Hit by fall in prices and slowing down of construction activities during the monsoon, Grasim Industries on Thursday reported 56% fall in its consolidated net profit for the second quarter ended September 30, 2010.
During Q2 FY11, Grasim posted a net profit of Rs 323.36 crore against Rs 780.77 crore in the corresponding quarter last year. However, the reported results are not comparable since Grasim?s cement business has been demerged effective October 1, 2009. According to the restated numbers, excluding the results of the cement business, the company?s net profit during the second quarter stood at Rs 346 crore, down 55.69% against Rs 781 crore in Q2 FY 10.
Consolidated net sales during the quarter stood at Rs 4,438.97 crore, down 5.04%, compared to Rs 4674.39 crore in Q2 FY 2010.
?The company’s performance was also impacted by stoppage of its viscose staple fibre (VSF) plant at Nagda for 25 days during the quarter on account of water shortage due to the delayed monsoon,? Grasim said. The company’s subsidiary UltraTech’s sales volumes during the quarter grew 8%.