Grasim Industries reports Q2 profit of Rs 527 crore

By

Maverick Martins

Published
Nov 18, 2019

Aditya Birla Group company Grasim Industries reported a standalone profit at Rs 527 crore ($73.5 million) for the second quarter ended September 2019, as against a loss of Rs 1,187 crore in the same period last year.
 

The company’s revenue for the July-September period dipped 6 percent to Rs 4,797 crore. Grasim's earnings before interest, tax, depreciation, and amortisation (EBITDA) also dropped by 39 percent to Rs 659 crore.
 
The viscose staple fibre (VSF) segment contributed Rs 2,431 crore to the company’s overall revenue.

Grasim’s tax expenses also shot up for the quarter under review to Rs 125 crore, compared to Rs 16 crore reported in the same period for the previous fiscal.
 
"The weakness in the domestic VSF realisations impacted this quarter's profitability. The benefit of falling input costs like pulp prices will get reflected in the coming quarters due to inventory time lag," Grasim Industries said in a statement
 
On the outlook, the company said: “VSF business will continue to focus on expanding the market in India. Grasim is incurring capex to increase capacities across its key business lines and is potentially well-positioned to leverage the next phase of economic growth.”