Grasim Industries Limited consolidated revenue for Q1 FY25 stood at Rs. 33,861 crore, up by 9% YoY, driven by strong performance from its diversified businesses portfolio.

Net profit for Q1 FY25 was Rs. 1,189 crore down b y 25% YoY. Cellulosic Staple Fibre, Building Materials and Financial Services businesses delivered superior performance.

Consolidated EBITDA for Q1 FY25 was lower by 4% at Rs. 4,760 crore. This was driven by investments in the Paints business - a reflection of Grasim’s commitment to build strong consumer-facing businesses from scratch, the results of which are in line with expectations. Further, higher depreciation and interest charges on account of new growth businesses has led to lower PAT.

Cellulosic Fibres revenue for the quarter was at Rs. 3,787 crore up 6% YoY whereas segment EBITDA grew by 4% YoY to Rs. 405 crore helped mainly by operating leverage and lower input costs.

The Chemicals business achieved revenue of Rs. 2,066 crore, down 4% YoY and 1% QoQ. Speciality Chemicals (epoxy polymers and curing agents) revenue mix improved to 30% for the quarter from 25% in Q1 FY24. EBITDA for the Chemicals segment stood at Rs. 310 crore up by 59% QoQ but declined 13% YoY. Profitability improved sequentially on the back of higher caustic soda realisations and improved margins of chlorine derivatives.

The Building Materials business reported revenue of Rs. 18,701 crore, up 11% YoY, led by the growth in cement and ramp-up in revenues from new growth businesses - Paints and B2B E-Commerce. EBITDA stood at Rs. 2,909 core, down 7% YoY mainly due to initial funding of new growth businesses.

The paints business under the brand name ‘Birla Opus’ is ramping up production across product categories at already commissioned three plants. Trial production has also commenced at the Chamarajanagar plant. The first flagship experience store is operational in Mumbai. Media campaign under ‘Make life Beautiful’ was launched with a focus on rapid brand building across all marketing channels. Outreach to influencers (contractors and painters) remains on track. The total Capex for the business is Rs. 7,795 crore till June 2024, which is around 77% of the planned Capex outlay.

Birla Pivot, the B2B E-Commerce business, has achieved a quarterly run-rate revenue of above Rs. 550 crore. The business is continuously adding new buyers with a healthy rate of repeat orders. Birla Pivot continues to expand its geographical reach with delivery to 200+ cities across 25 states and union territories.

Capital expenditure for Q1 FY25 stood at Rs. 983 crore. The budgeted standalone Capex for FY25 is Rs. 4,553 crore of which around Rs. 3,000 crore, is towards new growth businesses.

Grasim with its significant presence across businesses is well positioned to capitalise on the opportunities in diverse sectors of the fast-growing Indian economy. The government’s continued focus on infrastructure & housing, financialisation and thrust on increasing economic prosperity of the large section of people augurs well for the company.