Consolidated revenue for Q3FY23 grew 17% to 28,638 Cr. driven by strong performance of the subsidiaries:
The Company reported stable financial performance over 9MFY23 despite multiple headwinds and recessionary fears globally. While domestic consumption remained healthy, global macroeconomic conditions impacted export related demand. Operational profitability for the quarter was adversely affected by elevated input prices.
At Grasim, our long-term strategy of market leadership in each of the business segments has yielded sustained value creation for the stakeholders. We remain committed to expanding our product offerings through innovation with a greater focus on Speciality segments. The Cost Leadership and Strong Balance Sheet provide the required strength to face such cyclical volatility.
Viscose Business
Viscose Staple Fibre (VSF) value chain partners have witnessed a prolonged global demand slowdown on the back of geo-political instability, recessionary fears and consequential consumption slowdown. Thus, exports led demand from the value chain partners was impacted and ripples were felt across the Indian textiles market.
The global demand slowdown and resilient demand conditions in
The revenue for the Viscose business declined by 5% YoY to 3,182 Cr. and EBITDA at 63 Cr was down 84% YoY. The lower operating rates of VSF at 71% coupled with pressure on pricing and high input costs have resulted in negative EBITDA in VSF business for Q3. However, this was offset by good performance of Viscose Filament Yarn (VFY) business.
Chemicals Business
Chlorine Integration increased to 60% this quarter compared to 56% in Q3FY22, supported by new Chloromethane (CMS) facility commissioned in Q3FY22. The business continues to work on adding more chlorine derivatives products in the portfolio.
The Speciality Chemicals (Epoxy Polymers and Curing Agents) business saw realisation level normalise from the peak seen in FY22, as global supply chain issues eased. This business is innovatively increasing applications in infrastructure, mobility and renewable energy.
The revenue for the Chemicals Business was at 2,582 Cr up 10% YoY and EBITDA stood at 488 Cr down 8% YoY as the speciality chemicals segment saw normalisation of the realisations.
Paints Business
The construction progress remains on track across all six plant locations. The state-of-the-art R&D facility has been commissioned. It is now working on developing innovative products for unique customer experiences. The commercial launch is scheduled for Q4FY24, as per plan.
B2B E-Commerce Business
Most of the senior leadership team has joined. Hiring for the next level is in process. Shortlisting of partners (sourcing, logistics, vendors, etc.) to provide an integrated fulfilment experience to customers is near completion. While the pilot operations have started from
Capex Plan
The total capex spent towards Paints Business till
The total Capex for all other businesses was 1,370 Cr. in 9MFY23 against a budget of 3,498 Cr. for FY23. The Board has also approved an investment of 363 Cr. for Chlorine derivatives projects in the Chemicals business.
Sustainability
Grasim's ESG rating has been upgraded to 'BBB' from 'BB' by
The share of renewable energy in power consumption for the Chemicals business increased to 8.3% for 9MFY23 from 7.2% in FY22. In the Textiles business share of renewable energy improved to 15.8% in 9MFY23 from 14.1% in FY22.
The Company continues to focus on the reduction of freshwater consumption adopting the 4R methodology including commissioning of ZLD plants at various sites.
Cement Subsidiary -
Cement Sales volume stood at 26 MTPA, up 12% YoY. Capacity utilisation for the quarter stood at 83% compared to 75% in Q3FY22. Consolidated revenue was at 15,521 Cr., up 20% YoY in Q3FY23 and EBITDA for the quarter was 2,462 Cr.
Under the first phase of capacity expansion announced in
On the sustainability front, UltraTech commissioned 18 MW of waste heat recovery system (WHRS) and 7 MW of solar power during the quarter. With these expansions, UltraTech's green energy share has gone up to 19.8% with includes 208 MW of WHRS and 325 MW of solar power.
Financial Services Subsidiary -
Post preferential allotment of equity shares to
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Cautionary Statement
Statements in this 'Press Release' describing the Company's objectives, projections, estimates, expectations, or predictions may be 'forward looking statements' within the meaning of applicable securities law and regulations. Actual results could differ materially from those express or implied. Important factors that could make a difference to the Company's operations include global and Indian demand supply conditions, finished goods prices, feedstock availability and prices, cyclical demand and pricing in the Company's principal markets, changes in Government regulations, tax regimes, economic developments within
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