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Grasim Inds Q4 preview: Sales may rise in single digit, margin may fall sequentially

NEW DELHI: NIfty50 constituent firm is likely to report a sales growth of 6-7 per cent for March quarter. Margins are seen expanding year on year (YoY), but may fall sequentially. Analyst estimates vary on the company’s profit figure.

Grasim is a diversified company with exposure to many sectors. The flagship company of Aditya Birla Group is a leading global producer of viscose staple fibre (VSF), the largest chlor-alkali, linen and insulators in India. Combined with its subsidiaries, UltraTech Cement and

, it is India’s largest cement producer and a diversified financial services player.

“For Grasim, we expect a steep rise in VSF prices and better demand environment to aid strong net profit growth,” Sharekhan said.

Motilal Oswal Securities expects the company to log 6 per cent YoY rise in standalone net profit at Rs 380.70 crore for March quarter compared with Rs 357.10 crore in the same quarter last year. On an adjusted PAT basis, it expects a profit growth of 253 per cent on a low base.

Sales are seen rising 5.7 per cent YoY to 4,560.30 crore compared with Rs 4,312.50 crore. Ebitda margins are seen expanding 770 basis points to 16.9 per cent from 9.1 per cent YoY, but down 70 basis points from 17.6 per cent in the December quarter.

VSF and chemicals businesses are expected to see volume growth of 1 per cent and 3.5 per cent, respectively. Realisations for VSF and chemicals businesses may continue to recover from September quarter lows, Motilal Oswal

Sharekhan sees sales rising 5.6 per cent to Rs 4,554 crore.It sees profit growing 262 per cent to Rs 407 crore.

Antique Stock Broking expects the company to report net profit at Rs 550.60 crore. Sales are seen rising 7.4 per cent YoY to Rs 4,633.20 crore.

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