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Indian textile firm Grasim ends second quarter with strong earnings
17 Nov 21 2 min read
Grasim Industries, a leading producer of viscose staple fibre in India, has recorded a 26 per cent sales jump to ₹22,564 crore in the second quarter (Q2) of FY22 against the sales of ₹17,950 crore in the corresponding period of previous fiscal. EBITDA (earnings before interest, taxes, depreciation, and amortisation) for the quarter grew by 19 per cent to ₹4,282 crore (Q2 FY21: ₹3,603 crore).
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“The Chinese textile demand was impacted by weak business sentiment in the value chain. The viscose staple fibre (VSF) prices in China moderated during the quarter, however, the prices have witnessed a considerable improvement since October 2021, driven by drastic operating rate cuts in fibre and yarn manufacturing,” the Indian manufacturer said in a statement.
“The demand for textile products in India witnessed a significant bounce back during Q2 FY22 with the onset of the festive season, phased reopening of schools, educational institutions, offices and increased textile sourcing from India by global brands as a part of the China+1 strategy,” Grasim Industries added.
The expenses for the three-month period ended on September 30, 2021, stood at ₹19,864 crore (₹15,999 crore). Net profit advanced to ₹2,032 crore (₹1,595.8 crore).
By segment, viscose business' sales expanded to ₹3,005 crore (₹1,678 crore) as the VSF business recorded the highest ever total sales volume with domestic sales volume, back to the pre-pandemic level in Q2 FY22, according to the company. Moreover, the share of value-added products in the overall sales mix almost doubled year on year to 27 per cent.
On the other hand, Grasim's chemicals business achieved sales of ₹1,626 crore (₹1,126 crore) with significant improvement in advanced materials demand.
Fibre2Fashion News Desk (JL)
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