Grasim Industries reported a first-quarter loss on Friday, as its newly-launched paint business hurt margins while it struggled to keep a lid on costs.
Indian paint manufacturers are grappling with declining customer loyalty as consumers increasingly turn to more affordable options.
In response, companies have been slashing prices in an effort to regain market share amid intensifying competition.
Grasim’s paints business, launched in February 2024 under the Birla Opus brand, has dragged its margins as the company continues investing in it.
The company reported a standalone net loss of Rs 5,212 crore ($6.2 million) in the three months ending June 30 compared with a profit of Rs 355 crore a year ago, marking its second straight quarter of losses.
The standalone numbers don’t include the earnings of Grasim units UltraTech Cement and Aditya Birla Capital .
Its earnings before interest, tax, depreciation and amortization fell to Rs 418 crore from Rs 7.89 crore a year ago.
Grasim, which also makes chemicals and yarn, reported a revenue growth of 11 per cent to Rs 6,894 crore for the quarter, aided by its cellulosic fibres segment, which saw a 14 per cent sales growth.
The chemical segment, which makes chlor-alkali, chlorine derivatives and specialty chemicals, saw a 4 per cent revenue fall.
Its total expenses surged 19 per cent to Rs 7,057 crore
Rival Asian Paints reported first-quarter earnings below estimates, while Dulux Paints maker Akzo Nobel India reported a rise in profit.
Shares of Grasim were 0.7 per cent higher after the results, trimming its year-to-date fall to 3.7 per cent.
