Grasim Industries, a flagship company of the Aditya Birla Group, reported a 16 per cent jump in consolidated net profits for the financial year ended March 31, owing to strong export demand for viscose staple fibre (VSF) and strong volume growth in its cement business.
The company’s net profit for the previous financial year rose to Rs 2,647 crore, compared with Rs 2,274 crore in the corresponding period of the previous financial year. Its revenue also rose 17 per cent to Rs 25,244 crore.
In the last quarter of the previous financial year, its net profits stood at Rs 809 crore compared with Rs 669 crore in the year-ago period, a rise of 21 per cent, while its revenue rose 12 per cent to Rs 7,289 crore.
VSF sales rose 11 per cent and stood at 94,904 tonnes, despite the slowdown in euro zone, which had an impact on the over all textile demand. The company also added another capacity in China during the period.
Ultra Tech, the cement subsidiary, reported a 22 per cent jump in profit at Rs 872 crore, while its revenue, at Rs 5,659 crore, rose 19 per cent.
The VSF and chemical greenfield projects at Vilayat, Gujarat and brownfield expansion of VSF at Harihar, Karnataka are progressing in line with the schedule.
More From This Section
The Vilayat project is slated for commissioning towards the end of the current financial year, while the Harihar project is expected to be commissioned in two phases this year.
Consequently, UltraTech’s cement capacity would be enhanced by 10.2 million tonnes per annum to 62 million tonnes per annum.
The board of directors has recommended a dividend of Rs 22.50 per share, compared with Rs 20 per share in FY11. The total outflow on account of the dividend would be Rs 218 crore (including corporate tax on dividend).