Standalone net profit fell to 3.55 billion rupees ($42.9 million) in the three months ended June 30, compared to 8.09 billion rupees a year earlier.
Prices of chemicals, including caustic soda, fell in the in the June quarter, leading to a 21.5% revenue drop in the company's second-largest business.
The company said international caustic soda average quarterly spot prices declined by 46% from last year in the first quarter to $415 per tonne on over-supply and weak demand.
Its largest viscose staple fibre (VSF) business, a key material used in various kinds of clothes, was hit by weak demand amid flat prices for the material.
Revenue from the VSF segment declined 16.7% to 35.84 billion rupees. The drop marks the third straight quarterly decline for the business.
"Globally, the textile value chain has continued to remain sluggish, although some signs of improvement are seen in specific markets," Grasim said in a statement.
The company's revenue from operations fell 14% to 62.38 billion rupees.
Budgeted capital expenditure (capex) for fiscal 2024 is 57.91 billion rupees with 43.42 billion rupees to be utilised in establishing its paints and business-to-business e-commerce businesses, the company added.
Last month, Grasim's unit Ultratech Cement beat its first-quarter profit view while its diversified financial services subsidiary Aditya Birla Capital reported a climb in profit.
($1 = 82.8150 Indian rupees)
(Reporting by Varun Vyas in Bengaluru; Editing by Nivedita Bhattacharjee)
