Mumbai: Grasim Industries Ltd, India’s third biggest cement maker that also produces viscose-staple fibre, posted a 41% gain in its fiscal fourth quarter profit, helped by higher demand for cement and yarn.
Net income rose to Rs667 crore in the three months ended 31 March from Rs474 crore a year earlier, the company said in a statement on Tuesday. Sales rose 10% to Rs2,740 crore. Increased production of cement and fibre used to make yarn helped Grasim to counter rising fuel and chemical costs.
The company’s income from sources other than its main businesses surged to Rs119 crore, compared with Rs77.58 crore a year earlier. The rise in input costs will continue to erode earnings, the Mumbai-based company said. Cement sales at Grasim, which sold its stake in Shree Digvijay Cement Co. to Spain’s Cimpor Inversiones SA, rose 9% to 4.27 million tonnes in the quarter.
Grasim shares fell 6.16% to close at Rs2,472.30 on the Bombay Stock Exchange. The shares have declined 30% this year, compared with a 14% drop in the benchmark Sensitive Index. bloomberg