Grasim Q2 net rises 33 per cent to Rs669 crore
24 Jan 2012
Aditya Birla Group flagship Grasim Industries has posted a 33 per cent increase in its consolidated net profit for fiscal third quarter (October-December 2011-12) to Rs669 crore, against a net profit of Rs502 crore during the similar quarter of the previous year.
Consolidated revenue was up 17 per cent at Rs6,364 crore, against Rs5,461 crore during the previous year quarter, driven by high growth in the company's cement business.
Profit before interest, depreciation and taxes grew 23 per cent to Rs1,554 crore during the quarter from Rs1,267 crore during the previous year quarter.
The company is implementing a capacity expansion programme for viscose staple fibre (VSF) and allied chemicals, involving capital expenditure of Rs3,440 crore.
It is also investing around Rs11,000 crore to increase its cement capacity.
VSF performance was subdued for most of the quarter after the upturn in September as customers, mainly in the textile sector, adopted a cautious approach, given the Euro zone uncertainties. The consequent 8-per cent decline in volume sales along with an increase in input costs due to rupee depreciation has impacted operating margins, the company said in a release.
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