Q1 Results: Grasim Industries’ Profit Falls On One-Time Exceptional Loss
Grasim Industries Ltd.’s profit fell in the quarter ended June, dragged by an exceptional loss on impairment of its payments bank venture.
Net profit fell 68.6 percent year-on-year to Rs 201.7 crore, according to an exchange filing. The company incurred a one-time loss of Rs 290 crore with respect to its investment in Aditya Birla Payments Bank—promoted by Grasim Industries and Vodafone Idea Ltd.—that ceased operations last month.
The cement-to-textiles conglomerate’s revenue, however, rose 4.4 percent over the last year to Rs 5,000.6 crore in the April-June period.
Its earnings before interest, tax, depreciation and amortisation, or operating profit, fell 21.8 percent to Rs 843.7 crore. The operating margin contracted 560 basis points to 22.5 percent.
Besides, Grasim Industries said a total capital expenditure plan of Rs 7,800 crore was under execution for raising capacities in viscose staple fibre and chemical businesses. This capex will be incurred from 2019-20 to 2021-22, the filing said.
Grasim Industries' shares rose as much as 5 percent after Q1 results announcement, compared with a 1.07 percent gain in the benchmark Nifty 50 Index.