Grasim Industries Q2 net profit up 3.30% at Rs 1,521.40 crore

Aditya Birla Group firm Grasim Industries Ltd on November 12 reported a 3.30 percent increase in consolidated net profit at Rs 1,521.40 crore for the second quarter ended September 2020.

The company had posted a net profit of Rs 1,472.77 crore during the July-September quarter of the previous fiscal, Grasim Industries said in a regulatory filing.

Its revenue from operations was flat at Rs 18,400.25 crore during the quarter under review as against Rs 18,400.17 crore in the corresponding period of the previous fiscal.

Grasim Industries total expenses were at Rs 16,410.82 crore in Q2/FY 2020-21 as against Rs 17,039.30 crore in the year-ago period, down 3.68 percent.

"The economy has been on the recovery path post relaxation of COVID-19 induced lockdown. It has been a resilient September quarter for Grasim due to strong recovery in demand and the government working relentlessly to support home-grown businesses by injecting doses of fiscal and monetary stimulus on a timely basis," the company said in a post-result statement.

Revenue of Grasim Industries from viscose – pulp, viscose staple fibre and filament yarn segment declined 30.95 percent to Rs 1,678.54 crore in Q2/FY2020-21 as against Rs 2,431.04 crore a year ago.

"The textile markets in India and overseas are witnessing a turnaround with COVID-19 related restrictions being phased out by the respective governments. The unlock measures across the country have led to a steady increase in consumer spending, which is expected to get further uplifted with the onset of festive season," it said. Revenue from cement business UltraTech was up 7.68 percent at Rs 10,354.21 crore as against Rs 9,615.12 crore in the corresponding quarter of previous fiscal.

"The company's strong quarterly performance is on the back of operational efficiencies and its ability to serve all India markets. UltraTech reported robust operating margins at 27 percent driven by both revenue growth and tight cost management," it said. While revenue from chemicals segment fell 16.41 percent to Rs 1,125.88 crore as against Rs 1,346.96 crore in the first quarter of 2019-20.

"The excess supply of caustic soda has resulted in prices weakening to below USD 250 level (South East Asia). The Net Revenue for Q2FY21 stood at Rs 1,126 crore and EBITDA stood at Rs 187 crore," it said.

However, revenue from financial services segment – Aditya Birla Capital was up 16.29 percent to Rs 4,578.71 crore as against Rs 3,937.27 crore a year ago.

Shares of Grasim Industries on Thursday settled at Rs 827 apiece on the BSE, up 2.97 percent.