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Result Review: Grasim Industries

Result Review: Grasim Industries
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First Published: Wed, May 20 2009. 09 43 AM IST
Updated: Wed, May 20 2009. 09 43 AM IST
Grasim Industries announced its 4QFY2009 results. The consolidated topline grew by 5% y-o-y to Rs5,020 crore (Rs4,765 crore) on account of robust performance by Cement business.
Cement business saw 13% y-o-y growth in sales volumes to 4.9 million tonnes (4.4mn tonnes) and 3% y-o-y growth in average realizations. However, lower volumes and realization in VSF, Chemical and other business’ arrested topline growth.
VSF business saw 6% y-o-y growth in sales volumes, however, realizations were lower by 13% y-o-y due to lower demand on account of ongoing economic slowdown globally.
On operating front, EBIDTA margins remained flat y-o-y at 25.6% (26.2%), largely on account of increase in cost of imported coal, pet coke and other raw materials. Hence, net profit (excluding exceptional items) declined by 5% y-o-y to Rs568.8 crore (Rs599 crore).
We remain REDUCE on Grasim with a target price of Rs1,994.
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First Published: Wed, May 20 2009. 09 43 AM IST
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