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PRESS
RELEASE
22 October 2011
Grasim reports improved performance for Q2FY12
Click here to view the results
|
Rs.
crore |
| Consolidated
net revenue |
5,774  28 % |
| Consolidated
net profit |
418 29 % |
| Capex
under Implementation |
|
| |
VSF
and Allied Chemicals |
3,400 |
| |
Cement |
11,000 |
Consolidated Financial Performance:
Grasim Industries Limited, an Aditya Birla Group Company, has reported good results for the 2nd quarter ended 30th September 2011 supported by improved performance of both Cement and VSF businesses. Net Revenue increased by 28 per cent at Rs.5,774 crore (Rs.4,503 crore). PBIDT grew by 28 per cent from Rs.884 crore to Rs.1,135 crore. Net profit rose by 29 per cent at Rs.418 crore (Rs.323 crore).
Production and sales volumes:
Products |
|
Production |
Sales |
|
Q2FY12 |
Q2FY11 |
Per
cent change |
Q2FY12 |
Q2FY11 |
Per
cent change |
| Viscose Staple Fibre |
M.T. |
83,516 |
69,802 |
20 |
78,959 |
67,488 |
17 |
| Cement (Consolidated)* |
Mn M.T. |
9.51 |
8.61 |
11 |
9.76 |
8.96 |
9 |
| White Cement |
Lakh M.T. |
1.38 |
1.09 |
26 |
1.34 |
1.23 |
8 |
| *Including
Star Cement volumes in Q2 FY12 |
Viscose Staple Fibre (VSF)
Global fibre markets are stabilising after the sharp volatility witnessed in Q1. The demand
for VSF picked up due to improved consumption and restoration of the depleted
inventory in the value chain. Globally, VSF prices staged a marginal recovery with
improvement in sentiments.
The business recorded improved performance despite higher input costs. Production
grew by 20 per cent with full capacity utilisation at Nagda plant during the quarter which was
shut for 25 days in the corresponding quarter. Sales volumes were up by 17 per cent supported
by the market demand.
The performance of the Pulp units was impacted by higher energy cost, scheduled
annual maintenance and nominal forex losses.
Cement Subsidiary (UltraTech Cement)
UltraTech recorded Revenue of Rs.4,209 crore and PAT of Rs.265 crore. Performance has
improved on year-on-year basis on account of an unrealistic lower base effect. On a
sequential basis the company’s performance was subdued on account of seasonal
impact, lower realisation and substantial increase in costs.
Variable cost rose by 14 per cent mainly on account of increase in input and energy costs. The
30 per cent increase in the price of domestic coal, continuous rise in prices of imported coal
together with increase in freight costs on account of the diesel price hike have adversely
impacted the company’s performance.
Chemical Business
The Chemical business has reported an excellent performance. Production grew by 21 per cent
on the back of full capacity utilisation. Sales volume increased by 30 per cent. Caustic prices
continued to move upward with higher international prices and lower imports. As a result
ECU realization increased by 24 per cent.
Standalone Financial Performance
The standalone results for the quarter displayed all round growth with Net Revenue and
Net Profit higher by 30 per cent and 23 per cent respectively.
Rs.
crore |
| |
Quarter
ended |
Per cent
change |
|
30.09.11 |
30.09.10 |
| Net
revenue |
1,249 |
963 |
30 |
| PBIDT |
506 |
426 |
19 |
Net
profit
|
345 |
280 |
23 |
VSF & Chemical Capex
The progress on VSF (120,000 TPA) and Chemical (182,500 TPA) greenfield projects at
Vilayat, Gujarat and brownfield expansion (36,500 TPA) of VSF at Harihar, Karnataka is
on track. Civil work is in full swing. Both these projects are slated for commissioning in
FY13. A total capex of Rs.3,400 crore has been earmarked for the VSF and Chemical
business. This comprises of Rs.2,850 crore for expansion projects and Rs.550 crore towards
modernisation.
Cement Capex
A total capex of Rs.11,000 crore has been slated for the Cement business with Rs.5,150
crore on expansion projects and Rs.5,850 crore towards instituting bulk packaging
terminals, setting up of ready-mix concrete plants, captive thermal power plant, and
modernization projects.
Chhattisgarh and Karnataka brownfield expansion projects aggregating 9.2 million TPA,
are progressing as per schedule. Both these projects are expected to be operational by
Q1FY14.
Outlook
The environment in both the businesses continues to be challenging. In VSF, the demand
is expected to be volatile due to macro economic conditions and the uncertainties in
the Euro Zone. In Cement, the surplus scenario should subside gradually over a period of
2-3 years with expected growth in demand. At the same time, if the present rising input
costs scenario continues, it will result in a squeeze of margins.
Cautionary Statement
Statements in this “Press Release” describing the Company’s objectives, projections, estimates, expectations
or predictions may be “forward looking statements” within the meaning of applicable securities law and
regulations. Actual results could differ materially from those express or implied. Important factors that could
make a difference to the Company’s operations include global and Indian demand supply conditions,
finished goods prices, feedstock availability and prices, cyclical demand and pricing in the Company’s
principal markets, changes in Government regulations, tax regimes, economic developments within India
and the countries within which the Company conducts business and other factors such as litigation and
labour negotiations. The Company assumes no responsibility to publicly amend, modify or revise any forward
looking statement, on the basis of any subsequent development, information or events, or otherwise.
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