Grasim Industries on Thursday reported a 66.61 per cent year-on-year fall in net profit at Rs 620.74 crore for the quarter ended June 30. The figure stood at Rs 1,859.61 crore in the corresponding quarter last year.Consolidated revenue from operations of the company declined 32.24 per cent YoY to Rs 13,621.10 crore. The figure stood at 20,103.04 crore last year.
The company said the results should be seen in light of the unprecedented disruption in economic activities due to the Covid-19 induced lockdown in all the major markets during the quarter and the resultant demand and supply chain disruptions.
It said the company’s viscose business was subdued for the months of April and May 2020 due to lockdown, but witnessed steady improvement in the month of June 2020 and thereafter, with a rise in the capacity utilisation across the plants to 79 per cent currently. The net revenue for the viscose segment (including VFY) stood at Rs 558 crore.
In the chemicals business, the chlorine derivatives products demand remained strong driven by demand from disinfectant and hygiene products. The Caustic Soda production staged a strong recovery in volumes during the quarter and the capacity utilisation improved to 70% in the month of June after a low of 23% utilisation witnessed in April.
“For the current year, the board has approved a capex plan for Rs 1,615 crore keeping in mind the temporary disruption in the company’s earnings. The capex includes raising capacities in VSF in FY22, apart from ongoing modernisation capex at various plants,” the company said in a statement.
Source: ET Markets