The Hindu Business Line : Grasim net zooms 58% to Rs 202 crore

GRASIM Industries has reported a 58 per cent increase in net profit for the quarter ended September 30. Net profit amounted to Rs 202.9 crore, up from Rs 128.7 crore in the same period the previous year.

The increase in net profit, before exceptional items, is however 35 per cent. Net exceptional items amounted to Rs 27.5 crore during the quarter under consideration.

Net income from operations increased 6 per cent, to Rs 1,177 crore from Rs 1,112 crore, the larger contributions to the company's financials coming from higher `other income' of Rs 66.54 crore (Rs 36.61 crore) as well as from `exceptional items'.

Other income rose on account of income from dividend, including that from shares held in Larsen & Toubro Ltd, said a senior Grasim official, at a news briefing here today.

Total expenditure, at Rs 906.63 crore (Rs 862.76 crore), rose 5 per cent.

Profit before interest depreciation and taxation rose 18 per cent, to Rs 337.1 crore from Rs 286.7 crore.

Interest costs, at Rs 40.3 crore) declined 7 per cent, with depreciation, at Rs 68.4 crore increasing 9 per cent.

Segment-wise, cement was the largest contributor to revenues, at Rs 545.93 crore (Rs 511.55 crore). Production and sales rose 9 per cent and 8 per cent, respectively, although realisations fell 4 per cent. Fibre and pulp slumped in revenues, despite a 6 per cent higher realisation, to Rs 396.81 crore (Rs 414.23 crore), as demand from yarn exporters fell.

Realisation from sponge irons was up 36 per cent, though sales volumes were less by 3 per cent, the revenues increasing to Rs 122 crore (Rs 90.71 crore); revenues from the chemicals segment amounted to Rs 78 crore (Rs 66.06 crore).

For the half year, net profit at Rs 333.47 crore (Rs 234.14 crore) was up 42 per cent, and income from operations up 4.6 per cent at Rs 2,351.9 crore (Rs 2,248.36 crore); other income rose 90 per cent, to Rs 87.6 crore from Rs 45.88 crore.

The company's capex plans include Rs 306 crore for cement for the financial years 2004 and 2005. Debottlenecking is expected to increase capacity to 13.47 MT by financial year 2004.

A research and application centre for VSF is coming up at Kharach, at an outlay of Rs 27 crore.

Measures towards cost optimisation, effective financial management and continuous restructuring of business processes are also expected to raise the company's performance in the coming years, apart from significant growth in its businesses, the company official said.

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