Grasim Industries announced a significant decline of 56.1% in its standalone net profit for Q1FY24, amounting to ₹355.27 crore, as compared to ₹808.56 crore in the same period last year. However, there was a notable sequential improvement, with net profit rising by 280% from ₹93.51 crore in Q4FY23.
During the quarter ending in June, the company’s standalone revenue from operations witnessed a 14% year-on-year drop, reaching ₹6,237.55 crore. This marked a decrease from ₹7,253.04 crore in Q1FY23. The total income for the first quarter was recorded at ₹6,353.41 crore, down from ₹7,296.74 crore in the corresponding period of the previous year.
On a consolidated basis, Grasim Industries experienced an 11% year-on-year increase in revenue, amounting to ₹31,065 crore. This growth was primarily driven by the strong performances of key subsidiaries such as UltraTech Cement, Aditya Birla Capital, and Aditya Birla Renewables. Despite this overall growth, the company noted that lower realizations in standalone businesses and UltraTech Cement had a negative impact on profitability, as stated in an official filing.
On a standalone basis, EBITDA witnessed a significant decline of 42% year-on-year, totaling ₹789 crore. The company’s capital expenditures (capex) for Q1FY24 were reported at ₹1,384 crore.
In the stock market, Grasim Industries’ share price concluded the day 0.7% lower at ₹1,832.25 per share on the BSE.
According to Angel One, the Grasim stock price encountered strong resistance around the 1840 levels, which represents a multi-month resistance point. Despite the recent financial results, there hasn’t been substantial market activity. However, the next upward movement would require the price to surpass the 1840 level with conviction, potentially triggering a rally towards 1900 in the near term. Immediate support levels are seen around 1790 to 1800.