Home / Knowledge / News / Textiles / Grasim net profit skids 25.33% in Q4FY15
Grasim net profit skids 25.33% in Q4FY15
04
May '15
Net profit for the fourth fiscal quarter ended March 31, 2015 at Indian viscose staple fibre (VSF) producer and part of the Kumar Mangalam Birla led, Grasim Ltd skid 25.33 per cent year over year.

According to a Grasim press release, its net profit slid 25.33 per cent to Rs 507 crore in the fourth quarter of fiscal 2015 from Rs 679 crore in the same quarter of fiscal 2014.

However on a like to like basis and excluding non recurring tax charges and exceptional items, net profit for the reporting quarter stood at Rs 555 crore as against Rs 614 crore in the prior fiscal fourth quarter.

However, fourth quarter of fiscal 2015 sales rose 4.77 per cent to Rs 8,418 crore from Rs 8,820 crore in the quarter ended March 31, 2014.

Grasim added that PBIDT for the quarter under review was maintained at Rs 1,658 crore compared to Rs 1,655 crore, amidst difficult market conditions and gradual ramping up of new capacities.

But finance and depreciation costs have gone up by 69 per cent and 7 per cent respectively, on commissioning and acquisition of new capacities, the full benefit of which, it said, will accrue going forward.

It also informed that due to the increase in the rate of surcharge, an additional provision of Rs 58 crore was made on the accumulated brought forward deferred tax liability.

The tax charge for the corresponding quarter last year was lower as provisions made in earlier years amounting to Rs 103 crore no longer required, were written back.

The Board of Directors of Grasim has recommended a dividend of Rs 18 per share and the total outflow on account of the dividend would be Rs 169 crore, which is inclusive of corporate tax on dividend.

With the commissioning of the greenfield plant at Vilayat, VSF production stood at 111,341 tons, up by 24 per cent, while sales volume was 118,486 tons.

The global weakening of competing fibres like polyester and cotton and the current overcapacity scenario, especially in China, has exerted pressure on VSF realisations, Grasim noted by saying.

Due to the water shortage caused by deficient rains last year, operations of the VSF plant at Nagda have been suspended from last week and operations will resume with the onset of monsoon.

The chemical business reported a growth of 21 per cent year on year growth in sales volume during the quarter with additional volumes from the Vilayat plant, while ECU realisations were lower in line with global prices.

Grasim expects the outlook for the VSF sector to remain challenging in the near term, given the over-capacity in the sector and the sharp reduction in prices of polyester and cotton.

However it also anticipates that the new plant at Vilayat with a higher share of speciality products will improve the product mix and profitability and its focus on cost optimisation will continue relentlessly. (AR)

Fibre2fashion News Desk - India


Must ReadView All

ITC, ICS tie up to help Moroccan textile value chain

Textiles | On 21st Apr 2018

ITC, ICS tie up to help Moroccan textile value chain

The International Trade Centre (ITC) has partnered with ICS, which...

Bangladesh garment manufacturers call for fair pricing

Apparel/Garments | On 21st Apr 2018

Bangladesh garment manufacturers call for fair pricing

Bangladesh garment manufacturers want a ‘commensurate adjustment’ by...

Pak ministry proposes extension to PM package for 2018-19

Textiles | On 21st Apr 2018

Pak ministry proposes extension to PM package for 2018-19

Pakistani textile ministry has reportedly proposed extending the...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

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

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Top executives
Textile & apparel bodies

The decision to reduce GST on MMF yarn to 12% is transformational

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Larry L Kinn
Suominen Corporation

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

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

Leave your Comments


April 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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