Grasim, ACC quarterly profits take a plunge

Grasim, ACC quarterly profits take a plunge
Published: 24 October 2008

Against the backdrop of high input costs and general economic slowdown, Grasim, the Aditya Birla Group’s flagship company, saw a 21% fall in its consolidated net profit for the quarter ended September 30, 2008, at Rs 486 crore against Rs 620 crore registered in the corresponding quarter last year. However, consolidated sales for the period rose 13% to Rs 4,489 crore as against Rs 3,964 crore a year ago.

The company, whose business interests lie in viscose staple fibre (VSF), chemical plants and cement, posted satisfactory results for half year ended September 30, 2008. Net profit for the period dipped marginally by 10% at Rs 1,158 crore as against Rs 1,290 crore in the same period in the previous year. Sales surged 11% at Rs 8,944 crore against Rs 8,026 crore.

D D Rathi, wholetime director and CFO, Grasim Industries, while announcing the financial performance of the company, said, “VSF and cement are the key businesses of the company. Given the global economic slowdown, sales volume of VSF was impacted.” He added that in the cement business, sales volumes registered an increase of 3%.