Grasim Industries Limited
NSE Symbol GRASIM
GRASIM INDUSTRIES has reported improved performance in Q1 FY 2012 - with respect to corresponding quarter of last year (Q1 FY 11), though there is a fall with respect to preceding quarter of Q4 FY 2011.
Net Sales at Rs.5872.10 cr – is down by 8.11% from preceding Qtr of Q4 FY 11; but up by 16.16% from Q1 FY 11, the corresponding Qtr of last year.
The Net sales for FY 2011 was Rs.2,126,9.02 cr – up by 6.70% from FY 2010.
Total Expenditure for Q1 FY 12 at Rs.4578.16 cr, is also down by 11.13% from Q4 FY 11; but up by 13.93% from Q1 FY 11.
The same for FY 2011 total was Rs.17724.16 cr – up by 17.06% from FY 2010.
Profit from Operations for Q1 FY 12 at Rs.1358.38 cr – is up by 0.59% from Q4 FY 11; and up by 23.47% from Q1 FY 11;
The same for FY 2011 was Rs.3861.02 cr – down by 23.60% from FY 2010.
Profit before tax for Q1 FY 2012 is Rs.1372.76 cr – down by 0.14% from Q4 FY 11; but up by 24.20% from Q1 FY 11;
The same for FY 2011 was Rs.3852.80 cr – down by 22.84% from FY 2010
Net Profit for Q1 FY 2012 is Rs.1000.21 cr – down by 12.88% from Q4 FY 11; but up by 27.35% from Q1 FY 11.
The same for FY 2011 was Rs.2895.19 cr – down by 22.97% from FY 2010
Consolidated Net Profit for Q1 FY 12 is Rs.751.67 cr – down by 14.47% from Q4 FY 11; but up by 30.71% from Q1 FY 11.
The same for FY 2011 was $Rs.2279.01 Cr- down by 26.38% from FY 2010
Basic EPS for Q1 FY 2012 is Rs.81.96 - compared to Rs.95.82 in Q4 FY 11 and Rs.62.71 in Q1 FY 11 – against a Face value of Rs.10.
The same for FY 2011 was Rs.248.52 compared to Rs.300.94 in FY 2010.
HIGH LIGHTS
Q1 FY2012 VS Q1 FY2011
| Rs. crore | ||
| Consolidated net revenue | 5,937  16% | |
| Consolidated net profit | 752 31% | |
| Capex under Implementation | ||
| | VSF and Allied Chemicals | 3,400 |
| | Cement | 11,000 |
Consolidated Financial Performance
Grasim Industries Limited, has recorded higher revenue and net profit led by better performance of both its businesses, VSF and Cement.
Net Revenue at Rs.5,937 crore (Rs.5,119 crore) increased by 16 per cent.
PBIDT grew by 19 per cent from Rs.1,464 crore to Rs.1,748 crore.
Net profit was higher by 31 per cent at Rs.752 crore (Rs.575 crore).
Production and sales volumes:
| Products | | Production | Sales | ||||
| Q1FY12 | Q1FY11 | Per cent change | Q1FY12 | Q1FY11 | Per cent change | ||
| Viscose Staple Fibre | M.T. | 69,898 | 69,328 | 1 | 54,839 | 67,302 | (19) |
| Cement (Consolidated)* | Mn M.T. | 10.32 | 9.92 | 4 | 10.34 | 9.85 | 5 |
| White Cement | M.T. | 120,982 | 133,015 | (9) | 1,22,277 | 1,33,052 | (8) |
| *Including Star Cement volumes | |||||||
Viscose Staple Fibre (VSF)
The textile industry witnessed a significant softening in prices of all fibres from their peak level as cotton prices declined sharply. The high inventory level in the value chain has resulted in lower demand.
Despite the challenging environment, revenue grew by 5 per cent aided by higher realisations. Higher margins and better performance from the Pulp JVs resulted in an enhanced operating profit. During the quarter, production was impacted due to the suspension of operations at Nagda because of water shortage. The plant resumed operations from 30th June, 2011 with the arrival of monsoons. The total shutdown has lasted for 27 days as against 55 days in the last year including 31 days in the corresponding quarter.
Cement Subsidiary (UltraTech Cement)
UltraTech Cement clocked in revenues of Rs.4,617 crore and PAT of Rs.669 crore. The quarter was adversely impacted by the 30 per cent increase in the domestic coal price in March, 2011.
Alongside, imported coal price rose by 30 per cent YoY resulting in a substantial escalation in costs. The domestic volumes were hit by the present economic slowdown and surplus scenario.
Chemical Business
Production grew by 5 per cent though operations were affected due to the water shortage at Nagda. Caustic prices moved upwards, driven by positive sentiments in the domestic and international markets.
Stand-alone Financial Performance
The standalone results for the quarter have also been impressive with Net Profit up by 40 per cent.
| Rs. crore | Quarter ended | % Change | |
| 30.06.11 | 30.06.10 | ||
| Net revenue | 1,044 | 964 | 8 |
| PBIDT | 454 | 361 | 26 |
| Net profit | 314 | 224 | 40 |
VSF and Chemical Capex
The VSF expansion projects at Vilayat, Gujarat (120,000 TPA) and Harihar, Karnataka (36,500 TPA) are on track. Orders have already been placed for long delivery critical equipment. Civil work has commenced at both the locations and will be in full swing post monsoon. Both these projects are slated for commissioning in FY13. A total capex of Rs.2,450 crore has been earmarked for the VSF business. This comprises of Rs.2,100 crore for expansion projects and Rs.350 crore towards modernisation. The 182,500 TPA caustic soda project at Vilayat, Gujarat is progressing in line with the schedule.
Cement Capex
A total capex of Rs.11,000 crore has been slated for the cement business with Rs.5,150 crore on expansion projects and Rs.5,850 crore towards instituting bulk packaging terminals, setting up of ready-mix concrete plants, captive thermal power plant, modernisation etc.
At the Chhattisgarh and Karnataka brownfield expansions aggregating 9.2 million TPA, civil work has begun. Both these projects are expected to be operational by Q1FY14.
Outlook
Outlook
The environment in both the businesses has become very challenging. In VSF, the pressure is caused by correction in cotton prices and market conditions in China. With the onset of monsoons, cement prices have fallen amidst surplus scenario.
Grasim hopes that while the present scenario will improve gradually, the Company will be able to face the present challenges through its backward integration and cost leadership in VSF business and brand image, distribution network and operating efficiency in Cement business. Both VSF and cement will benefit from rising consumption as well as investment in India in the long term. Capacity expansions under implementation in these businesses will enable the Company to grow at a rapid pace and consolidate its leadership even further.
ANNOUNCEMENTS TO NSE
0-07-2011 Grasim Industries standalone Results for the quarter ended on 30-JUN-2011 as follows: Net Sales of Rs. 102339 lacs for quarter ending on 30-JUN-2011 against Rs. 94492 lacs for the quarter ending on 30-JUN-2010. Net Profit / (Loss) of Rs. 31413 lacs for the quarter ending on 30-JUN-2011 against Rs. 22383 lacs for the quarter ending on 30-JUN-2010.
30-07-2011 Grasim Industries consolidated Results for the quarter ended on 30-JUN-2011 as follows: Net Sales of Rs. 587210 lacs for quarter ending on 30-JUN-2011 against Rs. 505519 lacs for the quarter ending on 30-JUN-2010. Net Profit / (Loss) of Rs. 75167 lacs for the quarter ending on 30-JUN-2011 against Rs. 57506 lacs for the quarter ending on 30-JUN-2010.
27-06-2011 Due to water shortage at Nagda (Madhya Pradesh), the Company has temporarily suspended production at its Staple Fibre Plant at Nagda fully and that of Chlor-Alkali Plant at Nagda by half. The Company has now informed the Exchange that with the onset of monsoon and the arrival of water in the Nagda reservoir, the Staple Fibre Plant at Nagda and the Chlor-Alkali Plant at Nagda have restarted in gradual manner and the production is expected to be restored at their full capacity by June 30, 2011.
02-06-2011 Due to water shortage at Nagda (Madhya Pradesh), the Company has to curtail production at its Staple Fibre Plant located at Nagda and the said Plant is likely to be closed from June 03, 2011 till the onset of monsoon. The Company is, however, operating its other Staple Fibre Plants at Kharach (Gujarat) and Harihar (Karnataka) at their full capacity. The Company's Chlor-Alkali Plant at Nagda has also curtailed production at about 50% of its rated capacity of 2,58,000 TPA.
11-05-2011 Grasim Industries consolidated Results for the year ended on 31-MAR-2011 as follows: Net Sales of Rs. 2126902 lacs for year ending on 31-MAR-2011 against Rs. 1993336 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 226479 lacs for the year ending on 31-MAR-2011 against Rs. 309553 lacs for the year ending on 31-MAR-2010.
11-05-2011 Grasim Industries standalone Results for the year ended on 31-MAR-2011 as follows: Net Sales of Rs. 451704 lacs for year ending on 31-MAR-2011 against Rs. 817211 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 118171 lacs for the year ending on 31-MAR-2011 against Rs. 209210 lacs for the year ending on 31-MAR-2010.
11-05-2011 Grasim Industries have recommended dividend on Equity Shares for the year ended March 31, 2011 @ Rs. 20 (Rupees Twenty only) per share.
03-05-2011 Grasim Industries press release dated May 03, 2011 titled " Note on acquisition of stake in Domsjo Fabriker AB, a leading Swedish speciality pulp and bio-refinery company."
RESULTS TABLE
| Q1FY12CS | |||||
| Net Sales | 587210 | 639,034.00 | 505,519.00 | 2,126,902.00 | 1,993,336.00 |
| Other Oprtg Income | 6444 | 11,170.00 | 6,342.00 | 31,616.00 | 26,203.00 |
| Increase in SIT/WIP | -24392 | 4,660.00 | -14,007.00 | -16,206.00 | -2,176.00 |
| Raw Materials | 255083 | 254,857.00 | 202,643.00 | 886,775.00 | 714,753.00 |
| Traded goods | 5186 | 4,983.00 | 2,895.00 | 15,229.00 | 13,923.00 |
| Employees Cost | 31142 | 32,957.00 | 27,479.00 | 123,752.00 | 105,858.00 |
| Depreciation | 28147 | 29,931.00 | 26,716.00 | 113,837.00 | 99,471.00 |
| Other Expenditure | 162650 | 187,781.00 | 156,119.00 | 649,029.00 | 582,310.00 |
| Total Expenditure | 457816 | 515,169.00 | 401,845.00 | 1,772,416.00 | 1,514,139.00 |
| Profit from Operations | 135838 | 135,035.00 | 110,016.00 | 386,102.00 | 505,400.00 |
| Other Income | 10853 | 13,250.00 | 9,633.00 | 39,735.00 | 27,356.00 |
| Interest | 9415 | 10,814.00 | 9,123.00 | 40,557.00 | 33,455.00 |
| Profit before tax | 137276 | 137,471.00 | 110,526.00 | 385,280.00 | 499,301.00 |
| Tax Expense | 37255 | 22,665.00 | 31,985.00 | 95,761.00 | 157,048.00 |
| Net Profit | 100021 | 114,806.00 | 78,541.00 | 289,519.00 | 375,860.00 |
| Minority Interest | 26268 | 28,163.00 | 22,152.00 | 65,996.00 | 71,412.00 |
| Shares of Associates | -1414 | -1,240.00 | -1,117.00 | -4,378.00 | -5,105.00 |
| Consolidated Net Profit | 75167 | 87,883.00 | 57,506.00 | 227,901.00 | 309,553.00 |
| Face Value (in Rs.) | 10 | 10 | 10 | 10 | 10 |
| Paid-up Equity | 9172 | 9,172.00 | 9,170.00 | 9,172.00 | 9,170.00 |
| Basic EPS | 81.96 | 95.82 | 62.71 | 248.52 | 300.94 |
| Diluted EPS | 81.9 | 95.77 | 62.7 | 248.35 | 300.83 |
| Public holding (%) | 63.5 | 63.44 | 63.51 | 63.44 | - |
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