Grasim Industries Ltd Q1FY18-19: Key Highlights
Grasim Industries Limited has reported an excellent performance for Q1FY19, recording all-round growth. Listed below are some of the key points –
For its Q1FY19, Standalone revenue stood at INR 4,789 Cr. was up by 75%, compared to Q1 last year.
Standalone EBITDA grew by 89% at INR 1,176 Cr.
The FCF for the quarter was INR 400 Cr. after a capex of over INR 300 Cr.
At consolidated level, the revenue for Q1FY19 rose by 71% to INR 16,857 Cr. and EBITDA at INR 3,212 Cr. was up by 33%.
The results of the current quarter are not comparable with that of the corresponding quarter of the previous year. The previous year’s results do not include the results of the erstwhile Aditya Birla Nuvo Limited (ABNL) which was merged with the Company with effect from 1st July, 2017.
On a like to like basis, the performance for the quarter ended 30th June, 2018 was outstanding as Standalone revenue at INR 3,547 Cr. for the quarter was up by 29% and EBITDA grew by 66%.
Segment wise Results
The Net Revenue for Q1FY19 at INR 2,480 Cr. was higher by 35% and EBITDA at INR 586 Cr. by 68%.
Net Revenue for the quarter rose by 46% YoY to INR 1,579 Cr. and EBITDA by 103% YoY to INR 495 Cr. Better realization and higher sales volume were the main drivers. The management focus on increasing the volume of speciality products (chlorine based value added products) continues.
Cement Subsidiary – UltraTech
UltraTech reported Consolidated Sales Revenue of INR 9,021 Cr. up 28% YoY and EBITDA of INR 1,763 Cr. in Q1FY19. The consolidated sales volume registered an increase of 29% on YoY basis to 18.01mtpa.
Financial Services Subsidiary – Aditya Birla Capital Limited (ABCL)
- Revenue and Net Profit for Q1FY19 stood at INR 2,978 Cr. and INR 216 Cr, an increase of 32% and 26% YoY respectively. All the key businesses have been the contributors.
- NBFC lending book grew 23% YoY to INR 44,408 Cr. The Housing Finance book grew by 1.9x YoY to INR 9,176 Cr. in Q1FY19.
- Company’s Asset Management business ranked No.3 in India with the Average Assets under management up by 19% YoY to INR 2,67,176 Cr. The business has registered an overall domestic market share of 10.7% with Equity AUM (incl. Alternate and Offshore) at INR 1,00,000 Cr. in Q1FY19.
- The Life Insurance business reported a 40% growth in the Individual First Year Premium to 227 Cr. It has improved its individual rank by 2 spots to No.71 amongst insurance companies.
- The Health Insurance business has reported a gross written premium of 76 Crore in Q1FY19.
Company Overview: Grasim Industries
Grasim Industries Limited is the flagship of the Aditya Birla Group and is the only manufacturing company to rank 205 in the list of “Global 2000 – Growth Champions 2018” by Forbes Magazine, USA.
The Company started as a textiles manufacturer in India in 1947. Today, it is a leading global player in VSF (viscose staple fibre), the largest chemicals (Chlor-Alkali-s), largest cement producer and Diversified Financial Services (NBFC, Asset Management and Life Insurance) player in India.
Over the years, the company has strengthened backward integration in Dissolving Grade Pulp, Caustic Soda, and Power & Steam – major inputs required for the production of VSF.
Grasim Industries Limited is the largest Caustic Soda producer in India with a capacity of 938 KTPA in FY18.
The Cement business was started in 1985 with a capacity of 0.5 MTPA. Grasim’s subsidiary UltraTech Cement Limited is a leading global cement manufacturer with a capacity of 96.5 MTPA in India.
Aditya Birla Nuvo Limited, an Aditya Birla Group Company was merged with Grasim w.e.f. 1st July, 2017.
Subsequently the Financial Services business was demerged from the merged entity and was listed on bourses as Aditya Birla Capital Limited on 1st September, 2017.
Stock Price Movement
The stock ended flat to INR 985 when the market closed on Tuesday! During the quarter ended 30 June 2018, the share prices of Grasim Industries Limited plunged more than 4%
Grasim Industries on Technical Chart
The stock price of Grasim Industries Limited is trading 4% lower when compared its 89 EMA and trading more than 7% lower when compared to its 200 EMA.
Also Read –
1) Finblab’s Valuepick Stock for the month of August 2018 – Meghmani Organics Ltd
Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.