Grasim, an Aditya Birla Group Company, has reported good results for the quarter ended 30th June, 2007. VSF and Cement businesses which put in a commendable performance, have been the growth enablers.
Revenues grew by 26% at Rs.4,063 crores (Rs.3,213 crores). Net Profit rose by 54% at Rs.670 crores (Rs.435 crores).
Viscose Staple Fibre (VSF) Business: The VSF business turned in a very good performance. Capacity utilisation was higher at 102% vis-à-vis 70% in the corresponding quarter. Production, as a result, was higher by 52% at 68,755 tons.
During the corresponding quarter, utilisation was lower due to the shut down of the Nagda plant on account of water shortage. Sales volumes rose by 34% at 69,396 tons, a historical high for any quarter.
Firm international prices backed by a strong global demand saw realisations rise. The increased dependence on captive pulp helped contain the impact of rising global pulp prices. The strengthening of the Rupee too had a positive impact on performance.
The Company's plans on capacity expansions and modernization are progressing per schedule. At Kharach (Gujarat), the Company would be adding a new capacity of 63,875 tons per annum.
This is expected to go on stream by the end of FY08. Plans are also afoot to increase the capacity of the Harihar (Karnataka) plant by around 31,000 tons per annum. Upon implementation of these plans, Company's VSF capacity will stand increased at 365,000 tons.
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