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Grasim Posts Robust Performance in FY2024, Achieves Highest Ever Consolidated Revenue

• By  Textile Excellence
• May 24, 2024

HIGHLIGHTS:

·         Revenue: Highest ever consolidated revenue of Rs. 1,30,978 crore

·         EBITDA: Highest ever EBITDA of Rs. 20,837 crore; up 18% YoY

·         Financial Services: Lending Portfolio crossed Rs. 1,24,000 crore; up 31% YoY

·         Sales Volume: Highest ever sales volume in Cellulosic Staple Fibre, Caustic Soda & Cement businesses

Grasim Industries Ltd – Aditya Birla Group’s flagship firm posted robust all-round performance in FY2023-24. Consolidated revenue reached an all-time high of Rs. 1,30,978 crore, up by 11% YoY, driven by strong underlying performance from its diversified business portfolio. Specifically, Grasim’s Building Materials and Financial Services businesses delivered a superior performance. Backed by the growth in top line, Grasim’s consolidated EBITDA for the year achieved the highest-ever level of Rs. 20,837 crore. Consolidated PAT stood at Rs 6,163 crore, up 14% excluding exceptional items charge of Rs 538 crore.

Cellulosic Fibres Business

The leading producer of Cellulosic Staple Fibre (CSF) and Cellulosic Fashion Yarn (CFY) reports that the prices improved marginally in China, reflecting an improving demand scenario and stable operating rates of about 85%. However, export prices softened due to global overcapacity and lower raw material prices. Demand in India during the quarter was impacted by the amendment in the MSME policy, which resulted in low inventory build-up in the textile value chain. The CFY business remains impacted by increased cheaper imports from China in an already weak demand market.

During the Q4FY24, Grasim’s CSF volumes grew by 8% YoY to 208 KT but revenue for remained flat at Rs 3,762 crore due to subdued realisations. However, the segment’s EBITDA sequentially grew by 15% to Rs 462 crore largely contributed by lower input costs. On Annual basis, Cellulosic fibres business revenue was Rs 14949 crore and volume was 810 KT for CSF and 41.4 KT of CFY. EBITDA grew to Rs 1722 crore during FY24.

Textiles Business

Grasim’s Textiles business revenue grew by 3% YoY to Rs 534 crore during the year. The linen business has expanded its retail presence with additions of 20 exclusive stores (EBOs) under the brand “Linen Club”. It has now retail presence through 231 EBO stores and MBOs touchpoints have reached 9071.

Dividend

Grasim’s Board has recommended a dividend of Rs 10 per equity share for the year ended 31st March 2024. The total outflow on account of the dividend would be Rs 664 Cr. including the current paid-up value of partly paid-up shares.

Capex: Cellulosic Fibres

Grasim spent Rs. 530 crore as capex in capacity enhancement, modernisation and de-bottlenecking of fibre operations.

Sustainability

Grasim is continuously improving its consumption and emission norms as per its sustainability goals. During FY24, the share of renewable power at standalone businesses improved to 11% compared to 8% in FY23. Similarly, the proportion of recycled water consumption to freshwater consumption improved to 50% from 46% in FY23. Company’s rating has been upgraded by one notch with an improvement of 9.6 points by Sustainalytics, a global rating agency that assesses the listed companies based on their ESG performance. Further, Cellulose fibre business achieved Number One ranking in Canopy’s Hot Button Report 2023.

Grasim Industries Ltd – Aditya Birla Group’s flagship firm posted robust all-round performance in FY2023-24. Consolidated revenue reached an all-time high of Rs. 1,30,978 crore, up by 11% YoY, driven by strong underlying performance from its diversified business portfolio