Grasim Industries Sees Decline in Quarterly Net Profit Despite Revenue Growth

Grasim Industries Ltd reported a 12% decline in its consolidated net profit for Q1 2024, attributable to increased depreciation and interest charges from new growth ventures. Despite this, revenue from operations surged by 9% driven by strong performances in its diversified business portfolio.

Grasim Industries Ltd, the flagship business of Aditya Birla Group, announced a 12 percent fall in its consolidated net profit for the first quarter ending June 2024. Net profit stood at Rs 2,267.74 crore, primarily due to elevated depreciation and interest costs related to its new growth ventures.

In comparison, the company had recorded a net profit of Rs 2,576.35 crore in the same period last year, as per a regulatory filing. Despite the profit dip, revenue from operations increased by 9 percent, amounting to Rs 33,860.75 crore, up from Rs 31,065.19 crore in the corresponding quarter of the previous fiscal. The diverse business segments, including Cellulosic Staple Fibre, Building Materials, and Financial Services, performed robustly, driving this revenue growth.

However, EBITDA for the quarter was down by 4 percent to Rs 4,760 crore, impacted by investments in the Paints business Birla Opus. The company's total expenses also rose by 12 percent to Rs 31,249.17 crore. Additionally, total income for the period increased by 8.92 percent to Rs 34,160.77 crore. Grasim Industries' shares were trading at Rs 2,575.05 per piece on the BSE, reflecting a 1.22 percent rise from the previous closing.

(With inputs from agencies.)