Grasim net down 4% on higher taxes

Higher taxes and increase in minority interest in the cement business have led Aditya Birla Group company Grasim Industries to post a 4.5 per cent decline in net profit at Rs 718 crore for the quarter ended 30 June.

Net revenue for the period was up 16 per cent at Rs 6,832 crore compared to Rs 5,907 crore in the corresponding period last year.

Viscose staple fibre sales volumes rose by 40 per cent at 77,013 tonnes.

Decline in realisations, coupled with rise in raw material costs of caustic soda and coal prices, also impacted the profitability of the company.

The acquisition of assets of Terrace Bay, a pulp mill in Ontario, Canada, in a joint venture with a group company Thai Rayon was completed this week. Production will begin in October.

This would help in meeting the increasing pulp requirement after the mill is converted into a dissolving grade pulp mill.