Grasim Industries, an Aditya Birla Group company, has reported revenue of Rs 6,940 crores and a net profit of Rs 610 crores in the first quarter of FY 2014 vis-à-vis Rs 7,672 crores and Rs 613 crores in Q4 of FY 2013.The performance has been satisfactory considering the prolonged subdued economic environment in India and across the world. 

Production of viscose staple fiber improved by 2 percent over the preceding quarter, with the expansion of Harihar plant. The Kharach unit operated at lower capacity for 45 days as the canal supplying water was under repair. However, the new reservoir at Nagda, and better planning at Harihar, ensured that there is no production loss.

Sales volume was 77,518 MT and net revenues stood at Rs 980 crores. Viscose staple fiber prices remained under pressure due to overcapacity in China.  The impact of the decline in prices was partly neutralized by depreciation of the Indian rupee. 

The company will continue to focus on cost reduction measures, improving asset productivity to maintain its position as the lowest cost producer and expanding specialty products portfolio for sustained shareholder value creation.

Grasim started as a textile manufacturer in 1948. Today, its core businesses are Viscose Staple Fiber and cement, contributing over 90 per cent of its revenues and operating profits. It is also present in chemicals, which is essentially a backward integration of VSF.