{"id":4016,"date":"2025-02-10T14:47:20","date_gmt":"2025-02-10T14:47:20","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=4016"},"modified":"2025-05-13T18:21:09","modified_gmt":"2025-05-13T12:51:09","slug":"grasim-industries-shares-decline","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/grasim-industries-shares-decline\/","title":{"rendered":"Grasim Industries Shares Decline Ahead of Q3 FY25 Earnings; Analysts Predict Margin Pressure"},"content":{"rendered":"<p>Shares of Grasim Industries fell 0.5% during the trading session on February 9, ahead of its Q3 FY25 earnings announcement. Market analysts anticipate a mixed performance, with strong revenue growth but a sharp decline in net profit due to losses in the paints and business-to-business (B2B) segments.<\/p>\n<h3>Highlights:<\/h3>\n<ul>\n<li>Grasim Industries stock was down 0.54% at \u20b92,474 on the National Stock Exchange (NSE) at 11:27 AM.<\/li>\n<li>Revenue for Q3 FY25 is expected to increase 23.2% YoY to \u20b97,883 crore, according to Nuvama Institutional Equities.<\/li>\n<li>Adjusted profit after tax (PAT) is projected to decline 79% YoY to \u20b966 crore.<\/li>\n<li>EBITDA is likely to drop 11% YoY to \u20b9459 crore, as per Motilal Oswal Financial Services.<\/li>\n<li>The paints business and B2B segment are expected to impact overall margins negatively.<\/li>\n<\/ul>\n<h2>Market Expectations &amp; Analyst Views<\/h2>\n<h3>Revenue Growth But Sharp PAT Decline<\/h3>\n<p>According to Nuvama Institutional Equities, while Grasim Industries is expected to report 23.2% YoY growth in revenue, its profitability is under pressure. Adjusted PAT is projected to fall 79% YoY, primarily due to higher investments in the paints business and expansion in the B2B segment.<\/p>\n<h3>Segment-Wise Performance<\/h3>\n<h4>Viscose Staple Fibre (VSF) &amp; Chemicals<\/h4>\n<ul>\n<li>VSF volume is expected to grow 7% YoY, reflecting strong demand.<\/li>\n<li>The chemical segment is likely to see a 2% YoY increase in volume.<\/li>\n<\/ul>\n<h4>Paints Business Performance<\/h4>\n<ul>\n<li>The paints segment, which has been a key focus area for Grasim Industries, is expected to drag down revenues in Q3 FY25.<\/li>\n<li>In Q2 FY25, the company highlighted strong product feedback from dealers and contractors.<\/li>\n<li>Grasim aims to onboard 50,000 dealers by the end of FY25 and expand its distribution network to 150 depots (currently at 114).<\/li>\n<\/ul>\n<h4>B2B E-commerce Expansion \u2013 Birla Pivot<\/h4>\n<ul>\n<li>Birla Pivot, the company&#8217;s B2B e-commerce platform for building materials, is on track to achieve $1 billion in revenue within three years.<\/li>\n<li>The platform has expanded across 35 product categories, offering over 40,000 products, and now delivers to 375 cities across 26 states and union territories.<\/li>\n<\/ul>\n<h3>Cement Industry Outlook \u2013 Weak Pricing Environment<\/h3>\n<ul>\n<li>Analysts at Nuvama Institutional Equities predict an earnings downgrade for FY25E and FY26E due to pricing pressures and aggressive capacity expansion in the cement industry.<\/li>\n<li>Southern India is expected to see further consolidation due to its fragmented market structure.<\/li>\n<li>Softening fuel prices and cost efficiency measures could provide some relief, partially offsetting weak realizations.<\/li>\n<\/ul>\n<h2>Outlook for Grasim Industries<\/h2>\n<p>While Grasim Industries continues to show strong revenue growth, profitability remains under pressure due to new business investments. The paints and B2B segments are expected to be long-term growth drivers, but in the short term, they may weigh on margins and earnings.<\/p>\n<p>Investors will be keenly watching the company&#8217;s Q3 FY25 earnings report to assess how Grasim navigates the challenges posed by rising costs and a weak pricing environment in the cement sector.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shares of Grasim Industries fell 0.5% during the trading session on February 9, ahead of its Q3 FY25 earnings announcement. Market analysts anticipate a mixed performance, with strong revenue growth but a sharp decline in net profit due to losses in the paints and business-to-business (B2B) segments. Highlights: Grasim Industries stock was down 0.54% at [&hellip;]<\/p>\n","protected":false},"author":1,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[41],"class_list":{"0":"post-4016","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":41,"user_id":1,"is_guest":0,"slug":"niftynews","display_name":"NiftyTrader","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/01\/Logo-1.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/01\/Logo-1.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/4016","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=4016"}],"version-history":[{"count":2,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/4016\/revisions"}],"predecessor-version":[{"id":8615,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/4016\/revisions\/8615"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/4017"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=4016"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=4016"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=4016"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=4016"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}