Grasim Industries (GRASIM) Q1 24/25 earnings summary

Executive summary

• Consolidated Q1 FY25 revenue reached ₹33,861 crore, up 9% YoY, with EBITDA at ₹4,760 crore, reflecting robust performance across core businesses but a 4% YoY decline due to Paints investments.

• Paints business launched commercial production at three plants, with over 80% of planned products in distribution and rapid dealer network expansion; capex spend reached ₹7,795 crore, about 77% of total project cost.

• B2B e-commerce quarterly revenue run rate surpassed ₹550 crore, with private labels expanding and retail distribution being built.

• UltraTech Cement added 8.7 million tons capacity in Q1, reaching 155 MTPA, and strengthened its position in South India through acquisitions.

• Specialty chemicals achieved record sales, now contributing 30% to chemical segment revenue.

Financial highlights

• Cellulosic fiber volumes hit a quarterly record of 212 KT (+14% YoY), with segment revenue at a seven-quarter high and EBITDA up 16% YoY.

• Caustic soda sales volume declined 4% YoY due to plant shutdown, but ECU realizations improved to ₹32,529, highest since Q2 FY24.

• Aditya Birla Capital’s lending portfolio exceeded ₹1,27,705 crore; AUM crossed ₹5,00,000 crore; PAT up 17% YoY.

• Net debt (ex-financial services) increased to ₹19,028 crore, with net debt/EBITDA at 1x as of June 30, 2024.

• Standalone revenue from operations was ₹6,893.87 crore, up from ₹6,237.55 crore YoY; standalone net loss for the quarter was ₹52.12 crore.

Outlook and guidance

• India’s GDP growth expected at 6.8% for FY25, with robust long-term fundamentals and government focus on CapEx and fiscal prudence.

• Paints business targets high single-digit market share by FY25 exit; further plant ramp-ups scheduled for Q3 and Q4.

• B2B e-commerce aspires to reach $1 billion revenue in three years, with profitability expected at scale.

• Segment reporting was realigned to reflect new businesses, with 'Building Materials' now a separate segment.

• The company received ₹991.02 crore towards first call money on rights issue shares during the quarter.