Grasim Industries, an Aditya Birla Group company, reported that its net profit was up 27 per cent in the September quarter at ₹2,032 crore against ₹1,596 crore logged in the same period last year on lower base. Revenue increased 26 per cent to ₹22,564 crore (₹17,950 crore).
However, on a sequential basis net profit was down 17 per cent from ₹2,448 crore recorded in June quarter even while revenue increased 13 per cent from ₹19,919 crore registered in the same period.
Viscose business was impacted by lower demand in China and prices moderated. However, since October it improved driven by drastic operating rate cuts in fibre and yarn manufacturing, the company said.
With the onset of the festival season and increased textile sourcing from India by global brands as a part of the China plus one strategy, demand in India has picked up, it added.
Caustic soda prices in India recovered from multi-quarter lows supported by the recovery in demand, tightness in supply led by production losses and higher export sales driven by better overseas realisation.
Land acquisition
The company acquired land at five locations as part of its pan-India footprint for paints manufacturing. It is in the process of getting environmental clearance at the project sites. The contracts for basic engineering and detailed engineering have been awarded. The civil work at sites will commence post receipt of clearances, it said.
The company’s subsidiary UltraTech Cement and Aditya Birla Capital reported substantial increase in net profit.