Grasim Industries Q1 Results FY2023, PAT at Rs. 1933 crores

On 12th August 2022, Grasim Industries announced its quarterly results for the first quarter of FY2023.

Q1FY23 Key Highlights:

-  The Revenue from operations for the first quarter of FY2023 stood at Rs. 28,042 Crores, up by 41% YoY.

- EBITDA stood at Rs. 5,233 Crores, seeing a growth of 10% YoY.

- The company reported its PAT at Rs. 1,933 Crores, up by 15% YoY.

Business Highlights:

Viscose Business:

The India-centric demand for textiles remained strong during the quarter. The VSF business reported a sales volume of 197KT in Q1FY23, up by 10% QoQ and 76% YoY, with domestic sales accounting for 94% of the total sales volume. The 600 TPD brownfield plant at Vilayat contributed about 51KT of sales volume during the quarter.

Chemical Business:

- The global caustic soda prices averaged higher at $769/MT in Q1FY23 against $719/MT in Q4FY22, driven by factors like supply chain disruption and higher energy prices. The prices started to soften towards the end of June. The domestic caustic soda prices continued trending upwards, driven by higher global caustic soda prices, weak INR, and a stable demand environment.

- Advanced Material business reported impressive sales volume growth of 35% YoY, though the significant increase in input prices impacted margins on a YoY basis. The business recorded a sequential uptick in financial performance with an improvement in realization and easing of some input costs.

Paints Business:

- The paints business is focused on project execution and is on track to achieving the plant commissioning timelines. The business has obtained land possession at all its six sites. The civil construction has commenced at four sites- Panipat, Ludhiana, Cheyyar, and Chamarajanagar. The project work at other sites will start soon after all the statutory approvals are received. 

Other Highlights:

- The company has announced its entry into the B2B e-commerce platform for the Building Materials segment with an investment of about Rs. 2,000 Crore in the next 5 years. The online platform will primarily focus on MSMEs in the Building Materials segment with the potential to further extend to other relevant categories. The fundamental value proposition would be an integrated procurement solution, including on-time delivery and a superior product range at competitive pricing.