Grasim Q3 net profit rises by 28% y-o-y
- Net profit rose by 28.3% y-o-y to Rs.608 crore from Rs.474 crore.
- Revenue surged by 20.9% y-o-y to Rs.5,293 crore from Rs.4,377 crore.
- EBITDA advanced by 19.3% y-o-y to Rs.1,053 crore from Rs.882 crore.
Grasim Industries Ltd’s Q3FY19 standalone net profit rises 28.3% yoy to Rs.608.2cr : In-line with Estimates.
The company’s standalone revenue stood at Rs5,292.9cr, up 20.9% yoy and 3.4% qoq.
Grasim Industries Ltd Q3FY19
Standalone Results Q3FY19: (Rs. in cr)
|EBITDA Margin (%)||19.9|||
Grasim (Standalone) reported a healthy set of numbers for the quarter, broadly in-line with the estimates. Revenue for the quarter was up 20.9% yoy to Rs.5,292.9cr, in-line with consensus estimates. EBITDA grew 19.3% yoy to Rs.1,052.6cr, with a marginal contraction of 27bps yoy in EBITDA margin, which stood at 19.9%. Aided by higher other income and lower tax outgo, the PAT was up 28.3% yoy to Rs.608.2cr.
- Consolidated revenue and EBITDA were up 21.5% and 45.4% on yoy basis respectively.
- The VSF business reported net revenue of Rs.2,616.7cr, up 19.6% yoy with EBITDA at Rs.477cr, up 3% yoy. The share of domestic sales volume in the overall sales volume improved to 89% in Q3FY19 from 77% in Q3FY18.
- The VSF business reported sales volume of 134KT, up 1% yoy in Q3FY19. The 7% increase in VSF realization on yoy basis was offset by higher input costs. The prices of key inputs, pulp, sulphur and coal were up by 12%, 28% and 9% yoy respectively. Company launched Livaeco, an eco-enhanced variant of brand Liva.
- Chemical segment’s net revenue for the quarter grew 18.6% yoy to Rs.1,558.5cr with a 23% yoy jump in EBITDA to Rs441cr. The strong growth was driven by better realization and higher sales volume (10% yoy growth to 250KT). The phosphoric acid plant of 29KTPA at Vilayat (Gujarat) has been commissioned in last quarter and the ramp up from that is expected by Q4FY19E.
- Pulp segment’s revenue was up 23% yoy to Rs.912cr, however, EBITDA declined by 4% yoy to Rs.92cr on account of rise in input costs.
- UltraTech had reported a growth 18.9 yoy in consolidated sales to Rs.9389.6cr driven by 14% yoy volume growth. However, PAT was down by 14.5% yoy.
- ABCL reported a robust financial performance in Q2FY19 with a consolidated revenue of Rs.3,780cr and PAT (after minority interest) of Rs.206cr. The lending book (including housing) grew 29% yoy to Rs.60,129cr in Q3FY19 and AUM grew 8% yoy.
IIFL Technical View:
Grasim Industries Ltd is currently trading at Rs.714.50, down by 38.7 points or 5.14% from its previous closing of Rs.753.20 on the BSE.
The scrip opened at Rs.756 and has touched a high and low of Rs.764.80 and Rs.709.60 respectively. So far 41,78,831 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.
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