For the fourth quarter ended March 31,2008, the company posted a growth 58% in its net profit to Rs 881 crore, against Rs 558 crore in the corresponding quarter last year. Net revenues for the quarter stood at Rs 4,715 crore, up 15% compared to Rs 4,090 crore in the previous year. However, the company had a one-time income of Rs 236.68 crore during the quarter on the sale of a subsidiary company, Shree Digvijay Cement Co Ltd. Excluding this, the net profit stands at Rs 644 crore, a rise of just 15%.
The company said that macro economic factors impacted its viscose staple fibre (VSF) business during the quarter, where the sales volume of VSF business was down 10% to 61,650 mt against Q4 in FY07. The board of directors of the company has recommended a dividend of 300% this year.
Margins in VSF business are expected to remain depressed in the short to medium term due to rising prices of sulphur and pulp coupled with softening of VSF prices, says DD Rathi, whole time director and CFO of Grasim.
Grasims shares were down 6.16% on Tuesday to close at Rs 2,472.30 on the Bombay Stock Exchange.