How has been the historical performance of Grasim Inds?

Answer:The historical performance of Grasim Inds shows a significant growth trajectory in net sales, which increased from 76,404.29 Cr in Mar'21 to 1,48,477.89 Cr in Mar'25. The total operating income followed a similar trend, rising from 77,200.25 Cr in Mar'19 to 1,48,477.89 Cr in Mar'25. However, the total expenditure also increased, reaching 1,20,215.70 Cr in Mar'25, up from 57,768.95 Cr in Mar'21. Operating profit (PBDIT) has shown a steady increase, reaching 29,721.23 Cr in Mar'25 from 18,433.85 Cr in Mar'20. Despite this growth, profit before tax decreased from 14,517.75 Cr in Mar'23 to 10,528.27 Cr in Mar'25, and profit after tax also declined from 10,869.24 Cr in Mar'23 to 7,459.54 Cr in Mar'25. The consolidated net profit fell to 3,705.68 Cr in Mar'25 from 5,624.49 Cr in Mar'24. On the balance sheet, total liabilities increased significantly to 5,00,040.43 Cr in Mar'25 from 2,44,181.44 Cr in Mar'20, while total assets rose to the same amount. The cash flow from operating activities has been negative in recent years, with -17,169.00 Cr in Mar'25, indicating challenges in generating cash from core operations.

Breakdown:
Grasim Inds has demonstrated robust growth in net sales, which surged to 1,48,477.89 Cr in Mar'25 from 76,404.29 Cr in Mar'21, reflecting a strong upward trend in total operating income as well. However, the increase in total expenditure, which reached 1,20,215.70 Cr in Mar'25, has outpaced profit growth, leading to a decline in profit before tax and profit after tax in the latest fiscal year. The operating profit margin has also seen a decrease, indicating rising costs. On the balance sheet, total liabilities and total assets have both escalated significantly, suggesting increased leverage. The cash flow from operating activities has turned negative, highlighting potential liquidity issues despite the growth in sales and assets. Overall, while Grasim Inds has expanded its revenue base, it faces challenges in profitability and cash generation.