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Journalism of Courage
MUMBAI, OCT 22: Aditya Birla group flagship Grasim Industries net profit increased to Rs 74.85 crore in the second quarter of current fiscal as compared to Rs 40.99 crore recorded in the same quarter of last year. Hindalco, another Birla group firm, also posted a 10 per cent increase in its net profit to Rs 299 crore in the first half of current fiscal.
While turnover of Grasim in the first half was Rs 2,452 crore up 15 per cent from Rs 2,062 crore posted last year, Hindalco8217;s turnover grew 15 per cent to Rs 994 crore.
Work at Grasim8217;s pulp and fibre plants at Mavoor in Kerala continues to remain suspended. The Kerala State government has rejected applications made by the company toclose the plants. Saying that the outlook is positive, company officials said it expects to improve margins through continuing cost control and higher volumes in its key product segments.
On the other hand, Hindalco officials said the outlook of aluminium sector for the next two quarters was positive following signs of upswing in the core sector such as transportation, construction, packaging, consumer durable and the electrical industry. Further, there was an appreciation of 26 per cent in prices in the last six months.
Hindalco itself hiked its aluminium prices by Rs 4,000 per tonne to Rs 77,000 in October and the prices may go up further in the next quarter. To consolidate its domestic market leadership with a market share of 42 per cent, the company is actively exploring the possibility of a brown-field expansion at Renukoot. A techno-economic feasibility study is under way and the company is expected to announce its decision within the next two months.
