GHCL Limited, India’s leading Chemical & Textile company, today announced its financial results for Q1FY21. The company's revenue stood at Rs. 440 crore as against Rs. 879 crore in the corresponding period last year. Further the net profit dropped sharply and stood at Rs. 17 crore versus Rs. 103 crore last year. The COVID outbreak has affected the overall business activities of the company resulting in lower operating activity, said the company

 

Inorganics Chemicals division’s revenue stood at Rs 346 crore in Q1 FY21 as compared to Rs 588 crore in the corresponding quarter in FY20. There has been a decent recovery in the demand of downstream sectors, whereas Detergent has shown the fastest recovery, Flat Glass units have restarted recently. We expect the demand to improve by 10-15% from the current levels in the next quarter. However owing to global oversupply situation, Soda Ash pricing may remain soft. 

 

The company's textiles business revenue was at Rs 94 Crore in Q1FY 21 as compared to Rs 262 crores in the corresponding quarter in FY20. The first quarter witnessed a slow start due to lockdown restrictions resulting in subdued demand. We believe that the pandemic will result in shifting of supply chain from China to India that will benefit both the Spinning and Home Textiles. Also with the restrictions now easing out, the demand for garments and home furnishings is likely to improve. We expect a quarter on quarter improvement beginning Q2 this year. 

 

Commenting on the financial performance, R S Jalan, Managing Director, GHCL said, “As the global COVID crises evolves even further, we are now witnessing a wider impact on economies across the world. These are trying and uncertain times and understandably, there is a sense of unease and concern. At GHCL, we continue to be focused and agile, adapting to the “New Normal”. It is heartening to note that operating activities have increased due to a demand uptick in all our business segments. We are hopeful that in the upcoming quarter the utilization levels will improve further by 10-15% across all verticals and we will continue to create value for our stakeholders”.