Grasim Consolidated Financial Performance for the quarter ending 31st December 2016

                                                                                                 
   Building, Consolidating, Growing

Q3: EBITDA up 7%;    Net Profit up 14%
                             
Consolidated Financial Performance
                                                                                                                           ` Cr.
Nine Months ended

Quarter ended
31.12.2016
31.12.2015
31.12.2016
31.12.2015
26,073
25,033
Revenue
(net of excise duty)
8,601
8,520
6,190
5,015
EBITDA
1,878
1,762
2,404
1,711
Net Profit
728
640

                     
    






Grasim Consolidated Financial Performance for the quarter ending 31st December 2016

Grasim has reported improved profitability for the quarter ending 31st December 2016. Consolidated revenue for the quarter was ` 8,601 Cr. EBITDA at ` 1,878 Cr. was up by 7% driven by the performance from VSF and Cement Businesses. Net profit for the quarter increased by 14% to ` 728 Cr. as against ` 640 Cr. in Q3 last year.

The consolidated EBITDA for the nine months was up by 23% at ` 6,190 Cr. and Net profit rose by 41% to ` 2,404 Cr. on YoY basis.
 Composite Scheme of Arrangement

The process of seeking the requisite regulatory approvals for the composite Scheme of merger of Aditya Birla Nuvo with Grasim and the listing of the Financial Services Business is underway. The scheme has been approved by the relevant stock exchanges and the Competition Commission of India. Application has been filed with National Company Law Tribunal. The transaction is expected to be completed by H1 FY18.

 Business Performance
 Viscose Staple Fibre (VSF)


The VSF business reported an encouraging performance. Its revenue rose by 10% at           ` 1,762 Cr. EBITDA increased by 31% at ` 402 Cr. as against ` 308 Cr. in Q3 last year, led by operating efficiencies and better realisation. Volumes were maintained as the business was able to retain the share of domestic sales despite temporary demand slowdown in textile value chain.

 Chemical Business

 During the quarter, the demand for Chlorine was impacted due to lower off take in the user industries resulting in restricted Caustic soda production in the industry. Consequently, volumes were down by 5% YoY at 1.93 lac tons. ECU realisation was up led by higher Caustic soda prices caused by lower supply. The EBITDA of Chemical business was up by 5% at ` 186 Cr. compared to ` 177 Cr. in the last year.
 For its brownfield expansion at Vilayat, environmental clearance has been received. The civil work is expected to begin soon.  

 Cement Subsidiary (UltraTech Cement)
 UltraTech’s revenue (Net of Excise) stood at ` 5,998 Cr. compared to ` 6,093 Cr. in Q3 last year. EBITDA was ` 1,280 Cr. as against ` 1,274 Cr. in the corresponding period of the previous year. PAT was up by 5%, from ` 566 Cr. in Q3 FY16 to ` 595 Cr. in Q3FY17.

 UltraTech announced the plan for setting up of a 3.5 Mn. TPA integrated cement plant at Dhar, Madhya Pradesh at a total cost of around ` 2,600 Cr. The plant is expected to commence commercial production by Q4FY19.

 Outlook

 The VSF business will continue to focus on expanding the VSF market in India by partnering with the textile value chain, achieving better customer connect through Brand Liva and enriching the product mix through a larger share of specialty fibre. The Company has identified debottlenecking opportunities to meet the growing demand.

  The demand for Caustic Soda in India is expected to grow with the rising demand from the end user industry. The commissioning of new capacities in the industry may increase supply in the medium term. The Company’s plan to increase its Caustic Soda capacity by 208K TPA to 1048K TPA through brown field expansion at Vilayat (Gujarat) and debottlenecking at other plants is on track.

 Continuing government spending on infrastructure, development of smart cities, interest rate cuts supported by interest subsidy schemes for housing will be the key demand drivers for Cement. UltraTech will benefit with its presence across the country to meet the expected rise in demand.

 Grasim is well poised to reap the benefits of investment in the growth plans of its businesses with the sustained growth in the Indian economy.

 GRASIM INDUSTRIES LIMITED
Aditya Birla Centre, 'A’ Wing, 2nd Floor, S. K. Ahire Marg, Worli, Mumbai - 400 030
Registered Office : Birlagram, Nagda - 456 331 (M.P.)
Tel: (07366) 246760-6