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Coming out of the woods: Grasim's core biz sees significant recovery in Q2

Improving prospects of core businesses to drive earnings, and better outlook for subsidiaries to reduce holding company discount

Textiles
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Grasim's core business of Viscose Staple Fibre (VSF) and Chemicals also saw a significant recovery in Q2.

Ujjval Jauhari New Delhi
Grasim Industries’ saw strong rebound in the September quarter (Q2) after significant weakness in the lockdown-impacted Q1. Capacity utilisation revived thanks to rising demand, which in turn helped realisations, too. 

With the core Viscose Staple Fibre (VSF) and chemicals businesses recovering to pre-Covid levels, analysts feel, the bottom of the business cycle is behind. The company’s consolidated performance is also expected to improve with better outlook for investment companies and subsidiaries.  For instance, the cement business, represented by UltraTech, is seeing significant earnings upgrades and rebound in stock price. Similarly, concerns over the telecom business (Vodafone Idea) are reducing. Hence, one

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