Grasim Industries reports 13% increase in revenue in 3Q15
Published by Katherine Guenioui,
Editor
World Cement,
Grasim Industries Limited, part of Aditya Birla Group and owner of UltraTech Cement, has announced its results for the December quarter (3Q15). With the acquisition of the Jaiprakash Cement units in Gujarat, the company has upped its cement capacity by 4.8 million tpa. Capacity has also increased in the company’s Viscose Staple Fibre (VSF) and chemicals businesses.
In all, Grasim reported net revenue of Rs.8036 crore in the quarter, up 13% y/y. PBIDT increased 10% to Rs.1260 crore and profit after tax was flat at Rs.334 crore. VSF production rose 15%, but pricing pressure resulted in lower PBIDT. Production of caustic soda increased by 40% and the new epoxy plant achieved 57% capacity utilisation. PBIDT was up by 16% at Rs.67 crore.
Cement production in 3Q15 was up 9% at 11.31 million t, including volumes from the newly acquired Gujarat units. This compares favourably with industry growth of 3 – 4%. Net revenue increased to Rs.5947 crore, PBIDT was higher at Rs.1058 crore and profit after tax reached Rs.400 crore.
Acquisition of cement units of Jaiprakash Associates
UltraTech Cement Limited has entered into a definitive agreement to acquire two units of Jaiprakash Associates Limited in Satna cluster having a capacity of 4.9 million tpy with 180 MW power plants. This will propel the Cement Business capacity in India from ~60 million tpy to ~ 65 million tpy. On completion of the brownfield expansion under implementation, domestic capacity will increase to ~71 million tpy in 2016. The units proposed to be acquired have surplus clinker capacity to augment cement capacity by a further 1.8 – 2.5 million tpy with investments in grinding units.
In exchange of the above business, UltraTech shall issue non-convertible debentures worth Rs.4538 crore and non-convertible preference shares worth Rs.10 lakh and shall take over Rs.626.5 crore of debt and negative working capital of Rs.160.5 crore.
The transaction is subject to the approval of shareholders and creditors, sanction of the Scheme of Arrangement by the High Courts, approval of the Competition Commission of India and other statutory approvals.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/02022015/grasim-industries-reports-13-percent-increase-in-revenue-in-3q15-248/
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