GRASIM INDUSTRIES LIMITED (GRASIM) is likely to report strong year-to-year (yoy) growth ~ 40 percent in Mandiri profit after tax (PAT) when it will state the results on August 12 for the quarter ended June 2022. Mandiri income for the company tends grows 78 percent in the year.

In sequence, the company’s performance is likely to be muted by witnessing a 24 percent quarter-quarter-quarter (QoQ) decline and revenue rose 5 percent marginal.

According to the broker’s poll conducted by Moneycontrol, the mainstay company of the Aditya Birla group is expected to report PAT Standalone RS 620 Crore for the quarter and Mandiri Rs 6,704 Crore income.

The company has recorded PAT Mandiri RS 446 Crore during the previous year’s period with 3,763 CRORE RS revenues.
During the January-March period, Pat Mandiri for this quarter was established in RS 814 Crore with RS income 6,376 Crore.

Growth for companies is driven by strong yoy growth in the VSF business volume and strong performance of chemical operations. Better realization in both businesses also helps Yoy’s growth for the company.

We are modeling an increase in volume of 59 percent in VSF operations (flat qoq) to 191,000 tons and an increase in volume of 15 percent in chemical operations (flat qoq) to 273,000 tons in increasing export demand, “said report from the institutional box equity.

Motilal brokerage company Oswal Financial Services expects income for VSF businesses to grow by 93 percent, driven by a 15 percent yoy realization growth. This estimates that the chemical segment revenue will grow by 75 percent in the year, driven by a realization growth of 48 percent yoy.

Grasim is likely to post a 47 percent strong yoy leap in Ebitda Mandiri to RS 1,093 Crore behind a strong profitability in the division of chemicals and better margins in VSF, along with a new capacity building.

Margin tends to be squeezed because of higher operating costs. Motilal Oswal expects EBITDA/Kg RS 26 for the VSF V/S RS 40 segment in Q1fy22 and margin for chemical segments increases by 4.8 percent yoy and 3.9 percent in the quarter.

Grasim was closed RS 10.85 lower in Rs 1,600.05 on August 11 on the National Stock Exchange. Stocks have appreciated 6.5 percent over the past year and have resulted in a return of 13.8 percent over the past month.