1. Grasim posts 95% rise in net profit

Grasim posts 95% rise in net profit

ADITYA Birla Group’s Grasim Industries posted a 95% jump in net profit for the quarter ended December 31, 2015, which stood at Rs 650 crore.

By: | Mumbai | Published: January 31, 2016 12:12 AM

ADITYA Birla Group’s Grasim Industries posted a 95% jump in net profit for the quarter ended December 31, 2015, which stood at Rs 650 crore.

In the quarterly results announced on Saturday, the company said consolidated revenues have increased by 13% to Rs 9,044 crore against Rs 8,035 crore during the same period last year. Earnings before interest, tax, depreciation and amortisation (Ebitda) stood at Rs 1,795 crore, up 43% from Rs 1,260 crore. Grasim’s performance has exceeded market expectations. In an earlier Bloomberg poll, analysts had estimated net sales at Rs 8,629.90 crore for the company and net profit of Rs 485.10 crore, attributing the higher profit to significant investments by the company in capacity expansion and acquisition.

In its sector outlook, Grasim said it expects margin pressure in the viscose staple fibre (VSF) business in the near future due to lower demand on account of the end of the season. However in the caustic soda and cement businesses (Ultratech brand)  the company said it expects the demand to rise further due to government initiatives. The company added it plans to spend R4,055 crore as capital expenditure in the next financial year.

On Friday, Grasim closed at Rs 3,389.05 per share on BSE, 1.23% higher from its previous close.

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