Grasim Industries, a textiles manufacturer in India, reported its results for third quarter (Q3) FY20 that ended on December 31, 2019. Consolidated revenue for Q3 stood at Rs. 19,205 crore. For the nine months consolidated revenue was up by 5 per cent at Rs. 57,724 crore. Net profit for the quarter decreased to Rs. 1,039.91 crore compared to same period prior year.
“This quarter’s profitability was reportedly impacted by the drop in the domestic viscose staple fibre (VSF) prices, on the back of weakening global prices owing to large supply surplus triggered by new capacity additions in Asia in last one year and global demand slowdown caused by US-China trade war,” the company said in a press release.
Consolidated EBITDA (earnings before interest, tax, depreciation and amortization) came to Rs. 2,968 crore and PBT (profit before tax) to Rs. 1454 crore.
Company’s Liva brand for VSF products continued to grow its reach in the domestic market, partnering with over 40 retail brands and is available at over 3,600 outlets.
The company in their outlook reported that VSF business will continue to focus on expanding the market in India by partnering with the textile value chain, achieving better customer connect through its brand Liva and extension into new categories. The Chemical business is under an expansion mode for both chlor-alkali and specialty chemicals. In Cement, signs of revival were visible in some markets during the latter part of Q3 FY20. In Financial Services, ABCL is a universal financial solution provider catering to the diverse needs of its customers across their life cycle.
Grasim is incurring capex to increase capacities across its key businesses and is potentially well positioned to leverage the next phase of the economic growth.