Grasim Industries has reported a robust financial performance in Q4 FY24. The company’s consolidated revenue stood at its highest levels of Rs. 37,727 crore, reflecting a growth of 13% YoY. Consolidated EBITDA for the quarter stood at an all-time high of Rs. 6,196 crore, recording a growth of 27% YoY. Consolidated PAT stood at Rs. 1,908 crore, up by 39% YoY excluding exceptional items charge of Rs. 538 crore (net of minority interest).

FY24 Performance

Consolidated revenue reached an all-time high of Rs. 1,30,978 crore, up by 11% YoY, driven by strong underlying performance from its diversified businesses portfolio. Specifically, the Building Materials and Financial Services businesses delivered a superior performance. Consolidated EBITDA for the year was at the highest ever level of Rs. 20,837 crore Consolidated PAT stood at Rs. 6,163 crore, up 14% excluding exceptional items charge of Rs. 538 crore (net of minority interest).

Key highlights of the performance are as follows:

Chemicals (Chlor-Alkali, Chlorine Derivatives and Speciality Chemicals)

International Caustic Soda (CFR-SEA) average spot prices sequentially improved for the third consecutive quarter from the lows of ~$415/ton to ~$451/ton in Q4FY24, higher by 9%. However, caustic soda prices in domestic markets remain impacted by the oversupply situation.

The Chemicals business achieved its highest ever caustic soda sales volume of 308 KT in Q4FY24, up 8% YoY. However, revenue decreased by 13% YoY to Rs. 2,083 crore  due to a sharp decline of 28% YoY in ECU realisation. Revenue contribution from Speciality Chemicals (epoxy polymers and curing agents) improved to 28% for the quarter. EBITDA for the Chemicals business stood at Rs.195 crore. Profitability has been impacted mainly due to the oversupply situation and weakness in demand of chlorine derivatives.

Building Materials (Cement, Paints and B2B E-commerce)

The Building Materials business reported revenue of Rs. 20,919 crore., up 11% YoY, led by the growth in Cement and B2B E-commerce business. EBITDA increased to Rs. 4,150 crore  up 24% YoY despite the initial losses from Paints and B2B E-commerce businesses.

Growth in the cement business (UltraTech) was driven by higher sales volumes, up 11% YoY to 33.91 MT. Cement business’s expansion program is progressing as per schedule, with India grey cement capacity increasing from 140.8 MTPA at year end and expected to reach 183.5 MTPA by FY27 (excluding Kesoram capacity of 10.75 MTPA, under acquisition by UltraTech, which is awaiting regulatory approvals).

Birla Opus, the Paints business, is holding dealer meets and expos across the country as part of the Pan-India launch plan. Commercial production commenced at three plants in Apr’24. The construction of the other three plants is progressing as per schedule. Branding and advertising as well as outreach to influencers (contractors and painters) is on track. The total expenditure on the project is Rs. 7,063 crore till Mar’24, ~70% of the planned capex outlay. 

Birla Pivot, the B2B E-commerce business, crossed a milestone revenue of Rs. 1,000 crore in its first year of operations, with healthy repeat order rates. Birla Pivot offers a wide catalogue across 35 product categories comprising of 18,000+ SKUs sourced from over 150 Indian and International suppliers. Private labels ‘Birla Pivot Tiles’ and ‘Birla Pivot Plywood’ are increasing gaining market acceptance and positive response.

Capex

Consolidated capex for the year stood at Rs. 20,199 crore of which growth capex stood at Rs. 16,817 crore, 83% of the total capex. The growth capex was largely focused on capacity expansion in the Building Materials businesses.