Grasim Industries, an Aditya Birla group company, has reported a 16 per cent increase in its March quarter net profit at ₹2,722 crore, against ₹2,356 crore.

Income increased 13 per cent to ₹38,154 crore (₹33,682 crore). EBITDA was up 27 per cent at ₹6,196 crore (₹4,873 crore).

The board has recommended a dividend of ₹10 per equity share. The dividend on a partly paid-up share will be in proportion to the paid-up value as on the record date. The total outflow on account of the dividend would be ₹664 crore.

The company has made the first call on partly paid-up equity shares of ₹453 per share and fixed June 14 as the record date for sending first call notice.

Cellulosic staple fibre and yarn sales volume was up 8 per cent at 2.08 lakh tonne, while revenue was flat at ₹3,762 crore due to subdued realisation on the back of cheap imports. EBITDA was up over three times at ₹462 crore (₹144 crore).

Demand in India during the quarter was impacted by the amendment in the MSME policy, which has resulted in low inventory build-up in the textile value chain, the company said.

Caustic soda sales were up 8 per cent at 3.08 lakh tonnes. Revenue was down 13 per cent at ₹2,083 crore due to a sharp 28 per cent decline in realisation due to over-supply. EBITDA for the chemicals business was down at ₹195 crore (₹368 crore).

While average domestic caustic soda spot prices were lower due to oversupply, international prices improved for the third consecutive quarter.

Revenue from the building materials business, including paints and cement, was up 11 per cent at ₹20,919 crore. EBITDA increased 24 per cent to ₹4,150 crore, despite initial losses from the paints and B2B e-commerce businesses.

The company has spent ₹7,063 crore or 70 per cent of the planned expenditure in the paint business -- Birla Opus. Commercial production commenced at three plants in April and construction of the other three plants is progressing as per schedule, said the company.

Birla Pivot, the B2B e-commerce business, achieved revenue of ₹1,000 crore in its first year of operation. Private labels ‘Birla Pivot Tiles’ and ‘Birla Pivot Plywood’ are gaining market acceptance and a positive response.