Grasim: High pricing drives Q1

Business prospects remain strong though holding company discounts post ABNL merger may widen

Grasim Industries has reported a yet another strong standalone performance in the June quarter, with the prospects of its businesses remaining equally good. Improved realisations boosted the viscose staple fibre (VSF) segment, even as volumes were impacted (flat) due to the goods and service tax (GST)-led destocking and water shortage at its Harihar (Karnataka) facility.
 
However, an 11 per cent increase in realisations pushed up revenues in the same proportion. Earnings before interest, tax, depreciation and amortisation (Ebitda) grew eight per cent, helped by a better product mix (boost realisations) and improved operating efficiency. Part of the gains was