India: Grasim and UltraTech well positioned for growth

Grasim Industries, a subsidiary of UltraTech, has announced impressive results and signs of a recovery in cement demand growth, which is estimated at ~11.5 per cent for the current quarter.

Meanwhile, UltraTech outpaced the industry with domestic volume growth of 15 per cent. Revenue for the quarter was INR69.2bn (US$bn1.04bn) vis-à-vis INR65.95bn (US$991m) in 4Q15. EBITDA was up by three per cent at INR14.78bn. helped by enhanced volumes and lower fuel prices. Net profit was INR7.23bn compared to INR6.57bn in the corresponding quarter.

Cement demand is expected to grow at 7-8 per cent for the next year, driven by the government’s focus on infrastructure development, housing, smart cities, etc. The company is well positioned across the country to cater the growth in demand. Grasim is well poised to reap the benefits of the investment in capacity expansion and acquisitions with the expected upturn in the economy.