• OCTOBER 20, 2000

Grasim posts 11% rise in net

Grasim Industries Limited has posted a 11% growth in PAT for the quarter ended 30th September 2000. The company has benefited largely from higher capacity utilization levels in three of its four businesses and a decline in interest expenditure.

(Rs m) 2QFY00 2QFY01 Change
Turnover 10,305 11,922 15.7%
EBIDT 2,112 2,189 3.6%
Interest 721 605 -16.1%
Gross Profit 1,391 1,584 13.8%
Depreciation 584.3 629.7 7.8%
Profit before Tax 807 954 18.2%
Other Adjustments (9) -65  
Tax 50 60 20.0%
Profit after Tax/(Loss) 749 830 10.8%
Net profit margin (%) 7.3% 7.5%  
Diluted No. of Shares 72.3 72.3  
Diluted Earnings per share* 41.41 45.90 10.8%

Among its four divisions, VSF, cement and white cement recorded a rise in sales and realisations (except for cement which witnessed a 2% drop in realisations). The sponge iron business however disappointed with a 17% drop in sales on account of production cuts due to raw material shortage.

The stock presently trades at Rs 185, implying a P/e multiple of 4 on annualised second quarter earnings.

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