Mumbai: Grasim Industries reported a consolidated loss of Rs 234.1 crore attributable to owners for the September quarter of FY27, against a restated profit of Rs 594.5 crore a year earlier. Revenue from operations rose 26 percent to Rs 50,105 crore from Rs 39,900 crore, according to the company’s exchange filing on November 13.
Consolidated net profit, including the share attributable to non-controlling interests, fell 35 percent year on year to Rs 1,029 crore. Basic and diluted earnings per share both turned negative at Rs 3.45.
Building materials lead revenue
Building materials remained Grasim’s largest segment, with revenue rising 23 percent year on year to Rs 27,378 crore. Financial services revenue increased 32 percent to Rs 13,990 crore, while cellulosic fibres revenue rose 29 percent to Rs 5,344 crore.
Profit before exceptional items and tax climbed 34 percent to Rs 3,469 crore. Grasim recorded an exceptional loss of Rs 773 crore, and its tax expense increased to Rs 1,667 crore from Rs 1,012 crore a year earlier. Profit before tax rose 4.2 percent to Rs 2,696 crore.
Canadian joint venture takes charge
Grasim booked a Rs 766.7 crore consolidated charge linked to AV Group NB Inc after the joint venture temporarily idled its dissolving-grade pulp mill in Nackawic, New Brunswick. The charge comprised a Rs 128.7 crore impairment and a Rs 638 crore provision for estimated exposure.
The board also approved a proposed investment of up to C$91.8 million, equivalent to about Rs 625 crore as stated in the filing, in the joint venture’s proposed rights issue. The investment would be proportionate to Grasim’s 45 percent stake.
Quarterly and half-year performance
Revenue rose 2.9 percent from the June quarter, when Grasim earned Rs 2,146 crore in profit attributable to owners. Total group net profit fell 73 percent sequentially from Rs 3,846 crore.
For the six months ended September, consolidated revenue rose 24 percent to Rs 98,821 crore. Total group net profit increased 12 percent to Rs 4,876 crore, while profit attributable to owners fell 5.1 percent to Rs 1,912 crore.
Auditors flag UltraTech appeals
The joint auditors drew attention to UltraTech Cement’s appeals against Competition Commission of India penalties of Rs 1,804 crore and Rs 68.3 crore. The Supreme Court stayed the appellate tribunal’s order in the larger case. UltraTech deposited Rs 180.4 crore and recorded no provision for the penalties. The auditors’ limited review conclusion was unmodified.
Disclaimer: This report is based on unaudited financial results filed by the company and does not constitute investment advice.
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