Grasim Q1 net profit up 54 per cent

Grasim, an Aditya Birla Group company, has reported strong results for the quarter ended 30 June, 2007. The company says its VSF and cement businesses put up commendable performance, have been the growth enablers.

Revenues grew by 26 per cent at Rs4,063 crore (Rs. 3,213 crore). Net profit rose by 54 per cent Rs. 670 crore (Rs. 435 crore).

The VSF business turned in a very good performance. Capacity utilisation was higher at 102 per cent vis-à-vis 70 per cent in the corresponding quarter. Production, as a result, was higher by 52 per cent at 68,755 tonnes.

During the corresponding quarter, utilisation was lower due to the shut down of the Nagda plant on account of water shortage. Sales volumes rose by 34 per cent at 69,396 tonnes, a historical high for any quarter. Firm international prices backed by a strong global demand saw realisations rise.

The increased dependence on captive pulp helped contain the impact of rising global pulp prices. The strengthening of the Rupee too had a positive impact on performance.