Grasim Industries (GRASIM) Q2 24/25 earnings summary

Executive summary

• Consolidated revenue grew 11% YoY to ₹33,563 crore in Q2FY25, marking the 16th consecutive quarter of growth, but EBITDA declined 10% YoY to ₹4,042 crore due to lower cement profitability and upfront investments in Paints.

• Standalone revenue reached a record ₹7,623 crore for the quarter, up 18% YoY.

• H1FY25 consolidated revenue was ₹67,424 crore, with EBITDA at ₹8,802 crore.

• Financial Services and B2B e-commerce showed strong growth, while Cellulosic Fibres achieved record sales volume.

• Approved unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2024.

Financial highlights

• Cement business added 9.9 million tons of gray cement capacity YTD, with plans to reach 162.4 million tons by FY25 and over 200 million tons by FY27.

• Standalone net profit for Q2FY25 was ₹720.86 crore, compared to a loss of ₹52.12 crore in Q1FY25 and profit of ₹794.74 crore in Q2FY24.

• Consolidated Q2FY25 PAT (owners' share, adjusted) was ₹473 crore, down from ₹1,164 crore in Q2FY24.

• Chemicals business EBITDA rose 16% YoY, driven by chlorine derivatives and specialty chemicals.

• Financial Services segment revenue was ₹10,251.58 crore in Q2FY25, up from ₹7,707.91 crore in Q2FY24.

Outlook and guidance

• Paints business on track to exit FY25 with high single-digit market share; 85% of project capex spent.

• B2B e-commerce business targets $1 billion revenue within three years, with ongoing expansion in reach and product categories.

• CapEx for FY25 revised to ₹4,700 crore, with 64% allocated to growth in new businesses.

• Segmental reporting realigned to reflect new businesses, with 'Building Materials' now a separate segment.