Grasim Industries Profits Plunge 18% on Subdued Prices

15 Nov 2023 CW Team

Aditya Birla Group's Grasim Industries saw its profits decline for the fifth consecutive quarter, as subdued prices in its chemicals and textiles businesses took a toll.

In the three months ended September 30, the company's standalone net profit plunged nearly 18% to 7.95 billion rupees ($95.50 million) compared to the same period last year.

Grasim's standalone profit excludes the results of its subsidiaries, including Ultratech Cement and Aditya Birla Capital.

The company's viscose staple fibre (VSF) business, its largest segment, bore the brunt of the downturn, as prices for the key material used in various clothing products faltered. This caused revenue from the segment to dip to 38.89 billion rupees from 39.03 billion rupees a year ago, despite a 24% increase in sales volumes.

Marking the fourth straight quarterly decline, the VSF segment accounted for 60.4% of Grasim's total revenue.

Grasim's overall revenue slipped 4.5% to 64.42 billion rupees, its second consecutive quarterly decline.

""Given the macroeconomic conditions, demand in global consuming markets like the U.S. and Europe remains subdued, although the festive season led to an uptick in domestic demand. Domestic prices remained under pressure due to the softening of international VSF prices,"" the company stated.

Grasim also grappled with falling prices in its second-largest segment, the chemicals business, weighed down by chemical products it manufactures such as caustic soda. This led to a nearly 27% revenue drop, despite a 3% increase in sales volumes.

While caustic soda prices have started to rebound from their first-quarter lows, analysts anticipate benefits only from the third quarter of fiscal 2024.

Last month, Grasim's subsidiary Ultratech Cement surpassed second-quarter revenue estimates, while its diversified financial services arm, Aditya Birla Capital, reported an earlier profit surge.

The company approved capital expenditure (capex) of 1.44 billion rupees for various businesses and has authorized a rescheduling of spending for previously approved capex, entailing an additional outlay of 1.38 billion rupees in the current fiscal year.

The revised capex budget for fiscal 2024 stands at 59.29 billion rupees, the company added.

Grasim's foray into the paints sector under the 'Birla Opus' nameplate is slated for the fourth quarter of fiscal 2024.

Ahead of its quarterly results, Grasim's shares closed 0.9% lower. They have risen 11.9% so far this year.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

Aditya Birla Group's Grasim Industries saw its profits decline for the fifth consecutive quarter, as subdued prices in its chemicals and textiles businesses took a toll.In the three months ended September 30, the company's standalone net profit plunged nearly 18% to 7.95 billion rupees ($95.50 million) compared to the same period last year.Grasim's standalone profit excludes the results of its subsidiaries, including Ultratech Cement and Aditya Birla Capital.The company's viscose staple fibre (VSF) business, its largest segment, bore the brunt of the downturn, as prices for the key material used in various clothing products faltered. This caused revenue from the segment to dip to 38.89 billion rupees from 39.03 billion rupees a year ago, despite a 24% increase in sales volumes.Marking the fourth straight quarterly decline, the VSF segment accounted for 60.4% of Grasim's total revenue.Grasim's overall revenue slipped 4.5% to 64.42 billion rupees, its second consecutive quarterly decline.Given the macroeconomic conditions, demand in global consuming markets like the U.S. and Europe remains subdued, although the festive season led to an uptick in domestic demand. Domestic prices remained under pressure due to the softening of international VSF prices, the company stated.Grasim also grappled with falling prices in its second-largest segment, the chemicals business, weighed down by chemical products it manufactures such as caustic soda. This led to a nearly 27% revenue drop, despite a 3% increase in sales volumes.While caustic soda prices have started to rebound from their first-quarter lows, analysts anticipate benefits only from the third quarter of fiscal 2024.Last month, Grasim's subsidiary Ultratech Cement surpassed second-quarter revenue estimates, while its diversified financial services arm, Aditya Birla Capital, reported an earlier profit surge.The company approved capital expenditure (capex) of 1.44 billion rupees for various businesses and has authorized a rescheduling of spending for previously approved capex, entailing an additional outlay of 1.38 billion rupees in the current fiscal year.The revised capex budget for fiscal 2024 stands at 59.29 billion rupees, the company added.Grasim's foray into the paints sector under the 'Birla Opus' nameplate is slated for the fourth quarter of fiscal 2024.Ahead of its quarterly results, Grasim's shares closed 0.9% lower. They have risen 11.9% so far this year.

Infrastructure Urban

06 Jul 2026

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Infrastructure Transport

06 Jul 2026

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Infrastructure Transport

06 Jul 2026

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..