Gujarat Heavy Chemicals Ltd (GHCL), one of India's leading chemical & textile companies, has announced its financial results for Q2 2019. The net profit (PAT) of the company is up by 47 per cent at ₹78 crore as compared to ₹53 crore of the corresponding quarter last year. Net revenue is up 17 per cent at ₹839 crore as compared to ₹717 crore last year.
The inorganics chemicals division's revenue grew by 20 per cent to ₹534 crore in July-September quarter of ₹19 as compared to ₹444 crore in the corresponding quarter in ₹18. This was mainly due to an increase in production by 16000 MT coupled with a marginal price increase which was needed to offset the increase in the input cost, said a press release from the company.
Home textiles business revenue grew by 11 per cent to ₹305 crore in the second quarter of the ongoing fiscal as compared to ₹274 crore in the corresponding quarter of last fiscal, primarily due to spinning business performing well resulting in both volume and realisation growth. In home textiles, the company has reorganised its customer mix, resulting in a positive impact on EBITDA, which is up by 29 per cent at ₹179 crore as compared to ₹139 crore in the corresponding quarter of the previous fiscal.
"The second half of the year looks promising and positive for both our business segments. This quarter, we achieved a 47 per cent growth in PAT. We benefitted from the volume growth in soda ash and a price increase which was required to offset the input cost increase," said RS Jalan, managing director, GHCL.
"The textile segment has also shown growth due to a better customer mix and increased operational efficiency. Our soda ash brownfield expansion is progressing as per schedule and will provide us further volume growth and expansion of margins. We are positive of achieving a +20 per cent profit growth on a long-term horizon and aim to continue creating value for our stakeholders," he added. (PC)
Fibre2Fashion News Desk – India