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Grasim reports excellent performance for Q4 FY2010

1st June, 2010

20 May 2010

 

Grasim reports excellent performance for Q4 FY2010

Click here to view the results

 

Consolidated net revenue Rs.5,475 crore  11%
Consolidated net profit as reported Rs.654 crore  15%
Like to Like Rs.763 crore  34%

 

Consolidated Financial Performance:

Grasim Industries Limited, an Aditya Birla Group Company, has reported improved performance during the fourth quarter of the year ended 31 March 2010, as well as the entire year. These results are given after considering the effect of the demerger of the cement business of the Company to its subsidiary, Samruddhi Cement Ltd. (SCL), w.e.f. 1 October 2009.

 

The results have been driven by improvement in both its cement and VSF businesses. While the cement business has performed well supported by higher output from the new capacities including its captive power plants, the VSF business has recovered from the extreme downturn of the last year leading to an impressive performance.

 

      Quarter ended     Year ended
  31.03.10 31.03.09 % change 31.03.10 31.03.09 % change
Net Revenue 5,475 4,942 115 20,195 18,496 9
PBIDT 1,500 1,327 13 6,322 4,779 32
Net Profit(Before Extraordinary Item) 654 569 15 2,760 2,187 26
Extraordinary Item - - - 336 - -
Net Profit(After Extraordinary Item) 654 569 15 3,096 2,187 42
Net Profit (Re-casted) * 763 569 34 3,339 2,187 53
EPS (Rs.)            
Before Extraordinary item 71 62 15 301 238 26
After Extraordinary item 71 62 15 337 238 42

 

* a) Due to demerger of the cement business w.e.f 1 October 2009, the net profit after minority share has reduced by Rs.108 crore in Q4 FY10 and by Rs.243 crore in FY10. This is on account of the differential tax treatment of Rs.27 crore in FY10 and minority share (35%) of SCL (being shares to be issued to Grasim’s shareholders in terms of the demerger scheme). Adding these, the total net profit was higher at Rs.763 crore for the quarter (growth of 34%) and at Rs.3,339 crore for the year (growth of 53%).

 

There is no change in the consolidated revenue and operating profit of the Company on account of the demerger of its cement business.

 

b) The extraordinary item of Rs.336 crore reflects the profit on the sale of Vikram Ispat, the sponge iron unit of the Company.

 

Dividend
The board of directors of Grasim has recommended a dividend of Rs.30 per share, which is the same as per last year. Additionally, the board of directors of SCL, has proposed a dividend of Rs.1.75 per share for six months’ working. Each Grasim shareholder will be receiving one equity share of Rs.5 in SCL for every one share held in Grasim on 28 May 2010, the record date fixed for this purpose, in terms of the demerger scheme.

 

Highlights of Grasim’s Consolidated operations:

 

    Q4 FY10 Q4 FY09 % change FY 2010 FY 2009 % change
Production -              
Cement (consolidated) Mn. M.T. 10.24 9.28 10% 37.02 32.18 15%
White cement M.T. 138,893 132,060 5% 514,291 441,118 17%
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