Grasim Share Price in Focus; Posted Q2 FY25 Results with 59% PAT Decline

Grasim Industries Limited announced its financial results for the quarter ending on September 30, 2024 (Q2 FY25). 

On Monday, Grasim Industries was in the spotlight. On November 18, 2024, Grasim share price opened at ₹2,497.00, down from its previous close of ₹2,523.95. At 11:04 AM, the share price of Grasim was trading at ₹2,513.25, down by 0.24%.

Q2 FY25 Financial Highlights

The company reported a consolidated revenue of ₹33,563 crore, marking an 11% year-on-year (YoY) growth. This revenue surge was primarily driven by strong performances in the Financial Services, Cellulosic Staple Fibre, and Specialty Chemicals businesses.

Despite the growth in revenue, Grasim’s consolidated EBITDA showed a decline of 10%, standing at ₹4,042 crore. This drop was attributed to reduced profitability in the Cement business and the initial investments made in its Paints business under the new brand ‘Birla Opus’.

However, profit after tax (PAT) for Q2 FY25 stood at ₹473 crore, a sharp decline of 59% compared to ₹1,164 crore in Q2 FY24. For the first half of FY25, Grasim’s PAT stood at ₹1,662 crore, down 39% from ₹2,740 crore in H1 FY24.

In the Financial Services sector, Grasim’s lending portfolio saw significant growth, increasing by 27% YoY to ₹1,37,946 crore. The financial services business, as consolidated under Aditya Birla Capital, reported revenues of ₹10,252 crore and an EBITDA of ₹1,280 crore, reflecting a growth of 33% and 25%, respectively. Additionally, the company’s total assets under management (AUM) for its AMC, life insurance, and health insurance businesses surpassed ₹5,00,000 crore, growing by 24% YoY.

The Cellulosic Staple Fibre business saw its highest-ever quarterly sales volume of 219 KT, and the Caustic Soda international average spot prices rose by 13% YoY, reaching $471/ton in Q2 FY25. The Building Materials segment, which includes Paints and B2B e-commerce businesses, contributed ₹16,683 crore in revenue, marking a 3% YoY increase.

Grasim’s financial performance highlights both challenges and opportunities, with continued expansion in non-cement businesses balancing the decline in cement profits.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.