The Hindu Business Line : Grasim net falls 25% on slump in VSF, sponge iron biz

A DOWNTURN in Grasim Industries' viscose staple fibre and sponge iron businesses has led to the company's third quarter net profit for the current fiscal falling by 25.4 per cent.

Net profit was reported at Rs 161.87 crore as against Rs 217.08 crore in the third quarter of the previous fiscal. Total income rose by 4.12 per cent to Rs 1,663.4 crore (Rs 1,597.5 crore).

The fibre and pulp business reported a profit (before interest depreciation and tax) of Rs 107.59 crore, down from Rs 145.98 crore; the sponge iron business reported a loss of Rs 5.23 crore, against a profit of Rs 90.74 crore; and the chemicals business too showed a dip in profitability, its segment results at Rs 20.77 crore (Rs 28.72 crore).

The sponge iron business was subdued with production curtailed by 50 per cent due to non-availability of natural gas and high input costs, said a statement from the company while the VSF business was affected by strikes at one of its plants. The chemicals business suffered realisation decreases of 3 per cent.

Under segment results, the cement business reported profits (before interest depreciation and tax) of Rs 133.91 crore (Rs 69.5 crore), almost doubling from a year ago. Volume sales were up 11 per cent at 3.53 million tonnes and realisation up 7 per cent, at Rs 1,908 a tonne.

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