Grasim Industries Ltd, the flagship holding company of the Aditya Birla Group, announced a 9.23 percent increase in its net profit, amounting to Rs 2,973.26 crore for the March quarter of FY25, while revenue from operations surged by 17.33 percent to Rs 44,267.26 crore.

In the March quarter of FY24, the company reported a net profit of Rs 2,721.81 crore, with revenue from operations recorded at Rs 37,727.13 crore, as per a regulatory filing released by the company on Thursday. For the financial year ending March 31, 2025, Grasim experienced a 21.85 percent decline in net profit, totaling Rs 7,756.33 crore, attributed to investments in the Building Materials sector.

In FY24, the company had posted a net profit of Rs 9,925.65 crore. Grasim’s revenue from operations increased by 13.36 percent, reaching an unprecedented Rs 1,48,477.89 crore, according to the company’s report.

The total consolidated income of Grasim, which oversees companies such as UltraTech, Aditya Birla Capital, and various businesses in textiles, chemicals, and Building Materials, amounted to Rs 1,49,936.93 crore, reflecting a 13.4 percent rise from Rs 1,32,242.58 crore in FY24. “The Building Materials and Financial Services sectors specifically demonstrated strong performance.

The EBITDA for the year was recorded at Rs 20,023 crore, a decrease of 4 percent year-on-year due to initial investments aimed at establishing a robust consumer-facing Paints business, Birla Opus,” the company stated. Nevertheless, profit after tax (PAT) saw a decline due to “increased interest and depreciation expenses resulting from investments in the Building Materials sector,” the company noted. In the March quarter, Grasim’s revenue from its Cellulosic Fibre division rose by 7.68 percent to Rs 4,050.93 crore. “Domestic sales volumes of CSF (Cellulosic Staple Fibre) increased by 4 percent year-on-year, although the overall CSF sales volume remained unchanged.

The CFY business recorded a volume growth of 3 percent year-on-year; however, realizations faced pressure due to an influx of low-priced imports from China year-on-year in a market already characterized by weak demand,” the company explained.

The revenue generated from Grasim’s Building Material sector experienced an increase of 20.62 percent, rising to Rs 25,232 crore from Rs 20,918.55 crore during the January-March quarter of the previous year. Grasim’s ‘Building Materials’ division includes its cement enterprise UltraTech, the recently introduced paints business Birla Opus, and its B2B e-commerce platform Birla Pivot.

“The growth in the cement sector (UltraTech) was fueled by a rise in sales volumes, which increased by 17 percent year-on-year to 41.02 million tonnes (Mt). Sales volumes of ready-mix concrete also saw a growth of 19 percent year-on-year,” it stated. In a similar vein, revenue from the financial services division — Aditya Birla Capital Ltd (ABCL) increased by 16.3 percent to Rs 12,196.79 crore from Rs 10,483.77 crore in the March quarter of the previous year. “The total Assets Under Management (AUM) across asset management, life insurance, and health insurance reached Rs 5,11,260 crore, reflecting a 17 percent year-on-year increase.

The direct-to-consumer platform, ABCD (Aditya Birla Capital Digital), which provides a comprehensive solution for various financial services to meet customers’ financial requirements, has seen a strong response with approximately 5.5 million customer acquisitions (as of April 25),” it noted. Grasim’s revenue from other sectors, including Textiles, Renewables, and Insulators, also rose by 13.67 percent to Rs 897.85 crore in the March quarter. The Board of Directors of Grasim has proposed a dividend of Rs 10 per equity share of Rs 2 for the fiscal year ending March 31, 2025.

Looking ahead, Grasim indicated that its standalone operations are undergoing a “strategic transformation, characterized by a significant entry into consumer-oriented and digital initiatives, particularly in decorative paints and B2B e-commerce for construction materials.” “The rapid expansion of these sectors indicates the development of strong new growth drivers in a swiftly changing economic environment. These new high-growth enterprises are now well-positioned to enhance Grasim’s legacy of growth driven by manufacturing,” it concluded.