Grasim Q1 Net Jumps 68%

Mumbai, July 28 | Updated: Jul 29 2004, 06:00am hrs
The AV Birla groups flagship company Grasim has posted a 68 per cent increase in net profit for the first quarter ended June 2004 at Rs 219 crore as compared to Rs 131 crore for the corresponding previous quarter.

Net turnover for the reporting quarter was 30.4 per cent higher at Rs 1,517 crore as compared to Rs 1,163 crore for the same period last year. The company has attributed this growth to higher production, sales volumes and realisations in all of its major businesses.

Sales volumes of viscose staple fibre (VSF) business registered a 24 per cent increase for the first quarter at 60,877 tonne as compared to 49,278 tonne for the same period last year. Realisation increased by six per cent at Rs 77,278 per tonne, in line with the international VSF price trend.

The company said the realisation was up despite the steep increase in input cost and a shutdown of its Harihar plant for nearly 40 days during the quarter.

The cement business of the company posted a three per cent increase in production at three million tonne (MT) as against 2.9 (MT) for the first quarter last year. Sales volumes were higher by five per cent at three MT against an industry average growth of two per cent. The realisation for the quarter grew by 13 per cent, which has contributed to better operating margins, the company said in a statement.

The company has made a provision for a capital outlay for the business to the tune of Rs 122 crore. The company said that the implementation of the ongoing modernisation and capacity expansion through de-bottlenecking will help raise Grasims cement capacity to 13.69 MT by the end of the financial year 2005.