GHCL, India's leading chemical & textile company Q4FY20 net revenue was down by 20% to reach Rs. 734 crore in comparison to Rs. 915 crore in Q4FY19. 

 

The drop in revenue is equally attributable to both chemical and textiles which is largely due to softer pricing and COVID-19 impact resulting in lower volumes.

 

The EBIDTA for the quarter was Rs. 161 crore as compared to Rs. 241 crore in the corresponding previous quarter. In the inorganic chemicals the realisation is down by about 11% compared to Q4FY19. However, EBITDA is down by 4% balance has been recovered in cost and operational improvements. Net profit was at Rs. 80 crore as against Rs. 119 crore in the corresponding quarter previous year.

 

Net revenue for the year ended March 2020 was down by 3% to Rs. 3,272 crore compared to Rs. 3,385 crore in the previous financial year. Earnings before Interest, Depreciation and Taxation (EBIDTA) for the quarter is Rs. 763 crore as against Rs. 784 crore in the previous financial year 2019, with margins maintained at the same level. Net Profit (PAT) grew by 13% to Rs. 407 crore from Rs. 361 crore in FY19.

 

Commenting on the financial performance, RS Jalan, Managing Director, GHCL said, “The current COVID-19 pandemic has caused major disruptions in various business segments. The situation accentuated the need for a nationwide lockdown to comprehend the spread of the virus causing significant economic slowdown across the world."

 

"At GHCL we complied with all the regulations notified by the government from time to time. We had taken the initiative of “Work from Home” at our offices and the production facilities also remained closed for a major period of time thus impacting production and sales.

 

We received continuous support from our stakeholders including government agencies and supply chain partners. The nation is passing through a tough time today however; we believe that this disruption will create opportunities too. We assure our stakeholders that we will be agile and focused towards these opportunities."

 

In the inorganics chemicals division, revenue for the year is at Rs. 2,198 crore as compared to Rs. 2,182 crore in FY19. Home textiles business recorded a revenue of Rs. 1,074 crore in FY20 as compared to Rs. 1,202 crore in FY19 mainly due to softer yarn pricing and COVID impact during the year.