Aditya Birla Group's Grasim Industries Posts Net Loss Despite Revenue Growth
Grasim Industries, the flagship company of the Aditya Birla Group, reported a standalone net loss of Rs 52 crore in the June quarter despite a 10.5% revenue growth.
Aditya Birla GroupGrasim IndustriesRevenue GrowthNet LossCement BusinessReal Estate MumbaiAug 09, 2024
The company's standalone operating revenue plunged 51.7% to Rs 325.1 crore, while its operating margin compressed more than halved to 4.7% from 10.8%. The company did not reveal the reason for such a bad set of numbers.
Grasim's cement business added new capacity of 8.7 million tonne, taking total grey cement capacity, including domestic and overseas to 154.9 million tonne per annum. Its newly launched paint brand, Birla Opus' market presence reached to over 3,300 towns.
The company's capital expenditure stood at Rs 983 crore. The budgeted standalone capex for financial year 2025 is Rs 4,553 crore, of which around Rs 3,000 crore is towards new growth businesses.
The cellulosic staple fibre business saw its fourth consecutive quarter of growth due to improving domestic demand and global price trends. This business achieved its highest-ever quarterly sales volume of 212-kilo tonne, which rose 14%.
The cellulosic fashion yarn business saw a marginal volume growth of 2% due to subdued demand in the downstream value chain and due to cheaper imports from Chinese producers. This segment saw revenue growth of 6% at Rs 3,787 crore.
The chemicals business revenue fell 4% to Rs 2,066 crore. Speciality chemicals revenue mix improved to 30% giving it an operating income of Rs 310 crore, down 13%.
The building materials business reported revenue of Rs 18,701 crore, up 11% led by the growth in cement and ramp-up in revenue from new growth businesses--paints and B2B e-commerce. But operating income fell 7% to Rs 2,909 crore mainly due to initial funding of new growth businesses.
Grasim Industries said its total capex for the Birla Opus business was Rs 7,795 crore till June 2024, around 77% of the planned capex outlay.
Despite the poor set of numbers, the Grasim counter rose 1.3% to Rs 2,576.10 on the BSE, whose benchmark gained more than 1% at close.
Information
Grasim Industries is the flagship company of the Aditya Birla Group, a multinational conglomerate with a presence in multiple sectors including textiles, cement, chemicals, and more.
Aditya Birla Group is a multinational conglomerate with a presence in multiple sectors including textiles, cement, chemicals, and more. The group has a strong presence in India and globally, with a diverse portfolio of businesses.
Frequently Asked Questions
What is the net loss reported by Grasim Industries in the June quarter?
Rs 52 crore
What is the revenue growth reported by Grasim Industries in the June quarter?
10.5%
What is the total grey cement capacity of Grasim's cement business?
154.9 million tonne per annum
What is the market presence of Birla Opus, Grasim's newly launched paint brand?
Over 3,300 towns
What is the budgeted standalone capex for financial year 2025?
Rs 4,553 crore
Related News Articles
Maharashtra Proposes New 180m Height Cap for Taller Skyscrapers in Mumbai
Maharashtra is planning to increase the height limit for high-rises from 120m to 180m, a move that has been met with enthusiasm by the real estate industry. This new proposal could reshape Mumbai's skyline and open up new opportunities for development.
Bollywood's Real Estate Investments: Stars Diversify Wealth with Smart Property Moves
From luxurious apartments to sprawling commercial spaces, Bollywood stars are making smart moves in the property market, diversifying their wealth and securing their financial futures.
Arkade Developers Aims for Rs 21 Billion Revenue from New Projects
Arkade Developers, a prominent player in the real estate market, is set to achieve a significant milestone with its ambitious plan to generate Rs 21 billion in revenue from three new projects. The company's focus on redevelopment is expected to play a cru
Maharashtra Cabinet Waives Toll Tax for LMVs at Mumbai’s Five Entry Points
The Maharashtra government has approved a waiver in toll tax on light motor vehicles (LMVs) at Mumbai’s five entry points, providing relief to daily commuters and residents.
Pattaya: The Next Big Thing for Indian Property Investors
Pattaya, a popular coastal city in Thailand, is rapidly emerging as a lucrative destination for Indian real estate investors. Discover why this Southeast Asian gem is becoming a top choice.
CM Fadnavis Outlines Maharashtra's Vision for a $1 Trillion Economy and BMC Polls
Maharashtra's Chief Minister, Devendra Fadnavis, has set an ambitious goal for the state to become a $1 trillion economy. He also addressed the upcoming BMC polls, emphasizing the state's commitment to development and governance.