Millennium Post

AV Birla flagship Grasim’s Q3 profit flat at Rs 334 cr

The company had posted a consolidated net profit of Rs 331.93 crore during the same period of previous financial year, Grasim Industries said in a filing to the BSE.

The company reported consolidated net sales of Rs 7,888.53 crore in October-December period as against Rs 7,063.43 crore during the same quarter of last financial year. The consolidated revenue from its Viscose Staple Fibre (VSF) and Wood Pulp segment was Rs 1,607.26 crore during the quarter under review as against Rs 1,613.45 crore in the same period of last fiscal.

Its consolidated revenue from cement division was Rs 5,947.15 crore this quarter. It was Rs 5,169.59 crore in third quarter of FY14. Revenue from chemicals division was Rs 441.63 crore this quarter as against Rs 259.73 crore in same period last fiscal.

Grasim Industries said “figures for the quarter and nine months ended December 2014 are strictly not comparable with previous periods” due to merger of Gujarat cement units of Jaypee Cement with UltraTech Cement, a subsidiary of the company.

On the company’s performance, Grasim Industries said: “Implementation of growth plans led to significant capacity increase in both VSF and cement businesses. At the greenfield VSF project at Vilayat, 99K TPA capacity has been commissioned during the year. With acquisition of Jaypee cement units in Gujarat, the cement capacity increased by 4.8 million.”

On the outlook, the company said VSF sector will continue to face headwinds for some more time due to over capacity and sharp reduction in price of cotton and polyester. Moreover, cement segment would grow as demand growth in the long term is likely to be over 8 per cent.
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