Home / Knowledge / News / Textiles / Grasim reports excellent performance for Q1FY 2010
Grasim reports excellent performance for Q1FY 2010
28
Jul '09
Grasim, an Aditya Birla Group Company, announced its results for the quarter ended 30th June, 2009. Consolidated Revenue for the quarter rose by 15% at Rs.5,123 crores (Rs.4,448 crores). Net Profit was higher by 61% at Rs.1,080 crores (Rs.672 crores) which included an Extraordinary gain of Rs.336 crores (net of tax) arising from the sale of Sponge Iron business.

Grasim's stand-alone Revenue for the quarter stood at Rs.3,079 crores (Rs.2,618 crores). Despite higher interest cost and depreciation on new capacity created, Net Profit (after Extraordinary Gain) was higher by 69% at Rs.867 crores (Rs.514 crores). The benefit of these new capacities will accrue fully in the subsequent quarters, as normally new plants take about a year to fully stabilize.

Viscose Staple Fibre (VSF) Business
In VSF business, Production grew by 7% at 62,352 tons. The business witnessed a resurgence of demand and prices, emanating from refilling of dried up inventory in the value chain and marginal improvement in macro economic conditions due to the stimulus packages announced by various countries. This resulted in a 19% growth in volumes. Realisation was, however, lower by 4% over the corresponding quarter but better than the last quarter. With the onset of the monsoon, the production at Nagda, which was suspended from 22nd May, 2009, was resumed on 9th July, 2009.

The mixed signals in the end-consumer off-take at the retail level globally and the increase in the rate of excise duty from 4% to 8% in India, may lead to some contraction in current levels of volumes and lower realisation from H2FY10. Though margins may continue to improve in the short term due to increased realisation and lower input cost, the trend may reverse in the second half unless there is a clear improvement in the global scenario. The Company would continue its focus on cost reduction measures and enlargement of product mix to improve its profitability from this business.

Chemical Plant
The Chemical business' performance was subdued. The steep fall in prices of chlorine and Hydrochloric acid led to a 7% fall in ECU realisation. This, together with higher salt cost, led to a decline in Operating margins.

The demand for caustic is likely to be depressed due to the slowdown in growth from alumina segment in international markets. ECU realisation too is expected to remain under pressure, given the global market conditions.

Outlook
The Company will continue to have leadership position in VSF business. With substantial increase in capacities, improved cost optimization, higher productivity and strong fundamentals, the prospects for the Company in the long term remain positive, though there may be bumpy road in the immediate future.

Grasim

Must ReadView All

Courtesy: Li & Fung

Textiles | On 24th Mar 2017

Li & Fung forms new supply chain partnership with PVH Corp

Li & Fung Limited, the world's leader in consumer goods design,...

Courtesy: Alizilla

Apparel/Garments | On 24th Mar 2017

Alibaba's eWTP finds first overseas base in Malaysia

In a step towards using the internet to bring small businesses around ...

Textiles | On 24th Mar 2017

BJMC to produce cotton-jute blended denim fabrics

To meet demand from the market, Bangladesh Jute Mills Corporation...

Interviews View All

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search