India's Grasim posts Q2 profit fall on weak demand for paints

Berger Paints India

14/11/2024 15:46

Nov 14 (Reuters) - India's Grasim Industries  GRAS.NS 
reported a lower second-quarter adjusted profit on Thursday,
dragged down by poor demand in its paints division due to
higher-than-usual monsoon rainfall.
    The company, which also has chemicals and yarns businesses,
reported a profit before exceptional items of 7.71 billion
rupees ($91.4 million) in the three months ending Sept. 30, down
3% from a year ago.
    Grasim's standalone numbers exclude earnings of its units
UltraTech Cement  ULTC.NS  and Aditya Birla Capital  ADTB.NS .
    The company's paints division, launched earlier this year
under the Birla Opus brand, has hurt its margins as the company
continues to invest in the business.
    Moreover, paint makers saw weak demand as the country saw
above-average monsoon rainfall during the quarter, which
impacted sales.
    Grasim's revenue rose about 18% to 76.23 billion rupees for
the quarter.
    Its total expenses surged 26% to 78.65 billion rupees,
causing Grasim's margins on earnings before interest, tax,
depreciation and amortization to contract to 18% from 19% a year
earlier.
    Rivals Asian Paints  ASPN.NS , Berger Paints India  BRGR.NS 
and Kansai Nerolac Paints  KANE.NS , all experienced a slump in
profit, hurt by muted demand due to heavy monsoons.


($1 = 84.3970 Indian rupees)

 (Reporting by Ashna Teresa Britto and Kashish Tandon in
Bengaluru; Editing by Vijay Kishore)
 ((AshnaTeresa.Britto@thomsonreuters.com;))