Grasim Industries Q2 Outcomes: Revenue falls 1.5% YoY to Rs 964 crore however beats estimates

on Monday reported a 1.5% YoY fall in standalone web revenue for the quarter ended September to Rs 964.30 crore. Nevertheless, the bottomline was larger than the ET Now ballot of Rs 952 crore.

Income from operations rose almost 37% YoY to Rs 6,745.24 crore.

Earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) for the quarter elevated 19.4% YoY to Rs 956.61 crore, however margins contracted 206 foundation factors to 14.18%.

The autumn in margins was because of a pointy rise in enter prices and different bills. Whereas enter prices elevated over 48% YoY, different bills had been 48% larger from the year-ago interval.

Income from the viscose staple fibre enterprise elevated 30% YoY to Rs 3903.14 crore, whereas the chemical compounds enterprise reported a pointy 66.5% development in gross sales to Rs 2708.48 crore.

VISCOSE BUSINESS

The worldwide man-made cellulosic fibre business witnessed a decline in demand in Q2 from the developed international economies because of excessive inflation-led recessionary market circumstances.

China’s common viscose-staple fibre (VSF) working charges lowered to 66% in Q2 from 76% in Q1 because of continued Covid-induced lockdowns in numerous cities and international demand decline. Globally, cotton costs continued to say no, with costs down 21% YoY.

The India-centric demand for VSF remained largely intact, however worth chain companions for the worldwide markets have began witnessing the impression of recessionary circumstances, the corporate stated in a launch.

Nonetheless, VSF gross sales quantity for the quarter rose 10% YoY, regardless that it was 14% down on a QoQ foundation because of demand circumstances coupled with cheaper imports from Indonesia and China.

CHEMICALS BUSINESS

Caustic soda gross sales quantity rose 17% YoY in Q2 on the again of recent capacities commissioned within the Oct-Mar interval of 2021-22 (Apr-Mar). World caustic soda costs softened sequentially within the final quarter, primarily because of the easing of world provide chain circumstances. This has led to sequentially decrease realisations in home markets too.

Captive consumption of chlorine elevated through the quarter witnessing double-digit development on a YoY foundation. The enterprise is engaged on plans so as to add new Chlorine value-added merchandise within the portfolio to extend the chlorine integration ranges.