Grasim Industries Faces Profit Decline amid Expansion in Consumer Businesses

Grasim Industries, flagship of Aditya Birla Group, registered a 29.15% decrease in its consolidated profit for the December 2024 quarter. The company acknowledged a revenue rise driven by diverse businesses, yet lower cement realisations and increased investments in new ventures, including Birla Opus, impacted profits.

In its quarterly report for the period ending December 2024, Grasim Industries, the central firm of the Aditya Birla Group, disclosed a significant 29.15% drop in net profit. The company announced its profits had slipped to Rs 1,844.29 crore, compared to Rs 2,603.43 crore in the same period the previous year.

Despite this decline, total revenues rose 8.84% to Rs 34,792.85 crore, fueled by robust growth across several business arms such as chemicals and cellulosic fiber. However, earnings were hampered by ongoing investments in the company's new consumer-focused paint segment, Birla Opus, and diminishing returns in its core cement business.

Additionally, financial pressures increased with elevated interest and depreciation charges, connected with recent investments in building materials. Grasim's diverse holdings, from UltraTech cement to financial services through Aditya Birla Capital, showed varied performance across sectors. Shares of Grasim Ltd fell by 0.71% on BSE, closing at Rs 2,470.75.

(With inputs from agencies.)