Grasim becomes net debt-free on standalone basis after fertiliser arm sale

In Dec quarter results, the company said its consolidated revenue was up 16% at Rs 24,402 crore while profit after tax was Rs 1,746 crore, up 26% YoY

The Aditya Birla Group flagship, Grasim Industries has become a net debt free company on a standalone basis after selling its fertiliser business.

In its December quarter results, the company said its consolidated revenue  was up 16 per cent at Rs 24,402 crore while its earnings before interest, tax, depreciation and amortisation (EBITDA) were Rs 4,107 crore. The company's profit after tax was Rs 1,746 crore, up 26 per cent on a year on year basis.

On its  viscose business, the company said the  growth in the global demand for textile products in the US and Europe led to a positive demand environment for VSF.

The strong operational performance of VSF was due to strong demand for textile products in India in the December quarter despite lockdowns announced by various state governments. The domestic textile value chain has been operating close to its peak capacity, which is led by a rise in demand.

The VSF sales volume further increased by the commissioning of brownfield expansion (300 TPD) at Vilayat. The share of value-added products in the overall sales mix increased to 29 per cent. The VFY business reported strong operational and financial performance on a sequential basis driven by strong demand and improvement in realisation despite cost pressure, the company said.