Grasim Up On Earnings, Outlook

Mumbai, January 28: | Updated: Jan 29 2003, 05:30am hrs
The stock price of Grasim Industries strengthened on Tuesday, boosted by strong third quarter results which were in line with market expectations.

On The Stock Exchange, Mumbai (BSE), the stock of the AV Birla group major edged up 0.3 per cent to close at Rs 326.35 as against its previous close of Rs 325.35. A total number of 1,79,600 Grasim shares changed hands on Tuesday.

Dealers said the stock had been fuelled by expectations of strong results in the prior few sessions, rising 6.8 per cent from Rs 312.90 on January 20, to Rs 334.20 on January 22.

How-ever, it pared some gains in the following trading sessions to settle at Rs 325.45 on Monday.

The results were announced after trading hours on Monday. For the third quarter ended December 31, 2002, Grasim reported a 48 per cent growth in profit after tax (PAT) to Rs 132.95 crore (Rs 89.86 crore) on an 11 per cent growth in net sales to Rs 1,166.59 crore (Rs 1,050.38 crore).

Dealers commented that as per reports, sales of all key divisions - VSF, cement, sponge iron and fibre & pulp - rose in the third quarter. This has helped improve the third quarter performance.

Dealers also said there had been an all-round improvement in VSF business during the quarter ended December 31, powered by improved realisations and better capacity utilisation. Grasims outlook continues to be bright, with all its major businesses rolling out good performances, analysts added.