Grasim's first plant is likely to be commissioned in the fourth quarter of financial year 2024.
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Grasim Industries Ltd. reported its highest-ever quarterly EBITDA during the September quarter, courtesy a strong performance from its Chlor-alkali business.
However, most of the numbers reported by the company were below expectations that a CNBC-TV18 poll projected. While net profit missed estimates by 14 percent, the company's EBITDA margin was 80 basis points below expectations.
On a year-on-year basis, the company's operating profit or EBITDA increased 19.4 percent from last year while sales increased 37 percent. EBITDA margin though, declined 200 basis points on a year-on-year basis.
Among the company's segments, while the VSF business underperformed, the Chemical business offset the sluggish performance from VSF.
EBITDA of the VSF business declined 44 percent to Rs 324 crore while that of the chemical business grew more than 2.5 times from last year to Rs 609 crore.
The company’s Caustic Soda and Allied Chemicals segment saw its revenue jump by 66 percent.
With regards to its paints business, the company's first plant is likely to be commissioned in the fourth quarter of financial year 2024. The remaining plants will be commissioned by financial year 2025 in a phased manner.
Construction work is in progress across five locations.
The flagship company of the Aditya Birla Group entered the paints business last year with a capital expenditure of Rs 5,000 crore over the next three years. The company believes that this foray will be value accretive to its shareholders.
Shares of Grasim ended 2.2 percent higher at Rs 1,745.95