Grasim FY06 net up 18%, to pay 200% dividend

Grasim Industries today reported a 18% increase in consolidated net profit at Rs 1,038.60 crore for the year ended March 31, 2006 when compared with Rs 880.43 crore in FY05.

According to a release issued by the company to the BSE today, total income increased to Rs 10,416.91 crore in FY06 from Rs 9,536.88 crore in FY05.

The group posted a net profit of Rs 346.76 crore for the quarter ended March 31, 2006 when compared with Rs 249.28 crore in Q4FY05. Total Income increased to Rs 2,968.23 crore in Q4FY06 from Rs 2,563.52 crore in Q4FY05.

The board has recommended a dividend of Rs 20 per share, the release added.

Grasim has firmed up plans to expand cement capacity by eight million tonne per annum. "The company is setting up a greenfield cement plant at Kotputhali in Rajasthan, along with a split grinding unit, with a total capacity of four million tonne per annum, and expanding its capacity at Shambhupura in Rajasthan, and adding a split grinding unit, with a total capacity of four million tonne per annum," the release added.

The expansion would entail an investment of approximately Rs 2,475 crore, which includes the cost of setting up thermal power plants at both the locations, the release said.