Grasim reports excellent performance for Q4 FY2010

1st June, 2010

20 May 2010

Grasim reports excellent performance for Q4 FY2010

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Consolidated net revenueRs.5,475 crore 11%
Consolidated net profit as reportedRs.654 crore 15%
Like to LikeRs.763 crore 34%

 

 

Consolidated Financial Performance:
Grasim Industries Limited, an Aditya Birla Group Company, has reported improved performance during the fourth quarter of the year ended 31 March 2010, as well as the entire year. These results are given after considering the effect of the demerger of the cement business of the Company to its subsidiary, Samruddhi Cement Ltd. (SCL), w.e.f. 1 October 2009.

 

 

The results have been driven by improvement in both its cement and VSF businesses. While the cement business has performed well supported by higher output from the new capacities including its captive power plants, the VSF business has recovered from the extreme downturn of the last year leading to an impressive performance.

   Quarter ended  Year ended
 31.03.1031.03.09% change31.03.1031.03.09% change
Net Revenue5,4754,94211520,19518,4969
PBIDT1,5001,327136,3224,77932
Net Profit(Before Extraordinary Item)654569152,7602,18726
Extraordinary Item---336--
Net Profit(After Extraordinary Item)654569153,0962,18742
Net Profit (Re-casted) *763569343,3392,18753
EPS (Rs.)      
Before Extraordinary item71621530123826
After Extraordinary item71621533723842

 

 

* a) Due to demerger of the cement business w.e.f 1 October 2009, the net profit after minority share has reduced by Rs.108 crore in Q4 FY10 and by Rs.243 crore in FY10. This is on account of the differential tax treatment of Rs.27 crore in FY10 and minority share (35%) of SCL (being shares to be issued to Grasim’s shareholders in terms of the demerger scheme). Adding these, the total net profit was higher at Rs.763 crore for the quarter (growth of 34%) and at Rs.3,339 crore for the year (growth of 53%).

 

 

There is no change in the consolidated revenue and operating profit of the Company on account of the demerger of its cement business.

b) The extraordinary item of Rs.336 crore reflects the profit on the sale of Vikram Ispat, the sponge iron unit of the Company.

Dividend
The board of directors of Grasim has recommended a dividend of Rs.30 per share, which is the same as per last year. Additionally, the board of directors of SCL, has proposed a dividend of Rs.1.75 per share for six months’ working. Each Grasim shareholder will be receiving one equity share of Rs.5 in SCL for every one share held in Grasim on 28 May 2010, the record date fixed for this purpose, in terms of the demerger scheme.

Highlights of Grasim’s Consolidated operations:

  Q4 FY10Q4 FY09% changeFY 2010FY 2009% change
Production -       
Cement (consolidated)Mn. M.T.10.249.2810%37.0232.1815%
White cementM.T.138,893132,0605%514,291441,11817%