Grasim Industries reported 26% rise in consolidated net profit to Rs 1,746 crore on a 16% increase in revenue to Rs 24,402 crore in Q3 FY22 over Q3 FY21.
EBITDA declined by 8% to Rs 4,107 crore in Q3 FY22 from Rs 4,476 crore in Q3 FY21.
With regard to Viscose business, Grasim said that the growth in the global demand for textile products in the US and Europe led to a positive demand environment for VSF. The VSF prices averaged higher in Q3FY22 compared to the previous quarter. Though towards the end of December-21, the realization started to trend downwards due to COVID concerns.
The strong operational performance of VSF has been induced by strong demand for textile products in India during Q3FY22, despite the curbs imposed by various state governments. The domestic textile value chain has been operating close to its peak capacity, which is led by the demand uptick.
The VSF sales volume for Q3FY22 were further boosted by the commissioning of brownfield expansion (300 TPD) at Vilayat. The share of value-added products in the overall sales mix increased to 29%. The VFY business reported strong operational and financial performance on a sequential basis driven by strong demand and improvement in realization despite cost pressure.
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With respect to Chemical business, Grasim said that the International caustic soda prices maintained an upward trajectory in Q3FY22, for the fourth straight quarter. The domestic caustic soda prices mirrored the global trend in caustic prices, strong domestic demand conditions also supported the prices.
The caustic soda capacity utilization stood at 93% in Q3FY22, up 7% sequentially. The Chlor Alkali business is on the path of improving the share of green power in the overall power mix from 3.4%(9MFY22) to 10% (FY23). This will further enhance the sustainability performance and will also lead to cost competitiveness.
The Advanced Materials business witnessed a YoY improvement in the operational and financial performance driven by a better product mix on the back of strong demand from the wind power segment.
With respect to Paint business, Grasim said that the company has received Environmental Clearance for two of its plant sites at Panipat and Ludhiana of the five sites as part of its Pan India footprint for paints manufacturing.
Grasim further added that the third quarter had witnessed the commissioning of various ongoing capex projects in both the VSF and Chemical business. The 300TPD line of the VSF brownfield expansion (out of total 600 TPD) at Vilayat commissioned in November 2021 is operating at full capacity, the balance 300TPD has also been successfully commissioned on 12th February 2022.
In the chlor-alkali business, BB Puram (phase-1) plant of 26KTPA was successfully commissioned in Dec-21, and the balance (47KTPA) is expected to be commissioned in Q1FY23.
The Rehla plant of 91KTPA and the Chloromethane plant of 55KTPA at Vilayat (Gujarat) was also commissioned in Q3FY22.
Grasim Industries is a leading global producer of viscose staple fibre (VSF), 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.
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