Outstanding Performance by Grasim in Q4 FY16: Revenue up 13%

KOLKATTA, India - May 9, 2016 - PRLog -- Grasim Industries registers robust volume growth in all its businesses. Consolidated revenue from Viscose Staple Fibre, Chemical and Cement businesses stood up by 13% at Rs. 10,001 Cr. and EBITDA was at Rs. 2,059 Cr., higher by 24%. Net profit (before Exceptional Item) grew by 40% to Rs. 724 Cr. compared to Q4 last year.

For the full year, consolidated revenue was higher by 12% to Rs. 36,637 Cr. The consolidated EBITDA of the Company was also up by 24% at Rs. 7,025 Cr. and Net profit increased to Rs. 2,387 Cr. compared to Rs. 1,753 Cr. last year.

The business revenue of Viscose Staple Fibre increased by 23% at Rs. 1,729 Cr. While the sales volume showed a growth of 10% at 130K TPA. This was majorly due to better global demand post the Chinese New Year. Additional volumes rose from the Company's Vilayat plant and concerted efforts towards market expansion also contributed to this growth. The Company's Business EBITDA for the quarter was Rs. 267 Cr.

Pulp JVs recorded better results with higher pulp realization in the international market and favorable exchange rate.

Revenue from Chemical Business stood at Rs. 957 Cr. as against Rs. 429 Cr. in Q4FY15. Caustic Soda volume at 204K Tons was up by 95%.

UltraTech Cement outpaced the industry with domestic volume growth of 15%. Revenue for the quarter was at Rs. 6,920 Cr. Compared to Rs. 6,595 Cr. in Q4 last year. EBITDA was up by 3% at Rs. 1,478 Cr up on account of better volumes and lower fuel prices. Net profit was Rs. 723 Cr. compared to Rs. 657 Cr. in the corresponding quarter.

Dividend

Like last year, the Board of Directors of Grasim has recommended of Rs. 22.5 per share as against Rs 18 per share in the previous year. The total outflow on account of this dividend payout would be Rs. 221 Cr. (inclusive of the corporate tax on dividend).

Outlook

Price volatility of Viscose Staple Fibre is expected to reduce due to lower the capacity additions globally. Further, in FY2015-16 Cotton production is projected to be lower than the consumption with the reduced acreage and unfavorable climate.

The Company aims to continue focus on expanding Viscose Staple Fibre market in India by partnering with the textile value chain and better customer connect through Brand Liva. Improving product mix through larger share of specialty fibre will be yet another focus area.

To meet the growing demand in Chemical business, caustic capacity is being raised by 100K TPA through debottlenecking at different units.

While in the Cement business, demand is expected to grow at 7% - 8% due to Government's focus on infrastructure development, housing, smart cities etc. Grasim Industries is well poised to reap the benefits of the investment in capacity expansion and acquisitions with the expected upturn in the economy.

Meanwhile, Grasim Industries share price (https://www.dynamiclevels.com/en/grasim-share-price) closed at Rs 4131, up by 0.46 per cent in National Stock Exchange.

Dynamiclevels recommends Grasim as one of our Top 500 shares (https://www.dynamiclevels.com/en/share-market-tips/stock-...).

To get more Support and Resistance levels of the share please visit Grasim Share Price Forecast.