Grasim Industries Q2 Outcomes: Revenue falls 1.5% YoY to Rs 964 crore however beats estimates

on Monday reported a 1.5% YoY fall in standalone internet revenue for the quarter ended September to Rs 964.30 crore. Nevertheless, the bottomline was larger than the ET Now ballot of Rs 952 crore.

Income from operations rose practically 37% YoY to Rs 6,745.24 crore.

Earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) for the quarter elevated 19.4% YoY to Rs 956.61 crore, however margins contracted 206 foundation factors to 14.18%.

The autumn in margins was on account of a pointy rise in enter prices and different bills. Whereas enter prices elevated over 48% YoY, different bills had been 48% larger from the year-ago interval.

Income from the viscose staple fibre enterprise elevated 30% YoY to Rs 3903.14 crore, whereas the chemical substances enterprise reported a pointy 66.5% progress in gross sales to Rs 2708.48 crore.

VISCOSE BUSINESS

The worldwide man-made cellulosic fibre business witnessed a decline in demand in Q2 from the developed international economies on account of excessive inflation-led recessionary market situations.

China’s common viscose-staple fibre (VSF) working charges diminished to 66% in Q2 from 76% in Q1 on account of continued Covid-induced lockdowns in numerous cities and international demand decline. Globally, cotton costs continued to say no, with costs down 21% YoY.

The India-centric demand for VSF remained largely intact, however worth chain companions for the worldwide markets have began witnessing the affect of recessionary situations, the corporate stated in a launch.

However, VSF gross sales quantity for the quarter rose 10% YoY, despite the fact that it was 14% down on a QoQ foundation on account of demand situations coupled with cheaper imports from Indonesia and China.

CHEMICALS BUSINESS

Caustic soda gross sales quantity rose 17% YoY in Q2 on the again of latest capacities commissioned within the Oct-Mar interval of 2021-22 (Apr-Mar). World caustic soda costs softened sequentially within the final quarter, primarily as a result of easing of world provide chain situations. This has led to sequentially decrease realisations in home markets too.

Captive consumption of chlorine elevated in the course of the quarter witnessing double-digit progress on a YoY foundation. The enterprise is engaged on plans so as to add new Chlorine value-added merchandise within the portfolio to extend the chlorine integration ranges.