Aditya Birla Group company Grasim Industries reported a 11 per cent jump in consolidated net profit at Rs 744 crore in the April-June quarter, up from Rs 672 crore a year ago, but after adding a Rs. 336 crore gain from the one-time sale of its sponge iron business, the figure was higher at Rs 1,080 crore.
On a standalone basis, the company posted a net profit of Rs 866.6 crore, up 69 per cent from Rs. 514.2 crore a year ago. “The sponge iron business is seeing a downturn, and that had some negative effect on our business last year.
With the sale of that business, we can expect better results this year,” said Akhil Gupta, chief financial officer, Grasim Industries.
Total operating income stood at Rs 5,123 crore in the latest quarter against Rs 4,448 crore in the same period last year.
Total operating income this quarter was Rs 3,078.7 crore against Rs 2,618.3 crore in the same quarter last fiscal.
Grasim shares closed at Rs 2,837 on the BSE, down 1.8 per cent from the previous close. Grasim currently has Rs 2,500 crore in cash on its books and intends to use that as and when capital flows are required, Gupta said.