Grasim Industries Q1 preview: net loss paints, VSF pressure Rs. 309 crore. Take care for 5 things

Grasim Industries is likely to report an increased net loss in Q1 despite strong income growth of more than 30% annually. Brokerage expects weak profitability due to the constant loss of paints and new-age icals such as B2B e-CE Mars, as well as soft margins in its main viscose fiber business. When it comes to marginal improvement in the chemical segment, analysts are cautious about margin pressure and cost headquarters.

Estimates of Kotak Institutional Equity, ICICI Securities and Antique Stock Broking have been considered.

Here’s what they recommended:

Ride

– Kotak equities expect that the Paints section citing weak VSF performance and current damage, a single net loss in the year ago against Rs.

– Antique Stock Broking does a net loss for Rs 178 crore.

ICICI Securities predicts a net loss of Rs 254 crore, which is run by margin pressure and expansion-related costs.

The brokerage said that the bottom-line pressure is likely to continue, mainly due to constant losses in new businesses and overpaying leverage in the core verticals. Kotak publishes the VSF from the segment, while ICICI points to B2B and paint -related cost margins as irraders.

Revenue

– Kotak Equity: Rs. 9,195 crores ( +33% yoy, +3% qoq)

– Antique Stock Broking: Rs. 9,111 crore ( +32.2% yoy, +2.1% qoq)

– ICICI Securities: Rs. 8,965 crores ( +30% yoy, +0.4% qoq)

The chemicals segment is expected to remain strong, supported by solid traction and healthy top-line growth in the building material division. Kotak publishes a 0.5% QQ increase in chemical volume, while ICICI paints and B2B e-CE contribute Rs 2,200 crore to the Murse segment, although the flatish contributes to the successively.

Ebida

VSF Due to profitability and continuous startup costs in new enterprises, interest, tax, depreciation and orbitda (EBITDA) are weak on the basis of Yoy. However, there are gradual improvements in the estimate. Optim in Kotak Chemicals is attributed to QQ Gen to spend more of Optim Ptimization and a little demand.

-Coturious Equity: Rs. 245 crores (-24.7% yoy, +11% qoq)

-Antic Stock Broking: Rs. 270 crores (-17% yoy, +22.4% qoq)

-ICICI Securities: Rs. 255 crore (-21.6% yoy, +15.5% qoq)

“We estimate the single EBITDA of Rs.1.4 BN, including VSF EBITDA of Rs 2.6 BN (-135% Yoy, -10.4% QOQ) at low prices, (1) with a decrease in domestic demand and reduction in small cost, CNP, +3% yoy, +. EBITD (2) CNT, “Kotak said in the preview note.

EBITDA margin

– Kotak Equities: 2.7%, Down 206 BPS Yo, up 19 BPS QQ

– ICICI Securities: 2.8%, below 187 BPS Yo, 37 BPS QQ

“For Grasim Industries, EBITDA margin 40 BPS QQ (though on the basis of yona, it could still be a drop of 190bps due to the estimated losses for new businesses such as Paints and B2B e-CE Mars segment. Securities said in the preview note.

Key inspection

Key Monitorbbls include Paints and B2B E-CE Mars, VSF Pricing Trend and Volume Returny Proceeding, Demand for Chemicals and EBITDA Outlook for New ICALS Bhans and Outlook for EBITDA contributions.

(Disclaimer: The recommendations, suggestions, opinions and views given by experts are their own. This does not represent the views of the economic time)