JOIN USAditya Birla group controlled company Grasim has posted a flat net profit for the quarter ended March 31, 2016 at Rs 1,063.62 crore compared with Rs 1,055.26 crore in the same quarter previous fiscal.
Total income for the company grew 6% during the quarter to Rs 11,409.41 crore compared with Rs 10,763.70 crore in Q4FY16.
The company’s strong sales volume supported by firm international prices helped drive an excellent performance in the viscose staple fibre business. Even though the captive pulp plant at Harihar remained shut from February 2017 onwards, due to water shortage, the production of VSF remained unaffected as the business ensured running of operations with external pulp supplies.
Net revenue increased by 12% to Rs 1,945 crore while Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) rose 30% to Rs 345 crore despite the rise in pulp and energy costs, led by higher realisation and improved operating efficiencies, Grasim said.
“The VSF business will continue to focus on expanding the VSF market in India by partnering with the textile value chain, achieving better customer connect through Brand Liva and enriching the product mix through a larger share of specialty fibre. The company is in the process of debottlenecking of its plants to meet the growing demand,” Grasim said.
“The demand for caustic soda in India is expected to grow with rising consumption from the alumina and textile sectors. However, the increase in supply on account of new capacities in the industry may create a temporary imbalance in demand supply. In cement, the demand is expected to grow, driven by the government's focus on infrastructure development and affordable housing. The company is well positioned across the country to cater to the growth in demand,” it added.