VSF Utilization
90%
flat QoQ
Utilization was impacted by a month-long shutdown at Harihar unit due to fire.
GRASIM
Diversified
31 Jul 2023
Grasim Ltd — Q1 FY24
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.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
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.
ग्रासिम की पहली तिमाही (अप्रैल-जून 2023) में कुल कमाई पिछले साल के मुकाबले 11% बढ़कर 31,065 करोड़ रुपये हो गई। यह बढ़ोतरी इसकी सहायक कंपनियों अल्ट्राटेक और आदित्य बिड़ला कैपिटल की वजह से हुई। लेकिन अकेले ग्रासिम की कमाई 14% घटकर 6,238 करोड़ रुपये रह गई, क्योंकि विस्कोस और रसायनों के दाम कमजोर थे। कंपनी का मुनाफा (EBITDA) 5% गिरकर 4,981 करोड़ रुपये रहा। नए कारोबारों की शुरुआती लागत और पिछले साल के ऊंचे आधार के कारण अकेले ग्रासिम का मुनाफा 42% घटकर 789 करोड़ रुपये हो गया। विस्कोस कारोबार में सुधार दिखा, लेकिन वैश्विक कपड़ा मांग कमजोर है। पेंट्स का कारोबार इस साल के अंत तक शुरू होने की उम्मीद है। जोखिम: दुनिया भर में मांग कमजोर बनी रह सकती है और कच्चे माल के दाम में उतार-चढ़ाव से मुनाफा दबाव में आ सकता है।
Key Numbers
Caustic Soda Volume
292,000 MT
+5% YoY
Chlor-alkali business maintained market leadership with volume growth.
Paints Capacity (Phase 1)
630M liters
new
Target capacity from 3 plants to be operational by end of FY24.
Renewable Power Share
14%
+3pp YoY
Improved from 11% in FY23, reducing power costs.
Management Guidance
Paints commercial launch in Q4 FY24
At least 2-3 plants will be commissioned this year, with total capacity of 630 million liters.
Management guidance expansionCapEx of INR 5,791 crore in FY24
Includes INR 4,283 crore for paints business; peak debt expected around INR 8,000-10,000 crore gross.
Management guidance capexChlor-alkali capacity expansion to 1.5M MT by Q1 FY25
Expansion from 1.3M MT delayed due to monsoon; commissioning expected by Q4 FY24 or Q1 FY25.
Management guidance expansionEpoxy specialty capacity doubling with 12-month ramp-up
New capacity will be commissioned in Q2 FY24; full operational capacity expected in 12 months with 20-25% quarterly increments.
Management guidance growthKey Risks
Global textile demand weakness
Textile exports from India have declined for 12 consecutive months, impacting VSF demand and customer profitability.
high · management_commentaryCaustic soda price erosion
International caustic prices fell 46% from Oct 2022 to June 2023, with further declines expected due to oversupply from China.
high · management_commentaryVSF margin pressure from Chinese imports
Cheap viscose yarn imports from China are squeezing domestic spinners' margins, potentially reducing demand for Grasim's VSF.
medium · analyst_questionDelay in chlor-alkali capacity expansion
Monsoon delays pushed commissioning from Q3 FY24 to Q1 FY25, which could impact volume growth.
low · analyst_questionNotable Quotes
We 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 are actually protected from the vagaries of the market in this operation.
Frequently Asked Questions
What was Grasim's revenue in Q1 FY24?
Grasim reported revenue of ₹31,065 Cr in Q1 FY24, representing a +11% change compared to the same quarter last year.
What guidance did Grasim management give for FY25?
Paints commercial launch in Q4 FY24: At least 2-3 plants will be commissioned this year, with total capacity of 630 million liters. CapEx of INR 5,791 crore in FY24: Includes INR 4,283 crore for paints business; peak debt expected around INR 8,000-10,000 crore gross. Chlor-alkali capacity expansion to 1.5M MT by Q1 FY25: Expansion from 1.3M MT delayed due to monsoon; commissioning expected by Q4 FY24 or Q1 FY25. Epoxy specialty capacity doubling with 12-month ramp-up: New capacity will be commissioned in Q2 FY24; full operational capacity expected in 12 months with 20-25% quarterly increments.
What are the key risks for Grasim in FY25?
Key risks include Global textile demand weakness — Textile exports from India have declined for 12 consecutive months, impacting VSF demand and customer profitability.; Caustic soda price erosion — International caustic prices fell 46% from Oct 2022 to June 2023, with further declines expected due to oversupply from China.; VSF margin pressure from Chinese imports — Cheap viscose yarn imports from China are squeezing domestic spinners' margins, potentially reducing demand for Grasim's VSF.; Delay in chlor-alkali capacity expansion — Monsoon delays pushed commissioning from Q3 FY24 to Q1 FY25, which could impact volume growth..
Did Grasim meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Grasim Q1 FY24 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.