Grasim Industries today reported a 64 per cent jump in consolidated net profit to Rs 830.22 crore for the quarter ended June 30.
The firm, part of the Aditya Birla Group, had clocked a net profit of Rs 507.60 crore in the year-ago period, it said in a BSE filing.
Total consolidated income of the company also rose by 9 per cent to Rs 9,088.55 crore in April-June quarter from Rs 8,365.70 crore during the same quarter in 2015-16.
Its expenses were higher at Rs 7,500.41 crore against Rs 7,272,84 crore during the period under review.
The firm today announced that its board approved merger of Aditya Birla Nuvo (ABNL) and Aditya Birla Financial Services (ABFS – a wholly-owned subsidiary of ABNL).
“The scheme provides for merger of ABNL with the company and subsequent demerger of it’s financial services business into ABFS and consequent listing of equity shares of ABFS,” it added.
The merger is subject to requisite approvals inter-alia from shareholders, creditors, high courts and regulatory authorities, it said.
Its board also approved sub-division of shares of the firm from one equity share of face value Rs 10 each fully paid up to five equity shares of face value Rs 2 each fully paid up, subject to requisite approvals.
On outlook, the Grasim Industries said in viscose stable (VSF) business environment has improved globally. Capacity additions have slowed down, which have resulted in higher operating rates in the industry.
The company will continue to focus on expanding the VSF market in India by partnering with the textile value chain and better customer connect through Liva brand, it added.
Enriching product mix through larger share of specialty fibre in the portfolio will be yet another focus area, the firm said.
The demand for caustic in India is expected to grow with the rising demand from the end user industry. To meet this, caustic capacity is being raised by 208,000 TPA through brownfield expansion at Vilayat (Gujarat) and de-bottlenecking at other plants, it said.