Consolidated Revenue for Q2FY21 stood at
The consolidated PAT from continuing operations (before Exceptional Items and before Minority Interest) for Q2FY21 stood at
Standalone performance witnessed a remarkable improvement, with Revenue and EBITDA rising sequentially to
The economy has been on the recovery path post relaxation of COVID-19 induced lockdown. It has been a resilient September quarter for Grasim due to strong recovery in demand and the Government working relentlessly to support home grown businesses by injecting doses of fiscal and monetary stimulus on a timely basis.
Viscose Business
The textile markets in
The Viscose business has been on the recovery path since the end of Q1FY21 with operating rates rising month on month. The capacity utilization of the VSF business touched 88 per cent in Q2FY21 from 26 per cent in Q1FY21and recorded near 100 per cent capacity utilisation exit Q2. The VFY business has also recorded a significant improvement in the operational performance in Q2FY21.
The Chinese VSF industry is showing signs of improvement with a consistent uptick in the operating rates led by resurgence in local demand, lower inventory levels and improvement in realization, all pointing towards a recovery in demand. The steadily widening gap between cotton and Viscose prices has also led to a shift in favour of Viscose, thus contributing to further growth in demand for viscose.
Chemical Business
In the Chemical business, the chlorine derivatives products demand remained strong driven by higher sales of Hygiene products and Disinfectants, Organic intermediates, Agrochemicals and CP segment.
The Caustic Soda production staged a strong recovery in volumes during the quarter, the capacity utilisation improved to 80 per cent in Q2FY21 from 49 per cent in Q1FY21 with end use industries also witnessing recovery in their demand.
The excess supply of caustic soda has resulted in prices weakening to below
Sustainability
Grasim was also ranked among the top 10 companies in
The VSF business was ranked No.1 globally in Canopy's Hot Button Report 2020 which ranks global viscose producers on sustainable forestry practices/wood sourcing, next generation solutions in alternate feed stocks and supply chain traceability.
Capex Plan
Given the improvement in the business sentiment and the strong financial performance in the quarter, the company has received additional capex approval of
Cautionary Statement
Statements in this 'Press Release' describing the Company's objectives, projections, estimates, expectations or predictions may be 'forward looking statements' within the meaning of applicable securities law and regulations. Actual results could differ materially from those express or implied. Important factors that could make a difference to the Company's operations include global and Indian demand supply conditions, finished goods prices, feedstock availability and prices, cyclical demand and pricing in the Company's principal markets, changes in Government regulations, tax regimes, economic developments within
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