Grasim Industries, an Aditya Birla Group company, has reported that its net profit in the December quarter was up 23 per cent at ₹2,622 crore against ₹2,130 crore logged in the same period last year, on back of higher realisation.
Revenue from operations increased 16 per cent to ₹24,402 crore (from ₹21,000 crore). The increase in demand for textile products in the US and Europe led to a positive impact on VSF business.
Chinese fibre and yarn manufacturers saw a sharp uptick in capacity utilisation in January after a brief dip in the December quarter.
The VSF (viscose staple fibre) prices averaged higher in December quarter compared with the previous quarter but realisation started falling in January due to concern over Covid.
Sales boosted by commissioning of 300 tonnes per day
Despite curbs imposed by various State Governments, VSF demand was revived by strong demand from textile products in India in December quarter. The VSF sales volume was boosted by commissioning of 300 tonnes per day brownfield expansion at Vilayat.
International caustic soda prices maintained an upward trajectory for the fourth straight quarter. The caustic soda capacity utilisation stood at 93 per cent in December quarter. The Chlor Alkali business is on the path of improving the share of green power in the overall power mix from 3.4 per cent to 10 per cent next fiscal.
The company has received environmental clearance for two of its plant sites at Panipat and Ludhiana of the five sites as part of its pan India footprint for paints manufacturing.
The second phase of 300 tonnes per day VSF brownfield expansion was commissioned on February 12, the company said.
In the Chlor-alkali business, BB Puram (phase-1) plant of 26,000 tonnes per annum was commissioned last December, and the balance 47,000 tpa is expected to be commissioned in March quarter. The Rehla plant of 91,000 TPA and Chloromethane plant of 55,000 TPA at Vilayat was also commissioned in December quarter.