4,150 crore, up 24% YoY, despite the initial losses from Paints and B2B E-commerce businesses, the company said.
But, profit for its chemicals business plunged 47 per cent YoY to Rs 195 crore, while revenue decreased by 13 per cent YoY to Rs 2,083 crore. "Profitability has been impacted mainly due to the oversupply situation and weakness in demand of chlorine derivatives," the company said.
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