Home / Knowledge / News / Textiles / VSF maker Grasim reports improved performance for FY12
VSF maker Grasim reports improved performance for FY12
07
May '12
Grasim Industries Limited, an Aditya Birla Group company, announced its results for the full year and 4th quarter ended 31st March 2012.

The company has reported higher revenue and net profit for the year. Revenue was higher by 17 per cent at Rs. 25,244 crore (Rs. 21,550 crore). PBIDT for the year was at Rs. 6,320 crore as against Rs. 5,395 crore in the previous year, reflecting a growth of 17 per cent.

Net profit increased by 16 per cent from Rs. 2,279 crore to Rs. 2,647 crore.

During the 4th quarter, revenue rose by 12 per cent at Rs. 7,289 crore (Rs.6,482 crore). PBIDT grew by 6 per cent from Rs. 1,780 crore to Rs. 1,883 crore.

Net profit for the quarter improved from Rs. 669 crore in the last quarter to Rs. 809 crore in this quarter. However, the same was lower as compared to the corresponding quarter when prices of VSF and other competing fibres were at their peak.

Dividend
The Board of Directors of Grasim has recommended a dividend of Rs. 22.50 per share (Rs. 20 per share in FY 2010-11). The total outflow on account of the dividend would be Rs. 218 crore (Including corporate tax on dividend).

Viscose Staple Fibre (VSF)
Sales volumes for the quarter at 94,904 tonnes, increased by 11 per cent led by higher exports. This was despite slowdown in the Eurozone, which impacted textile demand and addition of new capacities in China. Average realisations for the 4th quarter were lower by 16 per cent on Y-o-Y basis as prices were at their peak, in line with competing fibres' prices in the corresponding quarter of last year. Lower realisations coupled with increase in the prices of caustic soda and coal, resulted in lower profitability. The impact of rising caustic prices was offset by higher profitability of Chemical business.

The Chemical business delivered another quarter of good performance. Caustic prices remained firm as industry capacity utilisation was affected due to the low chlorine offtake. Sales volumes for the quarter rose by 7 per cent to 72,839 tonnes.

The stand-alone performance for the year was maintained despite the VSF business constrained performance owing to market condition.

The VSF (120,000 TPA) and Chemical (182,500 TPA) greenfield projects at Vilayat, Gujarat and brownfield expansion (36,500 TPA) of VSF at Harihar, Karnataka are progressing in line with the schedule. The Vilayat project is slated for commissioning towards the end of the current financial year. The Harihar project is expected to be commissioned in two phases during the current year.

Outlook
In VSF, stability in Euro Zone and macro-economic policies will influence demand. In Cement, despite 8 per cent projected growth in demand, the surplus scenario is likely to continue for three years. In the present context, rising energy costs pose a challenge to both the businesses.

Capacity expansions under implementation in both VSF and Cement will provide additional volumes leading to rapid growth and further consolidate its leadership.

Grasim Industries Limited

Must ReadView All

Courtesy: Ikea

Textiles | On 26th Apr 2017

Ikea’s product sourcing from India to double by 2020

Ikea, the global home furnishing giant from Sweden, plans to double...

Textiles | On 26th Apr 2017

CITA to add insufficiently available fabric in CAFTA-DR

The Committee for the Implementation of Textile Agreements (CITA) has ...

Courtesy: SKF

Textiles | On 26th Apr 2017

SKF brings predictive maintenance for machinery to India

SKF India, a global supplier of bearings, seals, mechatronics,...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search