Grasim Industries Limited has posted a 105% jump in net profits during the quarter ended 31st December 1999. The company has benefited largely from a decline in interest expenditure and a relatively stable depreciation provision. The operating margins too seem to have improved marginally.
The company's cement division has posted a subdued performance in view of the sluggishness in prices in the Southern and Eastern markets. Its VSF division has performed well as demand remained firm. The VSF division recorded a 24% growth in sales even as production grew by just 18%.
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The sponge iron division too turned in a good performance with volumes surging 54%. Realizations however rose only 13%. The company expects the performance of this division to improve in the coming months as scrap prices have been rising of late.
Analysts have rated Grasim as a 'BUY' mainly on account of the turnaround in the cement industry and various other commodity businesses the company operates in.
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