Grasim Industries sees net profits drop but bottomline rise in FY23 Q2
Grasim Industries saw its standalone net profit decrease by 1.5% year-on-year in the second quarter of the 2023 financial year. The textiles business’ revenue from operations rose by close to 37% year-on-year during the same time period.
Grasim Industries’ standalone net profit totalled Rs 964.3 crore and revenue from operations totalled Rs 6,745.23 crore in the second quarter of the 2023 financial year which ended in September, ET Markets reported. The business’ earnings before interest, tax, depreciation, and amortisation increased by 19.4% year-on-year to total Rs 956.61 crore.
However, Grasim Industries’ margins shrank by 206 basis points to reach 14.18%. The quarter necessitated a 48% year-on-year increase in both input costs and other expenses.
The business’ viscose business was particularly affected by inflation, although demand in India was higher than in other countries such as China. Despite the global market challenges, Grasim Industries’ viscose-staple fibre sales volume increased by 10% year-on-year in the second quarter of the 2023 fiscal, although its volume was down 14% on a quarter-on-quarter basis.
Along with textiles, Grasim Industries also operates in the chemical and paints sectors. The business is expanding its chemicals offerings and is developing new plants for its paints business.
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