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Business News/ Companies / Company Results/  Grasim Industries Q2 net profit at 1,473 crore
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Grasim Industries Q2 net profit at ₹1,473 crore

Grasim Industries had reported a net loss of ₹1,319.79 crore in the September quarter a year ago
  • Shares of Grasim Industries settled at ₹734.30 apiece on the BSE, down 0.64% from the previous close
  • A file photo of Kumar Mangalam Birla (Photo: Aniruddha Chowdhury/Mint)Premium
    A file photo of Kumar Mangalam Birla (Photo: Aniruddha Chowdhury/Mint)

    NEW DELHI : Aditya Birla Group's flagship firm Grasim Industries on Thursday posted a consolidated net profit of 1,472.77 crore for the July-September period helped by good performance of its subsidiaries UltraTech Cement and Aditya Birla Capital.

    Grasim Industries had reported a net loss of 1,319.79 crore in the September quarter a year ago, Grasim Industries said in a BSE filing.

    Its revenue from operation was at 18,430.27 crore, up 3%, during the quarter under review as against 17,892.42 crore in the corresponding quarter of the previous fiscal.

    "Consolidated EBITDA at 3,180 crore recorded a growth of 7% Y-o-Y and PAT (before exceptional items and one-time deferred tax benefit) was up by 6% Y-o-Y to 639 crore driven by superior performance of the company's subsidiaries, UltraTech Cement Limited and Aditya Birla Capital Limited.

    Grasim Industries' total expenses were at 17,069.81 crore during the period as against 16,541.52 crore, up 3.19%

    Its revenue from Viscose segment was at 2,431.42 crore, down 6.67%, to 2,605.36 crore of Q2/FY 2018-19.

    "The weakness in the domestic VSF realisations impacted this quarter's profitability. The benefit of falling input costs like pulp prices will get reflected in the coming quarters due to inventory time lag," said Grasim Industries.

    While, its cement business UltraTech' revenue was at 9,620.47 crore, up 4.01%, as against 9,249.26 crore.

    "UltraTech completed the acquisition of Century Textiles and Industries cement business... With this acquisition, UltraTech's cement manufacturing capacity stands augmented to 117.4 million tonnes per annum (MTPA), including its overseas capacity. This makes UltraTech the 3rd largest cement company in the world, outside of China," the company said.

    Revenue from Chemicals during the quarter was at 1,347.30 crore, down 16.44%, as against 1,612.38 crore.

    "Softening of Caustic Soda prices globally has led to decline in the domestic prices, resulting in lower profitability on YoY basis," said Grasim.

    While its Financial Services segment revenue reported a 12.72% increase at 3,960.86 crore during the period from 3,513.59 crore a year ago.

    Revenue from others segment was at 1,305.60 crore, up 13.32%, as against 1,152.10 crore.

    On the outlook, Grasim said its VSF business will continue to focus on expanding the market in India and its chemical business is under an expansion mode for both chlor-alkali and specialty chemicals. On UltraTech, it said: "The company with its presence across the country is the best positioned to take advantage of the revival in cement demand, despite the anomalies that may get created in demand patterns in some parts of the country due to extraneous reasons.""Grasim is incurring capex to increase capacities across its key business lines and is potentially well positioned to leverage the next phase of the economic growth," the company said.

    Shares of Grasim Industries Ltd on Thursday settled at 734.30 apiece on the BSE, down 0.64% from the previous close.

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    Published: 14 Nov 2019, 07:28 PM IST
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