Home / Knowledge / News / Textiles / Notable performance of VSF business for Q2 FY2010 – Grasim
Notable performance of VSF business for Q2 FY2010 – Grasim
30
Oct '09
Grasim, an Aditya Birla Group Company, announced its results for the 2nd quarter ended 30th September, 2009. The Company has reported excellent performance in both of its core businesses, viz., Cement and Viscose Staple Fibre.

Consolidated Revenue for the quarter grew by 6% at Rs.4,743 crores (Rs.4,486 crores). Notwithstanding a steep increase of over 143% in tax expenses, Net Profit rose by 61% at Rs.781 crores (Rs.486 crores).

On a stand-alone basis, Grasim's performance during the quarter has been impressive. Revenue was higher by 12 % at Rs.3,026 crores (Rs.2,703 crores). PBIDT at Rs.1,159 crores (Rs.678 crores) increased by 71 %. Despite higher interest cost, higher depreciation and a significant increase in tax expenses, Net Profit rose by 61 % at Rs. 674 crores (Rs.419 crores).

The Consolidated as well as the Standalone results for the quarter are not strictly comparable with the corresponding quarter's results, owing to the sale of sponge Iron business on 22nd May, 2009 and consolidation of Idea Cellular Limited as an Associate from 1st January, 2009, as against as a JV earlier.

Highlights of Grasim's operations:
Viscose Staple Fibre (VSF) Business
The performance of VSF business has been notable. Capacity utilization stood at 92%. Consequently, Production was up by 22% at 76,669 tons, though the Nagda plant was shut for 8 days during the quarter owing to water shortage.

Signs of revival in the Global Textile Markets augur well for the VSF business.

The Company plans to set up a 80,000 TPA VSF plant at Vilayat (Gujarat) at an estimated investment of Rs.1,000 crores. The Company has already acquired land and received environmental clearances for the project. Upon commissioning of the plant in FY13, Grasim's VSF capacity will stand enhanced at 413,975 tons.

Chemical Plant
The Chemical business' performance was satisfactory. Caustic volumes improved by 11% due to aggressive marketing. Lower ECU realisations emanating from lower caustic and byproduct prices, however, led to lower operating margins. Realisations are expected to remain under pressure due to the commissioning of new capacities and cheap imports. However, the recovery in the economy is expected to translate into better performance of the Business in the long term.


The Company's thrust will be on fortifying its leadership position in the Cement and VSF sectors. Even after the demerger, the Company will continue to provide all support to the Cement business, in the same manner as is being given prior to the demerger.

GRASIM INDUSTRIES LIMITED


Must ReadView All

Courtesy: ABARES

Textiles | On 13th Dec 2017

Australian cotton production to grow 4% in 2017-18: ABARES

Cotton production in Australia is forecast to rise by 4 per cent to...

Global economy now growing by about 3%: UN

Textiles | On 13th Dec 2017

Global economy now growing by about 3%: UN

There is an upturn in the global economy, and it is now growing by...

Winners of Outstanding Award for Exceptional Performance with Anusha Alles (extreme right) and Sakura Manthreerathne, P.A.C.E. specialist at Brandix; Courtesy: Brandix

Apparel/Garments | On 13th Dec 2017

Brandix’s female workers benefit from GAP’s P.A.C.E

A group of 181 Brandix female associates have recently completed...

Interviews View All

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search