Grasim Industries Q4 Results 2022: Net Profit grew by 62% for Q4FY22

On 24th May 2022,  Grasim Industries announced its quarterly results for the last quarter of FY2022.

Key Highlights:

Q4FY22:

- Grasim Industries reported an EBITDA of Rs.4647 crore for Q4FY22 from Rs.5142 crore in Q4FY21, a decline of 10%

- The company's revenue from operations rose 18% to Rs.28811 crore in the quarter under review from Rs.24401 crore in the same quarter last fiscal.

- Grasim Industries reported a net profit of Rs.2777 crore from Rs.1715 crore in Q4FY21, a growth by 62% 

FY2022: 

- The company reported an EBITDA at Rs.17772 crore for FY2022 from Rs.15766 crore in FY2021, with a growth of 13%

- The company's revenue from operations rose by 25% to Rs.95701 crore for the year from Rs.76404 crore in FY2022.

- Grasim Industries reported a Net profit of Rs.7550 crore with a growth of 75% YoY.

Business Highlights:

Viscose Business 

- The textile value chain in India operated at optimum capacity utilization. The Viscose Staple Fibre (VSF) business reported a sales volume of 179 kilotonnes in Q4FY22 up 22% YoY, with a strong mix of VAP at 25% (Q4FY22). VSF prices averaged lower at RMB 12,903 in Q4FY22 compared to ~ RMB 13,637 in Q3FY22 due to the Russia-Ukraine war and the Omicron variant. 

- The Viscose Filament Yarn (VFY) business recorded a volume growth of 9% YoY. Higher input and fixed costs in Q4FY22 impacted financial performance. 

Chemical Business:

- The rise in the global caustic soda prices was driven by the supply chain disruptions on account of Covid led restrictions and the ongoing conflict between Russia and Ukraine. Domestic caustic soda prices increased in line with global caustic soda prices and improved demand. 

- The Chlor-Alkali business reported another quarter of stellar performance despite mounting cost pressure (Power and other costs), driven by sequential improvement in ECU. 

- The Advanced Material business reported a weaker financial performance driven by the lower realization and rising cost pressure. The domestic demand for Advanced Materials is expected to remain strong while the global demand may remain muted in the short term.  

Paints Business:

- The business is focused on the timely execution of its capacities. The civil construction has already commenced at two of its plant sites (Panipat and Ludhiana) and is expected to start shortly at Chamarajanagar. 

- The remaining three plants are at different stages of Government approval processes. Market Dynamics of the decorative paints sector have changed with new capacities being announced backed by strong growth and outlook. 

- Grasim has accelerated the execution of our paint’s capacity of 1,332 MLPA with the commissioning of plants to start by Q4FY24. The project cost is likely to be ~%10,000 crores by FY25. 

Capex:

The total Capex spent during FY22 stood at Rs.2,537 crore, which includes Rs.579 crore. spent for the Paints Business. 

The Board of Directors of Grasim has recommended a dividend of Rs.5 per equity share for FY2022 and a special dividend of Rs.5 per equity share, taking the total dividend to Rs.10 per equity share. The total outflow on account of the dividend would be Rs.658 crore.