Grasim Industries Limited, an Aditya Birla Group Company, announced a rise of 13 per cent in its net revenue at Rs. 8,036 crore (consolidated) in the third quarter ended December 31, 2014 against Rs. 7,117 crore in the year-ago period. The profit before depreciation increased by 10 per cent to Rs 1,260 crore from Rs. 1,143 crore. The net profit was maintained at Rs. 334 crore against Rs. 332 crore in the same period in the previous year even after providing for additional interest and depreciation cost on the acquired cement units, the company said. The implementation of growth plans has led to a significant capacity increase in both the VSF and cement businesses.
With acquisition of Jaypee cement units in Gujarat, the cement capacity increased by 4.8 million tonnes to 65 million tonnes. The company said in a release that on completion of brownfield expansion under implementation, cement capacity will increase further to 71 million tonnes in 2016.
Production of viscose staple fibre at 105,834 tons has gone up by 15 per cent with the commissioning of plant at Vilayat. Steep fall in the price of cotton and PSF led to further pricing pressure on VSF. This has resulted in lower PBIDT, partially offset by higher share of value added products and lower pulp cost
The VSF sector will continue to face head winds for some more time due to the over capacity and sharp reduction in price of cotton and polyester. With additional capacity coming on stream in both the businesses, the company will further consolidate its leadership position, said a press release.
