Side-by-side earnings comparison across financial stats, AI summaries, management guidance, risks, quotes, and accountability signals.
Grasim's Q1 FY24 consolidated revenue grew 11% YoY to INR 31,065 crore, driven by subsidiaries UltraTech and Aditya Birla Capital, but standalone revenue fell 14% YoY to INR 6,238 crore due to weak realizations in VSF and chemicals.
Read Grasim analysis →Divis Laboratories reported a consolidated total income of INR 1,859 crore for Q1 FY24, down from INR 2,343 crore in the same quarter last year, reflecting the absence of COVID-related demand and ongoing pricing pressures in generics.
Read Divislab analysis →Grasim's Q1 FY24 consolidated revenue grew 11% YoY to INR 31,065 crore, driven by subsidiaries UltraTech and Aditya Birla Capital, but standalone revenue fell 14% YoY to INR 6,238 crore due to weak realizations in VSF and chemicals. Consolidated EBITDA declined 5% YoY to INR 4,981 crore, while standalone EBITDA dropped 42% YoY to INR 789 crore, impacted by high base effects and pre-operative expenses for new businesses. VSF business showed sequential recovery with EBITDA of INR 390 crore and 90% utilization, though global textile demand remains sluggish. Chemicals revenue fell 21% YoY to INR 2,146 crore amid caustic price declines. Paints business is on track for commercial launch in Q4 FY24, with 2-3 plants expected to be commissioned this year. B2B e-commerce platform Birla Pivot launched with 130+ brands. Risks include continued global demand weakness and potential margin pressure from input cost volatility.
Divis Laboratories reported a consolidated total income of INR 1,859 crore for Q1 FY24, down from INR 2,343 crore in the same quarter last year, reflecting the absence of COVID-related demand and ongoing pricing pressures in generics. PAT stood at INR 66 crore, impacted by lower sales and forex gains. Management highlighted easing raw material costs and logistics, with material consumption falling to 39% of sales. The custom synthesis segment (40% of mix) is progressing well with phase II/III projects and two large commercial projects ramping up. Contrast media and Sartans are key growth drivers, with MRI contrast media validation expected by FY24-end. Unit III greenfield project is on track with INR 1,500 crore initial investment, expected to contribute by mid-FY25. Management guided for a steady-state EBITDA margin of 35-40% and double-digit revenue growth over the medium term, excluding one-offs. Key risks include sustained pricing pressure in US/European generics and potential raw material volatility.
Utilization was impacted by a month-long shutdown at Harihar unit due to fire.
Chlor-alkali business maintained market leadership with volume growth.
Target capacity from 3 plants to be operational by end of FY24.
Improved from 11% in FY23, reducing power costs.
Consolidated total income for Q1 FY24, down from INR 2,343 Cr in Q1 FY23.
Material consumption as a percentage of sales revenue, down from 42% in Q4 FY23.
Revenue split between generics (60%) and custom synthesis (40%) for the quarter.
Cash and cash equivalents as of March 31, 2023.
At least 2-3 plants will be commissioned this year, with total capacity of 630 million liters.
Management guidance expansionIncludes INR 4,283 crore for paints business; peak debt expected around INR 8,000-10,000 crore gross.
Management guidance capexExpansion from 1.3M MT delayed due to monsoon; commissioning expected by Q4 FY24 or Q1 FY25.
Management guidance expansionNew capacity will be commissioned in Q2 FY24; full operational capacity expected in 12 months with 20-25% quarterly increments.
Management guidance growthManagement expects EBITDA margins to stabilize in the 35-40% range over the long term, excluding COVID-related distortions.
Management guidance marginsManagement anticipates double-digit revenue growth going forward, driven by custom synthesis, contrast media, and Sartans.
Management guidance revenueThe Unit III project in Kakinada, with an initial investment of INR 1,500 crore, is expected to start commercial production by mid-2025.
Management guidance expansionValidation for some MRI contrast media products is expected to be completed by the end of the current financial year, enabling customer sampling.
Management guidance growthTextile exports from India have declined for 12 consecutive months, impacting VSF demand and customer profitability.
high · management_commentaryInternational caustic prices fell 46% from Oct 2022 to June 2023, with further declines expected due to oversupply from China.
high · management_commentaryCheap viscose yarn imports from China are squeezing domestic spinners' margins, potentially reducing demand for Grasim's VSF.
medium · analyst_questionMonsoon delays pushed commissioning from Q3 FY24 to Q1 FY25, which could impact volume growth.
low · analyst_questionManagement acknowledged potential impact of price pressures in US and European markets on operating margins, though they remain optimistic.
medium · management_commentaryWhile raw material prices are currently softening, management noted that price variations could recur, especially for solvents like acetonitrile.
medium · analyst_questionCustom synthesis growth depends on customer approvals and project timelines, which are uncertain and not quarter-to-quarter predictable.
medium · management_commentaryWe would be launching our two new businesses in the current financial year. The paints business would commence its commercial offering from Q4 FY 2024.
Our long term goal is to be second largest player in the Indian decorative paints market, which is growing at a healthy double-digit pace.
We see a stable, probably steady 35%-40%. I think that's what we can comfortably say.
Slow, steady, consistent, and debt-free. These are our models.
