Grasim Industries Share Price Hits 7-Month Low Amid Karwar Plant Incident: Key Details

Grasim Industries’ share price dropped by 1.65%, reaching a 7-month low as of 11:00 AM on Monday, January 13, 2025. The decline followed the company’s disclosure of a “minor process safety incident” at its Karwar plant in Karnataka, which occurred on Saturday, January 11, 2025.

The incident was attributed to a technical malfunction caused by power tripping. While some workers required medical attention at a local hospital, they are expected to recover fully, according to the company’s statement.

Operational Impact of the Incident

In response to the incident, emergency protocols were immediately activated, and plant operations have been suspended. Grasim Industries stated that operations will resume only after the internal investigation is completed and the necessary regulatory approvals are obtained.

The company assured stakeholders that the incident is unlikely to have a material financial impact.

Financial Performance Amid Operational Challenges

This development comes at a time when Grasim Industries has been facing challenges in profitability. 

Despite the dip in profits, the company’s revenue from operations increased by 11.05% to ₹33,562.85 crore for the July-September quarter, compared to ₹30,220.68 crore in the same period last year. Driven by the superior performance of Financial Services, Cellulosic Staple Fibre and Specialty Chemicals businesses. Consolidated EBITDA declined by 10% at ₹4,042 crore as a result of lower profitability in the Cement business and initial investments in the Paints business under the brand ‘Birla Opus’.

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