Grasim net up 79% on higher output

Our Bureau Mumbai | Updated on May 24, 2019 Published on May 24, 2019

Grasim Industries, an Aditya Birla group company, has reported 79 per cent increase in its consolidated net profit. File Photo

Grasim Industries, an Aditya Birla group company, has reported 79 per cent increase in its consolidated net profit at ₹1,532 crore (₹854 crore) due to higher production.

Revenue from operations was up 21 per cent at ₹20,965 crore (₹ 17,363 crore). The company has announced dividend of ₹7 per equity share.

The company appointed Ashish Adukia as CFO, with effect from July 1. The board also accepted the resignation of Sushil Agarwal as whole-time director and CFO of the company. He will be pursuing other responsibility within the Group, the board said.

Revenue from viscose staple fibre was up 18 per cent at ₹2,625 crore while EBITDA increased by 3 per cent to ₹413 crore. VSF sales volume increased 12 per cent to 1.39 lakh tonnes even as pulp prices shot up 15 per cent. Global VSF prices was down due to higher inventory in the value chain on the back of fresh capacity addition in Asia. Benchmark grey VSF prices in China was down 8 per cent at RMB 13,326 a tonne against RMB 14,543 a tonne logged in December quarter.

The company expects demand growth of 7 per cent over next three years to absorb higher capacity addition. The share of domestic VSF sale increased to 86 per cent in March quarter against 83 per cent logged same period last year.

Chemical business revenue was up 17 per cent at ₹1,688 crore and Ebitda jumped five per cent to ₹434 crore.

Net debt on the company’s book increased to ₹19,653 crore (₹13,574 crore).

Shares of the company on BSE was up 2 per cent are ₹908 on Friday.

Published on May 24, 2019

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