Grasim Industries Q3 net profit falls 70 percent to Rs 185 crore

By

Maverick Martins

Published
Feb 10, 2020

Aditya Birla Group Company Grasim Industries standalone profit for the third quarter ended December 31, 2019, plummeted 70 percent to Rs 185 crore ($26 million), as against Rs 608 crore it had reported a year ago.
 

The company’s standalone revenue from operations dropped 15 percent to Rs 4,500 crore compared to last year, due to a fall in the viscose staple fibre (VSF) business.
 
"This quarter's profitability was impacted primarily by the drop in the domestic VSF prices, on the back of weakening global prices owing to large supply surplus triggered by new capacity additions in Asia in last one year and global demand slowdown caused by U.S.-China trade war. The reduction in the domestic VSF prices was accelerated to counter a surge in cheap yarn imports from China/Indonesia, which impacted the viability of Indian spinners," Grasim said in a statement.

“Our Liva brand for VSF products continues to grow its reach in the domestic market, partnering with over 40 retail brands and is available at over 3,600 outlets,” it added.
 
Commenting on the outlook, the company said: “The VSF business will continue to focus on expanding the market in India by partnering with the textile value chain, achieving better customer connect through its brand Liva and extension into new categories. VSF continues to be the fastest-growing textile fibre globally.”