Grasim’s Paints Business
In its earnings release, Grasim’s paints business “Birla Opus” reported revenue growth of 52% from the year-ago quarter, with a 17% sequential growth in volumes during the March quarter.
Birla Opus also projects market share gains of nearly 90 basis points from the previous quarter.
Grasim And Q4
For the March quarter, Grasim reported a net loss of ₹163 crore, narrower than the net loss of ₹288 crore reported last year. The loss was higher than the ₹129 crore estimate from a CNBC-TV18 poll.Revenue for the quarter increased by 32% to ₹11,774 crore from ₹8,926 crore last year. The figure was higher than the ₹10,582 crore estimate from the CNBC-TV18 poll.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) more than doubled in value from last year to ₹540 crore from ₹221 crore. The EBITDA figure was higher than the ₹464 crore figure projected in the CNBC-TV18 poll.EBITDA margin for the quarter expanded to 4.6% from 2.48% earlier, and marginally higher than the CNBC-TV18 poll of 2.48%.
Grasim’s Business Segments
The company’s cellulosic fibres business revenue went up by 14% from last year led by volume growth and favourable product mix. Sales volumes and realisations though remained stagnant, weighed down by muted downstream demand and low-priced imports.Chemicals business saw caustic sales volume growth of 11% and the absolute figure of 321 Kilo Tonnes (KT) was the highest on record. EBITDA for the business grew by 3% from last year. Specialty Chemicals revenue grew by 5% from last year but profitability was impacted due to higher input prices.
B2B Commerce revenue more than doubled from last year led by scale up across product categories, new customers and seasonality.
Shares of Grasim Industries are trading 1.1% higher on Wednesday at ₹2,968. The stock is up 8% in the last one month, following which, it has turned positive on a year-to-date basis.
