Grasim Q4 results: PAT rises 13% to Rs 2,617 cr; revenue rises 26% to Rs 24,399 cr

Mumbai: Aditya Birla Group company, reported a 13% jump in consolidated profit after tax at Rs 2,616.6 crore during the last quarter of FY 21, as against Rs 2,309 crore in the same period last year.

The company reported a net profit of Rs 6,986 crore for the whole FY 21 as against Rs 6,638 crore last year, up 5.2%.

“While the signs of economic recovery picking up the momentum was visible during the Q4FY21, the impact of the second wave of COVID-19 on the economic activity needs to be assessed,” the company’s statement said on Monday.

The company has also recommended a dividend of Rs 5 per equity share and a special dividend of Rs 4 per equity share for the year ended 31 March 2021, taking the total dividend to Rs 9 per equity share. The total outflow on account of the dividend would be Rs Rs 592 Cr.

Grasim’s consolidated revenue for the fourth quarter was up 26% year-on-year at Rs 24,399 crore and the company’s earnings before interest, taxes, depreciation and amortization for Q4FY21 was up 62% YoY to Rs 5,142 crore.

Grasim’s Fertiliser Business divestment process is expected to be completed by Q2FY22 after receipt of NCLT approvals for the Scheme of Arrangement amongst other pending approvals.

“Revenue and EBITDA from the discontinued operations (Fertiliser Business) for Q4FY21 stood at Rs 560.96 crore and Rs 33.16 crore respectively which is not included in the financials,” the company’s statement said.

The company’s viscose business reported net revenue for the Viscose segment (including VFY) stood at Rs 2,583 crore and EBITDA at Rs 625 crore driven by higher sales volumes, better product mix, significant cost savings and improved realisation, the company said.

The total Capex spend for FY21 stood at Rs 1,508 Cr. The Capexplan for FY22 (excluding paints and fertiliser) is Rs 2,604 Cr. which includes the VSF expansion project at Vilayat with Line-1 scheduled to be commissioned in Q2FY22 and Line-2 in Q3FY22.

The company’s chemical business makes domestic caustic soda business and advanced material business.

“The caustic soda capacity utilisation improved to 94% in Q4FY21 from 89% in Q3FY21. International caustic soda prices improved sequentially led by temporary supply disruptions in the later part of the quarter,” said

The Advanced Material (Epoxy) sector witnessed demand outstripping the supply due to raw material constraint, coupled with disruption at certain global manufacturers. The Net Revenue for Q4FY21 stood at Rs 1,472 crore and EBITDA stood at Rs 185 crore, the statement said.

Grasim’s Capex plans also include investment towards increasing its Advanced Materials (Epoxy) business capacity by ~125 KTPA through a brownfield expansion at the existing location of Vilayat, Gujarat.

In the Chlor-Alkali business, Grasim plans investment in a ~200TPD Caustic brownfield expansion at Vilayat, Gujarat. This would take the total capacity to ~1,400 TPD at its Vilayat site and will primarily meet the customer requirements in the country’s West Region. The expansion will be commissioned in 24 months post receipt of statutory clearances/approvals.

The company has recently forayed into the paints business with a capital of Rs 5,000 crore for three years.

“The Paint business is making brisk progress in line with the plans. The company is in the process of hiring senior professionals and specialists for the business. It is also actively engaged in shortlisting or acquiring land for plant locations and is progressing with the engineering planning for the project,” the company’s statement said.

In the company’s cement business, UltraTech’s consolidated revenue was at Rs 44,726 crore and EBITDA was at Rs 12,302 crore. Grasim’s financial services subsidiary – Aditya Birla Capital Limited (ABCL) reported a Consolidated Revenue of Rs 19,248 crore in FY21.