Grasim net profit up 33%

Mumbai, Jan 28 | Updated: Jan 29 2005, 06:17am hrs
Aditya Birla Groups flagship company, Grasim Industries, has posted a 33% growth in net profit at Rs 217 crore for the quarter to December 2004 as against Rs 163.7 crore in corresponding previous quarter. This was on the back of a 17% growth in net sales to Rs 1,559.7 crore, as compared to Rs 1,332 crore in previous December quarter.

Director & CFO DD Rathi told FE: we have witnessed a 32% growth in bottomline in the first nine months of the current fiscal and there is hardly any reason for us to close the year with a growth below 25%. For the nine months ended December 2004, Grasim posted a 25% year-on-year growth in net sales to Rs 4,605 crore, while the net profit was Rs 656 crore.

In context of Holcims entry into Indian cement sector, he added: there will not be any adverse impact on our business as nothing has changed much. Grasim has an equally strong brand and a lot depends on how much has been allocated for its Indian business by Holcim. They have paid a high price to enter the market, which is a handicap.

Holcims cement business realisations during December quarter improved by 7% year-on-year, while those in VSF increased by 15%, white cement by 14%, sponge iron by 48% and chemical products by 18%, according to a company press statement.

The Grasim stock on Friday opened at Rs 1,298 to reach a high of Rs 1,330 and closed at Rs 1,316.5, on BSE.