19 May 2009
Grasim posts impressive results for Q4 FY 2009
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| Rs. crore | |
|---|---|
| Consolidated net revenues | 5,020 |
| Consolidated net profit | 569 |
Consolidated financial performance
| Rs. crore | ||||
|---|---|---|---|---|
| Q4 FY09 | Q4 FY08 | FY09 | FY08 | |
| Net revenue | 5,020 | 4, 765 | 18,603 | 17,141 |
| Profit before taxes* | 1,031 | 1,072 | 3,607 | 4,530 |
| Profit after taxes* | 711 | 710 | 2,631 | 3,066 |
| Minority share | 142 | 111 | 444 | 457 |
| Net profit | 569 | 599 | 2,187 | 2,609 |
| EPS (Rs.)* | 62 | 65 | 238 | 285 |
| Cash profit (before minority share) | 1,114 | 781 | 3,938 | 3,729 |
| * For proper comparison, all profit numbers and EPS are given before exceptional / extraordinary gains | ||||
Grasim, an Aditya Birla Group company, today announced its results for the fourth quarter ended 31 March 2009.
Its consolidated revenues for the quarter rose by 5 per cent to Rs.5,020 crore (Rs.4,765 crore). Cash profit for the quarter at Rs.1,114 crore (Rs.781 crore), was substantially higher by 43 per cent, due to the impressive performance of the cement business and the benefit of lower current tax. Net profit was however lower by 5 per cent at Rs.569 crore (Rs.599 crore), given the higher interest cost and substantially higher depreciation on account of commissioning of several new projects, the full benefit of which is expected to accrue only in the current year. Profit was also depressed due to the impact of economic slowdown.
Grasim’s consolidated net revenues for the year grew by 9 per cent, at Rs.18,603 crore (Rs.17,141 crore). Cash profit for the year at Rs.3,938 crore (Rs.3,729 crore) was higher by 6 per cent, consequent to lower current tax. Net profit at Rs.2,187 crore (Rs.2,609 crore) was lower by 16 per cent due to higher interest cost and substantially higher depreciation, as various new projects were commissioned. Profitability was also impacted because of the increased input costs and economic slowdown.
Viewed in the backdrop of the current economic environment and its impact on the company’s VSF business (one of the company’s key businesses) and sponge iron business, the overall performance has been satisfactory.
Stand-alone financial performance
| Rs. crore | ||||
|---|---|---|---|---|
| Q4 FY09 | Q4 FY08 | FY09 | FY08 | |
| Net revenue | 2,932 | 2,764 | 10,940 | 10,325 |
| Profit before taxes* | 590 | 660 | 2,248 | 2,964 |
| Net profit* | 385 | 441 | 1,648 | 2,002 |
| EPS (Rs.)* | 42 | 48 | 180 | 218 |
| Cash profit* | 619 | 466 | 2,362 | 2,365 |
| * For proper comparison, all profit numbers and EPS are given before exceptional / extraordinary gains | ||||
Grasim’s stand-alone revenues for the quarter stood at Rs.2,932 crore (Rs.2,764 crore). Cash profit for the quarter at Rs.619 crore (Rs.466 crore) was substantially higher by 33 per cent due to the impressive performance of the cement business and benefit of lower current tax. Net profit was however lower by 13 per cent at Rs.385 crore (Rs.441 crore) due to higher interest cost and substantially higher depreciation on account of commissioning of several new projects.
Grasim’s stand-alone revenues for the quarter stood at Rs.2,932 crore (Rs.2,764 crore). Cash profit for the quarter at Rs.619 crore (Rs.466 crore) was substantially higher by 33 per cent due to the impressive performance of the cement business and benefit of lower current tax. Net profit was however lower by 13 per cent at Rs.385 crore (Rs.441 crore) due to higher interest cost and substantially higher depreciation on account of commissioning of several new projects.
Dividend
The board of directors of Grasim has recommended a dividend of Rs.30 per share, at par with the dividend paid last year. The total outflow on account of dividend, including corporate tax on dividend, would be Rs.316 crore.
Highlights of Grasim’s operations
| Production | Q4 FY09 | Q4 FY08 | Per cent change | FY 2009 | FY 2008 | Per cent change | |
|---|---|---|---|---|---|---|---|
| Cement | M.T. | 4.68 | 4.20 | 11 | 16.32 | 15.36 | 6 |
| White cement | Mn M.T. | 132,060 | 120,433 | 10 | 441,118 | 407,882 | 8 |
| Viscose staple fibre | M.T. | 59,913 | 70,828 | -15 | 232,745 | 279,901 | -17 |
| Caustic soda | M.T. | 52,830 |