Grasim Industries Friday reported a consolidated net profit of Rs 1,531.86 crore for March quarter and said it has earmarked Rs 6,454 crore as capital expenditure for next three years for various purposes, including brown field expansion of Vilayat plant in Gujarat. The company had posted a net profit of Rs 853.62 crore during January-March quarter of the previous fiscal, Grasim Industries said in a regulatory filing.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Revenue from operations during the quarter under review stood at Rs 20,965.25 crore. It was at Rs 17,363.24 crore in the corresponding period of the previous fiscal. The company's total expenses were at Rs 18,747.22 crore during the quarter.

The results are not comparable with that of the previous period as it includes financial results of Viscose Filament Yarn (VFY) business of Century Textiles and Industries, whose management rights was acquired by it, and cement plants acquired from Jaiprakash Associates and Jaypee Cement Corporation, the company said.

Besides, it also includes the financial result of erstwhile Aditya Birla Nuvo Ltd (ABNL) and its subsidiaries, it added.

"The total capex plan of Rs 6,454 crore is under execution for raising capacities in both the viscose staple fibre (VSF) and chemical businesses, besides modernisation of various plants. The company is also planning to set up a VSF plant at Vilayat in Gujarat. "The brownfield capacity expansion plan of 219 KTPA is progressing well and is scheduled to be commissioned in 2020-21," Grasim Industries Managing Director Dilip Gaur told reporters here.

This capital expenditure will be incurred over 2019-20 to 2021-22 and will be majorly funded from internal accruals, he added.

Gaur said the company currently has 30 per cent share in specialty business, which will be raised to 40-50 per cent of the portfolio in next 2-3 years.

Revenue from viscose segment was at Rs 2,624.81 crore in January-March. It was at Rs 2,231.38 crore a year ago.

Grasim Industries' revenue from cement business during the quarter stood at Rs 10,905.15 crore. It was at Rs 9,290.29 crore in the corresponding quarter last year. "The consolidated sales volume registered an increase of 16 per cent on YoY basis to 22 MTPA," it said.

Revenue from chemicals segment was at Rs 1,687.93 crore. It was at Rs 1,438.61 crore a year ago. The revenue from financial services was at Rs 4,702.50 crore during March quarter. It was at Rs 3,475.76 crore in the corresponding quarter last year.

For the financial year 2018-19, Grasim Industries' net profit stood at Rs 2,775.95 crore. It was at Rs 3,687.62 crore in 2017-18. Revenue from operations for 2018-19 fiscal stood at Rs 72,970.64 crore. It was at Rs 57,033.67 crore in 2017-18.

Meanwhile, in a separate filing the company informed that its Chief Financial Officer (CFO) Sushil Agarwal has resigned. It has appointed Ashish Adukia as the new CFO. His appointment would be effective from July 1, 2019.

On the outlook, it said its VSF business will continue to focus on expanding the market in India, while the chemical business would continue the brownfield expansion projects.

Shares of Grasim Industries Friday settled at Rs 908.30 on the BSE, up 2.46 per cent from its previous close.