The Hindu Business Line : Grasim Q3 net doubles on higher sales realisations

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Mumbai, Jan. 23 Grasim's third quarter net profit for the fiscal more than doubled as sales realisations from its cement and viscose staple fibre businesses soared.

The company also attributed the rise in net profit to increased capacity utilisation and operational efficiencies.

Its net profit stood at Rs 412 crore, a rise of 154 per cent, against Rs 162 crore a year ago.

Net revenues rose 37 per cent to Rs 2,279 crore from Rs 1,660 crore.

Cement revenues increased by 55 per cent, led by a 49 per cent increase in realisation and a 5 per cent increase in sales volumes. Capacity utilisation was higher at 112 per cent (106 per cent).

The share of blended cement increased from 49 per cent to 61 per cent; higher rail dispatches, from 37 per cent to 46 per cent, helped to partially mitigate escalating freight costs, said a statement from the company.

The cement business accounted for 69 per cent of the company's revenues.

The VSF business reported increased capacity utilisation, at 103 per cent (96 per cent); volumes rose 2 per cent and realisations 24 per cent, while revenues rose 39 per cent.

Realisations from the sponge iron business were 6 per cent higher but volumes were impacted due to inadequate supply of natural gas. The chemicals business saw sales volumes dip 34 per cent, but realisations were 12 per cent higher.

Depreciation was 10 per cent higher at Rs 81 crore, while tax expenses were 154 per cent higher at Rs 194 crore.

Grasim's consolidated net profit rose 184 per cent to Rs 555 crore, while consolidated revenue rose 46 per cent to Rs 3,688 crore.

The company said its capital expansion plan of Rs 1,168 crore over the next two years will see capacity augmentation by 8 million tonnes.

The company's shares slid on the bourses, losing 3.09 per cent over the day, to close at Rs 2,805.35 on Tuesday.

More Stories on : Cement | Diversified | Grasim Industries Ltd

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