Grasim Industries Ltd, the Aditya Birla Group flagship, said its net profit for the fourth quarter of the fiscal fell 8% to R808.78 crore, as compared to R878.83 crore a year ago. This, the company said, was because prices of viscose staple fibre or VSF and other competing fibres were at their peak in the corresponding quarter, compared to the quarter under review. Lower product prices, coupled with increase in the prices of key inputs like caustic soda and coal, resulted in lower profitability.
Total income has increased 12%, from R6,482.25 crore a year ago to R7,289.16 crore in the fourth quarter. For the full year ended march 31, Grasim had a net profit of R2,647.46 crore compared to R2,279.01 crore a year ago. Net total income was at R25,244.30 crore compared to R21,550.23 crore. The company’s board has recommended a dividend of R22.50 per share. Shares of the company were down 2.12% on Friday to close at R2,422.85.
In VSF, sales volumes for the quarter was at 94,904 tonnes, up 11% led by higher exports. “This was despite slowdown in the euro-zone, which impacted textile demand and addition of new capacities in China,” Grasim said in a media release. Average realisations for the fourth quarter were lower by 16% on Y-o-Y basis as prices were at their peak, in line with competing fibre prices in the corresponding quarter of last year.