Grasim’s strong sales volume supported by firm international prices helped drive an excellent performance in the VSF business. Even though the captive pulp plant at Harihar remained shut from February 2017 onward, due to water shortage, the production of VSF remained unaffected as the business ensured running of operations with external pulp supplies.
The consolidated revenue of Grasim during the quarter stood at Rs 11,140 crore. The company’s EBITDA of Rs 2,142 crore was up by 4 per cent on the back of stellar performance by the VSF business. Net profit for the quarter was up by 2 per cent at Rs 775 crore.
On the basis of the company’s performance, the board of directors of Grasim has recommended a higher dividend of Rs 5.50 per share as against Rs 4.50 per share (adjusted for sub-division of share) in the previous year.
Meanwhile, the process of seeking the requisite regulatory approvals for the composite Scheme of merger of Aditya Birla Nuvo with Grasim and the listing of the Financial Services Business is in progress, the company said.
The scheme has already been approved by the shareholders and creditors of the company, and it is subject to sanction from National Company Law Tribunal and final approval from stock exchanges. The transaction is expected to be completed by second quarter of ongoing fiscal.
“Upon the completion of the merger of Aditya Birla Nuvo with Grasim, the company is poised to enter into a new era of growth, given its leadership position in all its businesses post merger,” Grasim said in a press release.
The company is optimistic about its VSF business and said it will continue to focus on expanding the VSF 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. The company is in the process of debottlenecking of its plants to meet the growing demand. (RKS)
Fibre2Fashion News Desk – India
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