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Grasim Industries, an Aditya Birla Group company, has reported 46 per cent increase in March quarter net profit at ₹2,305 crore against ₹1,583 crore logged in the same period last year, largely due to deferred tax write-back of ₹2,267 crore. Revenue from operations was down 11 per cent at ₹19,902 crore (₹ 22,431 crore).
The company has declared a dividend of ₹4 a share.
Grasim Industries, which holds substantial stake in group companies, is in the process of estimating the expected credit loss allowance, obligation on account of policy liabilities and recoverability of intangible assets.
The sales volume of Viscose Staple Fibre business was down at 1,36,000 tonnes (1,39,000 tonnes) while Ebitda fell 37 per cent to ₹261 crore (₹413 crore) in the December quarter due weak demand amid Covid pandemic. The net revenue for the viscose was down 20 per cent at ₹2,102 crore (₹2,625 crore).
Tough time for chemical biz too
The Caustic Soda sales volume was down three per cent at 252,000 tonnes (261,000 tonnes). The net revenue was dipped 24 per cent to ₹1,290 crore (₹1,688 crore) while Ebitda dropped to 76 per cent ₹104 crore (₹434 crore).
Global caustic soda prices softened during the quarter. The domestic realisation was impacted by weak industry demand, surge in imports and ramping up of new capacities.
The slowdown in end-user industry demand has impacted the sale of chlorine and its value-added derivatives.
The company is in the process of reviewing ₹7,800 crore planned capex in both the VSF and chemical businesses given the current economic environment.
Lockdown impact
Following the national lockdown, the company suspended operations at all locations except at the fertilizer plant in Jagdishpur in Uttar Pradesh.
Operations have since partially resumed, and various plants are producing at 25 per cent to 100 per cent capacity. It has implemented certain measures at plants to ensure safety against Covid infection post resumption.
In the near term, the company expects demand to be impacted by Covid and general economic slowdown. The company has initiated various measures to reduce fixed costs and conserve cash as part of its comprehensive business continuity plan, it said.
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