Q3 Results: Grasim Industries Profit Jumps, Margin Contracts

Grasim Industries Ltd. quarterly profit rose even as its margin contracted in the three months ended December.

Net profit jumped 28 percent year-on-year to Rs 608 crore in the quarter ended December, the Aditya Birla Group company said in an exchange filing.

• Revenue jumped 21 percent to Rs 5,292 crore.
• Operating profit or earnings before income, tax, depreciation and amortisation rose 19 percent to Rs 1,052 crore.
• Operating margin contracted 30 basis points over a year earlier to 19.8 percent.

Segment Breakup

(Year-On-Year)

• Revenue from chemical business rose 19 percent to Rs 1,559 crore.
• Revenue from viscose business and UltraTech Cement jumped 20 percent each to Rs 2,617 crore and Rs 9,390 crore, respectively
• Cement sales volume grew 15 percent to 19.4 million tonnes per annum.
• Looking to raise capacity in both viscose staple fibre and chemical businesses.
• Expects total capital expenditure to be around Rs 7,627 crore over financial years 2019-21

Shares of Grasim Industries rose as much as 2.7 percent to Rs 753.50 after the results announcement.