Grasim Industries reported a 41% year-on-year (YoY) fall in its consolidated net profit to ₹899 crore in the third quarter. Meanwhile, its income from operations climbed by 9% YoY to ₹34,793 crore over the same period. Increased interest and depreciation charges, resulting from investments in the construction materials business, influenced profit growth. The consolidated EBITDA for the quarter decreased by 9% year-on-year to ₹4,668 crore, mainly owing to reduced cement realizations and beginning expenditures to develop a strong consumer-focused paints business.
Segment-wise growth:
Cellulosic Fibres reported a 6% year-on-year sales rise to ₹3,934 crore, while EBITDA declined 18% to ₹331 crore owing to increased key input prices. In Q3FY24, CSF prices were consistent at $1.65/kg due to China’s sustained demand. However, CSF sales volume remained similar at 205 KT owing to production difficulties at the Excel Plant in Karachi and typically lower demand at the end of the quarter.
The CFY company increased volume by 10% year on year on a lower basis, but realizations were pressured by an inflow of cheaper imports from China. The chemicals business saw a 12% YoY increase in revenue to ₹2,226 crore and a 25% YoY increase in EBITDA to ₹329 crore. This was attributed to greater profitability in the Chlorine Derivatives sector and improved Caustic Soda realization. Excess chlorine led to sustained negative realizations, resulting in a small 8% YoY increase in ECU realizations to ₹34,041/ton. Caustic Soda sales volume climbed by only 1% yearly as decreased power availability hampered output at the Vilayat facility.
