On a consolidated basis, Grasim Industries' net profit jumped 14% to Rs 1,715 crore on 26% increase in revenue from operations to Rs 24,398.92 crore in Q4 March 2021 over Q4 March 2020.
Last year, the PAT (after extraordinary items) included reversal of deferred tax liability. Exceptional items during the quarter stood at Rs 62.08 crore as compared to Rs 1,286.52 crore in Q4 FY20.
Profit before tax jumped 133% to Rs 3,726 crore in Q4 FY21 over Q4 FY20. EBITDA grew 62% to Rs 5,142 crore in Q4 FY21 over Q4 FY20.
During the financial year, the company's consolidated net profit fell 2.42% to Rs 4,304.82 crore on 1.67% rise in revenue from operations to Rs 76,397.81 crore in FY 2021 over FY 2020.
While the signs of economic recovery picking up momentum was visible during the Q4 FY21, the company said that the impact of the second wave of COVID-19 on the economic activity needs to be assessed.
The net revenue for the viscose segment (including viscose filament yarn) stood at Rs 2,583 crore and EBITDA at Rs 625 crore, driven by higher sales volumes, better product mix, significant cost savings and improved realisation. During the quarter, the pulp prices and input costs have, however, started firming up in line with commodities.
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The global textile fibre demand witnessed a sharp recovery in H2FY21 led by a spurt in the consumer demand and restocking of the pipeline. The growing consumer preference for comfortable, casual & value for money clothing has spurred demand for cellulosic fibre and Viscose Staple Fibre (VSF) has been a key beneficiary of this shift. The VSF prices in China surged steeply in Q4FY21 to attain a multiyear high, driven by strong consumer demand, restocking, andrise in cotton prices during the last 12 months.
In the chemical business, the net revenue for Q4FY21 stood at Rs 1,472 crore and EBITDA stood at Rs 185 crore. The domestic caustic soda business and advanced material business reported a strong operational performance during the quarter. The caustic soda capacity utilisation improved to 94% in Q4FY21 from 89% in Q3FY21. International caustic soda prices improved sequentially led by temporary supply disruptions in the later part of the quarter.
The paint business is making brisk progress in line with the plans. The company is in the process of hiring senior professionals and specialists for the business. It is also actively engaged in shortlisting/acquiring land for plant locations and is progressing with the engineering planning for the project.
Meanwhile, the company said that the total capex spend for FY21 stood at Rs 1,508 crore. The capex plan for FY22 (excluding paints and fertiliser) is Rs 2,604 crore, which includes the VSF expansion project at Vilayat with Line-1 scheduled to be commissioned in Q2FY22 and Line-2 in Q3FY22. Other capex includes Grasim's plans to invest towards increasing its advanced materials (epoxy) business capacity by about 125 KTPA through a brownfield expansion at the existing location of Vilayat, Gujarat. This will include standard & specialty epoxy products along with curing agents. Grasim said it will continue to play a proactive role in growing & supporting the demand growth.
The company's board has recommended a dividend of Rs 5 per equity share and a special dividend of Rs 4 per equity share for the year ended 31 March 2021.
Grasim Industries is a leading global producer of Viscose Staple Fibre, the largest Chlor-Alkali, Linen and Insulators player in India. Through its subsidiaries, UltraTech Cement and Aditya Birla Capital, it is also India's largest cement producer and a leading diversified financial services player.
Shares of Grasim Industries lost 0.08% to close at Rs 1,371.10 on BSE. The scrip hovered in the range of Rs 1,350.85 to Rs 1,375.55 during the day.
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