Grasim Industries Q1 Results Preview: PAT likely to decline 65% with shrinking margin

Grasim Industries- the Aditya Birla group's entity engaged primarily in the cement business and constituent of the bluechip Nifty index is slated to reveal its Q1 earnings today. Zee Business research desk estimates the company to post mixed performance in Q1. The company's standalone PAT is seen to fall 65 per cent year-on-year to Rs 124 crore from Rs 355 crore reported in the same quarter last year.

The revenue for the review quarter is seen to surge 12.7 per cent to Rs 7,032 crore as against Rs 6,238 crore. Q1 EBITDA- a key profitability metric is also likely to decline substantially to the tune of 16.7 per cent from Rs 673 crore in Q1FY24 to Rs 560 crore during the reporting quarter.

The margin at the company is seen contracting by 280 bps from 10.7 per cent in the corresponding period of the fiscal year to 7.9 per cent in the last quarter. Margin at the company will be impacted on the back of continued losses at the company's new business. 

Grasim's viscose and chemical business segments are seen to post mid-single digit growth during April-June quarter. Furthermore, given the recovery in demand, volume in the chemical segment is likely to log 4 per cent on-year growth, while for the viscose segment it is seen to remain flat on-year.

Grasim Industries share price performance

Ahead of its results today, shares of the company traded with gains of 2.7 per cent at Rs 2.613.15, while at day's high it scaled to levels of Rs 2,622. The stock in the last one year has gained over 42 per cent.