Companies

Grasim net doubles on higher realisation

Our Bureau. Mumbai | Updated on February 12, 2021

Grasim Industries' viscose staple fibre facility at Nagda.

Viscose Staple Fibre sales were up 3% at 1,42,000 tonnes

Grasim Industries, an Aditya Birla Group company, has reported that its consolidated net profit more than doubled in the December quarter to ₹2,152 crore against ₹1,040 crore logged in the same period last year.

Revenue was up 13 per cent at ₹20,986 crore (₹18,617 crore). On a standalone basis, net profit zoomed to ₹359 crore (₹185 crore) even as the sales were down five per cent at ₹3,672 crore (₹3,858 crore).

Spike in VSF business

Viscose Staple Fibre (VSF) sales were up 3 per cent at 1,42,000 tonnes (1,38,000 tonnes) and viscose fibre yarn sales were flat at 10 million tonnes. Revenue from VSF business was down two per cent at ₹2,145 core (₹2,194 crore). EBITDA was up 86 per cent to ₹482 crore (₹256 crore).

VSF demand in India and overseas markets recovered after the sharp decline due to economic slowdown at the start of this fiscal. The VSF demand in India recovered to pre-Covid levels.

The capacity utilisation of the VSF business reached 100 per cent through December quarter and the capacity utilisation of the viscose fibre yarn business also increased to 76 per cent in December quarter from a low of 12 per cent in June quarter.

VSF prices in China bounced back from their historic lows driven by a strong revival in domestic demand. This led to a dramatic reduction in VSF inventories in China even as the operating rates went up.

Other subsidiary

Caustic soda sales were down at 2,58,000 tonnes (2,61,000 tonnes) due to weak domestic demand from textile, alumina and paper segment.

Revenue from chemical business was down six per cent at ₹1,281 crore (₹1,362 crore) while EBITDA dipped four per cent to ₹177 crore (₹185 crore).

UltraTech Cement, a subsidiary of Grasim, reported a net profit of ₹1,584 crore (711 crore) on a revenue of ₹12,254 crore (₹10,439 crore). Revenue of Aditya Birla Capital, another subsidiary of Grasim, grew 17 per cent to ₹5,026 crore while its net profit grew 16 per cent to ₹289 crore.

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Published on February 12, 2021
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