This Aditya Birla Group’s Large-Cap Company Commence Production at New Paint Plant with180 MLPA Capacity
The stock has given 27.30 per cent returns in the last one year.
Grasim Industries Ltd has announced the start of commercial production at its new manufacturing plant Birla Opus Paints in Chamarajanagar, Karnataka. This marks the fourth operational facility out of the six plants the company had planned.
The Chamarajanagar plant is equipped to produce a variety of paints, including water-based paints with an installed capacity of 180 million litres per annum (MLPA), distemper with a capacity of 20 MLPA, and solvent-based paints, including wood finishes, with a capacity of 30 MLPA.
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The company aims to strengthen its presence in the paints market with this new facility.
In the Quarterly Results of September 2024, the company reported revenue of Rs 33,562.85 crore, a decline of 0.88 per cent compared to June 2024, but an 11.06 per cent growth year-on-year (YoY) from Rs 30,220.68 crore in September 2023. Net profit for the quarter stood at Rs 389.90 crore, registering a steep decline of 66.50 per cent YoY from Rs 1,163.75 crore and 67.72 per cent quarter-on-quarter (QoQ) from Rs 1,207.93 crore. The net profit margin decreased significantly to 1.16 per cent from 3.57 per cent in June 2024 and 3.85 per cent in September 2023.
For the financial year 2024 (FY24), the company achieved revenue of Rs 1,30,978.48 crore, an 11.35 per cent increase from Rs 1,17,627.08 crore in FY23. Net profit for FY24 was Rs 4,482.09 crore, reflecting a 24.47 per cent decline from Rs 9,142.23 crore in FY23. The net profit margin for FY24 was 6.98 per cent compared to 6.24 per cent in FY23.
Grasim Industries Limited is the flagship company of the Aditya Birla group, it ranks amongst India's largest private sector companies. On a standalone basis, GIL’s core businesses comprise of viscose Staple fibre (VSF), caustic soda, speciality chemicals, and rayon-grade wood pulp (RGWP) with plants at multiple locations. It also has certain other businesses such as fertiliser, textile, etc.
The shares of the company are trading at Rs 2,501 with a market cap of Rs 1,68,164 crore. The stock has given 27.30 per cent returns in the last one year.
Investors should keep this Large-Cap stock on the radar.
Disclaimer: The article is for informational purposes only and not investment advice.