Grasim makes Rs 485 crore profit in June quarter

Aditya Birla Group firm Grasim Industries reported a marginally-down consolidated net profit of Rs 485 crore for the June quarter and a seven per cent growth in revenue at Rs 8,599 crore.

In the same quarter of 2014-15, the company posted a net profit of Rs 487 crore and a revenue of Rs 8,045 crore..

The company’s earnings before interest, tax, depreciation and amortization (Ebitda) was up by 3% at Rs 1,531 crore.

Grasim’s managing director KK Maheshwari said company's VSF business’ profits improved due to ramping up of its Vilayat capacity and improved VSF prices after a long decline. Grasim holds stake in India’s largest cement manufacturer Ultratech – which reported revenueat Rs 6,432 crore, up 7% as compared to Rs 6,032 crore in the corresponding quarter last year. The EBITDA of the cement company was Rs 1,282 crore (Rs 1,296 crore) and net profit was Rs 591 crore (Rs 627 crore). Maheshwari said with the Indian government planning to spend more money in infrastructure sector, it will improve demand for cement in the next few quarters.

In the chemical business, Grasim’s revenue soared by 17% as Epoxy volume almost doubled with ramping up of plant utilisation. The results do not include EBITDA of Rs 78 crore and PAT of Rs 20 crore reported by ABCIL for the current quarter.