Grasim Industries' standalone profit is expected to fall 12 percent year-on-year to Rs 114 crore, according to the average of estimates of analysts polled by CNBC-TV18. Lower realisation in viscose staple fibre (VSF) may impact profitability.
Total income is seen rising 2 percent to Rs 1,577 crore for the quarter ended March 2015 from Rs 1,548.85 crore in the same quarter last year.
Analysts expect a drop in realisation of 4-5 percent Y-o-Y and 3 percent Q-o-Q for VSF as global VSF prices as well as prices of competitive fibres (PSF) softened during the quarter.
They expect VSF volumes to increase by around 15 percent sequentially due to newly commisioned VSF lines in Q4 and 10 percent Y-o-Y.
Operating profit may inch up 1 percent year-on-year to Rs 160 crore and margin may remaind flat at 10.2 percent compared to same quarter last year.
Consolidated earnings already discounted in the stock price as most of the income came from UltraTech Cement. Grasim has 60.3 percent stake in UltraTech.
UltraTech’s contributes around 70 percent to the topline and bottomline of consolidated Grasim numbers.
Key issues to watch out for are outlook on VSF business & strategy to utilise upcoming capacities globally and cement business outlook on demand & pricing.
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