Grasim Inds gains amid volatility after Q1 results

Grasim Industries rose 0.76% to Rs 3,780 at 14:04 IST on BSE after consolidated net profit declined 0.4% to Rs 485 crore on 7% growth in net revenue to Rs 8599 crore in Q1 June 2015 over Q1 June 2014.

The Q1 result was announced during market hours today, 7 August 2015.

Meanwhile, the S&P BSE Sensex was down 60.71 points or 0.21% at 28,237.42.

On BSE, so far 15,000 shares were traded in the counter as against average daily volume of 6,391 shares in the past one quarter.

The stock was volatile. The stock rose as much as 2.42% at the day's high of Rs 3,842.35 so far during the day. The stock fell as much as 1.21% at the day's low of Rs 3,705.75 so far during the day. The stock had hit a 52-week high of Rs 4,023.60 on 3 March 2015. The stock had hit a 52-week low of Rs 3222.60 on 16 October 2014.

The stock had outperformed the market over the past one month till 6 August 2015, surging 5.62% compared with Sensex's 0.32% rise. The scrip had also outperformed the market in past one quarter, jumping 7.75% as against Sensex's 5.92% rise.

The large-cap company has equity capital of Rs 91.85 crore. Face value per share is Rs 10.

Grasim Industries' earnings before interest, taxation, depreciation and amortization (EBITDA) rose 3% to Rs 1531 crore in Q1 June 2015 over Q1 June 2014.

With regard to the future business outlook, Grasim Industries said that the company is well poised to reap the benefits of hefty investments made in its businesses during last five years. With regard to the future business outlook for its VSF business, Grasim said that VSF prices are likely to be influenced by developments in the industry in China amidst increase in input prices and resumption of operations at some of the shut capacities. The company's new VSF plant at Vilayat will improve the product mix and realisations of the VSF business, Grasim said. The recently launched brand 'Liva' has met with good response from the value chain and consumers, Grasim said.

In the chemicals business, the scale of operations will rise significantly post the merger of ABCIL with the company, Grasim Industries said in a statement.

With regard to the outlook for the cement business, Grasim said that cement demand is expected to be higher due to the government's focus on infrastructure development, housing sector, smart cities and the softening of interest rates. The company is well positioned across the country to cater to an expected increase in cement demand, Grasim added.

Grasim Industries' two main businesses are Viscose Staple Fibre (VSF) and cement.

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