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Grasim Ltd — Q2 FY24
Grasim's Q2 FY24 consolidated revenue grew 10% YoY to INR 30,221 crore, with EBITDA up 14% to INR 4,509 crore, driven by cement and financial services.
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Grasim's Q2 FY24 consolidated revenue grew 10% YoY to INR 30,221 crore, with EBITDA up 14% to INR 4,509 crore, driven by cement and financial services. Standalone revenue rose 4% to INR 6,442 crore, while EBITDA jumped 21% to INR 1,354 crore on higher VSF volumes (+24% YoY) and lower input costs. However, global price weakness in viscose and chloralkali persisted, and new businesses (paints, B2B e-commerce) incurred initial losses. Management guided for paints commercial launch in Q4 FY24 with three plants operational, and B2B platform Birla Pivot nearing INR 100 crore monthly run rate. Risks include sustained global demand softness in textiles and chemicals, and potential margin pressure from volatile input costs.
ग्रासिम की दूसरी तिमाही में कुल कमाई पिछले साल से 10% बढ़कर 30,221 करोड़ रुपये हो गई। मुनाफा (EBITDA) 14% बढ़कर 4,509 करोड़ रुपये रहा, जिसका मुख्य कारण सीमेंट और वित्तीय सेवाओं का अच्छा प्रदर्शन है। कंपनी के अकेले कारोबार में कमाई 4% बढ़कर 6,442 करोड़ रुपये हुई, जबकि मुनाफा 21% बढ़कर 1,354 करोड़ रुपये हो गया। यह वीएसएफ (एक तरह का कपड़ा) की बिक्री में 24% बढ़ोतरी और कच्चे माल की कम लागत के कारण हुआ। हालांकि, दुनिया भर में विस्कोस और क्लोराल्कली की कीमतें कमजोर रहीं, और नए कारोबार (पेंट, B2B ई-कॉमर्स) में शुरुआती घाटा हुआ। कंपनी ने कहा कि पेंट का व्यावसायिक लॉन्च चौथी तिमाही में होगा, और B2B प्लेटफॉर्म बिड़ला पिवट हर महीने 100 करोड़ रुपये का कारोबार करने लगा है। जोखिमों में कपड़ा और रसायनों की कमजोर मांग और कच्चे माल की कीमतों में उतार-चढ़ाव शामिल हैं।
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Risk Intelligence
Sustained global textile demand weakness
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VSF Volume Growth
24%
+24% YoY
Viscose staple fiber sales volume grew 24% year-over-year in Q2 FY24.
Caustic Soda Volume Growth
3%
+3% YoY
Caustic soda sales volume increased 3% year-over-year in Q2 FY24.
Epoxy Volume Growth
25%
+25% YoY
Epoxy business recorded 25% volume growth year-over-year in Q2 FY24.
Birla Pivot Quarterly Revenue
INR 100 crore
N/A
B2B e-commerce platform Birla Pivot crossed INR 100 crore revenue in Q2 FY24.
What Changed vs Last Quarter
NEW
Epoxy capacity expansion commissioning in Q3 FY24
The expanded epoxy capacity is under commissioning and expected to be operational in Q3 FY24.
NEW
Renewables capacity of ~1 GW to be commissioned by Q1 FY25
Projects under implementation of about 1 GW are expected to be commissioned by next year's first quarter.
NEW
Debt-to-EBITDA not to exceed ~3.5x
Even with full paints CapEx next fiscal, debt-to-EBITDA is not expected to cross about 3.5x.
UPDATED
Paints commercial launch in Q4 FY24
Three plants (Panipat, Ludhiana, Cheyyar) have received consent to operate and will be operational in Q4 FY24, with product launch in the same quarter.
DROPPED
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.
DROPPED
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.
DROPPED
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.
NEW RISK
Volatile input costs
Caustic soda, sulfur, coal, and oil prices are volatile; recent stabilization and upticks could pressure margins.
NEW RISK
Paints business profitability impact
Initial costs from paints business are being charged to P&L, with losses expected to persist until commercial launch and scale-up.
RISK GONE
Caustic soda price erosion
International caustic prices fell 46% from Oct 2022 to June 2023, with further declines expected due to oversupply from China.
RISK GONE
Delay in chlor-alkali capacity expansion
Monsoon delays pushed commissioning from Q3 FY24 to Q1 FY25, which could impact volume growth.
Fast read
Guidance and risk preview
Three plants (Panipat, Ludhiana, Cheyyar) have received consent to operate and will be operational in Q4 FY24, with product launch in the same quar...
International brands continue to hold elevated inventories, suppressing demand for VSF and VFY; recovery timeline remains uncertain.
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