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					                                                                                              Regd off: Birlagram, Nagda - 456 331
GRASIM INDUSTRIES LIMITED + $                                                                 E-Mail:    grasimshares@adityabirla.com
                                                                                              Web site: www.adityabirla.com / www.grasim.com
                                                                                              Telephone: (07366) 246 760 Fax: (07366) 244 114
DIVERSIFIED                                                               BIRLA ADITYA        Tr agent: In-house
Chairman: Kumar Mangalam Birla                                                  SEC: Ashok Malu                                         AUD: G. P. Kapadia & Co.
Yr of Inc   B. Code       BL. Code     F.V.         Price       % ch 1-m        % ch 12-m       P/E       P/CF           Yield         Mkt cap              Vol.             ISIN
 1947   500300          GRASIM:IN      10          2,682.1         -5.5            38.0         11.2          8.1         1.1         245,863.5             16.7         INE047A01013
SHAREHOLDING                                                      FX Transaction (FY09)                              ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters           : 25.2%                Exports (fob)          Rs m     5,003
Foreign collaborators      :   0.0%               Imports (cif)          Rs m 15,303
                                                                                                       (Rs)
Indian inst/Mut Fund       : 20.5%                Fx inflow              Rs m     5,160         5000
FIIs/GDR                   : 33.8%                Fx outflow             Rs m 16,505                                                                         DAILY
Free float                 : 20.6%                Net fx                 Rs m -11,345
Shareholders               : 165,621
                                                                                                4000                                                         100 DMA

                           No. of months                   12            12            12
                             Year ending             31/03/07      31/03/08      31/03/09       3000
EQUITY SHARE DATA
High                                   Rs              2,908           4,074         2,734
Low                                    Rs              1,462           2,025           831      2000
Sales per share                        Rs            1,537.6        1,851.6        2,007.6
Earnings per share                     Rs              214.6           315.4         238.5
Cash flow per share                    Rs              281.2           388.5         333.0
                                                                                                1000
Dividends per share                    Rs              27.50           30.00         30.00
Dividend yield (eoy)                   %                 1.3             1.0            1.7
                                                                                                      0
Book value per share                   Rs              715.9           987.4      1,245.9
Shares outstanding (eoy)               m               91.67           91.67         91.67            Aug-06          Jun-07           Feb-08               Nov-08           Aug-09
Bonus/Rights/Conversions                                    -               -             -
Price / Sales ratio                    x                  1.4             1.6           0.9                               No. of months                12           12             12
Avg P/E ratio                          x                10.2              9.7           7.5                                 Year ending          31/03/07     31/03/08       31/03/09
                                                                                               CASH FLOW
P/CF ratio (eoy)                       x                  7.8             7.8           5.4
Price / Book Value ratio               x                  3.1             3.1           1.4    From Operations                         Rs   m      29,638           36,972     34,625
Dividend payout                        %                12.8             9.5          12.6     From Investments                        Rs   m     -35,019          -42,316    -36,651
Avg Mkt Cap                            Rs m          200,299        279,548       163,402      From Financial Activity                 Rs   m       6,699            4,715      1,715
No. of employees                       `000               15              13             13    Net Cashflow                            Rs   m       1,318             -629       -310
Total wages/salary                     Rs m            6,722           8,454         9,513
Avg. sales/employee                    Rs Th         9,382.4       12,858.7      13,640.7                                        INTERIM RESULTS
Avg. wages/employee                    Rs Th           447.4           640.5         705.1                                           2QFY09  3QFY09            4QFY09         1QFY10
Avg. net profit/employee               Rs Th         1,309.6         2,190.5       1,620.7     Net sales                   Rs    m    44,892  46,317            50,200         51,228
                                                                                               Gross profit                Rs    m     8,801   8,969            11,566         14,505
INCOME DATA                                                                                    Gross profit margin         %            19.6     19.4             23.0           28.3
Net Sales                              Rs     m      140,952        169,735       184,040      Net profit                  Rs    m     4,864   4,596             5,687          7,439
Other income                           Rs     m        3,159          4,631         4,532      Net profit margin           %            10.8      9.9             11.3           14.5
Total revenues                         Rs     m      144,111        174,366       188,572
Gross profit                           Rs     m       39,719         49,607        43,456                                            KEY DATA
Depreciation                           Rs     m        6,100          6,703         8,658      Parameters                          Unit             FY07             FY08       FY09
Interest                               Rs     m        2,286          2,221         3,105      Cement Capacity (standalone)        MTPA              13.6             16.8       19.7
Profit before tax                      Rs     m       34,492         45,314        36,225      Cement (revenues)                   % of sales        57.3             57.5       69.6
Minority Interest                      Rs     m       -3,915         -4,565        -4,445      VSF (revenues)                      % of sales        27.1             29.2       25.2
Prior Period Items                     Rs     m            0              0             0      Others (revenues)                   % of sales        15.6             13.3        5.2
Extraordinary Inc (Exp)                Rs     m           19          2,824             0      Market Share (cement capacity)      %                8.2%             9.0%       9.3%
Tax                                    Rs     m       10,922         14,658         9,914
                                                                                                                                      NOTES
Profit after tax                       Rs     m       19,674         28,915        21,866
Gross profit margin                    %                28.2           29.2          23.6     Grasim Industries, an Aditya Birla Group company, is one of the largest diversified
Effective tax rate                     %                31.7           32.3          27.4     commodity companies in the country with a near monopolistic status in the viscose
                                                                                              staple fibre (VSF) segment (25% of FY09 turnover). Grasim's businesses comprise
Net profit margin                      %                14.0           17.0          11.9
                                                                                              viscose staple fibre (VSF), cement, chemicals and textiles. Its core businesses are
BALANCE SHEET DATA                                                                            VSF and cement, which contribute to over 90% of its revenues and operating profits.
                                                                                              Grasim holds 51% stake in UltraTech Cement. Grasim has hived off the weak links
Current assets                         Rs m           33,011         42,802        45,343     i.e. textile and sponge iron businesses in a move to concentrate on core business
Current liabilities                    Rs m           24,429         36,716        35,685     segments. In the textile business Grasim has strong presence in fabrics and synthetic
Net working cap to sales               %                  6.1            3.6           5.2    yarns through its subsidiary, Grasim Bhiwani Textiles Ltd.
Current ratio                          x                  1.4            1.2           1.3
Inventory Turnover                     Days                35            38            44     Grasim's FY09 performance was largely supported by growth in its cement business.
Debtors Turnover                       Days               21             22            16     The cement segment reported a 17% YoY growth in sales led by 6% YoY growth in
Net fixed assets                       Rs m           84,724        129,223       142,190     volumes. VSF, which contributes over 20% to the topline reported a lower growth of
Share capital                          Rs m              917            917           917     16% YoY, restricting the overall growth of the company. While the company reported
"Free" reserves                        Rs m           63,004         89,424       113,216     a 5.8% YoY growth in topline, net profit growth reported a decline of 26% YoY. The
                                                                                              same was mainly on account of higher cost of operation that resulted in 18% YoY fall
Net worth                              Rs m           65,623         90,516       114,208
                                                                                              in operating profits and higher depreciation and interest costs.
Long term debt                         Rs m           37,672         40,911        50,760
Total assets                           Rs m          158,896        208,544       243,169     Considering the fact that the company is the only player in the VSF business
Interest coverage                      x                16.1           21.4          12.7     domestically and the outlook for VSF and the cement sector from a long-term point
Debt to equity ratio                   x                  0.6            0.5           0.4    of view remains positive, we believe that these two divisions will continue to be the
Sales to assets ratio                  x                  0.9            0.8           0.8    growth drivers for the company. However, in the near to medium term, softening of
Return on assets                       %                21.3           23.7          15.1     prices of both the commodities would restrict the overall growth of the company.
Return on equity                       %                30.0           31.9          19.1
Return on capital                      %                31.8           34.8          21.1
Exports to sales                       %                  1.9            2.2           2.7
Imports to sales                       %                  6.3            8.2           8.3
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posted:11/6/2010
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