Grasim Industries’ Q2 net profit jumps 50% to Rs846 crore
New Delhi: Aditya Birla Group-owned Grasim Industries Ltd on Friday posted a 50% rise in consolidated net profit at Rs845.96 crore for the quarter ended 30 September, supported by higher operating leverage and lower interest cost.
The company had posted consolidated net profit of Rs562.48 crore in the corresponding quarter of the previous fiscal, Grasim Industries said in a filing to BSE.
Its consolidated total income from operations also increased to Rs9,356.42 crore in the July-September quarter as against Rs9,107.02 crore in the year-ago period. “During the previous year, pursuant to the court approved Scheme of Amalgamation, Aditya Birla Chemicals (India) Ltd (ABCIL) has been amalgamated with the company w.e.f the appointed date of 1 April 2015. Hence, previous year figures include the results of erstwhile ABCIL,” it said.
“Grasim has reported consolidated revenue of Rs8,387 crore during the second quarter of FY17. Its Ebitda of Rs2,098 crore was up by 29%, driven by the good performance from all the businesses,” the company said in a statement. “Net profit for the quarter increased by 50% to Rs846 crore compared to Rs562 crore in the second quarter last year,” it said.
Ebitda refers to earnings before interest, tax, depreciation and amortization.
The company further said its board on Friday approved a dividend distribution policy for the firm as per the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The objective of this policy is to provide a dividend distribution framework to the stakeholders of the company. It also said that the process of seeking regulatory approvals for the scheme of merger of Aditya Birla Nuvo Ltd with Grasim, and subsequent demerger and listing of the financial services business, is in progress. “The transaction is expected to be completed by Q4 FY17-Q1 FY18,” the statement said.