Grasim reports excellent performance for Q2 FY 06-07
19 Oct '06
3 min read
Grasim, the flagship company of the Aditya Birla Group, has posted excellent results for the quarter ended 30 September 2006 on the back of superior performance from both its key businesses, viz., viscose staple fibre (VSF).
Turnover, gross profit and net profit have recorded a significant growth. VSF businesses continued to be the major business drivers.
Consolidated revenues at Rs.3,184 crore (Rs.2,344 crore) reflected an increase of 36 per cent. Net profit soared by 109 per cent at Rs.418 crore (Rs.200 crore), in spite of a substantially higher provision for tax expense, which was up by 201 per cent at Rs.207 crore (Rs.69 crore).
The three major factors that spurred performance are:
Growth in volumes.
Higher realisations.
Savings in operating costs resulting from ongoing. modernisation efforts, upgradation of plants and energy optimization.
On a stand-alone basis too, the results have been very encouraging. Revenues rose handsomely by 22 per cent from Rs.1,649 crore to Rs.2,011 crore.
Net profit recorded an impressive growth of 80 per cent at Rs.338 crore (Rs.188 crore). Higher capacity utilisation and optimisation of efficiencies have contributed to this peak performance.
Viscose Staple Fibre (VSF) business
The VSF business' performance has been commendable. Production was up by 30 per cent at 65,083 mt. During the corresponding quarter, the company had consciously scaled down its production,with a view to liquidating inventory.