Facebook Pixel Code

Grasim Q3 net up 33% at R669 cr

Driven by strong performance of its cement business, Grasim Industries reported a 33% rise in its consolidated net profit for the fiscal third quarter ended December 31.

Driven by strong performance of its cement business, Grasim Industries reported a 33% rise in its consolidated net profit for the fiscal third quarter ended December 31. Net profit for the quarter stood at R669 crore as against R501.76 crore in the same quarter last year.

Consolidated net revenues grew 17% to R6,364 crore from R5,461.21 crore in the same quarter last year.

?The company?s performance has been encouraging. Cement business has been the major driver,? a statement from Grasim Industries said. Profit from the cement segment grew 63% to R818.21 crore during the quarter against R501.33 crore in the year ago period. ?The sector demand growth improved to around 10% during the quarter on account of a lower base effect in the corresponding quarter,? the company said. ?Although post monsoon, the pricing scenario indicated some improvement, the pricing environment is expected to remain challenging.?

UltraTech, the group?s flagship company in the cement sector, had a profit after tax of R598 crore in the quarter. Capacity utilisation during the quarter increased to 73% from 68% in the previous quarter.

Viscose Staple Fibre (VSF) segment reported a 31% drop in operating profits to R270.44 crore from R394.41 crore. The company said that the business was subdued due to a challenging environment. ?Demand and prices remained under pressure, impacting volumes by 8%. Increase in input costs due to rupee depreciation, has impacted operating margins,? Grasim said in a statement.

The company said demand for VSF will remain volatile. ?In cement, the surplus scenario should subside gradually over a period of 2-3 years with an expected growth in demand,? the company said.

Get live Share Market updates, Stock Market Quotes, and the latest India News and business news on Financial Express. Download the Financial Express App for the latest finance news.

First published on: 25-01-2012 at 01:37 IST
Market Data
Market Data
Today’s Most Popular Stories ×