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Grasim Industries, an Aditya Birla group company, reported that its consolidated net profit was down 67 per cent in June quarter at ₹621 crore as against ₹1,860 crore logged in the same period last year. This was due to lower realisation and weak demand across businesses.
Revenue from operations were down at ₹13,621 crore (₹20,103 crore). EBITDA dipped 41 per cent to ₹2,613 crore (₹4,461 crore).
The net revenue from vicose staple fibre business plunged to ₹558 crore (₹2,509 crore) due to Covid induced shut down and reported a net EBITDA loss of ₹113 crore as against ₹442 crore, due to sharp fall in prices and lower production.
VSF production was dipped to 43,000 tonnes (1.30 lakh tonnes). The continuous flow of yarn imports and weak demand conditions impacted the domestic spinning industry. Revenue from chemical business was down at ₹704 crore (₹1,503 crore).
Revenue from cement and financial services business was also affected due to lockdown. The company holds 57 per cent stake in UltraTech Cement and 54 per cent stake in Aditya Birla Financial Services.
The company has cut its capital expenditure to ₹1,615 crore due to disruption in earnings. The capex includes raising capacities in VSF in FY22, apart from ongoing modernisation at various plants.
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