Stable realisations, volume expansion to drive Grasim's FY19 growth

The limited capacity expansion expected for the industry in FY19,as well as strong alumina and viscose demand are likely to lend support

Grasim continued its strong show in the March quarter (Q4), with its core businesses viscose staple fibre (VSF), chemicals and pulp as well as fibre reporting an improved profitability. In fact, its standalone operating profit and adjusted net profit (excluding exceptional items — loss of Rs 2.19 billion) saw growth of 70 per cent and 67 per cent, respectively. 

Revenue growth of 60 per cent came ahead of analysts’ estimates. After an initial fall, the Grasim stock closed higher on Wednesday.

VSF, the company’s largest business, continues to benefit from strong textiles demand and Q4 numbers were driven by higher realisations even