Grasim Industries profit declines 45.6% to Rs 1,100 crore in Q2

New Delhi: Aditya Birla Group flagship holding firm Grasim Industries Ltd on Thursday reported a 45.64 per cent decline in consolidated net profit to Rs 1,100.16 crore for the September quarter, impacted by lower profitability in the cement business and investments in the Building Materials and Renewables businesses.

The company had posted a net profit of Rs 2,024.05 crore during the July-September period a year ago, according to a regulatory filing by Grasim Industries -- the holding firm for leading group companies such as UltraTech, Aditya Birla Capital, and Aditya Birla Renewables.

Its revenue from operations was up 11.05 per cent to Rs 33,562.85 crore during the quarter under review from Rs 30,220.68 crore a year earlier.

The revenue growth was "driven by the superior performance of financial services, cellulosic staple fibre and specialty chemicals businesses", Grasim Industries said in an earning statement.

However, consolidated EBITDA declined "as a result of lower profitability in the cement business and initial investments in the paints business under brand Birla Opus", it added.

"Further, higher interest and depreciation charges on account of investments in the building materials and renewables businesses has led to lower PAT," said Grasim.

Total expenses of Grasim Industries rose 15.75 per cent during the quarter under review to Rs 31,993.03 crore.

Its total income, which includes revenue from other sources, was at Rs 33,958.21 crore, up 11.31 per cent in the September quarter.

Shares of Grasim Ltd on Thursday settled at Rs 2,528.55 on the BSE, up 0.79 per cent from its previous close.