Grasim Industries lost 0.23% to Rs 3211.05 at 10:35 IST on BSE after consolidated net profit declined 20.14% to Rs 487.13 crore on 15.93% growth in total income to Rs 8314.07 crore in Q1 June 2014 over Q1 June 2013.
The Q1 result was announced on Saturday, 2 August 2014.
Meanwhile, the S&P BSE Sensex was up 87.64 points or 0.34% at 25,568.48.
On BSE, so far 4,950 shares were traded in the counter as against average daily volume of 12,379 shares in the past one quarter.
The stock was volatile. The stock lost as much as 1.4% at the day's low of Rs 3,173.25 so far during the day. The stock rose as much as 0.45% at the day's high of Rs 3,233.15 so far during the day.
The merger of the Gujarat units (capacity 4.8 mtpa) of Jaypee Cement Corporation was completed during the quarter. Post this acquisition, the consolidated cement capacity of the company is 61.8 mtpa, Grasim Industries said.
During the quarter, Grasim Industries commissioned a 25 MW thermal power plant at Malkhed, Karnataka and a 6.5 MW waste heat recovery system (WHRS) at Awarpur, Maharashtra. With this the total power capacity of UltraTech (including WHRS) stands at 709 MW.
With regard to the company's future business outlook, Grasim Industries said that in the VSF sector, margins are likely to remain under pressure in the near term due to the overcapacity in China. Going forward, the slowdown of new capacity additions in China should lead to an improvement in industry utilization which augurs well for the company. The focus on cost optimization will continue unrelentingly, Grasim Industries said in a statement.
In cement, with the new government in place, the infrastructure sector has got a renewed focus as announced in the recent budget, Grasim Industries said. The industry demand is slated to grow at 7-8%, with the expected double digit growth in the second half of the current year, the company said in a statement.
With additional capacity coming on stream in both the businesses, the company will further consolidate its leadership position and is well-poised to benefit from the business environment turning positive, particularly for the construction industry, Grasim Industries said in a statement.
Grasim Industries, a flagship company of the Aditya Birla Group, started as a textile manufacturer in 1948. Today, its core businesses are VSF and cement, contributing over 90% of its revenues and operating profits. It is also present in chemicals which are essentially a backward integration of VSF.
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