The Hindu Business Line : Grasim Q4 net rises to Rs 282 cr; to pay Rs 14

GRASIM Industries Ltd has reported a net profit of Rs 282 crore for the quarter ended March 31, 2004 against a net profit of Rs 170.6 crore for the corresponding previous period.

Excluding `exceptional items' of Rs 168.6 crore (loss from sale of shares in MRPL) incurred during the fourth quarter of the previous year, the net profit increase for the period under review works out to 66.8 per cent.

Net profit at Rs 779.3 crore (Rs 367.6 crore) for the entire fiscal grew 112 per cent (inclusive of the exceptional items).

The board has recommended a dividend of 140 per cent for the year. The total payout on this account, inclusive of corporate tax on dividend, will amount to Rs 144.8 crore, according to a release.

Growth was driven by all-round good performance from every business of the company, being higher in volumes as well in realisations.

Savings in operating and financial costs contributed as well, Mr D.D. Rathi, CFO, Grasim Industries, told newspersons.

Net turnover for the quarter rose 27.4 per cent to Rs 1,553.2 crore (Rs 1219.2 crore).

Profit before interest, depreciation and tax (PBIDT) increased 71.4 per cent to Rs 513.3 crore (Rs 299.5 crore).

Interest costs declined 13.6 per cent to Rs 35 crore (Rs 40.6 crore), while depreciation, at Rs 68.2 crore, rose marginally. Tax expenses amounted to Rs 128 crore (Rs 24 crore).

Net turnover for the year rose 13.2 per cent to Rs 5,233 crore (Rs 4,623.3 crore).

PBIDT rose 29.9 per cent to Rs 1,475 crore (Rs 1,135 crore). Interest for the year was less by 8.6 per cent at Rs 153.9 crore (Rs 168.4 crore).

The sponge iron business was the star performer, with the yearly increase in realisations being 44 per cent, followed by the chemicals segment, which showed a growth of 13 per cent.

Revenues from fibre and pulp grew to Rs 497 crore (Rs 403 crore); cement accounted for Rs 715 crore (Rs 588 crore). Revenues from sponge iron, at Rs 232.76 crore, almost doubled.

"Going ahead, the company would sweat the assets of the sponge iron business better," said Mr Rathi.

As for the cement business, the market prices would remain headed upwards till the onset of the monsoon, after that there would ups and downs, with the demand supply gap to truly end only by year 2007, he added. Cost-cutting would remain another innovative feature, according to him.

The company has already deposited Rs 1,279 crore in escrow accounts towards the acquisition of the cement division of L&T, which is to be demerged into UltraTech Cemco.