Mumbai, May 11: Aditya Birla-group firm Grasim Industries Ltd today beat analyst estimates by a wide margin to report a 32 per cent rise in consolidated net profit for the fourth quarter ended March 31, 2011 at Rs 865 crore. Consolidated net profit stood at Rs 654 crore in the corresponding period a year ago.

Analysts had expected the company to report a net profit of about Rs 600 crore for the period.

Grasim attributed the growth to the improved performance of its viscose staple fibre (VSF) business, which saw its highest quarterly sales.

The cement business also contributed with a better performance to the highest-ever quarterly figure registered by the company.

During the quarter, Grasim recorded a 19 per cent rise in net revenues at Rs 6,502 crore against Rs 5,474 crore in the same period last year.

The VSF business contributed Rs 1,533.17 crore to the revenue against Rs 1,145.77 crore in the same period last year.

According to the company, high prices of cotton shortage and spot pulp continued to drive prices of textile fibres, which contributed to the rise.

Production of VSF during the quarter stood at 82,932 tonnes with full capacity utilisation.

Grasim is engaged in capacity expansion of its VSF plants at Vilayat, Gujarat (120,000 tonnes) and Harihar, Karnataka (36,500 tonnes). Both these projects are commissioned for 2012-13. The company had outlined a total capex of Rs 2,450 crore for the VSF business — Rs 2,100 crore on expansion and Rs 350 crore for modernisation.