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          
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