Grasim Industries is expected to report a 10 percent year-on-year degrowth in standalone profit at Rs 270 crore and 11 percent growth in revenue at Rs 1,770 crore for July-September quarter, according to analysts polled by CNBC-TV18.
Profit may be supported by higher other income via dividend. Topline may be aided by higher viscose staple fibre (VSF) volumes that may increase on commissioning of new capacity at Vilayat plant. Realisations could see some improvement sequentially.
Operating profit is seen rising 6 percent year-on-year to Rs 230 crore but margin may decline 40 basis points to 13 percent in same period. VSF margin may rise with some respite in pulp cost.
Analysts see improved performance of Epoxy and sustenance of steady performance in chemicals business in Q1FY16. Benefit of merger with Aditya Birla Chemicals will get added in Q3FY16.
Majority of consolidated numbers have already priced in through UltraTech Cement earnings. Grasim has 60.3 percent in UltraTech that contributes roughly 70 percent to topline & bottomline of consolidated Grasim numbers.
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