Grasim posts Q2 net loss of Rs 234 crore on account of one-time cost

New Delhi, Nov 13 (PTI) Grasim Industries Ltd on Friday posted a consolidated net loss of Rs 234 crore for the second quarter, against a net profit of Rs 595 crore in the year-ago period, on account of a one-time cost during the period.

     The Adity Birla group's flagship company noted that it recorded a Rs 766.7 crore loss related to impairment of investment and provisions towards estimated exposure in its Canadian pulp joint venture AV Group NB Inc, according to an exchange filing.

     "AV Group NB Inc, a joint venture of the company, has undertaken temporary idling of operations of its dissolving grade pulp mill located at Nackawic, New Brunswick, Canada, following a careful assessment of continuing challenges, prevailing market conditions and broader macroeconomic factors," the company said.

     Its revenue from operations during the quarter jumped 26 per cent to Rs 50,105 crore from Rs 39,900 crore in the year-ago period. Grasim noted that topline was driven by all-round performance across its diversified business portfolio.

     Building materials segment revenue stood at Rs 27,378 crore, up 23 per cent on year, led by robust performance across cement, paints and B2B e-commerce business.

     Its cellulosic fibres revenue rose 29 per cent on-year to Rs 5,344 crore on the back of volume growth, favourable product mix and stability in domestic prices.

     "Consolidated EBITDA went up by 25 per cent YoY to Rs 6,513 crore, mainly led by cellulosic staple fibres, building materials and financial services businesses, the company said.

     Total expenses during the quarter went up by 24 per cent to Rs 47,037.72 crore from Rs 37,795.74 crore in the year-ago period. Cost of materials consumed rose sharply by 29 per cent to Rs 9,761.62 crore from Rs 7,541.78 crore.

(This story has not been edited by THE WEEK and is auto-generated from PTI)