Grasim, the flagship Company of the Aditya Birla Group, has posted excellent results for the quarter ended 30th
September, 2006 on the back of superior performance from both its key businesses, viz., Cement and Viscose Staple Fibre (VSF). Turnover, Gross Profit and Net Profit have recorded a significant growth. Cement and VSF businesses continued to be the major business drivers.
Consolidated revenues at Rs.3,184 crores (Rs.2,344 crores) reflected an increase of 36%. Net Profit soared by 109% at Rs.418 crores (Rs.200 crores), in spite of a substantially higher provision for tax expense, which was up by 201% at Rs.207 crores (Rs.69 crores).
The three major factors that spurred performance are:
Firstly, growth in volumes; secondly, higher realisations; and thirdly, savings in operating costs resulting from ongoing modernization efforts, up-gradation of plants and energy optimization