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Q4 Results: Grasim Industries’ Profit Jumps, Margin Shrinks

Net profit jumped 20.9 percent to Rs 451.2 crore in the three-month period.

Spools of colored thread sit on a work bench during stuffed toy manufacture inside a factory in Giengen, Germany. (Photographer: Krisztian Bocsi/Bloomberg)
Spools of colored thread sit on a work bench during stuffed toy manufacture inside a factory in Giengen, Germany. (Photographer: Krisztian Bocsi/Bloomberg)

Grasim Industries Ltd.’s quarterly profit rose even as its margin contracted in the quarter ended March.

Net profit of the textile maker jumped 20.9 percent to Rs 451.2 crore in the three-months period, the Aditya Birla Group company said in an exchange filing.

Revenue rose 16.1 percent to Rs 5,352.3 crore on a year-on-year basis.

Operating profit or earnings before income, tax, depreciation and amortisation rose 5.6 percent to Rs 898.6 crore in the reported period, while margin contracted 170 basis points to 16.8 percent.

Grasim Industries in March said it would buy textile firm Soktas India Pvt. Ltd. for an enterprise value of Rs 165 crore to expand its presence in the premium fabrics segment.

Shares of Grasim Industries closed 2.5 percent higher at Rs 908.3 apiece before the earnings announcement compared to a 1.6 percent advance in the Nifty 50.

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