Despite covid, India's long-term potential intact: KM Birla

“The Indian economy delivered a subdued performance in the last fiscal year with FY20 GDP growth falling to 4.2% primarily led by manufacturing and construction sector weakness. As expected, we witnessed a contraction in economic growth in the first quarter on account of widespread shutdowns," Birla told shareholders.

“Both the Reserve Bank of India and the government of India have announced several policy measures to provide relief to the affected sections of the economy and to support the process of recovery. I remain confident that India’s long-term growth potential remains intact despite the covid setback," he added

For FY20, Grasim reported consolidated revenue from operations of $11 billion ( ₹77,625 crore), while the consolidated EBITDA (earnings before interest, tax, depreciation, amortisation) stood at $2 billion ( ₹13,846 crore).

"Given the uncertain business environment, Grasim’s current strategic focus is built on four pillars of demand creation through innovative products, cost rationalization, agility, and cash flow focus," Birla said.

In the June quarter, when the country went through one of the world’s strictest lockdowns, Grasim tapped export markets when the domestic markets were shut. Grasim's Liva brand has forayed into antimicrobial fiber while the chemicals business witnessed an upsurge in the demand for chlorine value-added products driven by disinfectants and hygiene-related products.

“Across the businesses, our fixed costs have reduced by 35%, which amounts to savings of ₹256 crores compared to the FY20 quarterly average," Birla said.

The capital expenditure plan for Grasim for FY21 has been calibrated to ₹1,615 crore as of now and the company will continue the Vilayat VSF (viscose staple fibre) brownfield expansion with revised timelines.

“Your company has initiated measures to optimize operations across plants, reduce fixed costs and conserve cash," he added.