Grasim Industries Q2 results FY25 reported a 59% year-on-year fall in the consolidated profit after tax. On the Grasim Industries results date which was November 14, 2024, the Grasim Industries share price closed at ₹2,523.95.
Grasim Industries Q2 Results FY25: Key Highlights
- Grasim Industries Q2 results pointed out that the consolidated revenue stood at ₹33,563 crores, up by 11% YoY, driven by the superior performance of Financial Services, Cellulosic Staple Fibre, and Specialty Chemicals businesses.
- Consolidated EBITDA declined by 10% at ₹4,042 crores, as a result of lower profitability cement business and initial investments in the Paints business under the brand ‘Birla Opus’. EBITDA margins declined by 210 bps to 17.90%.
- According to the management of the company, the Grasim Industries results are in line with the plan to build a strong consumer-facing business. Further, higher interest and depreciation charges on account of investments in the Building Materials and Renewables businesses have led to lower PAT, which declined by 59% to ₹473 crores.
| Consolidated Figures (in ₹ crores) | Q2 FY25 | Q2 FY24 | YoY Change |
|---|---|---|---|
| Revenue | 33,563 | 30,221 | 11% |
| EBITDA | 4,042 | 4,509 | (10%) |
| PAT | 473 | 1,164 | (59%) |
Grasim Industries share price generated positive returns of 0.85% in the last 1 day (as on November 14, 2024).
Grasim Industries Q2 Results: Operational Highlights
1. Cellulosic Fibre
China operating rates averaged 86% in Q2FY25, higher compared to 82% in Q1FY25. Additionally, inventory levels reached their lowest levels of 8 days. Improving the demand scenario in China has led to the third consecutive quarter of price improvement in CSF prices from an average of $1.51/kg in Q3 FY24 to $1.65/kg in Q2 FY25.
2. Chemical Business
The Chemicals business revenue stood at ₹2,054 crores, up 3% YoY. Caustic soda sales volume was down by 4% YoY due to lower production on account of the maintenance shutdown of the captive power plant at Vilayat. EBITDA for the Chemicals segment stood at ₹273 crores up by 16% YoY driven by higher profitability in Chlorine Derivatives and Specialty Chemicals business as per the Grasim Industries Q2 results.
3. Building materials
Grasim Industries’ building materials segment reported revenue of ₹16,683 crores, up 3% YoY driven by Paints and B2B E-Commerce businesses. EBITDA stood at ₹1,886 crores, down 28% YoY, mainly due to lower realizations in the cement business and initial investments in building a consumer-facing brand ‘Birla Opus’ in the Indian decorative paints market.
Grasim Industries Q2 Results: Capital Expenditure
Grasim Industries results mentioned that the capital expenditure for H1FY25 stood at ₹1,884 crores. The budgeted standalone capex for FY25 is ₹4,691 crores, of which ~₹3,000 crores, is towards new growth businesses. Additionally, the Board has approved an investment of ₹287 crores (₹118 crores to be spent in FY25) for additional pulp capacity at Harihar and ₹20 crores for the Textiles business.
Grasim Industries Q2 Results: Management Commentary
“Grasim Industries Limited with its significant presence across businesses is well positioned to capitalise on the opportunities in diverse sectors of the fast-growing Indian economy. The Government’s continued focus on infrastructure & housing, manufacturing, financialisation and thrust on increasing economic prosperity of the large section of people augurs well for the Company.”
Highlighting the Grasim Industries share price performance, it has generated a negative return of 0.82% in the last 1 week (as on November 14, 2024). Keep exploring stocks and open demat account with SMC Global Securities. Stay tuned for the upcoming Nifty 50 companies quarterly results.
References
https://www.smctradeonline.com/research/equity-analysis/242
https://www.smctradeonline.com/invest/equities/227/grasim-industries-ltd-share-price
Author: All Content is verified by SMC Global Securities.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
