Grasim Industries Q2 profit falls 27%
Grasim said it while VSF industry continues to face pricing pressure in near term, cement business should see demand growing by 5% in this financial year.
By Megha Mandavia, ET Bureau | Updated:
MUMBAI: Grasim Industries' second quarter consolidated net profit fell 27% to Rs 450 crore from the same quarter last year, hurt by higher expenses and low demand.
While revenue inched up 3.5% to 6849 crore, expenses surged 12% mainly due to higher raw material and freight costs.
The consolidated results include the performance of UltraTech Cement, Viscose Staple Fibre (VSF) business and the chemical business.
Grasim Industries said it while the VSF industry continues to face pricing pressure in the near term, the cement business should see demand growing by 5% in this financial year due to the slowdown in the GDP growth rate.
The Aditya Birla Group company also said capacity expansions in VSF and cement will give additional volumes and drive growth.
Shares of the company ended flat on Wednesday at Rs. 2800, a share on the Bombay Stock Exchange.
While revenue inched up 3.5% to 6849 crore, expenses surged 12% mainly due to higher raw material and freight costs.
The consolidated results include the performance of UltraTech Cement, Viscose Staple Fibre (VSF) business and the chemical business.
Grasim Industries said it while the VSF industry continues to face pricing pressure in the near term, the cement business should see demand growing by 5% in this financial year due to the slowdown in the GDP growth rate.
The Aditya Birla Group company also said capacity expansions in VSF and cement will give additional volumes and drive growth.
Shares of the company ended flat on Wednesday at Rs. 2800, a share on the Bombay Stock Exchange.
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