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Last Updated : Aug 07, 2015 05:36 PM IST | Source: Moneycontrol.com

Grasim Q1 net flat at Rs 485 cr, VSF revenue up 15%

On a standalone basis, Q1 net profit was flat at Rs 105.7 crore from Rs 105.84 crore in year-agop period. Total income jumped 15.1 percent to Rs 1,657 crore against Rs 1,439.5 crore (Y-o-Y). EBITDA was up 53 percent at Rs 215 crore versus Rs 141 crore while EBITDA margin stood at 13 percent against 9.8 percent (Y-o-Y).


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Grasim has posted flat consolidated net profit at Rs 485 crore in April-June quarter down 0.4 percent from Rs 487 crore in corresponding quarter last fiscal. However, its Q1 net revenue increased 7 percent to Rs 8599 crore from Rs 8045 crore on a yearly basis.


During the quarter, its EBITDA rose marginally 3 percent to Rs 1531 crore against Rs 1488 crore, year-on-year.

On a standalone basis, Q1 net profit was flat at Rs 105.7 crore from Rs 105.84 crore in year-agop period. Total income jumped 15.1 percent to Rs 1,657 crore against Rs 1,439.5 crore (Y-o-Y). EBITDA was up 53 percent at Rs 215 crore versus Rs 141 crore while EBITDA margin stood at 13 percent against 9.8 percent (Y-o-Y).

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According to average of estimates of analysts polled by CNBC-TV18, its first quarter standalone net profit was expected to fall 10 percent year-on-year to Rs 95 crore but revenue was seen increasing 11 percent to Rs 1590 crore.


"The company's leadership position has been further strengthened having made an investment of USD 4 billion over last  five years.  The  company is well poised to  reap benefits of investments with ramping up of capacity utilisation and expected   upturn in the business cycle led by accelerated growth in the economy," Grasim says in a statement.


Segment-wise, Viscose Staple Fibre (VSF) business fetched revenue of Rs 1254.07 crore, up 15 percent from Rs 1094.03 crore in year-ago period. Higher sales volume at 1.03 lakh MT, up 19 percent drove revenues. EBIDTA surged  by  72 percent at Rs 139 crore with  expanded  volumes  and  a  decline in pulp and  other input cost. The  production  at  the  newly commissioned Vilayat plant  achieved a capacity utilisation of 82 percent.

"Volume growth would have been higher, had there been no plant stoppage at Nagda for two  months  due  to the  water  shortage.  Operations at Nagda  resumed  from the  last  week  of June 2015," the company says in a statement.

The company says that in VSF business, prices are likely to be influenced by the  development in  the  industry  in  China  amidst  increase in the input  prices and  resumption  of  operations  at  some of the shut capacities. 


Chemical  business,  revenue  soared by 17 percent as Epoxy volume almost  doubled  with  ramping up of plant utilisation. Caustic soda sales volume was maintained at 98,000 tons. EBITDA increased by 3 percent at Rs 94 crore. Grasim is optimistic that in chemical business, scale of operations will rise significantly post the merger of Aditya Birla Chemicals (ABCIL).


UltraTech Cement's first quarter standalone net profit fell 5.5 percent year-on-year to Rs 591 crore, impacted by lower other income and higher finance cost. Total income from operations grew by 7.1 percent.


Reacting to the numbers, Navin Sahadeo, AVP, Edelweiss Securities, says the numbers are above consensus. On the face of it, the numbers are exciting.


"Sequentially, we weren't expecting a significant increase in the margins for VSF because prices have remained under pressure," he told CNBC-TV18. Surprisingly, prices in China have increased, but the same didn't happen in India. Hence, he wasn't expecting a significant margin improvement in VSF.

At 13:37 hrs Grasim Industries was quoting at Rs 3,800.00, up Rs 48.50, or 1.29 percent on the BSE.

Posted by Nasrin Sultana
Follow @NasrinzStory



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First Published on Aug 7, 2015 01:38 pm
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