Net revenues for the company went up from Rs 964 crore to Rs 1044 crore. This showed an increase of 8% yoy.

The company's expenditure had increased by 4% yoy to Rs 670.48 crore. On the operating profit margin, the company saw massive improvement as it improve by 6.1 percentage points from 37.38% for June quarters in 2010 to 43.48% during June quarters in 2011.

According in the company's website, Grasim's businesses comprises viscose staple fibre (VSF), cement, chemicals and textiles. Its core businesses are VSF and cement, which contribute to over 90% of its revenues and operating profits.

The company also updated regarding its segment in a press statement.

VSF Business: The VSF expansion projects at Vilayat, Gujarat and Harihar, Karnataka are on track. Orders have already been placed for long delivery critical equipments. Civil work has commenced at both the locations and will be in full swing post monsoon. Both these projects are slated for commissioning in FY13. The capital expenditure will amount to Rs 2,450 crore for the VSF business. This comprises of Rs 2,100 crore for expansion projects and Rs 350 crore towards modernization.

Cement capex: On the cement front the A total capex of Rs 11,000 crore has been slated for the cement business with Rs 5,150 crore on expansion projects and Rs 5,850 crore towards modernization and upgradation. At the Chhattisgarh and Karnataka brownfield expansions civil work has begun. Both these projects are expected to be operational by Q1FY14.

On the outlook the company said, the environment in both the businesses has become very challenging. In VSF, the pressure is caused by correction in cotton prices and market conditions in China. With the onset of monsoons, cement prices have fallen amidst surplus scenario. Grasim hopes that while the present scenario will improve gradually, the Company will be able to face the present challenges through its backward integration and cost leadership in VSF business and brand image, distribution network and operating efficiency in cement business.

With a PE of 17.02, the company is trading expensive but as a company it is worth buying at dips.

OneIndia Money