Grasim Industries Limited reported its Q3 FY25 financial performance, showcasing a 9% year-on-year (YoY) increase in consolidated revenue to ₹34,793 crore, compared to ₹31,965 crore in the same quarter last year. The company, however, witnessed a 9% decline in consolidated EBITDA to ₹4,668 crore from ₹5,150 crore in Q3 FY24, reflecting pressure on margins primarily due to lower realizations in the cement and chemicals businesses.
Performance highlights:
- Revenue growth: Consolidated revenue for the quarter stood at ₹34,793 crore, driven by volume growth in key segments such as chemicals, financial services, and cement.
- EBITDA decline: The company recorded an EBITDA of ₹4,668 crore, down 9% YoY, affected by lower profitability in segments like cement due to reduced realizations and higher input costs.
- PAT: Consolidated profit after tax (PAT) declined to ₹899 crore, from ₹1,514 crore in Q3 FY24, indicating a challenging operating environment.
Segmental insights:
- Cellulosic Fibres: Grasim’s board approved the setup of a 110K TPA Lyocell plant in phases, which will enhance its specialty fibre capacity. Despite a 10% YoY growth in CFY volumes, realizations were under pressure due to low-cost imports from China.
- Chemicals: Caustic soda sales growth was restricted to 1% YoY due to lower power availability. However, EBITDA rose by 25% YoY, supported by better realizations and cost efficiencies.
- Cement (UltraTech): Domestic cement volumes grew 10.5% YoY to 28.1 million tonnes, with sequential EBITDA growth of 40%, though realizations remained 8% lower YoY.
- Paints: Commercial production began at Chamarajanagar in November 2024, with another unit expected in Q4 FY25.
- B2B E-commerce: Grasim maintained strong growth across geographies and customer categories and is on track to achieve its $1 billion revenue target by FY27.
Financial services performance: Aditya Birla Capital’s lending portfolio (NBFC and HFC) grew by 27% YoY to ₹1,46,151 crore, reflecting strong customer demand across insurance, mutual funds, and asset management segments.
Despite facing challenges in profitability, Grasim Industries remains committed to growth through strategic investments, cost optimization, and capacity expansion across its key sectors, including paints, specialty chemicals, and cement.
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