Grasim Industries net up 14% at ₹2,759 crore

BL Mumbai Bureau | Updated on: Aug 12, 2022
 Kumar Mangalam Birla, Chairman, Aditya Birla Group

Kumar Mangalam Birla, Chairman, Aditya Birla Group | Photo Credit: PTI

The company plans to invest ₹3,542 crore in paints business this fiscal

Grasim Industries, an Aditya Birla Group company, reported consolidated net profit of ₹2,759 crore in the June quarter, up 14 per cent against ₹2,412 crore recorded in the same period last year, on lower base and better realisation of both viscose staple fibre and chemicals.

However, on a sequential basis, it was down 24 per cent from ₹3,656 crore logged in March quarter, due to high cost.

Revenue from operations was up 41 per cent at ₹28,042 crore against ₹19,919 crore registered last year. EBITDA increased 16 per cent to ₹1,933 crore (₹1,667 crore).

The company has acquired land at all the six sites for setting up paint manufacturing plants. The civil construction work has commenced at Panipat, Ludhiana, Cheyyar and Chamarajanagar. The company plans to invest ₹6,720 core, including ₹3,542 crore in paints business this fiscal.

Demand for textiles

The India-centric demand for textiles remained strong during the quarter. The VSF business reported 76 per cent increase in sales volume at 1.97 lakh tonne with domestic sales accounting for 94 per cent. The 600 tonne per day brownfield plant at Vilayat contributed 51,000 tonne of sales volume in the quarter. After peaking in June, cotton prices have softened on fears of a global recession leading to slowdown in demand.

The price of global caustic soda averaged higher at $769 a tonne in June quarter against $719 a tonne in March due to supply chain disruption and higher energy prices. The price has further soften to $650 a tonne.

The domestic caustic soda prices continued trending upwards driven by weak rupee and a stable demand environment.

Weak demand for chlorine in the user industry segments such as dyes and pigments contributed to negative realisation. The advanced material business reported impressive sales volume growth of 35 per cent, though the significant increase in input prices impacted margins.

Published on August 12, 2022
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