Grasim Posts 48% Rise In Q3 Net At Rs 133 Cr

Mumbai, January 27: | Updated: Jan 28 2003, 05:30am hrs
Grasim Industries, the AV Birla Group flagship, has registered a 48 per cent rise in net profit at Rs 133 crore for the third quarter ended December 2002 as against Rs 89.9 crore for the same period of last year. Net turnover saw a healthy increase of 11 per cent at Rs 1,166.6 crore for the quarter as against Rs 1,050.4 crore in the corresponding period of last year.

The realisations in the cement business were lower by six per cent at Rs 1,710 per million tonne which was in trend with the generally lower cement prices.

Grasims cement sales volumes for the quarter saw a growth of 13 per cent, while the production at 2.72 million tonne was higher by 20 per cent.

The cement business has a capex of Rs 218 crore for the current financial year, of which Rs 129 crore has been already invested till the end of the current quarter.

This would mainly be to set up two power plants of 23 MW and 12.5 MW capacity at Aditya Cement and Grasim (South), respectively.

Of this, on implementation of the modernisation and debottlenecking projects, Grasims cement manufacturing capacity will stand raised to 13.4 million tonne.

The viscose staple fibre business (VSF) saw an increase in sales and realisations by 21 per cent and three per cent respectively, over the corresponding quarter of the previous year.

Sales volume for the chemical business at 41,637 million tonne grew by 15 per cent vis-a-vis over the corresponding quarter.

While there was a global decline in price of caustic soda, Grasims overall ECU realisation was higher by three per cent primarily due to the significant improvement in the realisation of its by-products.

Grasims focus on operational excellence, cost optimisation, effective financial management, continuous restructuring of business processes and expected improvement in the cement sector have contributed to the improved performance, according to the company.