Grasim, a part of Aditya Birla Group, has posted consolidated net revenue of Rs 13,646 crore for the quarter ended September 30, 2017. This is an increase of 63 per cent over Rs 8,386 crore revenue in second quarter of previous fiscal, which did not include the erstwhile Aditya Birla Nuvo Limited (ABNL). ABNL merged with Grasim w.e.f July 1, 2017.
EBITDA was up by 34 per cent at Rs 2,805 crore compared to Rs 2,098 crore in Q2 last year.
During the quarter, VSF prices remained firm globally driven by tighter supply ex-China on account of output curtailment due to environmental factors. The domestic VSF market saw restocking of the inventory leading to increase in sales volume by 5 per cent year-on-year. The viscose business EBITDA for the quarter was at Rs 468 crore on the back of higher realisation and improved operational efficiencies. Results for the quarter also include revenue of Rs 200 crore and EBITDA of Rs 61 crore of VFY business, now part of Grasim post ABNL merger.
“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 Brand Liva and enriching the product mix through a larger share of specialty fibre,” Grasim said in a press release.
The domestic caustic soda prices witnessed an uptrend driven by healthy demand and supply constraints in the global market arising from environmental considerations in China and weather-related disruption in the US. Production from Veraval plant (erstwhile ABNL) contributed to 7 per cent year-on-year growth in caustic soda sales volume during the quarter.
“The demand for Caustic Soda in India is expected to grow with rising consumption from the alumina and textile sectors. However, the increase in supply on account of new capacities in the pipeline may create a temporary imbalance in the demand supply situation,” the release said in the future outlook. (RKS)
Source Fibre2Fashion News Desk – India