Q3FY18 Financial Performance
Mumbai, 14thFebruary, 2018: Grasim has announcedresults for the quarter ended 31st December,2017 reporting significant growth both at Standalone and Consolidated levels.
Standalone PAT for the quarter at `474 Cr. was up by 43% compared to `331 Cr. in Q3FY17.
Consolidated PAT, before share in profit/loss of JVs & Associates and minority interest,at `1,125 Cr., grew by 22% YoY. Reported consolidated PAT (including share in profit/loss of JVs & Associates and after minority interest) for the quarter at `543 Cr. is lower compared to Q3FY17 (`717 Cr.), mainly on account of share of the Company in the Net Loss of Idea Cellular Limited, an Associate of the Company.
The previous year’s financial resultsdo not include the results of the erstwhile Aditya Birla Nuvo Limited (ABNL)as ABNL merged with the Company with effect from 1st July, 2017, hence not comparable.
The domestic VSF market demand remained buoyant with sales volume up by 9% YoY in Q3FY18.
Net Revenue is up 24% YoY to `2,186 Cr. for Q3FY18on the back of higher volumes and betterrealization.EBITDA at `462 Cr. is up 15% YoYin Q3FY18.
To tap the strong demand growth of VSF and maintain its leadership position, Grasim has committed a fresh capex of `3,523 Cr.forcapacity expansion. Coupled with the existing expansion plan at a cost of`802 Cr., the total capacity will increase by 58% to 788 KTPA.
Pursuant to the agreement for the ‘Right to Manage & Operate’ VFY business of Century Textiles& Industries Ltd. for a period of 15 years, Grasim has commenced operationsfrom 1st February,2018.
The uptrend in domestic caustic soda prices continued in the current quarter,driven by supply related issues in China and Europe and robust demand from major consuming segments (Alumina and Textile).
Net Revenuesaw a phenomenal rise42% YoY to `1,311 Cr. led by higher sales volume and realization.EBITDA is up 93% YoY to `359 Cr.The management focus on increasing the volume of chlorine based value added products continues.
The brownfield expansion of 144KTPA Caustic Soda at Vilayat, Gujaratis expected to be commissioned by March 2018.
Cement Subsidiary – UltraTech
UltraTech reported an increase in Net Revenue (Consolidated) by 34% (YoY) to `8,019 Cr. and EBITDA by 17% to`1,494 Cr. in the current quarter.
The performance of the acquired cement assets witnessed considerable improvement in all operational parameters with theexit capacity utilization for Q3FY18at 60%. UltraTech has successfully launched its ‘UltraTech Brand’ and realized brand premium across new markets of the acquired assets.
Financial Services Subsidiary – Aditya Birla Capital Limited (ABCL)
ABCL (formerly known as Aditya Birla Financial Services Ltd.) was listed on the stock exchanges on 1st September, 2017 as the culmination of the composite scheme of arrangement. Under it ABNLmerged with the Company and the financial services undertaking was subsequently demerged into ABCL.
ABCL reported a robust financial performance for Q3FY18 with a Consolidated Revenue of`3,325Cr. andEBT of `409Cr. as per IGAAP (The Company’s results include, Revenue of `2,850 Cr. and EBT of `267 Cr. as per IND AS).
The NBFC Lending book (Incl. housing) rose by 41% YoYto reach an all-time high of `46,522 Cr. in Q3FY18.
The Total Assets Under Management rose to highest ever level of `2,99,893 Cr1. up by 31% YoY in Q3FY18.
1Includes AUM of Life Insurance, Health Insurance, Private Equity & quarterly AAUM of Asset Management business
The VSF business will continue to focus on expanding the market in India by partnering with the textile value chain, achieving better customer connect through brand Liva and enriching theproduct mix through a larger share of specialty fibre. The new capacities likely to come on stream in China may impact the global VSF prices in the near term.
The demand for Caustic Soda in India is expected to grow with rising consumption from the Alumina and Textile sectors.
In Cement,Government spending on infrastructure, rural and affordable housing will be the key demand drivers. The Company is well positioned across the country to cater tothisgrowth in demand.
In Financial Services, ABCL is geared to provide universal financial solutions to meet the customers money need for life.
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