Grasim Industries rose 1.19% to Rs 3,420 at 14:20 IST on BSE after consolidated net profit declined 7.55% to Rs 416 crore on 15.98% growth in revenue to Rs 7945 crore in Q2 September 2014 over Q2 September 2013.
The Q2 result was announced during market hours today, 29 October 2014.
Meanwhile, the S&P BSE Sensex was up 157.63 points or 0.59% at 27,038.45.
On BSE, so far 37,000 shares were traded in the counter as against average daily volume of 8,438 shares in the past one quarter.
The stock was volatile. The stock rose as much as 2.04% at the day's high of Rs 3,449 so far during the day. The stock lost as much as 1.32% at the day's low of Rs 3,335 so far during the day. The stock had hit a 52-week high of Rs 3,755 on 9 June 2014. The stock had hit a 52-week low of Rs 2431.70 on 20 February 2014.
The stock had underperformed the market over the past one month till 28 October 2014, sliding 6.17% compared with Sensex's 0.96% rise. The scrip had, however, outperformed the market in past one quarter, advancing 5.19% as against Sensex's 3.42% rise.
The large-cap company has equity capital of Rs 91.85 crore. Face value per share is Rs 10.
The top line during the quarter was driven by robust volume growth in all the businesses supported by new/acquired capacities, Grasim Industries said.
The merger of Gujarat Cement Units of Jaypee Cement Corporation (JCCL) with UltraTech Cement (UltraTech), a subsidiary of Grasim Industries, has become effective from 12 June 2014 and accordingly the financial results of the acquired units have been included with the UltraTech's financial results with effect from 12 June 2014. As a result, figures for the quarter and six months ended 30 September 2014 are strictly not comparable with previous periods, Grasim Industries said.
With regard to future business outlook, Grasim Industries said that in the VSF sector, margins are likely to remain under pressure in the near term due to the overcapacity in China. Sharply declining cotton and polyester prices is a major challenge and may impact the growth of VSF consumption, the company added. The slowdown in new capacity additions in China should lead to an improvement in industry utilization which augurs well for the company, it added. The focus on cost optimisation will continue relentlessly, Grasim Industries said.
In cement, demand is likely to grow by about 8% in the current fiscal and should accelerate going forward, Grasim said. The key drivers will be renewed government focus on housing and infrastructure spending, the company said in a statement.
With additional capacity coming on stream in both the businesses, the company will further consolidate its leadership position and is well-poised to benefit from the expected upturn in the economy, Grasim Industries said in a statement.
Grasim Industries, a flagship company of the Aditya Birla Group, started as a textile manufacturer in 1948. Today, its core businesses are VSF and cement. It is also present in chemicals which are essentially a backward integration of VSF.
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