Grasim Q3 Results: Profit decreases by 69.6% YoY to Rs 185 crore
Grasim Q3 Results: Profit decreases by 69.6% YoY to Rs 185 crore:
Grasim Q3 Results: Aditya Birla Group company Grasim Industries Limited is a textile manufacturing company located in Mumbai. The company on Monday posted a 69.6% downfall of their consolidated profit of Rs 185 crore for this quarter ended in December.
Whereas the consolidated net profit in the same period last year stands at Rs 608.2 crore. The companies revenue from operations reduced to 15% of Rs 4,500 crore as against last year, diminish by the drop in VSF and chemical business.
During this period, the profits were reduced mainly because of the prices fall in domestic viscose staple fibre (VFS). The main reason for less demand is a US-China trade war. The price reduction of domestic VSF is due to the cheap imports from China – Indonesia that affect the Indian companies.
The Revenue from the Viscose sector, decreased to 16% YoY to Rs 2194.13 crore. Whereas the chemical business posted a 12.6% YoY growth at Rs 1,362.38 crore in this quarter of same fiscal year.
The prices impacted under chemical business is due to the increase in domestic capacity, increasing imports and less demand. The companies Earning before interest, tax, depreciation, and amortization (EBITDA) decreased by 59.2% to 414.5 crores. whereas the margin drops down to 1,000 bps to 9.2% for this quarter.
The tax expenses reduced to Rs 20.2 crore from 268.9 crores in the same quarter last fiscal year. After, the adoption of the new tax rate introduced by the government. The loss occurred to Grasim towards liquidation expenses made by investing in Aditya Birla idea payment bank of Rs 10.2 crore.