Grasim announces positive performance for Q3 FY2009

1st January, 2010

31 January 2009

Grasim announces positive performance for Q3 FY2009

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Consolidated financial performance

Grasim, an Aditya Birla Group Company, today announced its results for the third quarter ended 31 December, 2008. Its consolidated revenues were higher by 6 per cent at Rs. 4,632 crore (Rs. 4,350 crore). Net profit was lower at Rs. 460 crore (Rs. 721 crore) due to the weak performance by its viscose staple fibre (VSF) business and higher input and energy costs. The performance is to be viewed in the backdrop of the unprecedented global economic downturn which has adversely impacted company’s key businesses.

During the nine months ended 31 December, 2008, Grasim’s consolidated revenues rose by 10 per cent at Rs. 13,578 crore (Rs. 12,376 crore). Net profit for the period was Rs. 1,618 crore (Rs. 2,011 crore). The company earned a cash profit of Rs. 2,824 crore, vis-à-vis Rs. 2,948 crore in the corresponding period. Given the current economic environment and its impact on company’s key businesses, the overall performance is considered satisfactory.

Stand-alone financial performance

On a stand-alone basis, Grasim’s revenues for the quarter stood at Rs. 2,690 crore (Rs. 2,615 crore). Interest cost rose by 90 per cent as a result of commissioning of new projects and increased borrowings. Depreciation too was higher by 38 per cent due to commissioning of new projects. These, coupled with the constrained VSF business performance and general slowdown in economy, impacted the net profit which stood at Rs. 330 crore (Rs. 554 crore). For the nine-months period, the company earned a net profit of Rs. 1,263 crore (Rs. 1,565 crore) and cash profit of Rs. 1,744 crore (Rs. 1,899 crore).

Highlights of Grasim’s operations