Grasim posts impressive results for Q4 FY 2009

1st May, 2009

19 May 2009

 

Grasim posts impressive results for Q4 FY 2009

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	Rs. crore
Consolidated net revenues	5,020
Consolidated net profit	569

 

Consolidated financial performance

 

Rs. crore
	Q4 FY09	Q4 FY08	FY09	FY08
Net revenue	5,020	4, 765	18,603	17,141
Profit before taxes*	1,031	1,072	3,607	4,530
Profit after taxes*	711	710	2,631	3,066
Minority share	142	111	444	457
Net profit	569	599	2,187	2,609
EPS (Rs.)*	62	65	238	285
Cash profit (before minority share)	1,114	781	3,938	3,729
* For proper comparison, all profit numbers and EPS are given before exceptional / extraordinary gains

 

Grasim, an Aditya Birla Group company, today announced its results for the fourth quarter ended 31 March 2009.

 

Its consolidated revenues for the quarter rose by 5 per cent to Rs.5,020 crore (Rs.4,765 crore). Cash profit for the quarter at Rs.1,114 crore (Rs.781 crore), was substantially higher by 43 per cent, due to the impressive performance of the cement business and the benefit of lower current tax. Net profit was however lower by 5 per cent at Rs.569 crore (Rs.599 crore), given the higher interest cost and substantially higher depreciation on account of commissioning of several new projects, the full benefit of which is expected to accrue only in the current year. Profit was also depressed due to the impact of economic slowdown.

 

Grasim's consolidated net revenues for the year grew by 9 per cent, at Rs.18,603 crore (Rs.17,141 crore). Cash profit for the year at Rs.3,938 crore (Rs.3,729 crore) was higher by 6 per cent, consequent to lower current tax. Net profit at Rs.2,187 crore (Rs.2,609 crore) was lower by 16 per cent due to higher interest cost and substantially higher depreciation, as various new projects were commissioned. Profitability was also impacted because of the increased input costs and economic slowdown.

 

Viewed in the backdrop of the current economic environment and its impact on the company's VSF business (one of the company's key businesses) and sponge iron business, the overall performance has been satisfactory.

 

Stand-alone financial performance

 

Rs. crore
	Q4 FY09	Q4 FY08	FY09	FY08
Net revenue	2,932	2,764	10,940	10,325
Profit before taxes*	590	660	2,248	2,964
Net profit*	385	441	1,648	2,002
EPS (Rs.)*	42	48	180	218
Cash profit*	619	466	2,362	2,365
* For proper comparison, all profit numbers and EPS are given before exceptional / extraordinary gains

 

Grasim's stand-alone revenues for the quarter stood at Rs.2,932 crore (Rs.2,764 crore). Cash profit for the quarter at Rs.619 crore (Rs.466 crore) was substantially higher by 33 per cent due to the impressive performance of the cement business and benefit of lower current tax. Net profit was however lower by 13 per cent at Rs.385 crore (Rs.441 crore) due to higher interest cost and substantially higher depreciation on account of commissioning of several new projects.

 

Grasim's stand-alone revenues for the quarter stood at Rs.2,932 crore (Rs.2,764 crore). Cash profit for the quarter at Rs.619 crore (Rs.466 crore) was substantially higher by 33 per cent due to the impressive performance of the cement business and benefit of lower current tax. Net profit was however lower by 13 per cent at Rs.385 crore (Rs.441 crore) due to higher interest cost and substantially higher depreciation on account of commissioning of several new projects.

 

Dividend
The board of directors of Grasim has recommended a dividend of Rs.30 per share, at par with the dividend paid last year. The total outflow on account of dividend, including corporate tax on dividend, would be Rs.316 crore.

 

Highlights of Grasim's operations

 

Production		Q4 FY09	Q4 FY08	Per cent change	FY 2009	FY 2008	Per cent change
Cement	M.T.	4.68	4.20	11	16.32	15.36	6
White cement	Mn M.T.	132,060	120,433	10	441,118	407,882	8
Viscose staple fibre	M.T.	59,913	70,828	-15	232,745	279,901	-17
Caustic soda	M.T.	52,830