Revenue at Grasim from VSF soars 23% in Q2FY19
The net revenue from viscose staple fibre (VSF) business at Grasim Industries Limited during the second quarter of fiscal 2019 has been posted at ?2,606 crore, a jump of 23 per cent as compared to the corresponding period in the previous year. The VSF business has reported quarterly production and sales volume of 137KT and 136KT respectively. EBITDA also increased 23 per cent to ?576 crore during the second quarter of fiscal 2019. The share of the domestic sales of VSF in the overall sales rose to 84 per cent in Q2FY19 from 70 per cent in Q2FY18, led by a robust demand.
The net revenue for the quarter from the chemical business rose by 38 per cent y-o-y to ?1,612 crore and EBITDA by 60 per cent to ?456 crore driven by better realisation and higher sales volume. The management focus on increasing the volume of speciality products (chlorine based value added products) continues.
The company continues to focus on operational excellence and achieving global standards in sustainability. The industry leading reduction in water consumption at its plants and benchmark product quality are steps in this direction, Grasim said in a press release.
The Brownfield capacity expansion plan of 219 KTPA at Vilayat is progressing well. Significant ordering of the long lead items has been done. Work at site has commenced with the ground breaking ceremony in October 2018.
The VSF business continues to focus on expanding the market in India by partnering with thetextile value chain, achieving better customer connect through brand Liva and intensive research work in enriching the product mix through a larger share of specialty fibre. To cater to the expanding market, the company has commenced brown field capacity expansion at Vilayat as mentioned.
The total capex plan of ?7,500 crore (at standalone level) is under execution for raising capacities in both the VSF and chemical businesses, apart from maintenance capex at various plants. This capital expenditure will be incurred over FY19/21 and will be majorly funded by internal accruals. The cash profit generated in H1FY19 is over ?1,900 crore.
Saturday, 17 November 2018