Grasim Industries' first quarter profit on standalone basis may grow 20 percent quarter-on-quarter (up 137 percent year-on-year) to Rs 251 crore, according to average of estimates of analysts polled by CNBC-TV18.
Revenue is seen falling 5 percent sequentially (up 45 percent on yearly basis) to Rs 2,410 crore in the quarter ended June 2016.
Standalone operating profit may decline 6 percent quarter-on-quarter (up 103 percent year-on-year) to Rs 438 crore and margin may shrink 10 basis points QoQ (up 520 basis points YoY) to 18.2 percent in Q1.
Merger with Aditya Birla Chemicals will be reflected in Q1. Hence YoY numbers are not comparable. The better comparison is on QoQ basis.
Majority of consolidated numbers already in via UltraTech as it contributes roughly 70 percent to the topline & bottomline of consolidated Grasim numbers. Grasim has 60.25 percent stake in UltraTech.
Topline aided by higher volumes-Benefit of merger with Aditya Birla Chemicals will flow in Q1-Viscose staple fibre (VSF) and chemical business may continue to operate at high capacity utilisation-VSF volumes may grow 20 percent on the back of commissioning of the new capacity at Vilayat plant-VSF realisations may improve YoY and may be steady QoQ
Key issues to watch out for would be:-Pick-up in cement demand and pricing thereon-Outlook on VSF business, and strategy to utilise upcoming capacities globally-Any group restructuring
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