Grasim Industries has posted a 5 per cent rise in revenue to Rs. 29,324 crore for the year ended March 31, 2014 from Rs. 27,909 crore in the previous financial year. The gross profit stood at Rs. 3,586 crore against Rs. 5,171 crore. The net profit was sharply lower at Rs. 2,072 crore against Rs. 2,704 crore. The company stated in a release that overcapacity in the VSF business globally and cement business in India has impacted the realisations and profitability. Despite the prevailing economic slowdown volumes have been augmented in all the business namely VSF, chemicals and cement, driven by the commissioning of new capacities, the release said.
The directors have recommended a dividend of Rs. 21 per share of Rs. 10 face value.
During the fourth quarter ended March 31, 2014, revenue grew by 10 per cent to Rs.8,419 crore from Rs.7,674 crore.
The net profit, after minority interest (before exceptional item), was up by 11 per cent to Rs. 679 crore from Rs.613 crore and sequentially up by 105 per cent from Rs.332 crore. Despite the prevailing economic slowdown during the year, volumes have been augmented in all the businesses namely VSF, chemical and cement, driven by the commissioning of new capacities.
VSF volume continued its upward trend. For the quarter, volumes crossed 99,000 tonnes, recording a growth of 4 per cent year-on-year. The chemical business reported a growth of 30 per cent in sales volumes during the quarter led by an additional volume from the Vilayat plant. In cement, the demand growth for the industry should gradually recover to 8 per cent on improvement in the economic environment.
