On a standalone basis, the company reported a net loss of Rs 168 crore.
The profit growth was dragged down by higher interest and depreciation charges on account of investments in the building materials businesses.
Consolidated EBITDA for the quarter wad down 9% YoY to Rs 4,668 crore, mainly due to lower realisations in the cement business and initial investments for building a strong consumer-facing paints business.
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Segment wise, the Cellulosic Fibres reported revenue growth of 6% YoY to Rs 3,934 crore, while EBITDA declined by 18% YoY to Rs 331 crore, mainly due to higher key input prices
Stable demand scenario in China has led to steady CSF prices of $1.65/kg in Q3FY24. CSF sales volume during the quarter stood flat at 205 KT due to production disruption at Excel Plant, Kharach and seasonally weak demand towards the quarter end.
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The CFY business recorded volume growth of 10% YoY though on lower base, however realisations remained under pressure due to surge of cheaper imports from China.
The chemicals business revenue was up by 12% YoY at Rs 2,226 crore, while EBITDA increased 25% YoY to Rs 329 crore, driven by improved realisation in Caustic Soda and better profitability in the Chlorine Derivatives segment.
Continued negative Chlorine realisations due to oversupply resulted in lower growth in ECU realisations of 8% YoY to Rs 34,041/ton. Caustic soda sales volume growth at 1% YoY was muted due to lower production at Vilayat plant restricted by lower power availability.
The building materials segment reported revenue growth of 10% YoY to Rs 18,784 crore, mainly coming from from new businesses Birla Opus and Birla Pivot.
Lower realisations in Cement business (UltraTech) and initial expenses for building a consumer facing brand ‘Birla Opus’ in the Indian decorative paints industry led to lower EBITDA for the segment at Rs 2,806 crore.
The Board has approved setting up of 110K TPA capacity of Lyocell, the fastest growing Cellulosic Fibre, at Harihar, Karnataka. The first phase of 55K TPA will be executed by mid-2027 at an investment of Rs 1,350 crore.
It will further strengthen the company’s Specialty product portfolio of eco-friendly fibres. With this investment, Grasim’s total Lyocell capacity marketed under the ‘Birla Excel’ brand will increase to 153K TPA, solidifying its position as a key player.
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