Grasim Industries Q1 Profit Jumps 64% To Rs 830 Crore

New Delhi: Grasim Industries on Thursday reported a 64 per cent jump in consolidated net profit at Rs 830.22 crore for the quarter ended June 30.

The firm, a part of the Aditya Birla Group, had clocked a net profit of Rs 507.60 crore for the corresponding period a year ago, it said in a filing to the BSE.

Total consolidated income of the company also rose 9 per cent to Rs 9,088.55 crore in the quarter under review as against Rs 8,365.70 crore in the year-ago period.

Expenses were higher at Rs 7,500.41 crore as against Rs 7,272,84 crore a year ago.

The firm on Thursday announced that its board approved merger of Aditya Birla Nuvo (ABNL) and Aditya Birla Financial Services (ABFS), a wholly-owned subsidiary of ABNL).

"The scheme provides for merger of ABNL with the company and subsequent demerger of it's financial services business into ABFS and consequent listing of equity shares of ABFS," it added.

The merger is subject to requisite approvals inter-alia from shareholders, creditors, high courts and regulatory authorities, it said.

Its board also approved sub-division of shares of the firm from one equity share of face value Rs 10 each fully paid-up to five equity shares of face value Rs 2 each fully paid-up, subject to requisite approvals.

On outlook, Grasim Industries said in viscose stable (VSF) business environment has improved globally. Capacity additions have slowed down, which have resulted in higher operating rates in the industry.

The company will continue to focus on expanding the VSF market in India by partnering with the textile value chain and better customer connect through Liva brand, it added. 

Enriching product mix through larger share of specialty fibre in the portfolio will be yet another focus area, the firm said.

The demand for caustic in India is expected to grow with the rising demand from the end user industry. To meet this, caustic capacity is being raised by 208,000 TPA through brown field expansion at Vilayat (Gujarat) and de-bottlenecking at other plants, it said.