Grasim Q3 Results: Aditya Birla group flagship firm misses estimates with 51% fall in profit

Grasim Industries – a flagship company of the Aditya Birla Group – reported a lower-than-estimated profit of Rs 257 crore for the October-December quarter of this fiscal. Zee Business research had estimated profit would come around Rs 334 crore for the quarter under review.

The bottom line dipped by 51 per cent in the third quarter of FY23 as compared to Rs 522 crore in the same quarter a year ago period.

The cement products company’s revenue jumped 7 per cent on a year-on-year basis to Rs 6,196 crore in the December quarter of the current fiscal against Rs 5,785 crore in the corresponding quarter of the previous fiscal.

The top line of Grasim was also below estimates as Zee Business research expected the revenue of Grasim would come around Rs 6424.2 crore for the third quarter of FY23.

“While domestic consumption remained healthy, global macroeconomic conditions impacted export-related demand. Operational profitability for the quarter was adversely affected by elevated input prices,” Grasim said in its results filing on February 14, 2023.

In its outlook, the Kumar Mangalam Birla-led company said, “We remain committed to expanding our product offerings through innovation with a greater focus on Speciality segments. The Cost Leadership and Strong Balance Sheet provide the required strength to face such cyclical volatility.”

The company’s key product “Viscose Staple Fibre (VSF) value chain partners have witnessed a prolonged global demand slowdown on the back of geo-political instability, recessionary fears, and consequential consumption slowdown,” it also added.

Incorporated in 1947, Grasim started as a textile manufacturer in India. Today, it has evolved into a leading diversified player with a leadership presence across many sectors. The company is a leading global producer of Viscose, Diversified Chemicals, Linen Yarn, and Fabrics producer in India.