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Grasim Industries Ltd , an Aditya Birla group company, has reported a 28 per cent increase in June quarter consolidated net profit at ₹1,786 crore against ₹1,400 crore logged in the same period last year, largely due to lower operational cost.
Revenue was up at ₹18,861 crore (₹16,761 crore). EBITDA was up 31 per cent to ₹4,217 crore.
The company has impaired an investment of ₹109 crore in Aditya Birla Idea Payment Bank, an associate of the company. The board of the bank in July approved the winding up operations due to unanticipated developments in the business landscape that has made the economic model unviable, said Grasim.
On a standalone basis, the company’s net profit was down 69 per cent at ₹202 crore (₹642 crore) while revenue was up four per cent at ₹5,001 crore (₹4,789 crore).
Its VSF production was up four per cent at 140,000 tonnes and sales increased five per cent at 138,000 tonnes.
Net revenue was up one per cent at ₹2,509 crore (₹2,480 crore). EBITDA for the quarter stood was down 25 per cent at ₹442 crore (₹586 crore).
Profitability was impacted as the Chinese VSF prices saw a sharp decline of 21 per cent due to fresh capacities commissioned in recent past and the negative impact of US China Trade War.
Currency depreciation
Profitability was further impacted due to currency depreciation which partly offset the gains of reduction in pulp prices which is currently trending downwards. With better product and market mix the company has been able to contain the impact of the adverse global conditions, the company said.
Chemical business recorded marginal fall in revenue at ₹1,503 crore (₹1,579 crore) and EBITDA was down at ₹446 crore (₹495 crore) as caustic soda prices fell sharply.
The caustic soda sales was up one per cent at 2,38,000 tonnes and production increased two per cent at 2,42,000 tonnes. Production was impacted at different sites on account of water shortage and minor disruptions caused by cyclones.
Shares of the company were up four per cent at ₹735 on Wednesday.
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