Grasim Industries Q4FY23 PAT down -43.7% yoy at Rs1,369 crore due to tax credits in the base quarter

Grasim Industries reported 16.14% growth in sales revenues for the March 2023 quarter on consolidated basis at Rs33,462 crore. Revenues were up sequentially by 16.85%. Grasim, the holding company of most of Aditya Birla group businesses, reported higher sales in the Ultratech cement business and in the financial services business. However, sales of Viscose Staple fibre & yarn was flat yoy while the chlor alkali chemicals business was lower. 

In terms of contribution of operating profits, the VSF business and the chemicals vertical saw a sharp fall in the profits yoy due to higher costs and weak export sales. Cement business saw operating profits expand by 10% while the financial services saw operating profits growing yoy by nearly 40% on higher lending margins in the quarter. Operating profits were higher overall, but net profits fell due to tax credits in year ago quarter.

Financial highlights for Mar-23 compared yoy and sequentially

For the March 2023 quarter, Grasim Industries saw its net margins lower from 16.06% to 14.37%. Operating margins were weaker for VSF, chemicals and cement on yoy basis. Grasim has declared dividend of Rs10 per share subject to approval. The Indo-Gulf fertilizers business was discontinued during the year.