Grasim Industries Faces Profit Dip Amid Investment Shifts

Grasim Industries reported a 45.64% decline in net profit due to lower cement business profitability and increased interest and depreciation charges from investments in renewables. Despite challenges, revenue rose by 11.05% driven by strong performance in financial services, cellulosic fibre, and specialty chemicals. The company remains optimistic about future growth.

Grasim Industries, the flagship holding firm of the Aditya Birla Group, posted a 45.64% decline in consolidated net profit for Q2 2024, amounting to Rs 1,100.16 crore. This drop was attributed to reduced profitability in the cement sector and increased interest and depreciation costs from investments in the renewables business.

The firm had recorded a net profit of Rs 2,024.05 crore in the same period last year. Meanwhile, revenue from operations rose by 11.05%, reaching Rs 33,562.85 crore, fueled by stellar performance from the financial services, cellulosic staple fibre, and specialty chemicals sectors.

Despite setbacks in some areas, Grasim Industries is poised for growth, benefiting from government support in infrastructure and financialisation, which aligns with its expansive presence across varied sectors of the robust Indian economy.

(With inputs from agencies.)