Grasim slips as unexpected floods hamper greenfield project

Grasim Industries rose 1% to Rs 2,676 at 14:50 IST on BSE after the company said work at greenfield viscose staple fibre project has been hampered due to unexpected floods in Gujarat in the last week of September 2013.

The company made the announcement during market hours today, 7 October 2013.

Meanwhile, the BSE Sensex was down 29.42 points, or 0.15%, to 19,886.53.

On BSE, 2,617 shares were traded in the counter compared with average volume of 6,964 shares in the past one quarter.

The stock hit a high of Rs 2,617 and a low of Rs 2,649 so far during the day. The stock hit a 52-week high of Rs 3,511 on 17 October 2012. The stock hit a 52-week low of Rs 2,121 on 4 September 2013.

The stock had outperformed the market over the past one month till 4 October 2013, rising 23.28% compared with the Sensex's 7.26% rise. The scrip had, however, underperformed the market in past one quarter, sliding 3.31% as against Sensex's 2.60% rise.

The large-cap company has an equity capital of Rs 91.81 crore. Face value per share is Rs 10.

Grasim Industries announced that due to unexpected floods at Vilayat in Gujarat in the last week of September 2013, the work at the company's greenfield viscose staple fibre project has been hampered, affecting the project commissioning schedule.

Further, the operations of the company's chemical plant was suspended due to floods affecting the plant/power supply. This, however, is not likely to have any significant impact on the company's profitability, considering the present contribution of this plant to overall profitability, the company said.

On a consolidated basis, Grasim Industries' net profit fell 15% to Rs 610.01 crore on 1.5% growth in net sales to Rs 6895.08 crore in Q1 June 2013 over Q1 June 2012.

Grasim Industries is a flagship company of Aditya Birla Group. Grasim's businesses comprise VSF, cement, chemicals and textiles. Its core businesses are VSF and cement.

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