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Grasim Industries, a flagship company of the Adity Birla Group, has reported a 37 per cent increase in consolidated net profit at Rs 696 crore in the fourth quarter ended March 31, 2016 against Rs 507 crore in the year-ago period.
In the financial year ended March 31, 3016, net profit of the company, which has four lines of business -- viscose staple fibre, cement, chemicals and textiles, was up 35 per cent at Rs 2,359 crore (Rs 1,744 crore in FY2015).
The board of directors of the company has recommended a dividend of Rs 22.50 per share of face value of Rs 10 each aggregating Rs 220.81 crore (including corporate dividend tax) for the year ended March 31, 2016.
In the reporting quarter, total income from operations was up 13 per cent year-on-year at Rs 10,001 crore. Total expenses rose 11 per cent to Rs 8,532 crore.
Outlook
The company, in a statement said, in Viscose Staple Fibre (VSF), the capacity additions have slowed down globally. Further, cotton production is projected to be lower than the consumption in season 15-16 with the reduced acreage and unfavourable climate. As a result, the price volatility of VSF is expected to reduce.
"The company will continue to focus on expanding VSF market in India by partnering with the textile value chain and better customer connect through Brand Liva. Enhancing product mix through larger share of speciality fibre will be yet another focus area," it added.
Demand for caustic soda in India is expected to grow with increased demand from the end-user industry. To meet the growing demand, caustic soda capacity is being raised by 1,00,000 TPA through debottlenecking at different units, Grasim said.
Demand for cement is expected to grow at 7 per cent - 8 per cent for the next year, driven by the Government’s focus on infrastructure development, housing, smart cities etc.
As per the statement, "Grasim is well poised to reap the benefits of the investment in capacity expansion and acquisitions with the expected upturn in the economy."
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