Grasim Industries Ltd. approved on Wednesday the issuance of non-convertible debentures worth up to Rs 2,000 crore in one or more tranches, according to an exchange filing.
The flagship company of the Aditya Birla Group will issue the NCDs on a private placement basis. The decision was made by the firm's finance committee of the board of directors in a meeting on Wednesday, it said.
Q2 Performance
Grasim Industries' consolidated net profit dropped 46% year-on-year to Rs 1,100.2 crore in the second quarter of the current financial year. Revenue rose 11% to Rs 33,562.9 crore in the July–September period from Rs 30,220.7 crore in the same period last year.
Operating income or earnings before interest, taxes, depreciation and amortisation fell 1% to Rs 1,100.2 crore. The Ebitda margin contracted 210 basis points to 17.9% from 20% in the same period in the previous fiscal.
Grasim Industries added new grey cement capacity of 9.9 million tonnes per annum in the current fiscal till October, taking the total grey cement capacity to 156.1 MTPA, according to an investor presentation. Domestic sales volume grew 3% to 26.4 MT in the second quarter.
Shares of Grasim Industries rose as much as 1.68% during the day to Rs 2,699.90 apiece on the National Stock Exchange. The stock closed 0.58% higher at Rs 2,670.75 per share, compared to a 0.13% advance in the benchmark Nifty. The share price has advanced 26.05% on a year-to-date basis.
Ten out of the 14 analysts tracking the company have a 'buy' rating on the stock, three recommend 'hold' and one suggests 'sell,' according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 8.5%.
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