Grasim Industries, a company under the Aditya Birla Group, reported a mere one per cent rise in its net profit to Rs 818 crore in the fourth quarter of the current financial year on the back of weak market conditions for the textile sector.
In FY 13, the company's net profit was up two per cent at Rs 2,704 crore compared with Rs 2,647 crore in the previous financial year.
The company's revenue for FY13 was up 5.3 per cent to Rs 7,672 crore compared with Rs 7,283 crore in FY12.
In FY13, the company's net revenue stood at Rs 27,904 crore, compared with Rs 25,245 crore in the year-ago period, up 11 per cent.
Surplus production of VSF by China, coupled with volatile fibre prices and high cotton inventory had an impact on the company's performance.
Ultra Tech, the cement subsidiary's profit after tax was Rs 753 crore (after providing for the additional deferred tax liability of Rs 87 crore) as compared to Rs 872 in Q4 of the previous financial year.
The company, in a press release, said, "The quarter witnessed continuing pressure on input and logistics costs, given the increase in railway freight and hike in diesel prices though there was some relief on account of the softening in prices of imported coal." The Board of Directors of Grasim has recommended a dividend of Rs .50 per share, same as last year. The total outflow on account of the dividend would be crore (Including corporate tax on dividend).