The Hindu Business Line : Grasim Q3 net profit grows 35% at Rs 553 cr

Mumbai, Jan. 22 Grasim Industries Ltd, on a standalone basis, has posted a 35 per cent rise in net profit to Rs 553 crore (Rs 411 crore) for the quarter ended December, 2007. Total income rose to Rs 2,694 crore from Rs 2,324 crore logged for the same period last year.

On a consolidated basis, the group has posted a 29 per cent increase in net profit to Rs 722 crore for the quarter ended December 31 against Rs 559 crore a year ago. Total income rose to Rs 4,448 crore (Rs 3,732 crore) in the quarter under review. The company shares on the Bombay Stock Exchange closed down 5.46 per cent at Rs 2,860 on Tuesday.

VSF output flat

The production of Viscose Staple Fibre (VSF) for the quarter was almost flat at 70,839 tonnes (68,784 tonnes), while sales volume grew by 2 per cent to 68,552 tonnes (67,061 tonnes). The company plans to foray into the consumer product segment with test launch of non-woven products. It also has plans to expand its VSF capacity by 94,875 tonnes to 3.64 lakh tonnes at an outlay of Rs 606 crore.

Cement

Production and sales volumes recorded a 1 per cent rise at 3.69 million tonnes (3.67 mt) and 3.76 mt (3.72 mt). “Higher realisation during the quarter was set off by the steep hike in fuel cost and increased freight cost, which improved the margins,” the company said in a press release.

Grasim Industries has commissioned 13 ready mix concrete plants in the current quarter. White cement production jumped 15 per cent to 1.05 lakh tonnes (91,722 tonnes) and sales 1.03 lakh tonnes (93,571 tonnes).

“Rising energy prices would lead to increase costs. However, the addition of captive power plants at various locations will help contain this impact,” the company said.

Chemical business

Caustic soda production jumped 68 per cent to 50,452 tonnes (29,962 tonnes), while sales volume moved up 70 per cent to 49,978 tonnes (29,337 tonnes). “In the corresponding quarter production was lower owing to the shutdown at a captive power plant,” the release said.

Sponge iron

While production of sponge iron jumped 22 per cent to 1.42 lakh tonnes (1.16 lakh tonnes), sales volume dropped eight per cent to 1.35 lakh tonnes (1.47 lakh tonnes). “The outlook for the business is expected to improve with adequate gas availability, likely by March 2008. Uncertain gas pricing continues to be a concern,” it said.