Grasim Industries nearly triples quarterly profit on UltraTech dividend income

what happened

According to Reuters, India's Grasim Industries posted second-quarter results for the period ended September 30 that were far stronger than a year earlier. Its standalone net profit rose to 23.06 billion rupees ($244.93 million), up from 8.05 billion rupees. The main driver was 39.68 billion rupees in dividend income from cement maker UltraTech Cement.

The fibre business lifted revenue 29% year on year, and higher prices supported margins. Revenue at the Birla Opus paints unit grew 35% to 13.37 billion rupees. A one-time impairment of 8.25 billion rupees tied to a joint venture weighed on the figures.

why it matters

Excluding that charge, profit more than tripled to 37.65 billion rupees. The key point for investors is that a large share of the gain came from the stake in UltraTech rather than from core operations, so the performance of the underlying businesses will be closely watched.

market impact

Grasim shares: strong quarterly profit and UltraTech dividends support investor interest in the stock.

• ▲Grasim Industries shares pressure up — profit growth and a large dividend inflow from UltraTech Cement support investor interest

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