Aditya Birla Group firm Grasim Industries today reported 17 per cent growth in consolidated net profit at Rs 488.50 crore for the quarter ended September 30, 2015, helped by higher sales, among other factors.
The diversified products firm had a net profit of Rs 416.38 crore in the year-ago period, it said in a BSE filing.
Total consolidated income of the Grasim Industries grew by 6 per cent to Rs 8,392.90 crore in July-September quarter this fiscal from Rs 7,943.05 crore in the same quarter of 2014-15.
Grasim Industries in engaged in manufacturing Viscose Staple Fibre (VSF) — used in apparels — and cement, contributing over 90 per cent of its revenues and operating profits. It is also present in chemicals.
VSF revenue rose 13 per cent driven by higher sales volume at 1.14 lakh tonnes.
Grasim’s cement subsidiary UltraTech Cement reported a 4 per cent growth in revenues and the sales volume was also higher at 11.4 million tonnes (MT) against 10.9 MT last year.
With commissioning of grinding units of 1.6 MTPA each in Haryana and West Bengal, the cement capacity has now increased to 67.7 MTPA.
In the Chemical Business, revenue rose by 26 per cent with a volume growth of 20 per cent in caustic soda and 68 per cent in epoxy.
The merger scheme of Aditya Birla Chemicals India (ABCIL) with the company has been approved by Competition Commission of India and the High Court of Madhya Pradesh. The sanction from High Court of Jharkhand is expected in Q3 2015-16.
Upon receiving the requisite approvals, the scheme will be effective from April 1, 2015.
On outlook, Grasim said in VSF, prices are likely to be influenced by the developments in the industry such as the resumption of operations at some of the shut capacities in China and prices of competing fibres.
In the Chemical Business, the scale of operations will rise significantly post the merger of ABCIL with the company, it added.
“In cement, the demand is expected to be higher with the government’s focus on infrastructure development, housing sector, smart cities etc and the softening of interest rates,” Grasim said.
However, the firm said that deficit monsoon, the delay in execution of government projects as well as surplus inventory in urban housing are concern areas for its cement business.
Shares of the company today fell by 0.85 per cent to settle at Rs 3,661.30 apiece at the BSE.