Grasim Industries, part of the Aditya Birla group, has posted a decline of 16.2 per cent in its consolidated net profit for the financial year ended March 31, at Rs 2,187 crore, compared with Rs 2,609 crore in the previous financial year. Net revenue for the year grew to Rs 18,603 crore from Rs 17,141 crore last year, up 8.5 per cent.
The company, which commissioned new projects during the year, attributed higher interest cost, higher depreciation, increased input costs and economic slowdown as factors for the decline in profit.
On a standalone basis, the firm’s yearly net profit got a hit of 17.7 per cent, at Rs 1,648 crore compared with last year’s Rs 2,002 crore. The net revenue stood at Rs 10,940 crore against Rs 10,325 crore, up 5.96 per cent.
Cement continues to be the main business. The segment contributed over 72 per cent of all revenue, followed by the fibre and pulp business and sponge iron.
For the quarter ended March 31, Grasim’s consolidated net profit dipped to Rs 569 crore, from Rs 599 crore in the corresponding previous quarter. The net revenue increased to Rs 5,020 crore from Rs 4,765 crore, up 5.35 per cent.
The company has since sold its sponge iron business to Welspun Power and Steel Limited (Welspun) for a sum of Rs 1,030 crore. The sale transaction is expected to be completed in the current quarter, after which Welspun will own the entire stake in VSIL, the subsidiary which handles this business.
Grasim says it will continue to strengthen its cement and viscose staple fibre units.
On the Bombay Stock Exchange, the share closed on Tuesday at Rs 2,289.40, up 9.5 per cent.