GHCL's home textile business grows amid lower second quarter sales
By: ICN Bureau
Last updated : October 29, 2020 7:18 am
Net Revenue for Q2 FY21 is at Rs. 779 crore as compared to Rs. 826 crore in the corresponding quarter ended Sept 30, 2019.
GHCL, India’s leading chemical & textile company, net revenue for Q2 FY21 was down by 5.7% to reach Rs. 779 crore.
Numbers for the quarter were impacted due to poor performance of the soda ash division which witnessed a 11% YoY decline in revenues to ₹482 crore while EBITDA was down by 34% YoY due to sharp contraction in margins by 840bps YoY to 24.6%. Performance of the soda ash division was adversely impacted due to fall in realizations by 13% YoY. However the textiles division posted a good set of numbers for the quarter and the board has approved the demerger of the division to a separate entity.
Net Revenue for Q2 FY21 is at Rs. 779 crore as compared to Rs. 826 crore in the corresponding quarter ended Sept 30, 2019. EBITDA is at Rs. 162 crore as compared to Rs. 203 crore in the corresponding quarter last year. Net Profit (PAT) is at Rs. 78 crore as against Rs. 122 crore in the second quarter last fiscal.
The company has achieved robust performance as compared to the preceding quarter, where revenue is up by 77% from Rs. 440 crore and EBITDA is up by 93% from Rs. 84 crore, said the company.
Commenting on the financial performance, RS Jalan, Managing Director, GHCL said, “In India, since the easing of the lockdown, economic activity has started to recover. Our businesses too are returning towards normal. Better consumption patterns, robust improvement in operational efficiencies, cost reduction programs coupled with volume growth have led to improved financial performance.”
Inorganics Chemicals division’s revenue is Rs. 482 crore in Q2 FY21 as compared to Rs. 542 crore in the corresponding quarter in FY20.
Home Textiles business revenue is at Rs. 297 crore in Q2 FY21 as compared to Rs. 283 crore in the corresponding quarter in FY20.
GHCL Limited has established itself as a well-diversified group with an ascertained footprint in chemicals, textiles and consumer products segment. In chemicals, the company mainly manufactures Soda Ash (Anhydrous Sodium Carbonate) that is a major raw material for detergents & glass industries and Sodium Bicarbonate (baking soda). Consumer Products operation is another business for GHCL where it is manufacturing and selling edible salt, industrial grade salt and markets jujube honey, spices and blended spices in the country under the brand name of i-Flo.