Aditya Birla Group company Grasim Industries Ltd. reported a higher-than-projected net loss in the fourth quarter of the financial year 2025, even as it managed to narrow the amount.
Standalone net loss stood at Rs 288 crore in the January-March quarter, compared to a loss of Rs 441 crore in the corresponding period last year, according to the financial results released on Thursday.
Analysts' consensus estimates compiled by Bloomberg projected a loss of Rs 110 crore.
The company reported an exceptional loss of Rs 114 crore during the quarter to provision for a cellulose fibre knit fabrics unit that stopped operations as the business became non-viable. The company also had to write off a project on account of prolonged litigation.
Revenue from operations rose 32% to Rs 8,926 crore. On the operational front, earnings before interest, tax, depreciation and amortisation slid nearly 60%, leading to a margin contraction.
Grasim Industries Q4 FY25 Results Highlights (Standalone YoY)
Revenue up 32% at Rs 8,926 crore versus Rs 6,767 crore (Bloomberg estimate: Rs 8,720 crore)
Ebitda down 58% at Rs 221 crore versus Rs 527 crore (Bloomberg estimate: Rs 358 crore)
Margin at 2.5% versus 7.8% (Bloomberg estimate: 4.1%)
Net loss of Rs 288 crore versus a loss of Rs 441 crore (Bloomberg estimate: Loss of Rs 110 crore)
Note: Exceptional loss of Rs 114 crore in Q4FY25 compared to loss of Rs 716 crore in Q4FY24.
For the year, standalone capital expenditure totaled Rs 3,513 crore. A significant portion of this, 65% or Rs 2,300 crore, was allocated to new ventures, specifically the paints and B2B e-commerce segments, according to a press release.
"Grasim’s standalone business is undergoing a strategic transformation, marked by a decisive foray into consumer-facing and digital ventures, in decorative paints and B2B e-commerce for construction materials. The rapid scale-up of these verticals signals the emergence of robust new growth engines in a fast-evolving economic landscape," the statement said.
On a consolidated basis, Grasim achieved its highest-ever quarterly revenue and Ebitda. Revenue reached Rs 44,267 crore, an increase of 17% year-on-year, while Ebitda stood at Rs 6,548 crore, up 6% year-on-year.
The strong performance was primarily driven by the cement, chemicals, and financial services businesses. However, the company reported a lower net profit of Rs 1,559 crore, mainly due to higher interest and depreciation costs, the statement said.
Grasim Industries Dividend
Grasim Industries' board recommended a final dividend of Rs 10 per share for FY25, subject to approval of shareholders at the ensuing Annual General Meeting of the company. The dividend would be paid within 30 days from the date of its declaration. The record date will be intimated in due course separately.
The total outflow on account of the dividend would be Rs 681 crore.
Besides, the board approved the appointment of Hemant Kumar Kadel as the chief financial officer and key managerial personnel with effect from Aug. 16. This appointment is consequent to the superannuation of Pavan Kumar Jain.
Shares closed 1.2% lower at Rs 2,675.2 on the BSE, ahead of the results, compared to a 0.8% decline in the benchmark Sensex. The stock has risen 10% so far this year.
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