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Grasim Inds gains after Q4 PAT rises 9% YoY

23-May-25 11:11 Hrs IST

Revenue from operations increased 17.33% YoY to Rs 44,267.26 crore in the fourth quarter of FY25, driven by superior performance in cement, chemicals and financial services businesses.

Profit before exceptional items and tax stood at Rs 4,063.33 crore in March 2025 quarter, down 9.66% YoY. The company reported an exceptional loss of Rs 67.32 crore during the quarter.

The company's EBITDA in Q4 FY25 was Rs 6,548 crore, registering a growth of 6% from Rs 6,196 crore posted in Q4 FY24.

Revenue from the Cellulosic Staple Fibre (CSF) business for the quarter stood at Rs 4,050.93 crore, up 8% YoY, driven by growth in domestic CSF sales volume, although overall volumes remained flat at 207 KT. Cellulosic Fashion Yarn (CFY) volumes grew by 3% YoY; however, realizations continued to be impacted by low-priced dumping from China.

Revenue from the chemicals business rose by 10% year-on-year (YoY) to Rs 2,301.51 crore in Q4 FY25. Caustic sales volume recorded moderate growth of 1% YoY, impacted by lower production due to a plant shutdown at Karwar. Specialty chemicals volume grew by 7% YoY; however, lower realizations coupled with higher input costs affected profitability.

The building materials business reported revenue of Rs 25,232 crore, up 21% YoY, driven by all-round performance across cement, paints, and B2B e-commerce segments. EBITDA stood at Rs 4,406 crore, up 6% YoY, supported by improved profitability in the cement business. The new businesses remain in the investment phase, with a clear roadmap for profitable growth in the coming years.

Consolidated sales volumes of the cement business (UltraTech) grew by 17% YoY to 41.02 million tons (Mt). Ready-mix concrete sales volumes grew by 19% YoY to 3.98 million. The cement business's expansion program is progressing well, with the current (May-25) total grey cement capacity at 190.16 Mtpa, expected to reach over 215 Mtpa by FY27.

The financial services business (Aditya Birla Capital), revenue and EBITDA, as consolidated in accordance with Ind AS, stood at Rs 10,252 crore and Rs 1,280 crore, registering growth of 33% and 25%, respectively. The overall lending portfolio (NBFC and HFC) increased by 27% YoY to Rs 1,37,946 crore.

The Financial Services business, consolidated in accordance with Ind AS, reported revenue of Rs 12,197 crore, up 16% YoY. Aditya Birla Capital's total lending portfolio (including NBFC and HFC) grew by 27% YoY to Rs 1,57,404 crore. Total Assets Under Management (AUM) across AMC, life, and health insurance segments rose by 17% YoY to Rs 5,11,260 crore. The direct-to-consumer (D2C) platform, ABCD, witnessed a strong response, with over 5.5 million customer acquisitions.

Revenue from other businesses (textiles, renewables, and insulators) stood at Rs 898 crore, up 14% year-on-year (YoY), while EBITDA rose 33% YoY to Rs 139 crore, primarily driven by the renewables business. The cumulative installed capacity of the Renewables segment reached approximately 1.5 GWp, up 64% from 894 MWp in March 2024. The textiles business reported revenue of Rs 547 crore, up 2% YoY; however, EBITDA was impacted by exceptionally high input prices in the linen segment.

On the outlook front, the firm stated, 'Grasim's standalone business is undergoing a strategic transformation, marked by a decisive foray into consumer-facing and digital ventures in decorative paints and B2B e-commerce for construction materials. The rapid scale-up of these verticals signals the emergence of robust new growth engines in a fast-evolving economic landscape. These new high-growth businesses are now well poised to complement Grasim's legacy of manufacturing-led growth. With a fortified and future-forward portfolio, Grasim is now uniquely positioned to align with, and actively contribute to, the government's ambitious vision for a Viksit Bharat, a developed India anchored in innovation, infrastructure, and inclusive growth.'

Capital expenditure for the year on a standalone basis stood at Rs 3,513 crore, of which approximately 65% (around ₹2,300 crore) was allocated to new businesses, primarily paints and B2B e-commerce.

Meanwhile, the company's board has recommended a dividend of Rs 10 per equity share for the financial year ended 31st March 2025, subject to the approval of shareholders at the ensuing Annual General Meeting (AGM) of the company.

Further, the company's board has also approved the appointment of Hemant Kumar Kadel as the chief financial officer (CFO) and key managerial personnel of the company with effect from 16th August 2025. This appointment is consequent to the superannuation of Pavan Kumar Jain in terms of the company's policy. He will be relieved of his current responsibilities as chief financial officer and key managerial personnel of the company from the close of business hours of 15th August 2025.

Grasim Industries, a flagship company of the Aditya Birla Group, is a leading diversified player with leadership presence across many sectors. It is a leading global producer of viscose staple Fibre and viscose filament yarn, the largest chlor-alkali, advanced material, linen yarn and fabrics producer in India. The company recently has entered paints business and setting up six plants across pan-India locations.