Grasim Industries (GRASIM) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 consolidated revenue rose 9% year-over-year to INR 34,793 crore, with standalone revenue at INR 8,120 crore; EBITDA declined 9% to INR 4,668 crore due to lower cement profitability and initial paint investments.

• PAT (owners' share, adjusted) declined 41% year-over-year to INR 899 crore; sequentially, revenue and EBITDA improved 4% and 15% respectively.

• 9MFY25 consolidated revenue grew 10% year-over-year to INR 1,02,216 crore; EBITDA at INR 13,470 crore, up 8% year-over-year.

• The company leverages a diversified portfolio, capitalizing on India's economic growth and infrastructure focus.

• Unaudited results for the quarter and nine months ended 31 December 2024 were approved by the Board, with compliance confirmed by joint auditors.

Financial highlights

• Trailing 12-month consolidated revenue reached nearly INR 140,000 crore, with a 13.5% CAGR over four years.

• Q3 FY25 EBITDA margin at 13% versus 16% year-over-year; finance cost up 61% year-over-year; depreciation up 23% year-over-year.

• Cement volumes grew 11% year-over-year, but realizations were down 10%, with a 1.4% sequential improvement.

• Chemicals business EBITDA rose 25% year-over-year, driven by higher caustic soda prices and improved chlorine derivatives profitability.

• Financial services lending portfolio grew 27% year-over-year to over INR 146,000 crore.

Outlook and guidance

• Paints business targets breakeven within three years of full-scale operations, with continued investment in brand and dealer expansion.

• CapEx for paints is nearly complete, with the sixth plant expected online in Q1 FY26; Lyocell fiber expansion of 110 KTPA approved, with first phase by mid-2027.

• B2B E-commerce on track for $1 billion revenue by FY27.

• Net debt to EBITDA guidance remains at 3x-3.5x.

• FY26 CapEx guidance to be shared in the Q4 call.