“Financials from previous period are not comparable on account of the acquisition of a 9.99% stake by ADIA entities in Aditya Birla Health Insurance,” the company said in an exchange filing. Consolidated operating revenue rose 11.61% from ₹28,637.86 crore in Q3FY23 to ₹31,965.48 crore in Q3FY24, driven by the performance of key subsidiaries UltraTech Cement and Aditya Birla Capital.
Ultratech reported consolidated net sale of ₹16,740 crore, up 7.85%, while the financial services arm’s consolidated revenue rose 27% to of ₹8,800 crore. Earnings before interest, taxes, depreciation, and amortization on a consolidated basis rose 34% to ₹3,834 crore with a margin of 15.44%, the company added.
On a standalone basis, the textile manufacturer reported a decline of 8.17% in net profit from ₹257 crore a year earlier to ₹236 crore.
Stand-alone revenue from operations rose 3% to ₹6,400 crore from ₹6,196 crore a year earlier as the sharp decline in realizations of caustic soda (in line with global market conditions) impacted overall standalone performance.
During the December quarter, it spent ₹1,425 crore, successfully doubling its specialty chemicals (epoxy polymers and curing agents) capacity to 246KTPA.
Bloomberg’s poll estimated ₹199 crore standalone net profit and ₹6,499 crore standalone revenue for the quarter.
On a segmental basis, the company reported a rise of 16.75% in revenue to ₹3,714.58 crore for its viscose vertical with an Ebitda of ₹402 crore. The company’s VSF (viscose staple fibre) margins improved due to higher sales volume and a reduction in input price. The company said export demand for the value chain remained weak from major overseas markets leading to a decrease in prices of its fibre basket. At the same time, its viscose filament yarn business margins fell due to lower sales volume and realizations on account of increasing Chinese imports.
The firm’s chemical business reported a revenue of ₹1,996.16 crore, down 22.69% y-o-y, as ECU realizations were down by 33% y-o-y in line with the global prices, while caustic soda sales volume increased by 5% y-o-y to 299 KT.
The others segment, which represents textiles, insulators, paints, solar power, and B2B e-commerce, reported a revenue of ₹1,054.94 crore, a 41.37% rise. The textile business reported a stable performance led by the realization and volume growth in the Linen business as higher flax prices led to an improvement in linen yarn realizations, however, impacted profitability.
Concerning the paint business of the company “Birla Opus”, spent a capital expenditure of ₹1,088 crore during the quarter under consideration. “Painting services brand “PaintCraft” launched in eight cities, more than 150 sites completed by Dec ’23, while trial production commenced at three plants,” the company added in an investor presentation.
The B2B e-commerce vertical launched a private label called “Birla Pivot Tiles” in the tiles segment. The company’s e-commerce vertical also crossed the milestone of a monthly run-rate of ₹100 crore. “The Company is working towards a financial credit program for MSME vendors for their working capital requirements through a suitable lending partner,” it added in the filing.
On Thursday, Grasim Industries share price ended 1.89% lower at ₹2,068 apiece on the Bombay Stock Exchange.
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Published: 08 Feb 2024, 11:25 PM IST