Grasim Industries, an Aditya Birla Group company, has reported that its net profit for Q3 increased 70 per cent to ₹4,454 crore, largely due to other income of ₹2,972 crore.

Revenue from operations increased 17 per cent to ₹28,638 crore (₹24,402 crore).

Aditya Birla Health Insurance had sold 9.99 per cent stake to Abu Dhabi Investment Authority for ₹664 crore. Aditya Birla Capital, which holds 46 per cent stake in ABHI, has re-classified its investment in the insurance company from subsidiary to joint venture in October resulting in a fair value gain of ₹2,754 crore representing the difference between the fair value of retained interest and derecognition of net assets of ABHI, said the company.

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Overall expenses jumped to ₹26,501 crore (₹21,702 crore) on an increase in power and fuel cost to ₹6,084 crore (₹4,255 crore) and freight handling cost of ₹3,714 crore (₹ 3,152 crore).

On standalone basis, net profit was down at ₹257 crore (₹489 crore) and revenue increased to ₹6196 crore (₹5,785 crore).

The revenue for the viscose business declined by 5 per cent to ₹3,182 crore and EBITDA at ₹63 crore was down 84 per cent year-on-year. The lower operating rates of VSF at 71 per cent coupled with pressure on pricing and high input costs have resulted in negative EBITDA in VSF business in December quarter.

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Domestic demand for viscose remained buoyant amid global slowdown. Domestic demand was largely met by cheap imports from Indonesia. Further, zero import duty in India on these imports created pressure on local prices while input prices continued to remain elevated, said the company.

The revenue for the chemicals business was up 10 per cent at ₹2,582 crore and EBITDA dipped 8 per cent to ₹488 crore as the speciality chemicals realisations fell.

The construction work for setting up paint plants at all six locations are on track and commercial launch is scheduled for Q4FY24.

Most of the senior leadership team has joined the B2B e-commerce business. The pilot operations have started in January and the full-scale launch is expected in H1FY24, said Grasim Industries.

The company has invested ₹1,817 crore in paints business as of December-end, accounting for 18 per cent of the planned capex.

Of the total capex of ₹3,498 crore for all other businesses, it has spent ₹1,370 crore in nine months of this fiscal. The Board has also approved fresh investment of ₹363 crore for Chlorine derivatives.

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