Grasim Q2 Results: ₹825 crore one-time loss drags profit; Margins miss expectations

ملخص مفصل

For Birla Opus, revenue during the quarter stood at ₹1,337 crore, registering a growth of 35% from last year, and the unit also aims to cross double-digit revenue market share in the second half of the current financial year.

Shares of Grasim Ltd., the Aditya Birla Group company, reported results for the September quarter on Friday, November 13, which were below expectations on the operating front.

The company reported revenue of ₹12,746 crore, which is higher than the CNBC-TV18 poll expectation of ₹12,141 crore. On a year-on-year basis, the company's revenue grew by 32.6% during the quarter.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹494 crore, which is 35% higher than last year's figure of ₹366 crore, but lower than the CNBC-TV18 poll of ₹644 crore.

EBITDA margin remained steady at 3.9% from 3.8% during the year ago quarter, but again fell short of the CNBC-TV18 poll estimate of 5.3%.

Net profit for the quarter stood at ₹2,306 crore. The profit figure is adjusted for a one-time exceptional loss of ₹825 crore. During the quarter, the AV Group NB Inc., a JV of the company, undertook temporary idling of operations of its dissolving grade pulp mill located in Canada, following a careful assessment of continuing challenges, prevailing market conditions and broader macroeconomic factors.

In its footnotes, Grasim specified that an impairment charge of ₹187.42 crore has been classified as an impairment charge, and an additional provision has been created towards its estimated exposure of ₹638.01 crore.

For Birla Opus, revenue during the quarter stood at ₹1,337 crore, registering a growth of 35% from last year, and the unit also aims to cross double-digit revenue market share in the second half of the current financial year.

Revenue for the Chemicals business grew by 15% from last year aided by Chlorine derivatives and resilience in caustic soda, while revenue for the Cellulosic Fibres grew by 29% from the year-ago period, led by volume growth and a favourable product mix.

"Despite challenging market conditions, the combined market share for the decorative paints business, including Birla White Putty remained in the early teens.

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