Grasim's Apr-Jun net profit seen up 8-26% YoY, down 43-51% QoQ

10 Aug 2022

Grasim Industries is expected to report a net profit of 5.2 bln-6.1 bln rupees for the quarter ended June according to estimates by three brokerage houses.

The company will declare its quarterly results on Friday.

The net profit estimates put it higher by 8-26% from the net profit of year ago period and 43-51% lower than the previous quarter.

The estimates peg Grasim's net sales between 63.8 bln rupees and 70.2 bln rupees, 70-87% higher than a year ago and flat to 10% higher than the previous quarter.

The sales growth in June quarter will be aided by the low base of year ago period and ramp up of capacities during the quarter.

Brokerage ICICI Securities expects Grasim's operating profit, as denoted by the earnings before interest, tax, depreciation and amortisation, to jump 38% on year "on the back of strong profitability in chemicals division."

It expects the viscose staple fibre segment EBITDA to go up due to better realisations and ramp up of new capacities.

When the company reports its June quarter results on Friday investors will be monitoring the company's outlook on demand in viscose staple fibre and overall input costs for the rest of the current financial year.