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Grasim Industries, an Aditya Birla Group company, has reported 25 per cent fall in fourth quarter net profit at ₹507 crore against ₹679 core due to lower realisations in its viscose staple fiber (VSF) business.
Net sales were up five per cent at ₹8,820 crore (₹8,418 crore).
The company will pay dividend of ₹18 per share, leading to outgo of ₹169 crore. The company's tax outgo during the quarter has gone up 94 per cent to ₹326 crore (₹168 crore) due to increase in surcharge on differed tax liability.
With the commissioning of the greenfield plant at Vilayat in Gujarat, VSF production was up 24 per cent at 111,341 tonnes, while sales volume was 118,486 tonnes.
Realisation in VSF business has been under pressure due to weak prices of competing fibres such as polyester and cotton, besides excess capacity build up, especially in China, said Grasim.
The impact of lower prices was partially offset by lower pulp cost, it added.
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