Grasim consolidated net profit at Rs 549 cr in Q3

Feb 07 2013, 12:37 IST
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SummaryAditya Birla Group Company Grasim Industries today reported a consolidated net profit of Rs 549.17 crore for the quarter ended December 2012, against Rs 669.07 crore in during the year-ago quarter.

in railway freight and hike in diesel prices led to higher costs of raw materials and logistics. The softening in prices of imported coal and fuel mix optimisation helped in reducing energy costs, though rupee depreciation partially offset the benefit, the release said.

The company's brownfield expansions at Chhattisgarh and Karnataka totalling 9.2 million tonnes per annum cement capacity are on track. Clinker capacity is expected to be completed by Q1 FY 2013-14. Consequently, UltraTech's cement capacity will stand augmented to 62 million tonnes per annum.

Commenting on the outlook, the company said that the prevailing global economic conditions, coupled with the surplus capacity in China, the VSF industry is expected to remain under pressure for some more time.

However, in cement, the long term demand is expected to grow by an average eight percent with housing, infrastructure and allied spending being key value drivers.

Industry capacity utilisation is likely to improve to 80 percent in FY 2016 as the pace of capacity addition will slow down. Input cost is likely to increase in line with the general inflation with margins remaining range bound.

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