Grasim has announced impressive results led by robust volume growth in all its businesses. For the current quarter, consolidated revenue rose by 13% at Rs.10 001 crore and EBITDA at Rs.2059 crore was higher by 24%. Net profit (before EI) grew by 40% to Rs.724 crore.
For the full year, consolidated revenue was higher by 12% to Rs.36 637 crore. Consolidated EBITDA was up by 24% at Rs.7025 crore and net profit increased to Rs.2387 crore compared to Rs.1753 crore last year.
The Board of Directors of Grasim has recommended a higher dividend of Rs.22.5 per share as against Rs.18 per share in the previous year. The total outflow on account of the dividend would be Rs.221 crore (inclusive of the corporate tax on dividend).
Cement subsidiary (UltraTech Cement)
The cement sector displayed signs of recovery with demand growth for the industry estimated at approximately 11.5% for the current quarter. UltraTech outpaced the industry with domestic volume growth of 15%. Revenue for the quarter was Rs.6920 crore vis-à-vis Rs.6,595 crore in Q4 last year. EBITDA was up by 3% at Rs.1478 crore helped by enhanced volumes and lower fuel prices. Net profit was Rs.723 crore compared to Rs.657 crore in the corresponding quarter.
In VSF, the capacity additions have slowed down globally. Further, cotton production is projected to be lower than the consumption in season 15-16 with the reduced acreage and unfavourable climate. As a result, the price volatility of VSF is expected to reduce.
The company will continue to focus on expanding VSF market in India by partnering with the textile value chain and better customer connect through brand Liva. Enhancing product mix through larger share of specialty fibre will be yet another focus area.
The caustic demand in India is expected to grow with increase demand from the end user industry. To meet the growing demand, caustic capacity is being raised by 100K TPA through debottlenecking at different units.
In cement, demand is expected to grow at 7% - 8% for the next year, driven by the Government's focus on infrastructure development, housing, smart cities etc. The company is well positioned across the country to cater the growth in demand.
Grasim is well poised to reap the benefits of the investment in capacity expansion and acquisitions with the expected upturn in the economy.
Read the article online at: https://www.worldcement.com/indian-subcontinent/09052016/grasim-announces-consolidated-financial-performance-64/