Grasim Industries, an Indian textile manufacturer, has announced its financial results for the third quarter (Q3) FY21 ended on December 31, 2020. Revenues jumped 13 per cent to Rs. 20,986.3 cr compared to revenue of Rs. 18,616.7 in the same period previous fiscal. Company’s net profit for Q3 FY21 increased to Rs. 2,125.2 cr (Q3 FY20: Rs. 1,043.5 cr).
EBITDA increased to Rs. 4,476 cr (Rs. 2,945 cr). Total expenses for the period were Rs. 18,278.7 cr (Rs. 17,439.1 cr).
Revenue of Viscose which includes pulp, viscose staple fibre and filament yarn during Q3 FY21 was Rs. 2,145.1 cr (Rs. 2,193.5 cr). Whereas, chemical segment revenue dropped to Rs.1, 280.9 (Rs.1, 362.0 cr).
VSF demand in India and overseas markets recovered from the sharp decline caused by the deceleration in the economic activity witnessed during the earlier part of FY21, as Grasim reported in a press release. The VSF demand In India recovered to pre-Covid-19 levels leading to 28 per cent revenue growth sequentially. Consequently, the share of domestic sales in the sales mix grew from 82 per cent in Q2 to 91 per cent in Q3.
The VSF prices in China bounced back from their historic lows driven by a strong revival in domestic demand and favourable inter fibre dynamics with widening gap between cotton and VSF prices. This led to a dramatic reduction in VSF inventories in China even as the operating rates went up, press release stated.
