Aditya Birla group firm Grasim Industries Ltd on Monday (November 13) reported a 17.6% year-on-year (YoY) decline in standalone net profit at ₹794.7 crore for the second quarter that ended September 30, 2023.

In the corresponding quarter last year, Grasim Industries posted a net profit of ₹964.3 crore, the company said in a regulatory filing. A CNBC-TV18 poll had predicted a profit of ₹721 crore for the quarter under review.

The company's revenue from operations falls 4.5% to ₹6,442 crore as against ₹6,745.2 crore in the corresponding period of the preceding fiscal. The CNBC-TV18 poll had predicted revenue of ₹6,312 crore for the quarter under review.

At the operating level, EBITDA declined 37.9% to ₹594 crore in the second quarter of this fiscal over ₹956.2 crore in the corresponding period in the previous fiscal. The CNBC-TV18 poll had predicted an EBITDA of ₹641 crore for the quarter under review.

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EBITDA margin stood at 9.2% in the reporting quarter as compared to 14.2% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation. The CNBC-TV18 poll had predicted a margin of 10.2% for the quarter under review.

Viscose business

China operating rates (OR) averaged 85% in Q2 of FY24; a slight increase compared to 82% in Q1 of FY24. Additionally, inventory levels have seen a gradual decrease during Q2 of FY24.

Given the macro-economic situation, demand in global consuming markets like the US and Europe remains muted, though festive season led to uptick in domestic demand.

Domestic prices remained under pressure due to the softening of international VSF prices by 7% from an average of $1.67/kg in Q1 of FY24 to $1.55/kg in Q2 of FY24.

Chemicals Business

International Caustic Soda spot prices (CFR SEA) remained relatively stable at $417/tonne in Q2 of FY24 ($415/tonne in Q1FY24). Prices declined to $383/tonne in July 2023, but recovered later in the quarter, reaching $470/tonne in September 2023.

Caustic soda sales volume increased 5% quarter-on-quarter and 3% year-on-year to 306KT in Q2 of FY24. ECU for the quarter stood at ₹32,008/MT, down 8% quarter-on-quarter and 35% year-on-year.

Chemicals Business revenue stood at ₹1,988 crore, down 7% quarter-on-quarter and 27% YoY, primarily due to lower caustic soda realisations. EBITDA stood at ₹236 crore, down 34% quarter-on-quarter and 61% year-on-year.

UltraTech Cement

Cement sales volume stood at 26.69 MTPA, up 16% year-on-year in Q2 of FY24. Consolidated Net sales increased by 15% to ₹16,012 crore over the corresponding period of the previous year. EBITDA was up by 35% to ₹2,718 crore compared to ₹2,013 crore.

UltraTech has announced the 3rd phase of growth with an investment of ₹13,000 crore towards increasing the capacity by another 21.9 MTPA with a mix of brownfield and greenfield projects.

Aditya Birla Capital

The company reported consolidated revenue for Q2 of FY24 up 13% year-on-year at ₹7,721 crore. ABCL reported PAT growth of 44% year-on-year at ₹705 crore.

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The momentum across businesses led to a 41% year-on-year and 8% sequential growth in the overall lending portfolio (NBFC and HFC) to ₹1,08,961 crore as of September 30, 2023.

Mutual fund quarterly average assets under management (QAAUM) increased by 10% year-on-year and 5% sequentially to ₹3,10,899 crore with an equity mix of 41.9%.

The results came after the close of the market hours. Shares of Grasim Industries Ltd ended at ₹1,922.00, down by ₹24.25, or 1.25%, on the BSE.

First Published:Nov 13, 2023 9:34 PM IST