20 May 2010
Grasim reports excellent performance for Q4 FY2010
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| Consolidated net revenue | Rs.5,475 crore |  11% |
| Consolidated net profit as reported | Rs.654 crore | 15% |
| Like to Like | Rs.763 crore | 34% |
Consolidated Financial Performance:
Grasim Industries Limited, an Aditya Birla Group Company, has reported improved performance during the fourth quarter of the year ended 31 March 2010, as well as the entire year. These results are given after considering the effect of the demerger of the cement business of the Company to its subsidiary, Samruddhi Cement Ltd. (SCL), w.e.f. 1 October 2009.
The results have been driven by improvement in both its cement and VSF businesses. While the cement business has performed well supported by higher output from the new capacities including its captive power plants, the VSF business has recovered from the extreme downturn of the last year leading to an impressive performance.
| Quarter ended | Year ended | |||||
|---|---|---|---|---|---|---|
| 31.03.10 | 31.03.09 | % change | 31.03.10 | 31.03.09 | % change | |
| Net Revenue | 5,475 | 4,942 | 115 | 20,195 | 18,496 | 9 |
| PBIDT | 1,500 | 1,327 | 13 | 6,322 | 4,779 | 32 |
| Net Profit(Before Extraordinary Item) | 654 | 569 | 15 | 2,760 | 2,187 | 26 |
| Extraordinary Item | – | – | – | 336 | – | – |
| Net Profit(After Extraordinary Item) | 654 | 569 | 15 | 3,096 | 2,187 | 42 |
| Net Profit (Re-casted) * | 763 | 569 | 34 | 3,339 | 2,187 | 53 |
| EPS (Rs.) | ||||||
| Before Extraordinary item | 71 | 62 | 15 | 301 | 238 | 26 |
| After Extraordinary item | 71 | 62 | 15 | 337 | 238 | 42 |
* a) Due to demerger of the cement business w.e.f 1 October 2009, the net profit after minority share has reduced by Rs.108 crore in Q4 FY10 and by Rs.243 crore in FY10. This is on account of the differential tax treatment of Rs.27 crore in FY10 and minority share (35%) of SCL (being shares to be issued to Grasim’s shareholders in terms of the demerger scheme). Adding these, the total net profit was higher at Rs.763 crore for the quarter (growth of 34%) and at Rs.3,339 crore for the year (growth of 53%).
There is no change in the consolidated revenue and operating profit of the Company on account of the demerger of its cement business.
b) The extraordinary item of Rs.336 crore reflects the profit on the sale of Vikram Ispat, the sponge iron unit of the Company.
Dividend
The board of directors of Grasim has recommended a dividend of Rs.30 per share, which is the same as per last year. Additionally, the board of directors of SCL, has proposed a dividend of Rs.1.75 per share for six months’ working. Each Grasim shareholder will be receiving one equity share of Rs.5 in SCL for every one share held in Grasim on 28 May 2010, the record date fixed for this purpose, in terms of the demerger scheme.
Highlights of Grasim’s Consolidated operations:
| Q4 FY10 | Q4 FY09 | % change | FY 2010 | FY 2009 | % change | ||
|---|---|---|---|---|---|---|---|
| Production – | |||||||
| Cement (consolidated) | Mn. M.T. | 10.24 | 9.28 | 10% | 37.02 | 32.18 | 15% |
| White cement | M.T. | 138,893 | 132,060 | 5% | 514,291 | 441,118 | 17% |