The group has recognised impairment charge of Rs 61.4 crore in Q4.
Aditya Birla Group flagship Grasim Industries reported a flat consolidated net profit (attributable to owners) of Rs 1,369.8 crore for the March quarter as against Rs 1,368.9 crore a year ago. The company's margins came under pressure from bleak growth in its chemicals business and charges related to temporary closure of its joint venture company AV Terrace Bay Inc, Canada.
Let's take a look at the key points from fourth-quarter financials of Grasim Industries.
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Q4 performance
- Consolidated net profit (attributable to owners) of Rs 1,369.8 crore for the March quarter stayed flat from Rs 1,368.9 crore reported in the year-ago period.
- Consolidated revenue came in at Rs 37,727.1 crore, up 12.7 percent from the previous year.
- Capex spent for Q4FY24 stood at Rs 1,067 crore.
- On a standalone basis, Grasim reported a loss of Rs 440.9 crore against profit of Rs 93.5 crore a year back.
Impairment charges- The group has recognised impairment charge of Rs 61.4 crore for the advance against equity in AV Terrace Bay Inc, Canada (AVTB).
- During Q4, JV firm ATVB joint temporarily idled its plant and business operations due to prevailing market conditions. A provision has been created towards its estimated exposure of Rs 436 crore.
- Total charge of Rs 497.36 crore recognised as an exceptional item in the results for the quarter and year ended March 31, 2024.
Chemicals business- Profit of the segment stood at Rs 195 crore, down from Rs 368.15 crore reported in the same quarter last year.
- Chemical segment reported dismal fourth-quarter numbers hit by oversupply situation and weakness in demand of chlorine derivatives.
- The company said that caustic soda prices in domestic markets remain impacted by the oversupply situation and cheaper imports.
Building materials- Unit reported revenue of Rs 20,919 crore, up 11.25 percent on-year, citing growth in cement and B2B e-commerce business.
- EBITDA increased to Rs 4,150 crore, up 24 percent on-year, despite the initial losses from paints and B2B e-commerce businesses, the company said.
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