Grasim Q4 net jumps 37%; to pay 225% dividend
10 May 2016
Grasim Industries, India's top manufacturer of viscose staple fibre (VSF) with diversified production lines such as cement, chemicals and textiles, has reported a 37 per cent increase in consolidated net profit at Rs696 crore in fiscal fourth quarter ended 31 March 2016 against Rs507 crore in the year-ago quarter.
The Adity Birla Group company reported a 35 per cent jump in its net profit for the financial year ended 31 March 2016 at Rs2,359 crore against a net profit of Rs1,744 crore in FY2015.
Grasim said its total income from operations in the January-March 2016 quarter was up 13 per cent year-on-year at Rs10,001 crore. Total expenses rose 11 per cent to Rs8,532 crore.
The board of directors of the company has recommended a dividend of Rs22.50 per share of face value Rs10 each, aggregating to Rs220.81 crore (including corporate dividend tax) for the year ended 31 March 2016.
The company expects the price volatility of viscose staple fibre (VSF) to come down in the coming days in the light of slowing down of global capacity additions and a reduction in cotton acreage combined with unfavourable climate.
"The company will continue to focus on expanding VSF market in India by partnering with the textile value chain and better customer connect through Brand Liva. Enhancing product mix through larger share of speciality fibre will be yet another focus area," Grasim stated in a release.
The company is ramping up caustic soda capacity by 100,000 tonnes in view if the growing demand in India, especially from end-user industry. Towards this Grasim is undertaking a debottlenecking of plants at different units.
Demand for cement is expected to grow at 7-8 per cent for the next year, driven by the government's focus on infrastructure development, housing, smart cities etc.
"Grasim is well poised to reap the benefits of the investment in capacity expansion and acquisitions with the expected upturn in the economy," the company release added.