The Hindu Business Line : Grasim Q2 net up 80 pc on better realisations

Grasim Industries Ltd said net profit rose by 80 per cent for the second quarter ended September 30, citing better realisations from its cement and viscose staple fibre businesses.

Net profit for the quarter amounted to Rs 337.8 crore, against Rs 187.7 crore in the second year-ago quarter. Net revenues rose 22 per cent to Rs 2,011 crore, up from Rs 1,649 crore.

"This is Grasim's peak performance, with its major businesses of cement and VSF performing equally well," said Mr D.D. Rathi, Wholetime Director and Chief Financial Officer, Grasim Industries, at a news conference here on Wednesday.

Cement, VSF

Grasim's VSF business recorded only a marginal increase of one per cent in sales volumes, but reported a 15 per cent increase in realisation. Profit before interest and tax was higher by 46 per cent, at Rs 157 crore (Rs 107 crore).

The cement business recorded a sales volume increase of 4 per cent but realisations rose 42 per cent and revenues surged 47 per cent; profit before interest and tax more than doubled, from Rs 132 crore to Rs 314 crore.

Higher cement dispatches through rail (49 per cent of the total, up from 34 per cent), and increase in share of blended cement, from 51 per cent to 63 per cent helped mitigate increase in fuel and freight costs.

Total tax expenses more than doubled to Rs 145 crore, up from Rs 69 crore. This was due to higher profits as well as diminishing income components that are tax exempt, said Mr Rathi.

On a consolidated basis, Grasim's net profit amounted to Rs 418 crore, up 109 per cent, while net revenues were up 36 per cent at Rs 3,184 crore.

It will invest Rs 4,580 crore in capacity expansion, aiming to increase cement capacity by 9.5 million tonnes and its VSF capacity by 50,000 tonnes per annum. The company's shares closed Wednesday at Rs 2,582.3 losing Rs 42.05 or 1.6 per cent from Tuesday's close.

More Stories on : Financial Performance | Cement | Grasim Industries Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
UK laws that Indian acquirers need to know about

Tata Steel: Challenges ahead in Corus acquisition

Grasim Q2 net up 80 pc on better realisations

Higher income boosts Union Bank net 218 pc

Wipro net rises 46 pc on all-round growth

Bajaj Auto net rises to Rs 317.5 cr in 2nd quarter

Wipro sees margins in narrow range

Plug into regional flavour with Yahoo

Moorat trading: Symbolic start to trading year

Blue Star: Betting on infrastructure boom

Educomp up on Govt order hopes

SEBI snips pre-issue publicity campaigns