The Hindu Business Line : Grasim net up 32.6 pc

An all-round growth in production, sales volumes and realisations led to the growth in net profit, said Mr D.D. Rathi, wholetime Director of the company.

Net realisation from viscose staple fibre was up by 15 per cent; for cement up by 7 per cent; for white cement up by 14 per cent; for sponge iron up by 48 per cent and for chemical products up by 18 per cent.

Sales volumes for VSF were lower by 12 per cent and for chemicals lower by 3 per cent; however, there was an 8 per cent increase in cement volumes and white cement volumes and a 15 per cent increase in sponge iron volumes for the quarter.

Turnover for the quarter, at Rs 1,560 crore (Rs 1,332 crore), rose 17 per cent. Other income was higher by 83 per cent, and amounted to Rs 37.85 crore (Rs 20.68 crore).

Profit before taxes rose 40 per cent, to Rs 323.6 crore, up from Rs 230.7 crore, but net profit showed a lower growth than this due to taxes being considerably higher, at Rs 106.5 crore, up from Rs 67 crore.

With respect to the year as a whole, the nine-month growth in net profit of 32 per cent (to Rs 656 crore from Rs 497 crore) is an indicator, the target being 35 per cent growth for the year as a whole, said Mr Rathi.

Going forward, for the long term, the company expects cement to contribute substantially towards the company's performance, said Mr Rathi.

The margins the cement business for the nine-month period ending December 31, 2004, were 20 per cent as compared to the corresponding year-ago figure of 16.2 per cent, said Mr Rathi.

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