Grasim Industries Q3 profit slips 40% to Rs 332 cr

Moneycontrol Bureau

Aditya Birla Group-owned Grasim Industries ' third quarter consolidated net profit fell 39.5 percent year-on-year to Rs 332 crore on weak operational performance.

"The current difficult market conditions have affected the performance of both the businesses cement and viscose staple fibre (VSF).

"Margin of VSF business was impacted due to increase in imported pulp prices and rupee depreciation while profitability of cement business (completely led by Ultratech Cement) dented on account of lower realisation and rising freight costs," the company said in its presentation.

Consolidated net sales grew 5 percent to Rs 7,067 crore in the quarter gone by. Cement business contributed 73 percent of total revenues and 22 percent by VSF.

Other income dropped 40 percent to Rs 106 crore while tax expenses declined 39.4 percent to Rs 183.6 crore. Finance cost increased 52.4 percent to Rs 125 crore year-on-year.

Earnings before interest, tax, depreciation and amortisation slipped 21.6 percent to Rs 984 crore and operating profit margin plunged 480 basis points to 13.9 percent during October-December quarter year-on-year.

"VSF business has recorded volume growth, supported by increased capacity at Harihar," the company said in its filing.

Production of VSF increased by 4 percent year-on-year and sales volume climbed 24 percent to 97,049 million tonne, led by better performance in both domestic and exports markets.

The combined cement and clinker sales volume increased marginally at 10.76 million tonne.

The company said with the commissioning of the grinding unit (1.6 million tonne per annum) at Jharsuguda, Odisha in October 2013, UltraTech's cement capacity stands augmented to 55.5 million tonne per annum.

"On commissioning of all the projects currently under implementation and the acquisition of Gujarat cement unit of Jaypee Cement Corporation., total cement capacity will increase to 70 million tonne per annum," it added.

Board of directors of UltraTech Cement, wherein Grasim holds 60.29 percent stake, approved the acquisition of the two Gujarat cement units of Jaypee Cement Corporation (JCCL) in September, 2013 at enterprise value of Rs 3,800 crore. The transaction is going to be completed by Q1 FY2014-15, the company said.

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Unusual winter weather gripping India

Every year newer records are set in the winter in India with either the days recording the coldest temperature, fog hitting every aspect of life and winter rain and hail damaging or boosting crop yields. However this year has been rather unusual not just for the severity of these winter traits but for their rarity. Here's a look at some of the few unusual winter phenomenons observed in many parts of the country:

Where's the fog? - This is what most of us were shouting till the mid of the December this year. Fog in Delhi and North India which begins from November itself, was nowhere to be seen till the mid of December this year. And the first thick fog occurrence (only for a short duration) was only towards December end when a spell of rain provided enough moisture for fog to form. All the major fog occurrences with visibility dropping to nil have only been observed in January, with around 3 to 4 days of dense/very dense fog which lasted up to 11 am.

Why is it so cold here! - While it was unusual for fog to not have occurred in Delhi and North India, it was highly uncommon for frequent fog incursions of fog right up to Bhopal in Madhya Pradesh. What's more unheard was very dense fog. This not only crippled normal life in the city and adjoining areas but also led to a drop significant temperature drop (4 to 6 degrees) in the maximums of north and central Madhya Pradesh. You bet, daytime has never been soooo cold in M.P!

Rain? In the Winter? - Asked for winter and got winter rain instead. People in Mumbai are quite used to the cold spells in the winter season as a result of the biting cold weather up in the North, with minimums dropping to around 11⁰C in the month of December. While Mumbaikars, eager to wear winter clothes were surprised to witness the spell of winter weather in January, they were even more surprised when cold days were followed by winter rain, a rare weather phenomenon. This rain had occurred because of a trough off and along the coast of Maharashtra. Severe winter and winter rain pose severe threat to grape crop in Maharashtra every year.

From no snow to too much snow - The said 'jannat' in India, the magnificent Kashmir which is famous for its snowy scenery received no snow in the thick of winter. Weathermen, scientists, travellers and locals, were all worried as there was no snow till the 20th of December. This happened due to less number of Western Disturbances. But then it began to snow, and when it did, it broke all records. In the month of January, life came to a halt in Jammu and Kashmir when several cities included, reported more than 100 mm of rain/snow. Snowfall was very heavy in Himachal Pradesh too. In a span of just two days, Shimla had received over 30 cm of snow, heaviest in years.

Feels like Summer - While the entire country was witnessing cold winter weather, it felt like a second summer along the west coast in South India, in the peak winter month of January. Maximums were and still are seen settling in the mid-thirties, touching 37⁰C at times. There were days when tourists had to return to their respective hotels to avoid getting terribly tanned and in the heat of the day. Cool and breezy winds at night were the only reminder of winter season, offering a stark contrast in the temperatures of the day and the night. Lack of any rain and flow of dry and warm land winds caused this heated change in this part of the country.

Photo by Ritika Acharya.

By: Skymetweather.com

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