Grasim reports excellent performance for Q3 FY2010

1st February, 2010

22 January 2010

Grasim reports excellent performance for Q3 FY2010

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Consolidated net profitRs.715crore 56%
Consolidated net revenueRs.4,844crore 5%

Consolidated Financial Performance:

 Quarter ended9 months ended
 31.12.0931.12.08% change31.12.0931.12.08% change
Net Revenue4,8444,610514,71513,5499
Profit before taxes1,177749573,8402,57649
Profit after taxes(before extraordinary item)805566422,6321,92137
Minority share(90)(106) (392)(303) 
Net profit(before extraordinary item)715460562,2401,61838
Net profit(after extraordinary item)715460562,5761,61859
EPS (Rs.)      
Before extraordinary item78505624417638
After extraordinary item78505628117659

Grasim Industries Limited, an Aditya Birla Group company, today announced its results for the third quarter ended 31 December 2009. Higher volumes and lower input prices have been the key growth drivers.

The company’s net revenue was higher by 5% at Rs.4,844 crore. PBIDT was higher by 41% at Rs.1,511 crore. Net profit at Rs.715 crore was up by 56%, despite higher depreciation on account of the commissioning of new projects and a substantially higher tax provision.

On a standalone basis, Grasim’s performance has been more impressive. Net revenue rose by 15% at Rs.3,088 crore (Rs.2,695 crore). PBIDT grew by 85% at Rs.1,075 crore (Rs.580 crore). Net profit increased by 81% at Rs.596 crore (Rs.330 crore), notwithstanding a steep rise in tax expenses and higher depreciation due to the commissioning of new projects.

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

On a comparable basis, excluding the sponge iron business from Q3FY09 and the consolidation of Idea as an associate in Q3FY09, the results for the current quarter would have been as indicated below:

  Q3 FY10Q3 FY09% changeQ3 FY10Q3 FY09% change
Cement (consolidated)Mn. Mt8.997.99139.218.0814
White cementMt137,523112,41322130,188109,97218
Viscose staple fibreMt81,99151,7775881,30653,75851

Cement business
The cement business posted a healthy growth, as demand continued to remain strong. New capacities contributed to a 13% increase in production, at 8.99 million tons. Sales volumes expanded by 14% at 9.21 million tons. Cement prices were impacted, particularly in the south, due to excess capacity and lower demand. The quarter also witnessed a drop in clinker export realisation due to reduced off-take in the Middle East following a meltdown in construction activities. On a sequential basis, RMC (Ready Mix Concrete) volumes improved marginally.