Aditya Birla group firm Grasim Industries Ltd on Saturday reported a 15.04 per cent decline in its consolidated net profit at Rs 610.01 crore for the quarter ended June 30, 2013.
The company had posted a consolidated net profit of Rs 718 crore during the same quarter last fiscal year, it said in a filing to the BSE.
Consolidated income from operations during the quarter ended June, 2013 stood at Rs 6,895.08 crore compared to Rs 6,795.48 crore during the same period last year.
Grasim Industries consolidated revenue from its viscose staple fibre (VSF) and wood pulp segments was Rs 1,367.61 crore this quarter as against Rs 1,202.83 crore in the same period of last fiscal year.
The company said consolidated revenue from its cement division was Rs 5,293.98 crore this quarter. It was Rs 5,362.20 crore in the first quarter of the previous year.
Grasim Industries consolidated revenue from chemicals division was Rs 224.27 crore this quarter as against Rs 239.33 crore of the same period of last fiscal year.
"Given the prevailing global economic conditions, coupled with the surplus capacity in China, the VSF industry continues to face a challenging environment in the immediate term," the company said.
Grasim Industries said demand in cement is expected to grow by 6 per cent in FY 2014 due to the slowdown in GDP growth rate. The company also said it has the potential to recover to over 8 per cent with the improvement in the economic environment.
"Capacity expansions in VSF and cement will provide additional volumes, driving growth and further consolidate the company's leadership. This will enable the company to move forward rapidly, with the recovery in the market," the company said.
"The company will continue to focus on cost reduction measures, improving asset productivity to maintain its position as the lowest cost producer and expanding specialty products portfolio for sustained shareholder value creation," it added.