Aditya Birla Group's flagship firm to report Q4 results; here's what to expect

Aditya Birla Group’s flagship firm Grasim Industries is scheduled to report its Q4 earnings and final dividend on Wednesday (May 22, 2024). Zee Business research desk estimates the cement manufacturer to report a standalone profit after tax (PAT) at Rs 160 crore for the period under review, up 70.2 per cent year-on-year (YoY). In the year-ago period, the Mumbai-headquartered company posted PAT at Rs 94 crore.

Revenue from operations at the company are expected to fall 3.5 per cent on-year from Rs 6,646 crore in Q4FY23 to Rs 6,410 crore in Q4FY24. EBITDA, a profitability metric, is seen to grow by 19.7 per cent on a YoY basis to Rs 510 crore in the reporting quarter as against Rs 426 crore during the same period last year. Margins at the company are seen inching higher to 7.9 per cent versus 6.4 per cent logged in Q4FY23, a substantial 150 basis points increase.

Grasim Industries VSF and Chemical segment performance  Q4 preview

The company’s VSF or Viscose Staple Fibre segment is expected to log a YoY decline in volume by as much as 1.2 per cent during the quarter-ended March, resulting in a decline in revenue for the segment by 1 per cent on-year. Nevertheless, EBITDA for the segment is seen to see a significant 166 per cent YoY gain.

In the chemical segment, the company is estimated to post 8.3 per cent YoY increase in volume during the period under review. However, the company’s revenue as well as EBITDA is projected to decline by 15 per cent and 19 per cent, respectively, on-year.

Grasim Industries foray in the paints business

Earlier in February this year, the company ventured into the paints business by launching its  paint brand Birla Opus. Furthermore, to have a quick pie of market share, the company’s products were being offered at a 5-6 per cent discount in comparison to the market leader-Asian Paints.

Grasim Industries share price performance

The stock over the last one year has gained 42.8 per cent, outperforming the Nifty 50 index which has rallied nearly 24 per cent during the period. Ahead of its results tomorrow, the stock traded marginally higher at Rs 2,441.25, a barely 4 per cent gap from the stock’s all-time high price of Rs 2,535.1, scaled last week.