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• Consolidated Revenue: INR 34,793 crore, up 9% YoY for Q3 FY25.

• Standalone Revenue: INR 8,120 crore for Q3 FY25.

• Consolidated EBITDA: INR 4,668 crore, down 9% YoY.

• UltraTech Cement Capacity: On track to achieve over 200 million tonnes per annum by FY27.

• Domestic Gray Cement Volumes: Grew by 11% YoY.

• Birla Opus Paints: Expected to be the second largest player by installed capacity in the Indian decorative paints market.

• Cellulosic Fiber Volumes: Flat YoY; sequential decline due to seasonal demand weakness.

• Chemicals Business EBITDA: Up 25% YoY, driven by higher Caustic Soda prices.

• NBFC Revenue Growth: 12% YoY.

• Housing Finance Business Growth: 45% YoY.

• Total Lending Portfolio: Grew by 27% YoY to over INR 146,000 crore.

• Renewable Business Installed Capacity: 1.5 gigawatts, up 37% from March '24.

• Warning! GuruFocus has detected 5 Warning Signs with BOM:500300.

Release Date: February 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Grasim Industries Ltd (BOM:500300) reported a 9% year-over-year growth in consolidated revenue for Q3 FY25, reaching INR34,793 crore.

• The company's paints business under the Birla Opus brand is gaining market share in the Indian decorative paints market, supported by an expanding distribution network and strong brand visibility.

• The B2B e-commerce business, Birla Pivot, continues to achieve higher revenues quarter-on-quarter, enhancing its user experience and expanding its product categories.

• Grasim's core businesses, including cellulosic fiber and chemicals, provide stability to the overall earnings profile, with the chemicals business reporting a 25% YoY increase in EBITDA.

• The financial services segment under Aditya Birla Capital showed all-around growth, with the NBFC segment reporting a 12% revenue growth and housing finance business growing by 45% YoY.

Negative Points

• Consolidated EBITDA for the quarter decreased by 9% YoY, primarily due to lower profitability in smaller businesses and initial investments in the paints division.

• The VSF division is facing cost pressures due to increased prices of key inputs like pulp, caustic soda, and sulfur, impacting profitability.

• The paints business is still incurring operating losses as it is in the investment phase, with a breakeven expected within three years of full-scale operations.

• Chlorine prices remain negative, affecting the chemicals segment's profitability, despite improvements in caustic soda prices.

• The market for paints has been flat or slightly negative, which could impact future growth expectations despite Grasim's market share gains.