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Grasim Industries Q4FY16 consolidated net profit rises 37% yoy to Rs.696.09 crore : Estimates Mixed

The company’s consolidated revenue stood at Rs. 10,001.26 crore, up 13.43% yoy and 10.59% qoq.

May 07, 2016 2:46 IST | India Infoline News Service
Grasim Industries, Aditya Birla owned textile manufacturer, reported consolidated net profit of Rs. 696.09 crore for the quarter ended March 31, 2016, registering growth of 37.38% yoy and 7.16% qoq. The company’s revenue stood at Rs. 10,001.26 crore, up 13.43% yoy and 10.59% qoq.

Its consolidated core operating profit of Rs. 2,002.22 crore for the quarter, clocked growth of 29.27% yoy and 16.55% qoq. Operating profit margin for the current quarter at 20.02% expanded by 245 bps yoy and 103 bps qoq.

For the year ended March 31, 2016, the company reported consolidated net profit of Rs. 2,359.15 crore, growing by 35.29% yoy. Its consolidated revenue for the period stood at Rs. 36,636.88 crore, registering growth of 11.55% yoy.

Grasim Industries core operating profit stood at Rs. 6,689.13 crore, recording growth of 30.03% yoy. Operating margin for the current period at 18.31% expanded by 264 bps yoy.

On standalone basis,Grasim Industries Ltd, reported standalone net profit of Rs.208.59 crore for the quarter ended March 31, 2016, registering growth of 573.52% yoy, but decline of 19.89% qoq. The company’s revenue stood at Rs. 2,539.64 crore, up 46.53% yoy and 8.38% qoq.

Its standalone core operating profit of Rs. 465.01 crore for the quarter, clocked growth of 260.08% yoy and 1.01% qoq. Operating profit margin for the current quarter at 18.31% contracted by 852 bps yoy and 153 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 953.27 crore, growing by 79.9% yoy. Its standalone revenue for the period stood at Rs. 10,917.38 crore, registering growth of 72.4% yoy.

Grasim Industries Ltd's core operating profit stood at Rs. 1,578.70 crore, recording growth of 137.41% yoy. Operating margin for the current period at 15.19% expanded by 469 bps yoy.


Grasim Industries’ Q4FY16 -disappointing on bottom-line front:

Grasim Industries’ Q4FY16 numbers were disappointing on bottom-line front. The company’s consolidated net profit fell short of IIFL estimates by 16%. Its consolidated operational performance also was dismal and came above IIFL estimates by 15%. The company’s other income too shrank by 26.61% qoq and 48.49% yoy at Rs. 56.77 crore for the quarter under review.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Consolidated Revenue 10001.26 9259.1 8.02
Consolidated Net Profit 696.09 832.2 [16.36]

Consolidated EPS for the quarter stood at Rs. 74.50.

Bloomberg estimated the company’s consolidated net profit at Rs. 623.13 crore.

Corporate Action: The company has recommended dividend at the rate of Rs. 22.50 per equity share of face value Rs. 10/- each for the year ended March 31, 2016. 

Stock Commentary:

Grasim Industries Ltd ended at Rs. 4100.35, down by 10.2 points or 0.25% from its previous closing of Rs. 4110.55 on the BSE.

The scrip opened at Rs. 4102 and touched a high and low of Rs. 4130.95 and Rs. 4081.75 respectively. A total of 35073(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 38275.17 crore.

The BSE group 'A' stock of face value Rs. 10 touched a 52 week high of Rs. 4176 on 03-May-2016 and a 52 week low of Rs. 3242.05 on 26-Feb-2016. Last one week high and low of the scrip stood at Rs. 4176 and Rs. 4044 respectively.

The promoters holding in the company stood at 31.13 % while Institutions and Non-Institutions held 39.99 % and 28.88 % respectively.

The stock traded below its 50 DMA.


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