Grasim consolidated net profit at Rs 549 cr in Q3
However, volumes during the nine months have grown by 14 per cent. Global VSF prices declined sharply by 14 per cent as compared to Q3 last year. The rupee depreciation has reduced its impact in the domestic market to some extent.
The performance of pulp joint ventures was also adversely affected due to the decline in realisations and volumes.
AV Terrace Bay, Canada, the pulp JV acquired in Q2 FY 2012-13 with Grasim holding a 40 per cent stake, commenced operations in October, 2012, as planned. Its losses are expected to be reduced and converted into profit in a phased manner through mill upgradation and cost optimisation.
The company's cement subsidiary, UltraTech has reported satisfactory performance for the quarter.
Cement sales volumes were maintained at 10.4 million tones as demand remained subdued. Net revenue stood at Rs 5,164 crore as compared to Rs 4,800 crore, up by eight per cent.
The increase in railway freight and hike in diesel prices led to higher costs of raw materials and logistics. The softening in prices of imported coal and fuel mix optimisation helped in reducing energy costs, though rupee depreciation partially offset the benefit, the release said.
The company's brownfield expansions at Chhattisgarh and Karnataka totalling 9.2 million tonnes per annum cement capacity are on track. Clinker capacity is expected to be completed by Q1 FY 2013-14. Consequently, UltraTech's cement capacity will stand augmented to 62 million tonnes per annum.
Commenting on the outlook, the company said that the prevailing global economic conditions, coupled with the
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