India's Grasim Industries (GRAS.NS) swung to a standalone profit in the first quarter on Wednesday, helped by strong earnings in its fibre business, which supplies materials used in textiles and clothing, and narrower losses in its newer ventures.
The Aditya Birla Group flagship's standalone net profit came in at 632.2 million rupees ($6.63 million) for the quarter ended June 30, compared with a net loss of 1.18 billion rupees a year earlier.
Grasim's fibre business reported a 12% year-on-year rise in revenue.
Analysts had expected a sharp improvement in Grasim's quarterly earnings, as higher prices boosted profitability at its fibre business while losses narrowed at its paints and business-to-business e-commerce ventures.
Brokerage ICICI Securities had forecast Grasim's standalone operating profit would roughly double from a year earlier, while Antique Stock Broking expected a 77% rise.
Grasim's newer Birla Opus paints business reported 64% growth in revenue to 16.61 billion rupees, as the company continued to expand in a market long dominated by competitors Asian Paints (ASPN.NS) and Berger Paints (BRGR.NS) .
Grasim's standalone revenue from operations rose 27.8% to 117.95 billion rupees in the quarter.
($1 = 95.4050 Indian rupees)
