Grasim reports excellent performance for Q1 FY 2010

1st July, 2009

28 July 2009

Grasim reports excellent performance for Q1 FY 2010

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Consolidated net revenue exceeds Rs. 50 billion
Consolidated net profit exceeds Rs. 10 billion

 

Financial performance

Rs. crore
 ConsolidatedStandalone
 Q1 FY10Q1 FY09Percent
change
Q1 FY10Q1 FY09Percent
change
Net revenue5,1234,448153,0792,61818
PBIDT1,6811,3562494783414
Profit before taxes1,3581,090257636999
Profit after taxes (before extraordinary gain)934792185315143
Minority share(190)(120)-   
Net profit (before extraordinary gain)744672115315143
Net profit (after extraordinary gain)1,0806726186751469
EPS (Rs.)      
Before extraordinary gain81731158563
After extraordinary gain1187361955669

Grasim, an Aditya Birla Group company, today announced its results for the quarter ended 30 June 2009.

Consolidated revenue for the quarter rose by 15 per cent at Rs. 5,123 crore (Rs. 4,448 crore). Net profit was higher by 61 per cent at Rs.1,080 crore (Rs. 672 crore) which included an extraordinary gain of Rs.336 crore (net of tax) arising from the sale of sponge iron business.

Grasim's stand-alone revenue for the quarter stood at Rs. 3,079 crore (Rs. 2,618 crore). Despite higher interest cost and depreciation on new capacity created, net profit (after extraordinary gain) was higher by 69 per cent at Rs. 867 crore (Rs. 514 crore). The benefit of these new capacities will accrue fully in the subsequent quarters, as normally new plants take about a year to fully stabilise.

The cement business has been the key contributor. The company has posted a higher profit, despite the adverse performance of the sponge iron business which was disposed of during the year. The sponge iron business sold has shown a loss of Rs. 44 crore, as against a profit of Rs. 65 crore at PBIT level in the corresponding quarter.

The consolidated as well as the standalone results for the quarter are not strictly comparable with the corresponding quarter's results, owing to the sale of sponge iron business on 22 May 2009 and consolidation of Idea Cellular Limited as an associate from 1 January 2009, as against a JV earlier.

On comparable basis, excluding sponge iron business from both Q1 FY10 and Q1 FY09 and consolidation of Idea as an associate in Q1 FY09:

  • Revenue increased by 25 per cent on stand-alone basis and by 24 per cent on consolidated basis
  • PBIDT increased by 30 per cent on stand-alone basis and by 39 per cent on consolidated basis and
  • Net profit (before extraordinary gain) increased by 20 per cent on stand-alone basis and by 24 per cent on consolidated basis

 

Highlights of Grasim’s operations

Products ProductionSales
 Q1 FY10Q1 FY09Percent changeQ1 FY10Q1 FY09Percent change
CementMn. M.T.4.913.99234.883.9723
White cementM.T.105,29994,32312106,89892,06716
Wall Care PuttyM.T.42,37231,5503443,63931,543