INDIA: Grasim viscose staple fibre profits slide in Q3
Aditya Birla subsidiary Grasim Industries saw its viscose staple fibre and wood pulp profits slide during the third quarter as it admitted market conditions for the textile industry, the key consumer of its viscose staple fibre (VSF), remained challenging.
It said this was compounded by surplus VSF capacity in China, and depressed cotton prices.
Over the quarter, sales volumes were sustained at 78,579 tons. However, over the nine month period, volumes have grown by 14%, but global VSF prices declined by 14% compared to the third quarter of last year, which has led to pressure on margins.
Viscose staple fibre and wood pulp operating profit declined to INR1.14bn (US$21.4m) from INR270.44bn in the same period of the prior year. Revenue rose to INR13.08bn from INR12.47bn in the prior year period.
Overall net profit at the division fell to INR1.97bn from INR2.74bn in the prior year period. Revenue fell to INR12.2bn from 12.26 bn in the prior year period.
- TPP trade pact in milestone signing by 12 nations
- Cheap polyester contributes to cotton import shift
- Combating the new normal – 10 trends for 2016
- Under Armour defends questions over strategy
- US apparel retailers' January 2016 sales roundup
- Bangladesh factory fire renews worker safety fears
- China factory activity continues to deteriorate
- Southeast Asia – a strategic sourcing review
- H&M and Primark price rivalry reaches equilibrium
- PVH to take control of Tommy Hilfiger China unit
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Wearable technology: The future market potential for smart garments and e-textiles
- Global market review of denim and jeanswear – forecasts to 2021
- Wearable Technology Market by Product, Application, Type, & Geography - Global Forecast to 2020
- E-Textiles: Electronic Textiles 2014-2024