Grasim Industries, an Aditya Birla Group company, has reported that its net profit in the March quarter increased 76 per cent to ₹4,070 crore against ₹2,617 crore logged in the same period last year, largely on tax write back of ₹464 crore and gain of ₹540 crore from sale of fertiliser business to Indorama India.
Revenue from operations was up 18 per cent at ₹28,811 crore (₹24,401 crore). The company has announced a dividend of ₹5 and a special dividend of ₹5 per equity share taking the outflow to ₹658 crore.
Overall expenses in the March quarter increased to ₹25,787 crore (₹20,887 crore). The company registered an exceptional income of ₹414 crore from discontinued operations including gain from sale of asset. Consolidated Ebitda during the quarter was down 10 per cent at ₹4,647 crore (₹5,142 crore).
Sales volumes
The viscose staple fibre (VSF) business reported sales volume increased 22 per cent to 179,000 tonne in March quarter with value added product mix of 25 per cent. The recently commissioned 600 tonnes per day brownfield plant at Vilayat contributed 32,000 tonnes of sales volume and operated at 83 per cent capacity utilisation.
The global demand for textile products was marginally muted with Covid related restrictions imposed by China and the ongoing Russia-Ukraine war. Chinese fibre and yarn industry maintained steady operating rates. China VSF prices weakened sequentially owing to the spread of Omicron.
VSF prices averaged lower at RMB 12,903 in March quarter against RMB 13,637 in December quarter due to weak demand. Cotton prices have been increasing consistently, widening the price gap with VSF which should likely give impetus to VSF prices once Covid subsides and demand improves in China, it said.
Rising cost pressure
The rise in the global caustic soda prices was driven by the supply chain disruptions. The domestic caustic soda prices increased in line with global caustic soda price and improved demand. The advanced material business reported a weaker financial performance driven by lower realisation and rising cost pressure. The company group company UltraTech Cement faced cost pressure while Aditya Birla Financial Services registered 18 per cent rise in net profit in the quarter under review.