Grasim Industries profit up 122% to ₹1,068 cr; revenue rises 45%
Aditya Birla Group's Grasim Industries has reported a 122% rise in the Jan-March quarter standalone profit at ₹1,068 crore as compared to ₹480 crore during the same quarter last year. The ABG flagship company's standalone revenue from operations rose 45% to ₹6,376 crore in Q4 FY22 as compared to ₹4,394 crore during Q4 FY21.
The expenses also rose to ₹5,987.36 crore vs ₹3,851.51 during the same quarter last year. Grasim's EBITDA and margin for Q4 FY 22 declined 5% to ₹840 crore and 11.8%, respectively.
On a consolidated basis, Grasim's profit rose 62% YoY to ₹2,777 crore, while revenue grew 18% to ₹28,811 crore vs ₹24,401 crore during the same quarter last year. "The global demand for textile products was marginally muted with COVID related restrictions imposed by China and the ongoing Russia - Ukraine war. Chinese fibre and yarn industry maintained steady operating rates during Q4FY22. China VSF prices weakened sequentially owing to the spread of Omicron," the company says in a stock exchange filing.
It said during Q4 FY22, the rise in the global caustic soda prices was driven by the supply chain disruptions on account of Covid-led restrictions and the ongoing conflict between Russia and Ukraine. "The domestic caustic soda prices increased in line with global caustic soda price and improved demand." In the paint business, the company says it is focused on the timely execution of its capacities.
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The company's total assets as of March 31, 2022, grew to ₹62,636.22 crore vs ₹54,699.83 crore during the corresponding quarter last year, while its liabilities stood at ₹14,020.43 crore as of Q4 FY22 vs ₹11,751.97 crore during the same period last year.
Grasim's board has recommended a dividend of ₹5 per equity share for the year ended March 31, 2022, and a special dividend of ₹5 per equity share, taking the total dividend to ₹10 per equity share (of face value ₹2 each), subject to the approval of shareholders at the annual general meeting.
During the quarter, Grasim made a provision of ₹269.11 crore against disputed water charges from earlier years. Its total capex spent during FY22 stood at ₹2,537 crore, which includes $579 crore spent for the paints business, the company says.
The Grasim Industries Ltd stock closed at ₹1,401.00, down 56.40 points or 3.87%, as compared to the previous session close of ₹1,457.40 on the NSE. The stock has fallen 15.68% in the year-to-date period so far.