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Grasim Industries, part of Aditya Birla Group, has reported marginal fall in June quarter net profit at ₹485 crore against ₹487 crore in the same period last year.
Though the volumes across businesses improved, the profit was impacted due to lower realisation from cement and viscose staple fibre businesses.
Net revenue was up seven per cent at ₹8,599 crore (₹8,045 crore). EBITDA increased three per cent to ₹1,531 crore (₹1,488 crore).
KK Maheshwari, Managing Director, said revenue from VSF business improved 15 per cent on new capacity at Vilayat which achieved capacity utilisation of 83 per cent.
The lower raw material prices coupled with 19 per cent increase in VSF output at 103,000 tonnes boosted EBITDA by 72 per cent to ₹139 crore. The volume growth in VSF would have been much higher, if not for the shut down of Nagda plant for two months due to water shortage, he said. Operations at Nagda resumed from the last week of June.
The chemical business revenue was up 17 per cent as Epoxy volume almost doubled output with ramping up of capacity utilisation. EBITDA was up three per cent at ₹94 crore.
Post merger of Aditya Birla Chemicals with Grasim by end of December quarter, the caustic soda capacity will increase from 452,000 tonnes per annum to 804,000 tpa.
The company expects prices in the VSF business to be influenced by the developments in China amidst increase in the input prices and resumption of operations at some of the shut capacities.
Shares of the company were up two per cent at ₹3,808 on Friday.
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