Diversified Godrej Industries Ltd saw its consolidated net profit nearly treble on the back of a strong performance by its associate companies and a pick-up in its standalone chemicals business.
"All our businesses have contributed to this performance. Our chemicals business, which is under Godrej Industries, has also delivered positive growth," Chairman Adi Godrej told Reuters.
The firm posted a consolidated net profit of 487.4 million rupees from 163.6 million rupees in the same period a year ago, while total income rose 30 per cent to 1.01 billion rupees during the June quarter.
Godrej Industries makes industrial chemicals and hold stakes in other group firms such as Godrej Consumer, Godrej Properties, Godrej Agrovet and Godrej Hersheys.
The firm's profits from its chemical business surged to 134 million rupees in this quarter from 5.8 million rupees a year ago. Its chemicals business draws 40 per cent of its revenue from overseas and the remainder from the domestic market.
It has outlined a capital expenditure of 2.3 billion rupees for the current fiscal to set up a oleochemical manufacturing facility in Ambernath, in Maharashtra, Godrej said. Oleochemicals are chemicals made from vegetable oils and have applications in various industries.
"The facility will be operational by FY13 and will double our existing chemical manufacturing capacity," Godrej said.
Godrej also said the firm will jointly develop about 36.5 acres of property at Vikhroli in Mumbai with Godrej Properties and will share the profits from the project in a ratio of 40:60 and the loss, if any, will be borne by Godrej Properties.
"This will be a large revenue project. We havent finalised the revenue stream from the project but it should be very strong in the range of a few thousand crores," Godrej said.
He also said there are more such joint development projects in the pipeline but refused to give further details.
Godrej Properties saw its June quarter net profit surge to 224.36 million rupees from 29.78 million rupees a year ago, while its personal care arm Godrej Consumer saw its net rise 67 per cent to 1.16 billion rupees on the back of 5 acquisitions since March.
The firm or its associate companies do not have any more fund raising plans this fiscal and all expansion will be funded via internal accruals, Godrej added.
Shares of the firm ended up 3.09 per cent at 183.4 rupees in a firm Mumbai market.