Grasim Q3 net dips 13.5% on costlier raw material

Grasim Industries today reported a 13.5 per cent dip in consolidated net profit at Rs 501.76 crore for the third quarter of the current fiscal on higher raw material and fuel costs.

The Aditya Birla Group flagship with interests in cement, viscose staple fibre (VSF), chemicals and textiles had reported Rs 580.25 crore in the corresponding quarter last fiscal, it said in a statement.

Total income, however, increased to Rs 5,461.21 crore in the October-December quarter of the current fiscal as against Rs 4,845.51 crore in the same quarter last fiscal.

Viscose Staple Fibre, Cement, Chemicals and textiles businesses contributed Rs 1,311.19 crore, Rs 3,948.96 crore, Rs 147.53 crore and Rs 103.16 crore respectively to the third quarter top-line.

However, higher raw material and power & fuel costs ate out the bottom-line of the company resulting the dip in net profit. Driven by higher cost of coal and others, Grasim's raw material consumption during the quarter went up to Rs 1,220.54 crore from Rs 888.11 crore in the same quarter last fiscal.

Expenditure on power and fuel also jacked up to Rs 1,138 crore from Rs 912 crore.

Including freight expenses, total expenditure of the firm during the quarter increased to Rs 4,563.5 crore from Rs 3,661 crore a year-ago.