India’s Grasim Industries Ltd said Saturday its fiscal first-quarter consolidated net profit rose 47 per cent as its cement and viscose staple fiber business grew. The company’s net profit in the April-June quarter rose to INR4.35 billion from INR2.96 billion.
Cement sales volumes during the quarter grew by five per cent to 3.5Mt. "Realizations surged 36 per cent at INR2731 per ton, leading to a significant improvement in operating margins," a company statement said.
Grasim said it plans to invest INR36.41 billion in the cement business. Of this INR24.75 will be used for increasing the capacity to 8Mta and setting up thermal power plants. Capacity will be expanded by setting up a 4Mta cement plant at Kotputli in Rajasthan and increasing the capacity of the Shambhupura plant, also in Rajasthan, to 4Mta, the statement said. The remaining INR11.66 billion will be invested over the next two years on modernizing and setting up a grinding unit.
Grasim also said it will invest INR27 billion in its subsidiary, Ultratech Cement Ltd over the next three years. "Of this INR12.75 billion would be on capacity expansion at the Tadpatri plant by 4Mta and remaining will be used for setting up a new power plant and modernisation," the statement said.
"The company is poised for a significant growth in the years ahead. This optimism emanates from capacity expansion plans, its leadership status in its key business segments, cost optimization measures, strategic planning and prudent financial management," the statement said.