Business

Grasim Industries Net Revenue Up 13% In Q3 2014

Grasim Industries' consolidated net profit rose 0.6% to Rs 334 crore in Q3 2014. The company reported a 13% growth in net revenue to Rs 8036 crore in Q3 2014 over Q3 2013. Grasim Industries' profit before interest, depreciation, and taxation (PBIDT) rose 10% to Rs 1260 crore during the period.

Grasim Industries said that the implementation of growth plans has led to a significant capacity increase in both the VSF and cement businesses. At the Greenfield VSF project at Vilayat, 99K TPA capacity has been commissioned during the year.

Grasim Industries said that it has maintained its profit after tax (PAT) in Q3 December 2014 even after providing for additional interest and depreciation cost on the acquired cement units. The company is on track to ramp up the operations and achieve targeted efficiencies at these units as anticipated, to deliver planned profitability, Grasim Industries said in a statement.

With regard to the future business outlook Grasim Industries said that the VSF sector will continue to face head winds for some more time due to the overcapacity and sharp reduction in price of cotton and polyester. The slowdown in new capacity additions in China should lead to an improvement in industry utilisation which augurs well for the company, Grasim said. The focus on cost optimisation will continue relentlessly, it added. The new plant at Vilayat with higher share of speciality product should help in facing the challenge, Grasim Industries said in a statement.