Grasim Industries Q4FY21 results: Profit rises 13% YoY to Rs 2,616.64 crore; it will pay dividend of Rs 9 per share

Grasim Industries on Monday, May 24, 2021, reported a 13.30 per cent year-on-year rise in consolidated profit at Rs 2,616.64 crore for the quarter ended March 31, 2021 (Q4FY21). It had posted a profit of Rs 2,309.41 crore in the same quarter of the previous financial year (Q4FY20).

Total revenue from operations on a consolidated basis grew 26.09 per cent to Rs 24,398.92 crore as against Rs 19,349.54 crore posted in the corresponding quarter last year. Ebitda for the quarter surged 62 per cent YoY to Rs 5,142 crore.

On a standalone basis, the net profit rose 49.4 per cent YoY at Rs 463.04 crore for the reported quarter as compared to Rs 309.59 crore posted last year. Revenue grew 18.4 per cent to Rs 4,394.25 crore as compared to Rs 3,712.12 crore.

The company in a regulatory filing at BSE said, "While the signs of economic recovery picking up momentum were visible during the Q4FY21, the impact of the second wave of COVID-19 on the economic activity needs to be assessed."

Talking about the viscose business Grasim said, the Global textile fibre demand witnessed a sharp recovery in H2FY21 led by a spurt in the consumer demand and restocking of the pipeline. The growing consumer preference for comfortable, casual & value for money clothing has spurred demand for cellulosic fibre and VSF has been a key beneficiary of this shift.

The buoyancy in the domestic demand was reflected in 9 per cent YoY growth in the domestic sales. VAP portfolio reported 17 per cent YoY growth during Q4FY21. The share of value-added products in the overall sales mix as a result improved to 26 per cent in Q4FY21 from 22 per cent in Q3FY21.

The company said that the total CapEx spend for FY21 stood at Rs 1,508 crore. The CapEx plan for FY22 (excluding paints and fertiliser) is Rs.2,604 crore, which includes the VSF expansion project at Vilayat with Line-1 scheduled to be commissioned in Q2FY22 and Line-2 in Q3FY22.

Other CapEx includes Grasim's plans to invest towards increasing its Advanced Materials (Epoxy) business capacity by ~125 KTPA through a brownfield expansion at the existing location of Vilayat, Gujarat. This will include standard & specialty epoxy products along with curing agents. Being an industry leader, Grasim will continue to play a proactive role in growing & supporting the demand growth.

Besides, the Board of Directors of the company has recommended a dividend of Rs 5 per equity share for the year ended March 31, 2021, and a special dividend of Rs 4 per equity share, taking the total dividend to Rs 9 per equity share (of the face value of Rs 2 each), subject to the approval of shareholders at Annual General Meeting. The total outflow on account of the dividend would be Rs 592 crore.