Grasim Industries Q1 Net down 15.04% at Rs 610.01 crore
New Delhi: Aditya Birla group firm Grasim Industries Ltd on Saturday reported 15.04 percent decline in consolidated net profit at Rs 610.01 crore for the first quarter ended June 30, 2013.
The company had posted a consolidated net profit of Rs 718 crore during the same period of previous fiscal, Grasim Industries said in a filing to the BSE.
Company's consolidated income from operations stood at Rs 6,895.08 crore in the April-June quarter, compared to Rs 6,795.48 crore during the same period last year.
Grasim Industries consolidated revenue from its Viscose Staple Fibre (VSF)and Wood Pulp segment was Rs 1,367.61 crore this quarter as against Rs 1,202.83 crore in the same period of last fiscal.
Company's consolidated revenue from cement division was Rs 5,293.98 crore this quarter. It was Rs 5,362.20 crore in first quarter of the last year.
Grasim Industries consolidated revenue from chemicals division was Rs 224.27 crore this quarter as against Rs 239.33 crore of the same period of last fiscal.
"Given the prevailing global economic conditions, coupled with the surplus capacity in China, the VSF industry continues to face a challenging environment in the immediate term," the company said.
In Cement, the demand is expected to grow by 6 percent in FY 2014 due to the slowdown in GDP growth rate. It has the potential to recover to over 8 percent with the improvement in the economic environment, Grasim Industries said.
"Capacity expansions in VSF and cement will provide additional volumes, driving growth and further consolidate the company's leadership. This will enable the company to move forward rapidly, with the recovery in the market.
"The company will continue to focus on cost reduction measures, improving asset productivity to maintain its position as the lowest cost producer and expanding speciality products portfolio for sustained shareholder value creation," said Grasim Industries.