Grasim Industries Q3 preview: Aditya Birla’s flagship entity set to log 22% YoY growth in EBITDA

Aditya Birla Group’s cement and cement products company, Grasim Industries, is slated to report its earnings for the October-December period on February 8.

Zee Business Research desk estimates the company’s standalone PAT, or profit after tax, for the December quarter to decline 23.5 per cent on year to Rs 196.5 crore, as against Rs 257 crore reported in the same period last year. In Q3 FY23, the cement manufacturer received a tax credit amounting to Rs 42.4 crore.

The top line, however, is set to log low-single-digit growth of 2.6 per cent on year to Rs 6,359.6 crore. The company’s topline in Q3 FY23 stood at Rs 6,196 crore.

EBITDA, or earnings before interest, taxes, depreciation, and amortisation (EBITDA) at the company, is likely to increase by 22.1 per cent on year to Rs 582.7 crore versus Rs 477 crore during the same period last year.

Alongside, the company’s margin is seen coming in at 9.2 per cent in comparison to 7.7 per cent registered in the corresponding period last year.

Segment-wise, Zee Business analysts estimate the company’s VSF (Viscose Staple Fibre) segment to post 18 per cent on-year growth in income during the review period, while its chemical business is seen to log 20 per cent de-growth on a year-on-year basis.

The EBITDA for the VSF segment is expected to soar six times on year during the quarter under review, while its chemicals business is seen to register a high decline in EBITDA of 48 per cent on a year-on-year (YoY) basis.

Further analysts noted that, given the losses at the company’s new businesses, including paints and B2B e-commerce, margins at the cement maker remain under pressure.