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Grasim net zooms 72% to Rs 102.24 crore

MUMBAI: Grasim Industries Ltd has reported a 72 per cent increase in net profit at Rs 102.24 crore for the quarter ended June 30, 2001 as against Rs 59.43 crore in the year-ago period.

According to the company, restructuring of high-cost debts coupled with fund management led to a 22 per cent decline in interest costs. This had a positive impact on the bottomline.

However, net turnover edged down to Rs 1,184.2 crore (Rs 1,195.9 crore). Other income moved up to Rs 14.54 crore (Rs 12.24 crore).

The decline in turnover was on account of the Nagda plant shutdown. An acute water shortage prompted the company to shut down its fibre plant at Nagda. Operations were resumed towards end of June.

The company's cement business recorded a 24 per cent rise in realisations at Rs 2,046 per tonne.

Grasim had planned a capex of Rs 530 crore for its cement business. During the first quarter, the company invested Rs 50 crore.

Though operating margins were lower in VSF business realisations rose by 10 per cent during the quarter. Volume sales of VSF declined by 27 per cent to 39,011 tonnes (53,308 tonnes).

Its chemicals business was also impacted by the shut down. Capacity utilisation reduced to 55 per cent and operating margins fell.

``The impact on the first quarter's profitability from the chemical business is expected to be largely neutralised through a much better performance in the remaining quarters of the financial year,'' the company said. -- Our Bureau