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Grasim Industries' Q4 profit fell by 42% to Rs 2,355 billion; FY23 revenue surpassed the $1 billion threshold

Grasim Industries, a member of the Aditya Birla Group, declared its March quarter 2022–23 consolidated net profit on Friday, which fell by 42.12% to Rs 2,355.67 crore due to tax write-backs and other one-off events.

Grasim joined a limited group of Indian businesses by surpassing the Rs 1 lakh crore revenue threshold in the previous fiscal year. The company generated Rs 1.17 lakh crore in operating revenue.

According to Grasim Industries, the firm reported a net profit of Rs 4,070.46 crore between January and March 2021–22.

Operations revenue increased to Rs 33,462.14 crore in the quarter under review from Rs 28,811.39 crore in the same quarter the year before.

According to Grasim Industries' earnings announcement, “Grasim's consolidated revenue for Q4FY23 stood at its highest levels of Rs 33,462 crore, reflecting a growth of 16% YoY primarily contributed by the strong performance of key subsidiaries.”

Comparatively to Rs 25,786.54 crore a year before, total costs were Rs 30,354.70 crore.

The March quarter's total revenue increased 16.18% to Rs 33,682.49 crore.

Revenue from the viscose-pulp, viscose staple fibre (VSF), and filament yarn segments decreased slightly between January and March from Rs 3,766.49 crore to Rs 3,764.06 crore.

“For Q4FY23, the company's VSF sales volume climbed by 25% on a QoQ basis to 192KT. According to the statement, “VFY margins have increased as a result of stronger realisations and reduced raw material costs, and the VSF EBITDA became positive in Q4FY23.

Revenue from UltraTech Cement, a renowned cement manufacturer and its subsidiary, increased 18.36% to Rs 18,662.38 crore from Rs 15,767.28 crore in Q4/FY22.

UltraTech's “cement sales volume (in FY23) stood at 105.7 MTPA (million tonnes per annum), up 12% YoY, achieving a historical milestone of 100 MTPA, the first for any cement company in India,” according to the company's report from the third quarter.

95 percent of its capacity was used throughout the quarter, up from 90 percent in Q4FY22.

However, compared to the fourth quarter of FY22, when it generated income from the chemicals sector of 2,486.52 crore, it did so at a 3.58 percent lower rate, or Rs 2,397.47 crore.

The business claims that even though caustic soda sales volumes increased by 5% year over year, there was still an oversupply and no growth in demand.

Realisations began to normalise due to demand in the specialty chemicals sector.

Financial services company Aditya Birla Capital Ltd. (ABCL) reported an increase in revenue of 22.23% to Rs 8,094.51 crore from Rs 6,622.35 crore in the prior year.

“As of March 31, 2023, the corporation has a sizable 38 million user base. According to the corporation, 247 new branches were added throughout the year, bringing the total number of branches to 1,295 as of March 31, 2023.

In January through March of FY23, revenue from other sectors increased by 25.65% to Rs 886.08 crore from Rs 705.17 crore.

Grasim's net profit for the fiscal year that ended in March 2023 decreased 1.14 percent to Rs 11,078.20 crore. In FY22, it recorded a net profit of Rs. 11,206.29 billion.

However, its combined operating revenue increased by 23% to Rs 1,17,627.08 crore in FY23, passing the Rs 1 lakh crore threshold. In FY22, it was Rs 95,701.13 crore.

The new achievement was driven by “the robust performance of its key subsidiaries: UltraTech Cement, Aditya Birla Capital, and Aditya Birla Renewables.”

According to Grasim, who provided an update on the paints industry, in which the Aditya Birla group company is venturing, building activities on all six units is progressing as planned, and the R&D centre is up and running.

The go-to-market strategy and outreach plan have been completed, and all business plan operations are proceeding according to schedule, culminating to the commercial launch, which is set to commence in stages in Q4FY24, the company said.

According to Grasim, the entire capital for FY23 was Rs 4,307 crore, including Rs 1,979 crore for the paints sector.

For 2022–2023, the board of Grasim Industries has suggested a dividend of Rs. 10 per equity share.

On Friday, Grasim Industries' shares dropped by 0.93 percent from the previous day to finish at Rs 16,87.25 per share on the BSE.

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