Grasim Industries reported a consolidated net loss of ₹234 crore for the September quarter, compared with a ₹595 crore profit a year earlier. A ₹766.7 crore impairment and provision related to its Canadian pulp joint venture weighed on the bottom line, even as revenue jumped 26% to ₹50,105 crore.
New Delhi, November 13 — Grasim Industries Ltd reported a consolidated net loss of ₹234 crore for the second quarter, compared with a net profit of ₹595 crore in the corresponding period last year, mainly due to a one-time cost.
The Aditya Birla Group flagship recorded a ₹766.7 crore loss related to impairment of investment and provisions for estimated exposure in its Canadian pulp joint venture, AV Group NB Inc.
Canada pulp mill operations temporarily idled
AV Group NB Inc has temporarily idled operations at its dissolving-grade pulp mill in Nackawic, New Brunswick, Canada.
Grasim said the decision followed an assessment of continuing challenges, prevailing market conditions and broader macroeconomic factors.
The resulting impairment and provisions had a significant impact on the company’s consolidated bottom line during the quarter.
Revenue jumps 26% to ₹50,105 crore
Despite the quarterly loss, Grasim reported strong growth in its operating revenue.
Revenue from operations increased 26% year-on-year to ₹50,105 crore, compared with ₹39,900 crore in the corresponding quarter last year.
The company said the increase was driven by an all-round performance across its diversified business portfolio.
Building materials revenue rises 23%
Grasim’s building materials segment generated revenue of ₹27,378 crore, an increase of 23% from the previous year.
Growth was supported by strong performance across the company’s cement, paints and B2B e-commerce businesses.
The cellulosic fibres business also registered strong growth.
Revenue from cellulosic fibres increased 29% year-on-year to ₹5,344 crore, supported by volume growth, a favourable product mix and stability in domestic prices.
EBITDA increases 25%
Grasim’s consolidated EBITDA increased 25% year-on-year to ₹6,513 crore.
The improvement was mainly driven by its cellulosic staple fibres, building materials and financial services businesses.
However, operating costs also increased substantially during the quarter.
Total expenses climbed 24% to ₹47,037.72 crore, compared with ₹37,795.74 crore a year earlier.
The cost of materials consumed increased 29% to ₹9,761.62 crore, from ₹7,541.78 crore.
The results show that Grasim’s underlying businesses continued to record strong revenue and EBITDA growth, but the one-time charge associated with its Canadian pulp joint venture pushed the company into a consolidated quarterly loss.
