Grasim Industries rose 0.55% to Rs 962.45 at 15:20 IST on BSE after consolidated net profit rose 50.53% to Rs 846 crore on 2.71% rise in revenues to Rs 8387 crore in Q2 September 2016 over Q2 September 2015.
The result was announced during market hours today, 28 October 2016.Meanwhile, the BSE Sensex was up 10.39 points, or 0.04%, to 27,926.29.
On BSE, so far 1.37 lakh shares were traded in the counter, compared with average daily volume of 30,271 shares in the past one quarter. The stock hit a high of Rs 980.90 and a low of Rs 952.95 so far during the day. The stock hit a record high of Rs 1,069.70 on 5 August 2016. The stock hit a 52-week low of Rs 648.41 on 26 February 2016. The stock had underperformed the market over the past 30 days till 27 October 2016, falling 2.09% compared with 1.33% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 2.05% as against Sensex's 0.48% decline.
The large-cap company has equity capital of Rs 93.36 crore. Face value per share is Rs 2.
Grasim Industries' consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose 29.03% to Rs 2098 crore in Q2 September 2016 over Q2 September 2015, driven by the good performance from all the businesses. The growth in net profit was supported by higher operating leverage and lower interest cost.
The company said that the outlook for the Viscose Staple Fibre (VSF) business is expected to remain stable. The business will continue to focus on expanding the VSF market in India by partnering with the textile value chain, achieving better customer connect through Brand Liva and enriching the product mix through a larger share of specialty fibre. The company said it is working on debottlenecking opportunities to meet growing demand.
The demand for caustic in India is expected to grow with the rising demand from the end user industry. The commissioning of new capacities in the industry may increase supply in the medium term. The company's plan is to increase Caustic capacity by 208K TPA to 1048K TPA through brown field expansion at Vilayat (Gujarat) and debottlenecking at other plants is on track.
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The government's thrust on developing infrastructure spending, good monsoon, development of smart cities leading to growth in housing demand in Tier - I and Tier II cities augurs well for the cement industry. The slower pace of new capacity addition will lead to better Industry utilisation. UltraTech will benefit with its presence across the country to meet the expected rise in demand, the company said.
Grasim Industries' two main businesses are viscose staple fibre (VSF) and cement.
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