Grasim Industries Reports 12% Dip in Q1 Net Profit Amid Higher Depreciation and Interest Charges

Grasim Industries Ltd reported a 12% decrease in consolidated net profit for Q1 FY2024, due to increased depreciation and interest expenses from new growth businesses. Despite this, revenue rose by 9%, driven by strong performance in sectors including Cellulosic Staple Fibre, Building Materials, and Financial Services.

Grasim Industries Ltd, the flagship holding firm of the Aditya Birla Group, announced a 12% decline in its consolidated net profit for the first quarter ending June 2024, recording Rs 2,267.74 crore. The drop was attributed to higher depreciation and interest charges from new growth businesses.

In contrast, the company's revenue from operations grew by 9% to Rs 33,860.75 crore, up from Rs 31,065.19 crore in the same period last fiscal, as per a regulatory filing. The revenue boost was fueled by robust performance in its diversified portfolio, particularly in Cellulosic Staple Fibre, Building Materials, and Financial Services.

However, Grasim's EBITDA fell by 4% to Rs 4,760 crore, owing to investments in its Paints business under the Birla Opus brand. Total expenses grew by 12% while total income increased by 8.92% to Rs 34,160.77 crore.