Grasim Industries Ltd's Ebitda for the September 2013 quarter fell 27% to Rs 986 crore while the operating margin was lower by 610 basis points at 14.5%.
The VSF business saw a 9% increase in sales volume to 93,025 mt, led by higher exports. supported by capacity expansion at Harihar, production increased by 15% over last year. The rupees depreciation led to an increase in pulp cost, which was offset by a decline in caustic and sulphur prices. Sequentially, operating profit rose 29%, with higher volumes as well as better realisation.
Combined cement and clinker sales volumes stood at 10.03 mt; however, PAT halved to Rs 280 crore from last year, and net revenue declined 2% to Rs 4,870 crore. It was impacted mainly on account of lower selling prices, subdued demand and low offtake from the infrastructure and housing sectors.
The chemical business reported a 26% rise in production and 20% growth in sales volumes, with uninterrupted operations at Nagda and the commissioning of the caustic soda plant at Vilayat (Gujarat) in the first quarter.
Grasim expects to commission the 1,20,000-tonne- per-annum VSF project at Vilayat in Gujarat in a phased manner in the fourth quarter and its Epoxy project of 51,000-tonne-per-annum in the third quarter.