Flagship Company of the Aditya Birla group Q4FY25 Results: Net Loss Narrows to Rs 288 Crore, Revenue Up 31.9 Per Cent & Dividend of Rs 10 Per Share
The stock has given 8.81 per cent returns in last 12 months while in last 5 years it has gained over 402 per cent.
Grasim Industries Ltd., the flagship company of the Aditya Birla Group, has reported its fourth quarter results for FY25, narrowing its consolidated net loss to Rs 288 crore, compared to a loss of Rs 441 crore in the same period last year. The improvement in bottom line was supported by robust revenue growth, although operating performance remained under pressure.
The company’s revenue rose 31.9 per cent year-on-year to Rs 8,926 crore, surpassing analysts’ estimates of Rs 8,675 crore. However, EBITDA declined sharply by 58.1 per cent to Rs 221 crore from Rs 527 crore in Q4FY24, reflecting higher input costs and ongoing investments in new business segments.
In a positive move for shareholders, the board has recommended a dividend of Rs 10 per equity share of face value Rs 2 each. This will be applicable to both fully and partly paid-up shares on a proportionate basis, subject to shareholder approval at the upcoming Annual General Meeting (AGM).
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On the financing front, Grasim has managed to secure its lowest-cost local-currency bond since June 2020, taking advantage of recent liquidity measures and rate outlook by the Reserve Bank of India. The company plans to raise Rs 1,000 crore (approximately $117 million) through a five-year bond carrying a coupon rate of 6.56 per cent, according to individuals familiar with the matter.
Standalone financials indicate a 40.3 per cent year-on-year increase in total expenses to Rs 9,406.91 crore, as Grasim continues its Rs 10,000 crore capital expenditure push to expand its decorative paints business, branded Birla Opus. The company has reiterated its intent to achieve break-even within three years of the full-scale launch of the paints division.
While Grasim is a Large-Cap stock with a diversified business model, its recent results reflect the financial impact of aggressive growth and investment strategies, particularly in non-core segments like paints. The stock has given 8.81 per cent returns in last 12 months while in last 5 years it has gained over 402 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.