Indian chemical & textile firm GHCL logs 40% profit growth in Q2

29 Oct '21

2 min read

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GHCL Limited, India’s leading chemical and textile company, has reported a 27 per cent revenue growth to ₹987 crore in the second quarter (Q2) of FY22 ended on September 30, 2021, compared to the revenue of ₹779 crore in the same period of previous fiscal. Net profit during the three-month period jumped 40 per cent to ₹109 crore (Q2 FY21: ₹78 crore).

“We have demonstrated a robust performance during the quarter under review after navigating through the severe second wave of Covid-19 pandemic. Our performance was bolstered by steep economic recovery across the country validated by sequential uptick in demand cycles and positive pricing scenario. In addition, improved vaccination coverage and a growing sense of normalcy has led to enhanced consumption, especially June onwards,” said GHCL managing director RS Jalan.

EBITDA (earnings before interest, taxes, depreciation, and amortisation) for Q2 increased 24 per cent to ₹201 crore (₹162 crore).

By business, GHCL’s inorganics chemicals segment’s revenue grew 19 per cent to ₹572 crore (₹482 crore), while home textiles revenue surged 40 per cent to ₹415 crore (₹297 crore) during the second quarter.

“Our inorganic chemicals segment continues to witness strong demand from downstream segments. There is a significant increase in energy and raw material costs.,” Jalan added. “Spinning continues to witness robust growth, with yarn and cotton prices at historic highs, and improving spreads. The home textile business also saw sharp jump in revenues, led by higher sales to US and other export markets. We remain focused on adding new value-added products in this segment to boost our performance.”

“Going forward, we are confident of generating strong cash flows with healthy balance sheet while delivering sustained earnings performance,” Jalan concluded.

Fibre2Fashion News Desk (JL)

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