Grasim Q4 results: Standalone PAT declines by 91% YoY; to pay ₹10 dividend per share; details here

  • Grasim's Q4 standalone PAT declined sharply owing to softening of realisations in the chemicals business compared to the elevated levels of Q4 last year and continued global weakness in the VSF business. Revenue was in line with expectations.

Pooja Sitaram Jaiswar
Updated26 May 2023, 03:06 PM IST
Grasim declared a dividend of  <span class='webrupee'>₹</span>10 per share for its shareholders.
Grasim declared a dividend of ₹10 per share for its shareholders. (Bloomberg)

Grasim missed Street's expectations in terms of profitability and EBITDA in the fourth quarter of FY23, however, revenue was in line. Q4FY23 PAT stood at 93.51 crore, on a standalone basis, declining by a huge 91.24% from 1,068.03 crore in Q4 of the previous fiscal. On the other hand, revenue saw a 4.22% growth to 6,645.83 crore in the quarter under review, as against 6,376.39 crore in Q4FY22.

Grasim said that the standalone Q4 PAT was impacted due to softening of realisations in the chemicals business compared to the elevated levels of Q4 last year and continued global weakness in the VSF business.

On a consolidated basis, in Q4FY23, the company's revenue stood at its highest level of 33,462 crore, reflecting a growth of 16% YoY mainly contributed by the strong performance of key subsidiaries. Consolidated EBITDA for the quarter grew by 5% YoY to 4,873 crore. Consolidated comparable PAT from continuing operations during the quarter stood at 1,369 crore compared to 1,419 crore in Q4 last year (adjusted for tax write-backs & other one-off items).

Read here: Samvardhana Motherson Q4 results: PAT skyrockets by 438% to 654 crore, dividend declared; key highlights here

On segment-wise performance, in Q4FY23, the company's sales volume of VSF increased by 25% on a QoQ basis to 192KT. Viscose business revenue increased to 3,764 crore, up by 18% sequentially.

Meanwhile, in Q4FY23, revenue from chemicals was at 2,397 crore. down 7% QoQ and EBITDA stood at 368 crore down 25% QoQ as the ECU was sequentially down by 10% to 42,136 Per MT.

In the paint business, Grasim's construction activity on all six plants is on track as planned and the state-of-the-art R&D facility is fully operational. All the Business Plan activities are progressing in line with the plans, leading to the commercial launch as scheduled beginning Q4FY24 in phases.

Furthermore, cement sales volumes stood at ~105.7 MTPA, up 12% YoY achieving a historical milestone of 100 MTPA, the first for any cement company in India. Capacity utilisation for the quarter stood at 95% compared to 90% in Q4FY22. Consolidated revenue was at 63,240 crore, up 20% YoY and EBITDA stood at 11,123 crore for FY23.

Read here: BEML Q4 results: Consolidated PAT climbs 18% to 158 crore; PSU declares 50% dividend

Grasim said, UltraTech’s expansion program is progressing as per schedule. During the year, the Company commissioned 12.4 MTPA additional capacity of grey cement. It has further commissioned a 3 MTPA brownfield cement capacity since March’23, taking the total capacity in India to ~130 MTPA.

Ultratech Cement is a subsidiary of Aditya Birla Group and Grasim.

In regards to B2B e-commerce business, Grasim said, "The Go-to-Market strategy and outreach plan have been finalised. We have already onboarded a leadership team across sales, marketing, category & operations for the full-scale launch scheduled in Q2FY24. This launch will be in a phased manner beginning with the states of Maharashtra and Madhya Pradesh."

In a meeting held on Friday, Grasim declared a dividend of 10 per equity share for the year ended 31, March 2023 (face value 2 each).

At the time of writing, Grasim's share price traded at 1702 apiece flat compared to the previous session on BSE.

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News in Numbers

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$1 B

2 Hrs

19.50 L

250 MTPA

₹18.05 Cr

₹100/kg

First Published:26 May 2023, 03:06 PM IST
HomeMarketsStock MarketsGrasim Q4 results: Standalone PAT declines by 91% YoY; to pay ₹10 dividend per share; details here

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