Grasim Industries Ltd reported a 45.64 per cent decline in its net profit, falling to Rs 1,100.16 crore for the September quarter, as a result of lower profits in its cement business and investments in the building materials and renewables sectors.
The Aditya Birla Group‘s flagship company had reported a net profit of Rs 2,024.05 crore during the July-September period last year, according to a regulatory filing.
Grasim is the holding company for major group businesses such as UltraTech, Aditya Birla Capital, and Aditya Birla Renewables.
Its revenue from operations increased by 11.05 per cent to Rs 33,562.85 crore during the quarter under review, compared to Rs 30,220.68 crore in the corresponding period last year.
The revenue was driven by the superior performance of financial services, cellulosic staple fibre, and specialty chemicals businesses, as mentioned in the company’s statement..
However, it also noted that the consolidated EBITDA had declined because of lower profitability in the cement business and initial investments in the paints business under the brand Birla Opus.
“Further, higher interest and depreciation charges due to investments in the building materials and renewables businesses have led to lower PAT,” said Grasim.
During the quarter under review, total expenses increased by 15.75 per cent to Rs 31,993.03 crore, while Grasim Industries’ total income, including revenue from other sources, reached Rs 33,958.21 crore, marking an 11.31 per cent increase in the September quarter.
On Thursday, Grasim Ltd shares settled at Rs 2,528.55 on the BSE, reflecting a 0.79 per cent increase from the previous close.