Grasim Industries Limited has reported a 41%Year-on-Year jump in its consolidated PAT (profit after tax) to Rs 1,359 crore for the July-September quarter of FY22. The flagship company of global conglomerate, Aditya Birla Group, had reported a consolidated PAT of Rs 966 crore in the corresponding quarter of the previous fiscal. However, Grasim's consolidated PAT is down 18 per cent compared to the previous quarter.
Grasim's consolidated EBITDA is up 19 per cent YoY at Rs 4,282 crore compared to Rs 3,603 crore in the same quarter of the previous financial year. The consolidated revenues from operations stood at Rs 22,564 crore, up 26%, from Rs 17,950 crore in the corresponding quarter last fiscal.
The firm's standalone revenue for Q2FY22 jumped 67 per cent to Rs 4,933 crore. EBITDA soared 144% to Rs 1,504 crore and standalone PAT at Rs 979 crore was up 180 per cent, on a YoY basis.
Revenue and EBITDA from the discontinued operations (fertiliser business) for Q2 of FY22 stood at Rs 773 crore and Rs 50 crore respectively. The fertiliser business divestment process is expected to be completed by Q3 of FY22.
"The demand momentum picked up in Q2FY22 and has continued thereafter across all businesses. Backed by strong demand, realisation and volumes have improved in key businesses, offsetting the cost increase," a Grasim statement said.
The company, which is planning an entry into the paint business, said it has already acquired land at 5 locations as part of its pan-India footprint for paint. It said these locations have been identified in different regions, basis proximity to key consumption hubs across India.
"The process of environmental clearance is also underway for various project sites. The contracts for basic engineering and detailed engineering have been awarded. The civil work at various sites shall commence post receipt of the environmental clearance," the company said.
Grasim's Viscose business registered a strong operational and financial performance driven by demand momentum and better product mix. The Viscose business recorded the highest ever total sales volume with domestic sales volume, back to the pre-pandemic level in Q2 of FY22. The share of value-added products in the overall sales mix almost doubled YoY to 27 per cent.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today