Grasim Industries Q1 profit at Rs 13.99 bn; total income rises to Rs 170 bn

Aditya Birla Group firm Grasim Industries on Tuesday reported consolidated net profit of Rs 13.99 billion for the first quarter ended June 30, 2018-19.

It had posted net profit of Rs 12.48 billion during the April-June period of last fiscal, 2017-18.

Grasim said in a regulatory filing that its total income during the quarter under review stood at Rs 170.89 billion, as against Rs 112.22 billion in the year-ago period.

The company said its "current quarter results are not comparable with that of the corresponding quarter of the previous year".

The previous year's results do not include the results of the erstwhile Aditya Birla Nuvo Ltd which was merged with the company with effect from July 1, 2017, the company said.

Its total expense was at Rs 150.51 billion during the period under review.

Grasim's revenue from Viscose - Pulp, Viscose Staple Fibre and Filament Yam segment was at Rs 24.80 billion in Q1/FY 2018-19. It was Rs 19.97 billion in Q1/FY 2017-18.

"The VSF business reported its highest ever quarterly production and sales volume of 134KT and 132KT respectively. The share of the domestic sales in the overall sales rose to 82 per cent in Q1FY19 vis--vis 69 per cent in Q1FY18," the company said in a statement.

Revenue from cement during the period under review was at Rs 90.21 billion. It was Rs 79.28 billion in the corresponding quarter.

"UltraTech reported consolidated sales revenue of Rs 90.21 billion... The consolidated sales volume registered an increase of 29 per cent on YoY basis to 18.01 mtpa," the company said.

While Chemicals - Caustic Soda and Allied Chemicals segment and Financial Services stood at Rs 15.78 billion and Rs 30.5 billion respectively.

Over the outlook, the company said that its VSF business will continue to focus on expanding the market in India by partnering with the textile value chain

However, it also added that the "new capacities likely to come on stream in China may impact the global VSF prices in the near term".

In cement, the demand is expected to be healthy and with the additional capacities acquired through the organic and inorganic route and its rapid ramp-up, UltraTech is very well placed to participate in the growth of the economy.

Grasim Industries' stock closed flat at Rs 988.10 on BSE.