Comments
Grasim Industries net profit in the June quarter declined seven per cent to Rs 2,576 crore on higher operational cost and lower realisation, against Rs 2,759 crore. Revenue increased 11 per cent to Rs 31,065 crore (Rs 28,042 crore).
The company has launched Birla Pivot, a full-scale B2B E-commerce platform for building materials, in Maharashtra, Madhya Pradesh, and Delhi. The platform will ensure on-time delivery of building materials such as cement, steel, tiles, plywood and doors, paints and ply, sanitary and plumbing, among others. The company has on-boarded over 120 brands across categories.
Planned capex
The company has budgeted a capex of ₹5,791 crore in this fiscal, with ₹4,342 crore earmarked for paints and B2B e-commerce.
Of the ₹1,384 crore spent in the June quarter, ₹1,046 crore was spent for the paints business.
The ‘Go to Market’, branding and marketing for the paints business is on track, with the commercial launch scheduled by the fiscal-end.
Sluggish VSF business
Globally, the textile value chain has remain sluggish, although some signs of improvement are seen in specific markets. China Viscose Staple Fibre operating rates have improved considerably.
The average inventory levels for the Chinese market have reduced for the last three months, averaging 16 days in the June quarter. This is below its three-year average of 21 days. VSF prices remained flat.
The company’s VSF sales volume was down at 1.87 lakh tonnes (1.97 lt). Viscose business revenue dropped to ₹3,584 crore (Rs 4,300 crore), while EBITDA dipped to ₹390 crore (Rs 500 crore).
The chemical business’s revenue was down at Rs 2,146 crore (Rs 2,733 crore). EBITDA plunged to Rs 358 crore (Rs 806 crore).
International caustic prices have been on a declining trend since last October, and traded at $395 a tonne in June due to over-supply in the market.
The cumulative installed capacity of Aditya Birla Renewables was at 854 MWp. The company plans to enhance capacity to about 2 GW by the end of the current financial year.
Grasim’s subsidiary, UltraTech Cement, registered a 17 per cent increase in revenue at ₹17,737 crore and EBITDA is up 17 per cent at Rs 3,223 crore.
Aditya Birla Capital, another subsidiary, saw a 26 per cent rise in revenue at ₹7,045 crore, and 51 per cent increase in net profit at ₹649 crore.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.