India’s Grasim Industries Limited, a flagship company of Aditya Birla Group, has reported a consolidated revenue growth of 17 percent year-on-year (YoY) to Rs. 28,638 cr (approximately $3.8 bn) in the third quarter (Q3) of the fiscal 2023 (FY23). The company’s consolidated profit after tax (PAT) for the quarter stood at Rs. 2,516 cr, up by 44 percent YoY.
For the first nine months (9M) of FY23, the company’s consolidated revenue grew by 26 percent YoY to Rs. 84,165 cr, and its PAT stood at Rs. 5,458 cr, up by 14 percent YoY, Grasim Industries said.
In Q3 FY23, Grasim’s viscose business’ revenue declined by 5 percent YoY to Rs. 3,182 cr, and the EBITDA at Rs. 63 cr was down by 84 percent YoY. The decline in the viscose business revenue was attributed to lower operating rates of viscose staple fibre (VSF) at 71 percent, pricing pressure, and high input costs, resulting in negative EBITDA for Q3. However, the viscose filament yarn (VFY) business showed good performance, offsetting the decline in VSF.
The chemicals business’ revenue grew by 10 percent YoY to Rs. 2,582 cr in Q3 FY23, and EBITDA stood at Rs. 488 cr, down by 8 percent YoY, as the speciality chemicals segment saw normalisation of the realisations.
The company also announced its plans for B2B e-commerce business, where most of the senior leadership team has joined, and the hiring for the next level is in process.
Grasim’s environmental, social, and governance (ESG) rating has been upgraded to ‘BBB’ from ‘BB’ by MSCI, recognising the company’s consistent progress towards sustainability initiatives. The share of renewable energy in power consumption increased for both the chemicals and textiles business in 9M FY23 as compared to FY22.
