Grasim Industries' first quarter standalone net profit may fall 10 percent year-on-year to Rs 95 crore but revenue may increase 11 percent to Rs 1,590 crore, according to average of estimates of analysts polled by CNBC-TV18.
Topline may be aided by higher viscose staple fibre (VSF) volumes and realisations. VSF volumes may grow on the back of commissioning of the new capacity while realisations are estimated to stay flattish with positive bias.
Consolidated earnings of the Aditya Birla Group company already discounted in the stock post UltraTech Cement numbers. Grasim has 60.3 percent shareholding in UltraTech and gets more than 70 percent topline & bottomline from UltraTech on consolidated basis.
Standalone operating profit is seen rising 9 percent year-on-year to Rs 154 crore but margin may decline 10 basis points to 9.7 percent in June quarter. VSF margin may rise with some respite in pulp cost while chemicals business may continue to see margin pressure.
Key issues to watch out for would be pick-up in the cement demand & pricing thereon and outlook on VSF business & strategy to utilise the upcoming capacities globally.
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