Aditya Birla Group’s Grasim Industry reported a nearly 62% rise in consolidated net profit for the quarter ending March 31, 2022, at Rs 2,777.15 crore on an 18.07% year-over-year rise in net sales to Rs 28,811.39 crore.
Segment-Wise Revenue:
The company’s revenue from the viscose (pulp, viscose staple fiber, and filament yarn) segment came in at Rs 3,766.49 crore, up 45.80% YoY.
Revenue from the cement segment was Rs 15,767.28 crore, up 9.45% YoY.
Revenue from the chemicals segment stood at Rs 2,486.52 crore, up 68.89% YoY,
Revenue from the financial services segment was reported at Rs 6,622.35 crore, up 19.01% YoY.
In India, the textile value chain was running at full capacity. According to Grasim, the VSF business recorded a sales volume of 179KT in Q4FY22, up 22% YoY, with a significant mix of VAP at 25% (Q4FY22).
During the quarter, the company launched a new product–‘Navyasa created by LIVA, which represents an optimistic outlook for viscose staple fiber (VSF) share in a 10-lakh ton saree fiber market.
Grasim said its chemical operations performed robustly despite rising costs (electricity and other expenses), thanks to consecutive improvements in the electrochemical unit (ECU).
The company also stated that capacity expansion at its Panipat and Ludhiana paint operations will begin soon and that the remaining three plants are awaiting government approval.
“We have accelerated the execution of our paint’s capacity of 1,332 MLPA with commissioning of plants to start by Q4FY24. The project cost is likely to be Rs 10,000 crore by FY25”, the firm said.
Grasim Industries’ consolidated net profit before exceptional items and tax from continuing operations declined 12.47% to Rs 3,261.03 crore in Q4FY22. EBITDA decreased 10% YoY to Rs 4647 crore in the fourth quarter of last fiscal.
Total expenses increased 23.46% to Rs 25,786.54 crore. The cost of materials consumed increased 36.35% to Rs 5,093.38 crore and employee benefits expenses jumped 8.05% to Rs 1,664.71 crore.
Full Year Performance:
The total Capex expenditure during fiscal 2022 stood at Rs 2,537 crore. It includes Rs 579 crore expenditure done on the paint business.
The company’s cement business Ultratech Cement revenue stood at Rs 52,599 crore, up 18% YoY in FY22.
Overall, the company posted an EBITDA of 12,022 crore while sales volume was 94 MTPA.
Its net debt declined from Rs 76,717 crore in FY21 to Rs 3,901 crore in FY22, with consolidated net debt to EBITDA ratio of 0.32x.
The NBFC and housing finance lending book increased to Rs 55,180 crore, up 13% YoY in FY22.
Revenue from other segments and net profit jumped 18 percent and 20 percent to Rs 6,617 crore and Rs 450 crore each.
In the year ended March 2022, net profit increased 75.38 percent to Rs 7,549.78 crore, thanks to a 25.26 percent rise in net sales to Rs 95,701.13 crore, compared to the year ended March 2021.
For the fiscal year ending March 31, 2022, the board recommended a dividend of Rs 5 per equity share, above a special dividend of Rs 5 per equity share, bringing the total payment to Rs 10 per equity share.
In FY2022, net cash from operating activities was Rs 7,037.65 crore, down from Rs 15,075.08 crore the previous fiscal.