Grasim post biggest profit gain in three years on cement sales

Grasim Industries Ltd., India's third-largest cement maker, posted its biggest quarterly gain in profit in three years boosted by rising demand for the construction material and textiles.

Net income rose 81 percent to 5.96 billion rupees ($129 million) in the three months ended Dec. 31 from 3.3 billion rupees in the year-earlier period, the company said in a statement to the Bombay Stock Exchange today.

Accelerating expansion in India, the fastest growing economy after China in the Group of 20 nations, is boosting demand for cement to build roads, ports and power plants and for viscose staple fiber, chemicals and textiles. Cement sales increased 14 percent, while demand for the fiber used to make garments surged 51 percent in the quarter, the company said.

"We have a strong intent to grow in the cement sector and for that we will increase our capacity," Chief Financial Officer Adesh Gupta told reporters in Mumbai today. "We are prepared to invest and we have the money because demand is robust."

The company s shares, which doubled last year, fell 1.5 percent to 2,619.8 rupees in Mumbai.

From China Cement (2010-1-25)