Taxing times: Grasim profit at Rs 718 cr

Kumar Mangalam Birla-led Aditya Birla Group’s flagship Grasim Industries on Friday reported a 4.5% year-on-year decline in net profit at Rs 718 crore during the April-June quarter against Rs 752 crore a year ago mainly due to a higher tax outgo.

Kumar Mangalam Birla-led Aditya Birla Group’s flagship Grasim Industries on Friday reported a 4.5% year-on-year decline in net profit at Rs 718 crore during the April-June quarter against Rs 752 crore a year ago mainly due to a higher tax outgo.

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Net revenue grew 16% at Rs 6,832 crore during the quarter.

Tax expenses rose to Rs 386 crore during the quarter ended June 30, 2012 against Rs 373 crore at the end of June 30, 2011. Minority interest on higher profits from the cement business also went up by Rs 38 crore to Rs 301 crore.

The company’s flagship business viscose staple fibre (VSF) sales rose 40% at 77,013 tonnes. Cement subsidiary Ultratech reported a 17% rise in revenue at Rs 5,363 crore during the quarter on higher sales volume. Its net profit rose 14% at Rs 764 crore.

Stability in the euro zone and macro-economic policies will influence VSF demand, it said.