Viscose, chemicals drive Grasim profit to ₹1,145 cr.

Firm declares dividend of ₹7 per share

Published - May 24, 2019 10:39 pm IST - Mumbai

Grasim Industries reported a 59% jump in its consolidated net profit for the fourth quarter to ₹1,145 crore on better performance of the viscose and chemicals businesses.

The growth in profit was reported on a 21% increase in revenue to ₹20,965.25 crore driven by higher sales and better price realisation.

Net revenue from the viscose business in the quarter rose 18% to ₹2,625 crore and EBITDA jumped 3% to ₹413 crore. For the chemicals business, net revenue rose 17% to ₹1,688 crore while EBITDA rose 5% to ₹434 crore.

For FY19, the company’s EBITDA increased 18% to ₹12,820 crore on a 31% jump in revenue to ₹72,971 crore.

“The total capex (capital expenditure) plan of ₹6,454 crore (at a standalone level) is under execution for raising capacities in both the VSF and chemical businesses, apart from ongoing modernisation capex at various plants, said the company in a statement, adding that this capital expenditure would be incurred over FY20-FY22 and funded predominantly from internal accruals.

The cash profit generated in FY19 is more than ₹3,400 crore at a standalone level.

The board has recommended a dividend of ₹7 per share as against ₹6.20 per share in the previous year.

In a separate filing, the company said its chief financial officer Sushil Agarwal had resigned and the company has appointed Ashish Adukia in his place. Grasim shares rose 2.46% on the BSE to ₹908.30 in a firm Mumbai market on Friday.

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