|
PRESS
RELEASE
22
January 2008
Grasim
announces results for Q3 FY 2008
Click
here to view the results
|
Rs.
crore
|
Per
cent
|
| Consolidated
net profit |
722
|
 29 |
| Consolidated
net revenues |
4,358
|
19
|
Consolidated
financial performance
|
Rs.
crore
|
|
Q3
FY08
|
Q3
FY07
|
Per
cent
change
|
9
months
FY08
|
9
months
FY07
|
Per
cent change
|
| Net
revenue |
4,358
|
3,668
|
19
|
12,383
|
10,068
|
23
|
| Gross
profit |
1,420
|
1,128
|
26
|
3,947
|
2,888
|
37
|
| Depreciation |
166
|
155
|
7
|
488
|
445
|
10
|
| Total
tax expenses |
399
|
304
|
31
|
1100
|
757
|
45
|
| Profit
after taxes |
855
|
669
|
28
|
2,359
|
1,686
|
40
|
| Less:
minority's share |
131
|
110
|
19
|
345
|
277
|
25
|
| Net
profit |
722
|
559
|
29
|
2,012
|
1,409
|
43
|
| EPS
(Rs.) |
79
|
61
|
29
|
219
|
154
|
43
|
Grasim Industries Limited has posted good results for the third
quarter ended 31 December 2007. The improved performance was
propelled by its core businesses, viz., cement and viscose staple
fibre (VSF). The company's chemical and sponge iron businesses
too aided the performance.
Revenues
increased by 19 per cent y-o-y to Rs. 4,358 crore (Rs. 3,668
crore). Gross profit rose by 26 per cent at Rs. 1,420 crore
(Rs. 1,128 crore). Net profit was higher by 29 per cent at
Rs. 722 crore (Rs. 559 crore).
Highlights
of Grasim’s operations
|
|
Q3
FY08
|
Q3
FY07
|
Per
cent change
|
| Production |
| Viscose
staple fibre |
M.T. |
70,839
|
68,784
|
3
|
| Cement |
Mn.
M.T. |
3.69
|
3.67
|
1
|
| White
cement |
M.T. |
105,123
|
91,722
|
15
|
| Sponge
iron |
M.T. |
142,701
|
116,996
|
22
|
| Caustic
soda |
M.T. |
50,452
|
29,962
|
68
|
| Sales
volumes |
| Viscose
staple fibre |
M.T. |
68,552
|
67,061
|
2
|
| Cement |
Mn.
M.T. |
3.76
|
3.72
|
1
|
| White
cement |
M.T. |
103,879
|
93,571
|
11
|
| Sponge
iron |
M.T. |
135,205
|
147,339
|
-8
|
| Caustic
soda |
M.T. |
49,978
|
29,337
|
70
|
Viscose
staple fibre (VSF) business
VSF business
recorded a positive performance during the quarter. The company
plans to expand its capacity by 94,875 tonnes, through capacity
additions of 63,875 tonnes at Kharach (Gujarat) and 31,000 tonnes
at Harihar (Karnataka), at an estimated outlay of Rs. 606 crore.
Upon completion, the company's VSF capacity will be 364,975
tonnes.
Alongside,
a greenfield 88,000-tonne plant is being set up at Vilayat
(Gujarat) at an estimated capital cost of Rs. 840 crore. The
plant is expected to be commissioned in about 2 to 3 years'
time. The
company plans to foray into the consumer product segment with
a test launch of non-woven products.
Chemical
plant
The chemical plant's performance improved during the quarter.
Production of caustic soda was higher by 68 per cent at 50,452
tonnes. During the corresponding quarter, production was lower
owing to the shut down of a captive power plant. Sales volumes
rose by 70 per cent at 49,978 tonnes.
Cement business
The performance of cement business was good. Both production
and sales volumes were a tad higher at 3.69 million tonnes and
3.76 million tonnes respectively. The share of blended cement
increased from 61 per cent to 66 per cent. 13 RMC plants were
commissioned during the current year. Higher realisation during
the quarter, however, was set off by the steep hike in fuel
cost and increased freight cost, which impacted margins.
The white
cement unit reported a healthy performance. While production
grew by 15 per cent at 105,123 tonnes, sales volumes improved
by 11 per cent at 103,879 tonnes.
Cement
subsidiaries
UltraTech Cement Limited (UltraTech), a subsidiary of Grasim,
too reported improved performance. Sales of cement and clinker
were at 3.66 million tons and 0.71 million tons respectively.
Net profit was higher at Rs. 281 crore.
Cement capex plan
The capex plans of both Grasim and UltraTech are progressing
satisfactorily. The company's aggregate cement capacity (including
that of its subsidiaries) will stand augmented by 17 million
tonnes at 47 million tonnes upon completion of all expansions.
Besides, both the company and its subsidiary are setting up
ready mix concrete plants at various locations in the country.
The additional
capacity of around 90 million tonnes, as announced by the
industry, over the 3-year period FY08 to FY10, could result
in a surplus scenario, affecting realisation from end-FY09.
Rising energy prices would lead to increased costs. However,
the addition of captive power plants at various locations
will help contain this impact.
The strong
growth in demand emanating from the housing and infrastructure
sectors bode well for the company's cement business.
Sponge
iron business
The performance of sponge iron business improved during the
quarter. Operating profits improved, despite a steep increase
in iron ore prices, owing to higher realisation. The outlook
for the business is expected to improve with adequate gas availability,
likely by March 2008. The pricing of gas, being uncertain, continues
to be a concern.
Outlook
Grasim's outlook continues to be positive. The major expansion
of capacity in cement and fibre businesses, relentless efforts
towards cost optimisation and improved productivity, coupled
with effective financial management, portend well for the company
in the years to come.
|
