Grasim Industries' net profit rises over twofold to Rs 2,152 crore in December quarter

Aditya Birla Group firm Grasim Industries Ltd on Friday reported over a twofold jump in its consolidated net profit to Rs 2,152.33 crore for the third quarter ended December 31.

The company had posted a net profit of Rs 1,039.82 crore during the corresponding quarter of the previous fiscal, Grasim Industries said in a regulatory filing.

Its revenue from operations during October-December 2020 rose 12.72 per cent to Rs 20,986.35 crore, against Rs 18,616.76 crore in the year-ago period.

"Key businesses outperform pre-Covid-19 operational levels, leveraging the synergy of a conglomerate and the energy of focused businesses," said Grasim Industries in its earning statement.

The firm's total expenses were at Rs 18,278.75 crore in the third quarter of 2020-21, up 4.81 per cent as against Rs 1,7439.19 crore a year ago.

Revenue of Grasim Industries from viscose-pulp, viscose staple fibre (VSF) and filament yarn segments was down 2.20 per cent to Rs 2,145.14 crore, against Rs 2,193.55 crore.

"The VSF demand In India recovered to pre-Covid-19 levels leading to 28 per cent revenue growth sequentially.

"Consequently, the share of domestic sales in the sales mix grew from 82 per cent in the second quarter of 2020-21 to 91 per cent in the third quarter, and the share of value-added product in the overall sales mix improved to 22 per cent in Q3FY21 from 15 per cent in Q2FY21," it said.

Revenue from cement business UltraTech jumped 17.38 per cent to Rs 12,254.12 crore, compared with Rs 10,439.34 crore a year ago.

"UltraTech reported robust operating margins at 26 per cent. The company's strong quarterly performance is on the back of operational efficiencies and tight cost control," said Grasim Industries.

UltraTech's board approved Rs 5,477 crore towards the capacity expansion of 12.8 million tonnes per annum (MTPA) through a mix of greenfield (new) and brownfield (old) expansion.

"This is in addition to the 6.7 MTPA capacity addition exercise which is underway. Upon completion of both rounds of expansion, the capacity will expand to 136.25 MTPA," the company said.

However, revenue from the chemicals segment fell 5.95 per cent to Rs 1,280.96 crore as against Rs 1,362.08 crore in the third quarter of 2019-20.

"The domestic caustic soda business witnessed an upsurge in demand during the quarter, driven by higher usage from textile, alumina and paper industry, recording capacity utilisation levels of 89 per cent in Q3FY21, an improvement of 9 per cent on a sequential basis," it said.

Revenue from the financial services segment, Aditya Birla Capital, was up 17.27 per cent to Rs 5,015.15 crore, against Rs 4,276.35 crore a year ago.

"Aditya Birla Capital Ltd (ABCL), through its subsidiaries, continued its consistent performance with its diversified business model," it said.

This is the highest-ever consolidated quarterly profit reported by the company, with strong growth across businesses, the company added.

Revenue from other segments was down 22.24 per cent to Rs 436 crore, from Rs 560.77 crore a year ago.

Shares of Grasim Industries Ltd on Friday settled at Rs 1,242.35 on the BSE, up 0.59 per cent.