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Grasim: Starts New Fiscal on a Solid Note - Views on News from Equitymaster
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Grasim: Starts New Fiscal on a Solid Note
Aug 11, 2016

Grasim Industries has announced its financial results for the quarter ended June 2016. During the quarter, the company's standalone sales and net profit report a sharp jump of 24.6% YoY and 138.5% YoY respectively. Here is our analysis of the results:

Performance summary
  • Standalone revenues increase by 24.6% YoY during 1QFY17 driven by higher volume as well as realizations in both VSF and chemical segment.
  • Operating profits increase by 86.5% YoY; operating margins expand from 14.8% in 1QFY16 to 22.2% in 1QFY17.
  • Net profit zooms up by 138.5% YoY during the quarter; net profit margin expands from 6.9% in 1QFY16 to 13.2% in 1QFY17.

    Standalone Financial Performance
    (Rs m) 1QFY16 1QFY17 Change
    Net sales 19,470 24,265 24.6%
    Expenditure 16,583 18,881 13.9%
    Operating profit (EBITDA) 2,888 5,384 86.5%
    EBITDA margin 14.8% 22.2%
    Other income 351 476 35.8%
    Depreciation 952 1,104 15.9%
    Finance costs 409 231 -43.7%
    Profit before tax & exceptional items 1,877 4,526 141.2%
    Exceptional gain/ (loss) 0 0
    Profit before tax 1,877 4,526 141.2%
    Tax 531 1,317 147.8%
    Effective tax rate 28.3% 29.1%
    Net Profit 1,345 3,209 138.5%
    Net profit margin 6.9% 13.2%
    No of shares (m) 93.3
    Diluted EPS (Rs)* 122.1
    P/E (times)* 37.1

    *trailing twelve month earnings

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