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Journalism of Courage
MUMBAI, April 30: Grasim Industries Ltd, an Aditya Birla Group company has suffered a setback in its working results during the year ended March 1997. The net profit dropped to Rs 274.56 crore from Rs 331.80 crore. The earning per share declined to Rs 37.97 from Rs 45.89 last year. However, the dividend has stepped up to 65 % (62.5 %), absorbing Rs 51.70 crore including corporate dividend tax on equity of Rs 72.31 crore against Rs 45.19 crore last year.
According to the management, the drop in profits has been mainly due to a marked slowdown of the economy, a general slackness in the demand for cement and steel, late monsoon, frequent power cuts and rising infrastructural costs coupled with recessionary and ongoing structural changes in the textile business.
The company’s turover at Rs 3,599.77 crore (Rs 3,199.31 crore) was up at 12.52 % over the previous year due to substantial increase in the production of cement and sponge iron. The company has maintained operating profits at Rs 569.13 crore against Rs 561.88 crore despite lower realisation in cement and depressed steel and textiles markets .
