Grasim Industries Limited
NSE Symbol GRASIM
GRASIM INDUSTRIES is an Aditya Birla Group company headed by Sri Kumara Mangalam Birla – which is into (i) Viscose staple Fibre and wood Pulp (ii) Cement (iii) sponge Iron (iv) chemicals (v) Textiles and (vi) others. The Cement Business has been demerged into Samruddhi Cement Limited (a subsidiary of the Company) w.e.f. 01-10-2009. The Sponge Iron unit has been sold w.e.f. 22-05-2009. Readers can see the Notes at the end for understanding their implication on the accounts.
Grasim has reported higher sales but lower profits on consolidated Basis - for FY 2011.
Net Sales at Rs.21269.02 Cr is up by 6.70% from FY 10; and Up by 15.57% from FY 09.
Total Expenditure has however increased more than proportionately to Rs.17724.16 Cr – up by 17.06% from FY 10; and up by 18.63% from FY 09.
Consequently - Profit from Operations has come down to Rs.3861.02 cr – Down by 23.60% from FY 10; but up slightly by 5.41% from FY 09.
Profit before tax has also come down to Rs.3852.80 Cr – down by 22.84% from FY 10; and up by 6.83% from FY 09.
Net Profit is Rs.2895.19 Cr – down by 22.97% from FY 10; but up by 10.71% from FY 09.
Consolidated Net Profit is Rs.2264.79 cr – down by 26.84% from FY 10; and Up by 3.57% from FY 09.
On a face Value of Rs.10, the Basic EPS for FY 11 (On consolidated Basis) amounts to Rs.246.97 – against Rs.300.94 in FY 10 and Rs.238.49 in FY 09.
CONSOLIDATED QTRLY RESULTS :
On a Qtrly Basis, the consolidated Net sales the 4th Qtr of FY 11 is Rs.6390.34 Cr against Rs.5385.68 cr in Q4 FY 10. The Basic EPS for Q4 FY 11 is Rs.94.27 against Rs.71.37 only in Q4 FY 10.
CONSOLIDATED ANNUAL RESULTS TABLE :
| FY11CS | |||
| Net Sales | 2,126,902.00 | 1,993,336.00 | 1,840,393.00 |
| Other Operating Income | 31,616.00 | 26,203.00 | 19,894.00 |
| Increase in SIT/WIP | -16,206.00 | -2,176.00 | -9,058.00 |
| Raw Materials | 886,775.00 | 714,753.00 | 780,860.00 |
| Traded goods | 15,229.00 | 13,923.00 | 12,448.00 |
| Employees Cost | 123,752.00 | 105,858.00 | 95,133.00 |
| Depreciation | 113,837.00 | 99,471.00 | 86,578.00 |
| Other Expenditure | 649,029.00 | 582,310.00 | 528,049.00 |
| Total Expenditure | 1,772,416.00 | 1,514,139.00 | 1,494,010.00 |
| Profit from Operations | 386,102.00 | 505,400.00 | 366,277.00 |
| Other Income | 39,735.00 | 27,356.00 | 25,426.00 |
| Profit before Intt & EI | 425,837.00 | 532,756.00 | 391,703.00 |
| Interest | 40,557.00 | 33,455.00 | 31,045.00 |
| Profit before tax | 385,280.00 | 499,301.00 | 360,658.00 |
| Tax Expense | 95,761.00 | 157,048.00 | 99,137.00 |
| Net Profit( after tax | 289,519.00 | 342,253.00 | 261,521.00 |
| Extraordinary Items | - | -33,607.00 | - |
| Net Profit | 289,519.00 | 375,860.00 | 261,521.00 |
| Minority Interest | 65,996.00 | 71,412.00 | 44,446.00 |
| Shares of Associates | -2,956.00 | -5,105.00 | -1,591.00 |
| Consolidated Net Profit | 226,479.00 | 309,553.00 | 218,666.00 |
| Face Value (in Rs.) | 10 | 10 | 10 |
| Paid-up Equity | 9,172.00 | 9,170.00 | 9,169.00 |
| Reserves | 1,441,440.00 | 1,238,266.00 | 1,141,753.00 |
| Basic EPS (in Rs.) | 246.97 | 300.94 | 238.49 |
| Diluted EPS (in Rs.) | 246.8 | 300.83 | 238.49 |
STAND ALONE RESULTS :
On a stand alone Basis, the Net Sales are Rs.4517.04 cr in FY 11, against Rs.8172.11 cr in FY 10. The Basic EPS is Rs.128.86 in FY 11 against Rs.191.51 in FY 10.
But on a quarterly basis, the Net Sales are Rs.1425.81 cr in Q/e March 2011 against Rs.1103.66 only in corresponding qtr of last year. The Basic EPS for Q/e March 2011 is Rs.43.13 against Rs.31.55 in corresponding qtr of last year.
These results are to be read with the explanatory Notes given by the company in its Results Which are as below : The Financial Results of current year are not comparable with the previous year for the reasons elaborated in Notes below:
Ø Sponge Iron and Cement Businesses of the Company were sold/demerged during the Financial Year 2009-10, effective from 22nd May, 2009 and 1st October, 2009 respectively, therefore they are shown as discontinued businesses for the Financial Year ended 31st March, 2010 in the standalone results. The results for the Financial Year ended 31st March, 2011 are comparable with the results of the continued businesses for the year ended 31st March, 2010 as shown above.
Ø The Consolidated net profit (after Minority Share) for the year ended 31st March, 2011 is not comparable with previous year due to demerger of erstwhile Cement business of the Company to Samruddhi Cement Ltd. (SCL) and subsequent amalgamation of SCL with UltraTech Cement Ltd (UltraTech) w.e.f. 1st July, 2010 and the consequent issue of equity shares by SCL and UltraTech. The pro-rata earning on these shares has been reduced as minority interest in accounts after demerger.
Ø UltraTech Cement Middle East Investments Limited, a subsidiary of UltraTech, acquired controlling interest of Star Cement and other associate companies, in a phased manner during the year ended 31st March, 2011. The operations of these subsidiaries have been consolidated in the accounts of the Company in the current year from the respective dates of transfer of control.
Ø The Financial Statements of Idea Cellular Limited (Idea), an associate of the Company, for the quarter/year ended 31st March, 2011 are yet to be adopted by Idea due to certain exceptional circumstances. In the absence of Financial Statements, the Consolidated Financial Statements of Idea for the period ended 31st December, 2010 duly subjected to limited review by their auditors, have been considered in the Consolidated Financial Statements of the Company, for the year ended 31st March, 2011, and no effect has been given for the profit/loss of Idea for the quarter ended 31st March, 2011. In the previous year, the share of profit of Idea accounted for in the Consolidated Financial Statements of the Company amounted to ` 13.82 Crores for the quarter ended 31st March, 2010.
Ø The Consolidated Financial results of the company for the quarter and year ended 31st March, 2011 are not comparable to the extent as mentioned above. The impact of non inclusion of Idea results for the quarter, is not expected to be material considering the size of the company and trend so far. In case the Company receives the Consolidated Financial Statements of Idea for the quarter/year before the Company’s Consolidated Financial Statements are sent to the shareholders for their approval, the Company will consider to recast these accounts.
Ø The Board of Directors of the Company has, on 3rd May 2011 approved an investment of SEK 380 Mn. (equivalent to ` 280 Crores), subject to required regulatory approvals, for acquiring 1/3rd stake in Aditya Holding AB, Sweden, which, through it’s wholly owned subsidiary, has recently acquired 100% control in Domsjö Fabriker AB, Sweden, a leading manufacturer of speciality pulp used in the manufacture of VSF. This move would enable the Company to have assured supply of Pulp, including for its VSF expansion projects currently under implemention.
Ø The investment will be made by the Company at the same price at which PT Indo Bharat Rayon, Indonesia and Thai Rayon Public Company Ltd., Thailand has recently invested in Aditya Holding AB.
Ø The Board of Directors has recommended a dividend of ` 20 per share aggregating to Rs.197.06 Crores (including corporate dividend tax).
The Net implication of all these notes is – that the Results for Q4 FY 11 for Grasim can be considered as very good. We can look forward to good performances in Q1 FY 12 and onwards.
In an Article in Business Today dt 9th,Jan,2011, which is also available at Grasim web site, Mr. Kumara Mangalam Birla has recounted the progress made by the Aditya Birla Group in last 15 years. The article can be read at the URL :
A few interesting Points from the articles are stated here :
Ø From barely 10 nationalities in 1995, today our workforce spans 40 nationalities.
Ø In 1995, the average age of our management cadre was 56 years. Today, it is down to 36.
Ø Nearly 60 per cent of our turnover comes from our global operations.
Ø Nearly one-third of our group's 130,000-plus employees are not Indians.
Ø After 20 acquisitions in 15 years, and after shedding unproductive assets and divesting businesses that eroded shareholder value, we have emerged fitter, stronger and a leader in many ways.
Ø Hindalco, through a slew of buyouts coupled with expansion at existing sites, has risen to become a metals powerhouse, ranked among the world's top five aluminium majors, with 33 plants in 13 countries.
Ø In cement, after a spate of acquisitions and the consolidation of the cement business of Grasim with UltraTech, we are now India's largest cement producer.
Ø Idea is the fastest-growing major telecom player in the world's fastest-growing market.
Ø In 1995, we reported revenues of $2 billion. In these 15 years we have grown 15 times with revenues of nearly $30 billion.
What Forbes says of Grasim :
Forbes magazine ranks Grasim at 1,380 in its listing of the 'Forbes 2000 Best Companies'.
::
Forbes magazine ranks Grasim among the fabulous 50 companies in Asia.
* * * E N D * * *
No comments:
Post a Comment